Pet Food Ingredients Market Size, Share, Industry Growth Trends Report by Ingredient (Meat & Meat Products Cereals, Vegetables & Fruits Fats, and Additives), Source (Animal-Based, Plant Derivatives, & Synthetic), Pet (Dogs, Cats, and Fish), Form, and Region - Global Forecast to 2028
The pet food ingredients market is expected to grow from USD 34.2 billion in 2023 to USD 47.4 billion by 2028, with a compound annual growth rate (CAGR) of 6.8% in terms of value during the forecast period. There is a willingness among pet owners to invest more in premium and specialty pet foods that incorporate high-quality and innovative ingredients. This inclination towards premiumization is driving manufacturers to explore new avenues in their ingredient formulations. The increasing global trend of pet ownership, particularly in urban settings, plays a pivotal role as more individuals embrace pets in their households. This surge in pet ownership is directly contributing to the heightened demand for pet food, consequently fueling the increased need for diverse and quality pet food ingredients.
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Market Dynamics
Driver: Increase in pet expenditure with a substantial rise in pet food expenditure
The substantial increase in pet expenditure, especially on premium pet food, is a driving force behind the pet food ingredients market. Pet owners are increasingly willing to invest more in high-quality and novel ingredients, a trend known as premiumization, driven by growing awareness of pet health and nutrition. This shift in consumer behavior contributes directly to the demand for diverse and superior pet food ingredients. Manufacturers are compelled to innovate and enhance formulations to meet evolving pet owner preferences, leading to an increased market demand for ingredients that enhance overall well-being, taste, and nutritional value. The connection between heightened pet expenditure and the demand for premium pet food ingredients is further strengthened by the perception of pets as integral family members, prompting sustained growth in this market segment.
Restraint: Limited availability of ingredients and price sensitivity
The pet food ingredients market faces a notable challenge due to the constrained availability of ingredients coupled with consumer price sensitivity. With the escalating demand for premium and varied ingredients, certain key components may encounter limitations in supply, presenting hurdles in meeting the expanding market requirements. Factors such as weather conditions affecting crop yields, geopolitical issues impacting supply chains, and fluctuations in the availability of specific animal-derived ingredients contribute to this restricted availability.
Additionally, the sensitivity of consumers to prices poses challenges for both pet food manufacturers and owners. Elevated costs associated with sourcing and processing premium ingredients may lead to increased prices for pet food products. Consequently, price-conscious consumers might opt for more budget-friendly alternatives or reduce their overall spending on pet food, potentially impacting market growth.
Opportunity: Use of cannabis in pet food
The incorporation of cannabis in pet food presents a notable opportunity for the pet food ingredients market. Cannabis, specifically cannabidiol (CBD) derived from hemp, has gained attention for its potential therapeutic benefits for pets. As more pet owners seek natural and holistic approaches to pet health, the inclusion of CBD in pet food aligns with the growing trend toward wellness-focused products. CBD is believed to have calming and anti-inflammatory properties, which can be beneficial for pets dealing with anxiety, stress, or certain health conditions. The increasing acceptance of CBD in various regions, along with changing regulatory landscapes, opens up avenues for the development of innovative pet food formulations.
This opportunity allows manufacturers to cater to a growing market segment seeking alternative and natural solutions for their pets' well-being. As consumers become more educated about the potential benefits of CBD, the demand for pet food containing cannabis-derived ingredients is likely to rise. This trend not only aligns with the preferences of pet owners but also reflects the broader shift toward health-conscious and natural pet products.
Challenge: Threat from counterfeit products
The challenge presented by counterfeit products is a notable concern within the pet food ingredients market. Counterfeit ingredients often deviate from established quality standards and safety regulations, potentially comprising substandard or adulterated elements that lack essential nutrients or, more severely, contain harmful substances that can negatively impact the health of pets. The existence of such counterfeit products in the market poses a threat to the reputation of pet food manufacturers, as instances of subpar or unsafe ingredients have the potential to erode consumer trust and loyalty, adversely affecting the brand's standing within the market.
Pet Food Ingredients Market Ecosystem
Key players within this market consist of reputable and financially robust pet food ingredients manufacturers. These entities boast extensive industry tenure, offering diversified product portfolios, cutting-edge technologies, and robust global sales and marketing networks. Prominent companies in this market BASF SE (Germany), Darling Ingredients Inc (US), Cargill, Incorporated (US), Ingredion (US), DSM (Netherlands), Omega Protein Corporation (US), ADM (US), Kemin Industries, Inc (US), Chr. Hansen Holding A/S (Denmark), Roquette Frères (France), The Scoular Company (US), Symrise (Germany), Mowi (Norway), Lallemand Inc (Canada), and Phileo by Lesaffre (France). Other noticeable players also include 3D Corporate Solutions (US), Hydrite Chemical (US), AFB International (US), Gillco Ingredients (US), SARIA International GmbH (Germany), Green Source Organics (US), Biorigin (Brazil), Zinpro (US), APS Phoenix LLC (US), LaBudde Group Inc (US), FoodSafe Technologies (US), DuPont Nutrition & Health (US), and Eurotec Nutrition Group (Thailand).
Cereals to hold the second-largest share in the ingredients segment.
Cereals are projected to hold the second-largest share in the by-ingredient segment of the pet food ingredients market. This prominence can be attributed to the significant role cereals play in providing essential nutrients, particularly carbohydrates, in pet food formulations. Common cereal ingredients like rice, wheat, corn, and barley are rich sources of energy, fiber, and other vital nutrients. Pet food manufacturers often incorporate cereals to create well-balanced and cost-effective formulations. Additionally, cereals can contribute to the texture and palatability of pet food products. The popularity of cereals in pet food aligns with the nutritional requirements of pets and offers a versatile ingredient option for formulating various types of pet foods, from kibble to treats. As a result, cereals secure a substantial position in the pet food ingredient market, holding the second-largest share.
The Dogs segment is expected to hold the largest market share in the pet segment of pet food ingredients market.
The dogs segment is poised to claim the largest market share in the pet food ingredients market for several compelling reasons. Primarily, dogs stand out as one of the most popular and extensively kept pets globally, resulting in a substantial demand for pet food. The sheer magnitude of dog ownership, coupled with the cultural inclination to regard dogs as cherished companions, significantly amplifies the market share of pet food ingredients tailored specifically for dogs. Additionally, dogs manifest diverse dietary needs influenced by factors like breed, size, age, and health conditions. This diversity necessitates a broad spectrum of specialized pet food formulations, prompting pet food ingredient manufacturers to concentrate on creating a variety of formulations tailored expressly for dogs. This strategic focus contributes to the overarching dominance of the dogs segment in the pet food ingredients market.
Pet dogs have a significant dominance in the Asia Pacific market. Developing countries are also presenting a significant market for dog food ingredients because the number of adoptions in these countries has also risen steadily, owing to the growing awareness regarding the health of dogs and the rising humanization of pets. Countries like India, China, and Brazil, which present an attractive market for dog food ingredients, have a large population of stray dogs that are also adopted by several people. According to the data published by Petsecure (Australia), a pet insurance company based in Australia, the developing economies of China, Japan, the Philippines, and India account for the countries with the highest pet dog population, while India accounts for one of the fastest-growing dog population in the world.
North America to dominate the pet food ingredients market during the forecast period.
North America boasts a mature pet food industry characterized by a multitude of well-established manufacturers and distributors. This robust infrastructure streamlines the sourcing and production of a wide array of pet food ingredients. The proliferation of e-commerce has significantly enhanced accessibility for pet owners in North America, providing them with convenient access to a diverse selection of pet food options, including those featuring unique or specialized ingredients. This enhanced convenience contributes to a growing demand for a broad range of pet food ingredients. Additionally, the region's large and efficient manufacturing facilities enable economies of scale in ingredient production, enhancing cost-effectiveness and further solidifying North America's dominance in the pet food ingredients market.
The meat & meat products segment dominated the market in North America owing to their demand in the region. Meat sources serve as an excellent source of amino acids and fatty acids, along with being a rich source of vitamins and minerals. They boost the immune system of the pet animals, along with supporting their overall growth and development. Meat & meat products also enhance the palatability of pet foods, due to which they have a higher acceptance than other pet food ingredients. Since people in North America are well aware of the benefits of meat and meat products for pet health, their demand for them is high in the region.
Key Market Players
The key players in this market include BASF SE (Germany), Darling Ingredients Inc (US), Cargill, Incorporated (US), Ingredion (US), DSM (Netherlands), Omega Protein Corporation (US), ADM (US), Kemin Industries, Inc (US), Chr. Hansen Holding A/S (Denmark), Roquette Frères (France), The Scoular Company (US), Symrise (Germany), Mowi (Norway), Lallemand Inc (Canada), and Phileo by Lesaffre (France). These market participants are emphasizing the expansion of their footprint via agreements and partnerships. They maintain a robust presence in North America, Asia Pacific, South America, RoW, and Europe, supported by manufacturing facilities and well-established distribution networks spanning across these regions.
Other noticeable players also include 3D Corporate Solutions (US), Hydrite Chemical (US), AFB International (US), Gillco Ingredients (US), SARIA International GmbH (Germany), Green Source Organics (US), Biorigin (Brazil), Zinpro (US), APS Phoenix LLC (US), LaBudde Group Inc (US), FoodSafe Technologies (US), DuPont Nutrition & Health (US), and Eurotec Nutrition Group (Thailand).
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Scope of the Report
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Report Metric |
Details |
Market size estimation |
2023–2028 |
Base year considered |
2022 |
Forecast period considered |
2023–2028 |
Units considered |
Value (USD) |
Segments Covered |
By Ingredient, Pet, Source, Form, Nature and Region |
Regions covered |
North America, Europe, South America, Asia Pacific, and RoW |
Companies studied |
|
This research report categorizes the pet food ingredients market, based on ingredient, pet, source, form, nature, and region.
Target Audience
- Pet food ingredients traders, retailers, and distributors
- Pet food ingredients manufacturers & suppliers
- Related government authorities, commercial research & development (R&D) institutions.
- Regulatory bodies, including government agencies and NGOs.
- Commercial research & development (R&D) institutions and financial institutions.
- Government and research organizations.
- Venture capitalists and investors.
- Technology providers to pet food ingredients and pet food ingredients companies.
- Associations and industry bodies.
Pet Food Ingredients Market:
By Ingredient
- Meat & Meat Products
- Cereals
- Fruits & Vegetables
- Fats
- Additives
By Pet
- Dogs
- Cats
- Fish
- Other Pets
By Form
- Dry
- Wet
By Nature
- Organic
- Inorganic
By Source
- Taste Masking
- Animal-based
- Plant derivatives
- Synthetic
By Region:
- North America
- Europe
- Asia Pacific
- South America
- Rest of the World (RoW)
Recent Developments
- In June 2023, DSM has enhanced its premix capabilities in North America with the construction of a cutting-edge premix plant in Tonganoxie, Kansas. Positioned strategically in the central part of the U.S., near the core of pet food manufacturing in the country, this new plant is expected to commence operations in 2025.
- In May 2022, Darling Ingredients Inc has completed the acquisition of all shares of Valley Proteins, Inc. for an estimated USD 1.1 billion in cash. Valley Proteins oversees 18 significant rendering and used cooking oil facilities situated across the southern, southeast, and mid-Atlantic regions of the United States. With a workforce of 1,900 employees and a fleet of 550 vehicles, Valley Proteins is a notable player in the rendering and recycling industry.
Frequently Asked Questions (FAQ):
Which are the major companies in the pet food ingredients market? What are their major strategies to strengthen their market presence?
The key players in this include BASF SE (Germany), Darling Ingredients Inc (US), Cargill, Incorporated (US), Ingredion (US), DSM (Netherlands), Omega Protein Corporation (US), ADM (US), Kemin Industries, Inc (US), Chr. Hansen Holding A/S (Denmark), Roquette Frères (France), The Scoular Company (US), Symrise (Germany), Mowi (Norway), Lallemand Inc (Canada), and Phileo by Lesaffre (France). These players in this market are focusing on increasing their presence through agreements and collaborations. These companies have a strong presence in North America, Asia Pacific, and Europe. They also have manufacturing facilities along with strong distribution networks across these regions.
What are the drivers and opportunities for the pet food ingredients market?
The pet food ingredients market is driven by the increasing trend of pet ownership, particularly in urban areas, leading to a rise in demand for pet food. Consumers' willingness to spend more on premium and specialty pet foods, emphasizing high-quality and novel ingredients, propels market growth. Additionally, the opportunities in this market lie in the exploration of innovative ingredients, such as the integration of cannabis for potential health benefits, aligning with the growing awareness of pet health and wellness. Meeting these evolving consumer preferences and capitalizing on emerging trends present key drivers and opportunities for the pet food ingredients market.
Which region is expected to hold the highest market share?
The dominance of North America in the pet food ingredients market can be attributed to various factors. A substantial number of households in the region consider pets as integral family members, fostering a robust culture of pet ownership and driving a significant demand for pet food. Moreover, the prevalent trend of premiumization in pet food, where consumers actively seek high-quality and specialized ingredients, is notably pronounced in North America. The continuous introduction of innovative and diverse pet food products further contributes to the region's market growth.
Which are the key technology trends prevailing in the pet food ingredients market?
Next-generation proteins for pet food ingredients refer to innovative and alternative protein sources that go beyond traditional options like meat and poultry. This technology analysis in the pet food ingredients market involves the exploration and utilization of novel protein sources, such as plant-based proteins (from sources like peas, lentils, and algae), insect proteins, and cultured or lab-grown proteins. These next-gen proteins aim to address sustainability concerns, dietary preferences, and potential allergens. Plant-based proteins cater to the rising demand for vegetarian and vegan pet diets, insect proteins offer a sustainable alternative with a minimal environmental footprint, and cultured proteins provide an ethical and efficient way to produce meat without traditional farming.
What is the total CAGR expected to be recorded for the pet food ingredients market during 2023-2028?
The CAGR is expected to record as of 6.8% from 2023-2028. .
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The study involved four major activities in estimating the current size of the pet food ingredients market. Exhaustive secondary research was done to collect information on the market, peer market, and parent market. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the complete market size. After that, market breakdown and data triangulation were used to estimate the market size of segments and subsegments.
Secondary Research
This research study involved the extensive use of secondary sources—directories and databases such as Bloomberg Businessweek and Factiva—to identify and collect information useful for a technical, market-oriented, and commercial study of the pet food ingredients market.
In the secondary research process, various sources such as annual reports, press releases & investor presentations of companies, white papers, certified publications, articles from recognized authors, gold & silver standard websites, directories, and databases, were referred to identify and collect information. This research study involved the extensive use of secondary sources—directories and databases such as Bloomberg Businessweek and Factiva—to identify and collect information useful for a technical, market-oriented, and commercial study of the pet food ingredients market.
Secondary research was mainly used to obtain key information about the industry’s supply chain, the total pool of key players, and market classification and segmentation as per the industry trends to the bottom-most level, regional markets, and key developments from both market- and technology-oriented perspectives.
Primary Research
Extensive primary research was conducted after obtaining information regarding the pet food ingredients market scenario through secondary research. Several primary interviews were conducted with market experts from both the demand and supply sides across major countries of North America, Europe, Asia Pacific, the Middle East & Africa, and South America. Primary data was collected through questionnaires, emails, and telephonic interviews. The primary sources from the supply side included various industry experts, such as Chief X Officers (CXOs), Vice Presidents (VPs), Directors, from business development, marketing, research, and development teams, and related key executives from distributors, and key opinion leaders. Primary interviews were conducted to gather insights such as market statistics, data on revenue collected from the products and services, market breakdowns, market size estimations, market forecasting, and data triangulation. Primary research also helped in understanding the various trends related to ingredients, pet, source, form, and region.
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Market Size Estimation
Both the top-down and bottom-up approaches were used to estimate and validate the total size of the Pet Food Ingredients Market. These approaches were also used extensively to estimate the size of various dependent submarkets. The research methodology used to estimate the market size includes the following:
- Key players were identified through extensive secondary research.
- The industry’s value chain and market size were determined through primary and secondary research.
- All percentage share splits and breakdowns were determined using secondary sources and verified through primary sources.
- All the possible parameters that affect the markets covered in this research study were accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data.
- The following figure provides an illustrative representation of the complete market size estimation process implemented in this research study for an overall estimation of the pet food ingredients market in a consolidated format.
The following sections (bottom-up & top-down) depict the overall market size estimation process employed for the purpose of this study.
Global Pet Food Ingredients Market: Bottom-Up Approach
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Global Pet Food Ingredients Market: Top-Down Approach
With the data triangulation procedure done both through the bottom-up approach (demand side, by ingredient segment) and top-down approach (supply side, by competitor sales revenues) and validation of data through primaries, the overall size of the parent market size and size of each market were determined.
Data Triangulation
After arriving at the overall market size from the estimation process explained above, the total market was split into several segments and subsegments. The data triangulation and market breakdown procedures were employed, wherever applicable, to estimate the overall pet food ingredients market and arrive at the exact statistics for all segments and subsegments. The data was triangulated by studying various factors and trends from the demand and supply sides. Along with this, the market size was validated using both the top-down and bottom-up approaches.
Market Definition
According to the Association of American Feed Control Officials (AAFCO), a pet food manufacturer is allowed to claim its food as “complete and balanced” by meeting an AAFCO nutrient profile (dog or cat) or by passing a feeding trial. All ingredients used in pet food must be appropriate for the pet, and all pet food must be acceptable either by the AAFCO ingredients definition process or by the FDA-CVM or be self-affirmed GRAS (Generally Recognized As Safe).
Key Stakeholders
- Key manufacturers of animal nutrition products
- Key companies engaged in pet food processing
- Key manufacturers of pet food ingredients
- Traders, distributors, and suppliers in the pet food ingredients market
- Traders and suppliers of raw materials to the pet food ingredient industry
- Related government authorities, commercial R&D institutions, and other regulatory bodies
- The Association of American Feed Control Officials (AAFCO)
- Pet Food Manufacturers Association (PFMA)
- The Pet Food Industry Association of Australia
- American Pet Products Association, Inc. (APPA)
- Canadian Association of Raw Pet Food Manufacturers
Report Objectives
Market Intelligence
- Determining and projecting the size of the pet food ingredients market with respect to form, source, ingredient, pet, and region.
- Identifying the attractive opportunities in the market by determining the largest and fastest-growing segments
- Providing detailed information about the key factors influencing the market growth (drivers, restraints, opportunities, and industry-specific challenges)
- Providing the regulatory framework and market entry process related to the pet food ingredients market
- Analyzing the micro markets with respect to individual growth trends, prospects, and their contribution to the total market
Competitive Intelligence
- Identifying and profiling the key players in the pet food ingredients market
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Providing a comparative analysis of market leaders based on the following:
- Product offerings
- Business strategies
- Strengths and weaknesses
- Key financials
- Understanding the competitive landscape and identifying the major growth strategies adopted by players across the country
- Providing insights on key product innovations and investments in the pet food ingredients market
Available Customizations:
With the given market data, MarketsandMarkets offers customizations according to company-specific scientific needs.
The following customization options are available for the report:
Product Analysis
- Product Matrix, which gives a detailed comparison of the product portfolio of each company.
Geographic Analysis
With the given market data, MarketsandMarkets offers customizations according to company-specific scientific needs.
- Further breakdown of the Rest of Europe into Netherlands, Poland, and other EU & non-EU countries
- Further breakdown of the Rest of Asia Pacific into New Zealand, Thailand, and Vietnam.
- Further breakdown of the Rest of South America into Colombia, Paraguay, Peru, and other South American countries
Company Information
- Detailed analyses and profiling of additional market players (up to five)
Growth opportunities and latent adjacency in Pet Food Ingredients Market
Interested to understand more about the regulatory environment by country for this Pet Food Ingredients Market.
Need data on imports of ingredients for pet food into the US.
Interested in market information regarding cut meat & meat Products by animal type - poultry, beef, lamb, seafood. What is the Deboned Poultry market worth?
Looking for information about the Pet food industry and companies that are using fish oil in their food.
Interested in individual sections/tables from this report.
Looking for more detailed information on the pet food ingredients market specific to each ingredient market segment and region.
Interested in purchasing an excerpt and table of contents.
Interested in knowing market share by company.
As a pet food manufacturer, interested in detailed market information
We are interested in the price for this study, and if marine proteines are covered by the study? Kind Regards; Jon Aulie/President
Interested in company profiles of raw material suppliers and traders in India.
Interested in analyzing the market of products related to pet food industry.