Pet food industry expected to grow through 2020
According to Zion Research's new report, U.S. Pet Food (Dry Food, Wet Food and Treat & Snacks/Mixers) Market for Dogs, Cats and Other Pets, 2014 - 2020, the U.S. pet food industry is expected to reach U.S. $28.19 billion in 2020, up from U.S. $23.15 billion in 2014, growing at a CAGR of 3.4% during 2015-2020 period. The growth will be triggered by an increase in pet humanization and growing pet health concerns.
Plants or animal extracts are key raw materials used in the manufacture of pet food products. Pet food products are manufactured according to the nutritional value of the raw materials that go well with the requirements of the type and age of the animal being fed. Pet food products in U.S. are sold through retail outlets in supermarkets and specialized pet stores.
The pet food market growth in U.S. is triggered by increase in pet humanization and growing pet health concerns further supported by revival in economy. People in the region are more concerned about fulfillment of the physical and emotional need of their pet. This has resulted into increase in spending on providing good quality food products to their pets. Further, increase in pet health concerns has made pet owners to shift towards healthy and nutritious food that is exclusively prepared according to the age and type of pet. U.S. is mature market for pet food products and the package, label, and other claims by pet food companies influence the purchase trends.
However, ever increasing product recalls and increasing pet obesity have posed major threat to the pet food industry in U.S. market. Obesity has become very common problem with pets such as dogs and cats. Over 50% dogs and cats in U.S. are facing health problems owing to obesity. Moreover, arthritis and heart disease are other ailments affecting aging pets, thus discouraging the adoption of pets.
The pet food market is mainly segmented into dry food, wet food and treat & snacks/mixers. Dry food was the largest market segment of pet food industry in U.S. Wet food was the second largest market segment with around 20% share in total sales in 2014. Treat & snacks/mixers is small volume market and holds small market share. In terms of revenue, dog food accounted for largest market share followed by cat food segment with around 30% share in total revenue generated in year 2014.
The U.S. pet food industry is characterized by the presence of a large number of pet food product manufacturers. Intense competition among manufacturers has resulted in an increasing focus on research and development.