The global market for pet foods is projected to exceed $95 billion by the year 2017, according to a new report from Global Industry Analysts, Inc. (GIA) titled “Pet Foods: A Global Strategic Business Report,” with macro regional economic conditions, pet population and consumer attitude driving the market forward. Due to changing lifestyles, an increase in “alone or single-person families” and decreasing birthrate, pets are being considered as family members and companions rather than just animals. Factors such as attitudinal change toward pets combined with growing urbanization, and increase in disposable incomes have contributed significantly to the increase in number of households owning pets, which in turn, drives the demand for pet foods.
The pet food industry witnessed a significant increase in size in the last few years, with the market structure evolving as per the current requirements of the dynamic industry. In addition, pet foods represent one of the fastest growing sectors in the food industry. The industry has been growing on account of increased market segmentation and producer innovation. Numerous factors such as increased popularity of organic pet food, and greater interest in nutrition and health of pets are driving the pet foods market. Private label cat and dog food brands are increasingly being used in developing markets. There is also a growing preference for adoption of smaller pets in some parts of the world, as they are considered economical and require relatively less maintenance compared to larger dogs and cats. The rise in popularity of small pets has resulted in a considerable growth in the small animal food market.
The humanization trend in mature markets is stimulating demand for value-added products, such as functional pet foods and nutraceuticals. Research and development is also anticipated to drive the market with innovative products incorporating advanced formulations. Other market propelling factors include brand value enhancement in major developed markets as well as improved delivery and supply services, aimed at consolidation of multiple grocery retailers. Against this backdrop, the future for pet foods appears robust, with demand for healthy and premium-end foods for pets providing the needed impetus.