Global Organic Pet Food Market Grows Steadily at a CAGR of 5%

Introduction

Pet food is an animal feed formulated for consumption by canines. It is commonly available in supermarkets and pet stores and is typically species-specific, such as dog and cat food. Organic pet food contains only natural ingredients and is free of synthetic fertilizers, artificial coloring, pesticides, antibiotics, and chemical byproducts. Organic pet food consists of organic meats, fruits, vegetables, minerals, and vitamins and contains high levels of nutrients. In addition to boosting immunity, reducing allergies and skin conditions, minimizing digestive issues, extending life expectancy, and maintaining a healthy weight, organic pet food provides several additional health benefits.

Market Dynamics

Rising Trend of Humanization of Pets Drives the Global Market

The "pet humanization" trend has taken off in several regions globally, with consumers treating pets as family members. More individuals in the United States, China, Europe, and other regions now consider their pets family members. In addition, they invest significantly in their pets. With this humanization of pets, pet food has also become humanized. It has progressed, and many consumers invest additional time or money to obtain natural, high-quality pet food.

Pet owners expect the products they purchase for their pets to satisfy the same standards as those they purchase for themselves. Further, consumers prefer fewer artificial ingredients and additives that function as preservatives, prefer organic products, and demand longer shelf lives for pet products. Likewise, as the global percentage of households with at least one companion rises, it is anticipated that the demand for premium pet food, particularly organic pet food, will increase substantially in the coming years.

Demand in Emerging Markets Creates Tremendous Opportunities

There are several rapidly expanding emerging segments in the pet industry. For example, India is home to approximately two billion domesticated canines. Approximately 19 million other domestic creatures are kept in homes, and an additional six lakhs are adopted annually. Similarly, Brazil's swiftly urbanizing middle class is working more, earning more, purchasing an increasing number of dogs as pets, and having children later. According to the Brazilian news website G1, there are 52.2 million dogs maintained as pets in the country, compared to 44.9 million children aged 0 to 14. In addition, pet ownership is rising in Asian nations like Indonesia, the Philippines, Thailand, and Taiwan. Rising consumer awareness and the high propensity of millennial consumers to purchase organic pet food, coupled with rising disposable income in the region, will create lucrative growth opportunities for organic pet food marketers investing in these emerging markets.

Regional Analysis

North America is the most significant global organic pet food market shareholder and is anticipated to exhibit a CAGR of 8.61% over the forecast period. Rapid growth in demand for organic pet food is attributable to rising consumer awareness of the positive impact on pet health. The U.S. is expected to contribute the most to the North American market. The increasing popularity of pet adoption among millennials is anticipated to further market expansion. According to the American Pet Products Association (APPA), approximately 38 percent of Americans own cats, with an average of two cats per household. In addition, dogs are the most widely adopted pets in the region, and key players emphasize providing pet food to capture a substantial share of the organic pet food market. The positive attitude of North American consumers toward pet humanization and its widespread adoption is driving the expansion of the organic pet food market.

Europe is estimated to exhibit a CAGR of 8.7% over the forecast period. Due to increased pet ownership, Europe's market share for organic pet food will continue to expand in the coming years. The trend toward adopting pets is also prevalent in Europe. The primary aspect driving the expansion of the organic pet food market in Europe is the increasing demand for nutritious pet foods. Moreover, Europe is considered a significant market for organic pet food focused on quality. The European Pet Food Industry Organization states that nearly 80 million European households have a companion. According to the Industry Association of Pet Care Manufacturers, Germany, with 34.3 million pets and 83 million of the world's wealthiest consumers, is a significant market for organic pet food products. As per the annual reports of the European Pet Food Industry, there were over 140 million cats and dogs in Europe in 2017. Consequently, the European organic pet supply market is expected to expand.

Key Highlights

• The global organic pet food market was valued at USD 20.7 billion in 2022. It is estimated to reach USD 32.58 billion by 2031, growing at a CAGR of 5% during the forecast period (2023–2031).
• Based on type, the global organic pet food market is divided into dry organic pet food and wet organic pet food. The dry organic pet food segment is the most significant contributor to the market and is estimated to grow at a CAGR of 8.83% over the forecast period.
• Based on end-user, the global organic pet food market is bifurcated into cat, dog, fish, bird, and other animals. The dog segment dominates the global market and is projected to exhibit a CAGR of 8.97% over the forecast period.
• Based on the distribution channels, the global organic pet food market is segmented into hypermarkets/supermarkets, pet shops, online stores, and other retail stores. The hypermarkets/supermarkets segment owns the highest market share and is estimated to exhibit a CAGR of 8.30% during the forecast period.
• North America is the most significant global organic pet food market shareholder and is anticipated to exhibit a CAGR of 8.61% over the forecast period.

Competitive Players

Competitive Players

The key players in the global organic pet food market are Mars Petcare Inc, Nestlé Purina PetCare, Merrick Pet Care, Inc., C.J. Foods, BrightPet Nutrition Group, Avian Organics, Evanger Dog & Cat Food Company, The Honest Kitchen, Harrison’s Bird Foods, and Newman’s Own, Inc.

Recent Developments

Market News

• In February 2023, Fera Pet Organics introduced two new supplements for cats and dogs: Calming Support and Liver Support. According to the company, the products are formulated with probiotic strains to support animal health and are supported by science.
• In February 2023, AlphaPet Ventures, Europe's premier digital brand platform for premium pet food, acquired Herrmann GmbH's Herrmann's Manufaktur brand. The acquisition of the market leader in organic wet food strengthens AlphaPet's premium brand platform's strategic expansion.

Segmentation

Global Organic Pet Food Market: Segmentation

By Type

• Wet Organic Pet Food
• Dry Organic Pet Food

By End-User

• Cat
• Dog
• Fish
• Bird
• Other Animals

By Distribution Channel

• Hypermarkets/Supermarkets
• Pet Shops
• Online Stores
• Other Retail Stores

By Regions

• North America
• Europe
• Asia-Pacific
• RoW