Functional Pet Food Market Size, Share & Trends Analysis Report By Pet (Dog, Cat, Others), By Source (Organic, Conventional), By Applications (Bone Health, Brain Health, Obesity, Heart Health, Others), By Distribution Channel (Pet Stores, Pharmacies, Veterinary Clinics, Online Stores, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The functional pet food market size was valued at USD 2.19 billion in 2021. It is projected to reach USD 4.56 billion by 2030, growing at a CAGR of 8.5% during the forecast period (2022-2030). 

In the context of a well-balanced diet, functional meals can promote health when consumed regularly with good active ingredients, according to veterinary pet experiments. Functional pet foods are designed to give pets a high-nutrient diet for their general wellness. Practical pet meals are food that has been processed and has the necessary minerals, carbs, proteins, and lipids added. They enhance pet health and fulfill the nutritional and mineral needs of animals. Pet owners are now more conscious of their pets' behavior, physical fitness, and general health thanks to pet humanization. To keep their animals healthy and disease-free, pet owners have switched from feeding them food with allergens to feeding them functional food.

Market Dynamics

Global Functional Pet Food Market Drivers

Increase in Humanization of Pets

A significant and defining trend in the pet care industry, particularly in industrialized nations, has been the transition from pet ownership to parenting. In affluent countries, one-third of households have a pet. The manufacturing of pet food and functional pet food to enhance these animals' health is becoming increasingly popular among pet owners. Additionally, there has been an increase in pet adoption due to the numerous advantages they offer, including more opportunities for exercise and stress reduction.

According to research by the American Veterinary Medical Foundation (AVMF), nine out of 10 Americans who own pets view them as members of their families. In addition, the 2018 National Pet Owners Survey by the American Pet Products Association (APPA) found that 68% of American households had a pet. The amount spent on pets in the nation climbed from 41.2% in 2007 to 69.4% in 2018, with pet food accounting for more than 40% to 45% of the total.

Global Functional Pet Food Market Restraint

Lack of Knowledge about the Advantages of Functional Pet Food

Pet owners must actively participate in deciding the diet of their animals. They are expected to make dietary decisions based on various factors, including their nutritional needs knowledge, perceptions of nutritional value, marketing and advertising of pet care products, and the safety of feed application. However, the market's expansion is constrained by ignorance regarding the nutritional value of functional pet food.

Traditional Pet Feeding Practises

Most of the populace in developing countries, including China and India, is unaware of pet vitamins, functional foods, and pet food, and they place little value on taking care of their pets. In the past, owners provided milk and homemade food for their cats, dogs, and other pets, including leftovers and crumbs from meals. The traditional method of feeding pets is anticipated to impede the market's expansion for functional pet food.

Global Functional Pet Food Market Opportunities

Increasing Demand for Organic Components and Product Innovation

The introduction of goods using organic and natural ingredients is anticipated to challenge the notion that the functional pet food industry employs artificial ingredients or ingredients with chemical additions. Consumers are increasingly choosing items with organic labeling to avoid being impacted by chemicals and synthetic applications. As a result, several functional pet food processing firms are developing products based on organic ingredients in high demand among pet owners.

Pet owners are increasingly finding organically labeled pet food and supplements as awareness of the advantages and positive impacts of organic functional pet food grow. It is anticipated that expanding application innovation and rising consumer acceptance of organic pet supplements would open up attractive business prospects for producers of functional pet foods.

Increased E-Commerce Sales

Pet owners are increasingly choosing online retailers like Amazon over neighborhood hypermarkets or other grocery outlets. Some advantages provided to pet owners by e-commerce sales include the simplicity of purchasing various pet food items, a broader range of selections, and the availability of home delivery possibilities. As a result, internet sales of pet food worldwide increased in 2015.

In addition to developing countries, developed markets also saw an increase in e-commerce sales. According to sources, Chewy.com and Amazon.com had more than 80% of the need for buying pet food online in the United States. With very tiny market shares in the entire business, other e-commerce websites, including Walmart.com, Petfooddirect.com, and Petco.com, also experienced significant growth.

Regional Analysis

The global functional pet food market is divided into four regions, namely North America, Europe, Asia-Pacific, and LAMEA. 

North America Dominates the Global Market

North America is the most significant shareholder in the global functional pet food market and is expected to grow at a CAGR of 7.70% during the forecasted period. North America commanded the most significant market share for functional pet food in 2021, and it is expected that trend will hold over the forecast period. One of the key factors driving market expansion in this region is the high rate of pet ownership and rising purchasing power for pet care products, including health and grooming items. Some factors driving the demand for functional pet food in the North American region include the growing tendency of nuclear families, the humanization of pets, and the adoption rate of pets, particularly among young people. Additionally, pet owners' increased knowledge of nutritional diversity encourages them to choose specialized treats and valuable food items.

Asia-Pacific is expected to grow at a CAGR of 10.90%, generating USD 1,788.85 million during the forecast period. The markets for functional pet foods in China, Japan, Australia, India, and the rest of Asia-Pacific are analyzed in the Asia-Pacific market. Due to rising disposable income, rising standards of living, and spending on pet health, Asia-Pacific is anticipated to be a very lucrative market for pet supplements. Additionally, companies that produce pet care products are heavily investing in developing nations like China and India because it is anticipated that these nations will experience significant growth opportunities due to an increase in product demand brought on by the rise in the population of companion animals. Companies that process and manufacture functional pet food use cutting-edge packaging techniques to set their products apart from their industry rivals.

Europe is expected to grow significantly over the forecast period. The markets for functional pet foods in Germany, Russia, France, the UK, Italy, Spain, and the rest of Europe are analyzed in the region. The adoption of more snakes, turtles, and tortoises and rising consumer expenditure on pet care goods such as food and supplies for grooming and health are anticipated to drive the market's expansion during the forecast period. This is primarily attributable to an increase in the adoption of exotic or wild animals, cross-breed pets, and pets in general, as well as a rise in public awareness of pet health issues. The market for functional pet food in Europe is anticipated to rise with the growing acceptance of strange or wild animals as pets. The flying squirrel, hedgehog, fennec fox, skunk, savannah cat, tiger, wallabies, and genets are examples of unusual or wild animals.

In LAMEA, the market for functional pet food is still expanding significantly. Tigers and other wild creatures are being taken in as pets in LAMEA. The Middle East and Africa's growing pet populations are crucial factors in the market's expansion. The demand for functional pet foods is also seeing a trend in marketing and labeling. One of the hot problems for pets worldwide is health. Manufacturers of functional pet foods are promoting and launching their products by drawing attention to various health problems, including obesity, brain health, and others.

Segmental Analysis

The global functional pet food market is segmented by Pet, source, application, and distribution channel.

By Pet Analysis

Based on the pet, the global functional pet food market is bifurcated into dog, cat, and others.

The dog segment is the highest contributor to the market and is expected to grow at a CAGR of 8.85% during the forecast period. The majority of people recognize dogs as domesticated mammals. They make popular pets since they are frequently playful, amiable, devoted, and obedient to people. Dogs of all breeds, including Labrador retrievers, bulldogs, German shepherds, golden retrievers, poodles, and beagles, are adopted by people. When compared to other companion animals, dogs are more popular for adoption. Dogs are currently one of the most popular pet species worldwide. Owners are becoming more worried about the health of their pets, which is why they provide their dogs with a variety of premium and super-premium functional food, including supplements made from natural and organic ingredients.

Cat adoption has increased significantly worldwide because of their low care requirements. It is predicted that an increase in cat adoption and spending on cat care goods, such as health care and grooming, will support market expansion for functional pet food over the forecast period. The second-largest consumers of pet food worldwide are cats. They are obligate carnivores and need high-quality proteins and amino acids predominantly found in meat. Wet food should be provided to cats at least once a day to give them hydration and prevent urinary infections, according to veterinarians and cat specialists. Furthermore, a significant element driving the market's growth is the rise in people's concerns about the health and hygiene of cats.

By Source Analysis

Based on the source, the global functional pet food market is bifurcated into organic and conventional.

The conventional segment owns the highest market share and is expected to grow at a CAGR of 8.60% over the forecast period. Traditional functional pet food holds the highest share in the globally available pet food market and is expected to sustain its position during the forecast period. Pets help people deal with stress and depression resulting from loneliness and a hectic and busy life schedule. Furthermore, the rise in the trend of taking pets out, especially dogs, while exercising and jogging contributes to the increased adoption of these pets. Therefore, this increases the demand for conventional functional pet foods.

Organic functional pet foods are more natural than conventional available pet food. Organic functional pet foods are processed and formed with non-synthetic compounds. The rise in awareness regarding the benefits of organic or natural ingredient-based functional pet food drives the growth of the organic available pet food market during the forecast period. The benefits of organic functional pet food include no animal byproducts, reduced allergies, and maximized life expectancy of pets.

By Application Analysis

Based on application, the global functional pet food market is bifurcated into bone health, brain health, obesity, heart health, and others.

The obesity segment is the highest contributor to the market and is anticipated to grow at a CAGR of 9.40% over the forecast period. Compared to non-fat dogs and cats, obese pets may have a lower quality of life. Too much adipose tissue or fat in the body is a significant cause of obesity in pets. Pets are considered obese when their body weight is at least 20% above their ideal weight, according to the standard definition of obesity in animals. Insufficient exercise and excessive food consumption are the two leading causes of obesity in pets. Pet owners are becoming increasingly interested in functional pet food for obesity. Pet animals who are obese have several health problems, including breathing problems and shorter lifespans.

Pets who receive little or inappropriate nutrition can experience bone health issues, a relatively prevalent condition. For example, according to Dr. Felix Duerr, assistant professor of small animal orthopedics and sports medicine at Colorado State University College of Veterinary Medicine & Biomedical Sciences, dog bone health has significantly improved overall. Dr. Duerr stated that many domestic pets, particularly dogs, require owners to continue to be concerned about and pay attention to their bone health. Growing canines and large breeds more vulnerable to osteoarthritis and developmental bone diseases increase the demand for pet foods that support bone health.

By Distribution Channels Analysis

Based on distribution channels, the global functional pet food market is bifurcated into pet stores, pharmacies, veterinary clinics, and online stores.

The pet retailers segment owns the highest market share and is anticipated to grow at a CAGR of 8.60% over the forecast period. A pet store, also referred to as a specialty pet shop, offers a variety of pets, foods, and supplies, all under one roof. The availability of a wide variety of pet foods, including dry food, nutritious food, and diet formulations, has met pet parents' requirements. After online sales, specialty pet stores are the sales channel with the second-fastest growth. Customers benefit from having more specific options that are tailored to the needs of their dogs. For instance, the veterinarian diet sold by PetCo helps dogs and cats' immune systems and encourages healthy fur. PetCo, Petland, Pet Valu, and PetSmart are just a few of the many pet shops that can be found in Canada.

A pharmacy is a retail establishment that sells things like prescription medications. Customers can purchase medicines, vitamins, functional pet food, and pet nutraceuticals from pharmacies. Pet animals are susceptible to the same illnesses that affect humans at any time, including cancer, diabetes, eye and ear infections, itchy skin rashes, and stressful heart issues. Pharmacies play a crucial role by offering vitamins, functional foods, and medications. A pharmacy is the most practical and straightforward location to obtain needed medications and pet food. The growth of the available pet market through pharmacies is anticipated to be aided by expanding pharmacies, rising pet spending, and worries about pet health.

Impact of covid-19

Recent Developments

• July 2021- The production facility for Nestlé Purina PetCare Co.'s pet care products in King William County, Virginia, received a USD 182 million investment. The facility extension will involve a 138,000-square-foot buildout and is forecasted to be completed by the end of 2023, increasing the company's ability to produce Tidy Cat litter products.
• June 2021- Mars Inc. expanded its product line in India by introducing wet cat food under the Whiskas brand. Pet shops, grocery stores, and online shopping sites carry the new product line.