A recent market research report published by Meticulous Research has outlined a robust forecast for the global pet food ingredients market, estimating a substantial growth trajectory to reach US$73.3 billion by 2031. The market is projected to expand at a Compound Annual Growth Rate (CAGR) of 8.5% from 2024 to 2031.
The report highlights several key factors driving this growth, including the escalating pet population worldwide, coupled with a notable increase in expenditure on pet food. Furthermore, the rising demand for premium pet food and a growing emphasis on pet health and wellness are significant contributors to this expansion. Despite these positive indicators, challenges such as stringent regulatory structures and fluctuating raw material prices are expected to impede market growth.
Key trends identified in the report that will propel growth opportunities within the pet food market include the increased availability and acceptance of novel pet food ingredients, as well as the emergence of direct-to-consumer (D2C) brands and startups within the pet food sector. However, the report cautions against the challenge of counterfeit products, which could potentially hinder market growth.
The report underscores North America as a prominent hub for pet food ingredients. Nevertheless, the pet populations in Brazil and Latin America are emerging as significant areas of interest due to their rapid growth rates.
Key Insights from the Global Pet Food Ingredients Market
- The animal-based ingredients segment is projected to dominate the global pet food ingredients market, accounting for 72% of the market share. This segment’s growth is attributed to the widespread adoption of animal byproducts in pet food manufacturing, driven by their high protein content, balanced amino acid profiles, easy digestibility, and palatability.
- The novel ingredients segment is anticipated to witness the highest CAGR during the forecast period, propelled by increased acceptance, accessibility, and health benefits. Factors such as a surge in novel food ingredient manufacturers, heightened R&D investments, growing demand for premium pet food products, and rising consumer interest in sustainable pet food sources will further bolster this market.
- The veterinary diets segment is expected to register the highest CAGR during the forecast period, driven by an increasing demand for health-oriented pet food products, specialized products for different pet breeds, and formulations catering to pets of varying ages and physiological needs.
- In terms of pet types, the dogs segment is predicted to dominate the market, reaching US$52 billion by 2031. Conversely, the ornamental fish segment is forecasted to witness the highest CAGR, exceeding 10%, owing to rising disposable incomes, growing interest in aquarium fish, awareness of their therapeutic benefits, and demand from the hospitality sector for enhancing aesthetics.
Significant Growth in Latin America
Geographically, the global pet food ingredients market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa.
- North America is anticipated to hold the largest market share (32%) in 2024, valued at US$13.4 billion. Factors contributing to this dominance include an increasing number of millennial pet owners, a concentration of pet food manufacturers, a heightened focus on pet health and diets, and the presence of major industry players.
- The Latin America pet food ingredients market is poised for significant growth during the forecast period, driven by heightened awareness of pet health and nutrition, increased spending on pet food products, rising per capita disposable income, urbanization trends, and the prevalence of nuclear families.
- Brazil is expected to exhibit the highest CAGR during the forecast period, attributed to its substantial pet dog population (ranking second globally), alongside a burgeoning middle class and increased pet ownership trends.
In summary, the global pet food ingredients market is on a robust growth trajectory, buoyed by evolving consumer preferences towards premium pet food products, heightened awareness of pet health, and significant demographic shifts impacting pet ownership and expenditure. The forecasted expansion underscores opportunities across various ingredient segments and geographic regions, emphasizing the dynamic landscape of the pet food industry.
