The global organic pet food market size was valued at USD 2000 million in 2022. It is estimated to reach USD 3800 million by 2031, growing at a CAGR of 7.2% during the forecast period (2023–2031).
Animal feed formulated for ingestion by pets is known as pet food. It is frequently offered in supermarkets and pet stores and is usually tailored to animal species, like dog or cat food. Organic pet food comprises organic ingredients devoid of synthetic fertilizers, artificial coloring, pesticides, antibiotics, and chemical by-products. Organic pet food has high levels of nutrients and comprises organic meats, fruits, vegetables, minerals, and vitamins.
In addition to increasing immunity, lowering allergies and skin conditions, reducing digestive issues, extending life expectancy, and keeping a healthy weight, organic pet food offers several other health advantages. Depending on the texture, the food is typically packaged as snacks, treats, kibble, liquid supplements, pellets, etc. It is sold in various bags, pouches, cans, trays, and other containers.
The "pet humanization" trend has taken off in several parts of the world, and consumers are treating pets as members of their families. Wider ranges of people in the United States, China, Europe, and other regions now consider pets family members. Moreover, they are also spending heavily on their pets. With this humanization of pets comes a humanization of pet food. It has evolved to the point that several consumers are spending extra money or effort to obtain natural, high-quality pet foods.
Additionally, pet owners are demanding that the products they purchase for their pets meet their expectations for the products they purchase for themselves. Consumers also prefer fewer artificial ingredients and additives that act as preservatives and request organic products while demanding longer shelf life for products for their pets. Likewise, as the percentage of households with at least one companion increases globally, it is anticipated that the demand for premium pet food, especially organic pet food, will increase significantly in the subsequent years.
Pet ownership is rising, especially in the United States, China, Latin America, and Russia. The American Pet Products Association's 2019-2020 National Pet Owners Survey found that 85 million families, or 67% of U.S. households, have pets. Additionally, an increase in pet ownership will be witnessed over the forecast period, largely driven by the younger population in the country. Rapid urbanization, changing lifestyles, and a growing millennial demographic are driving the adoption of pets.
Furthermore, these pet owners are becoming more aware of pet health, such as weight, allergies, and dietary tolerances. With the rising consumer consciousness and increasing spending capacity of these consumers, the demand for top-quality pet food is increasing. Therefore, due to the increase in awareness of the health and well-being of pets coupled with the growing pet ownership, the demand for organic food is expected to rise over the forecast period.
Sales of organic foods are significantly lower than sales of conventional foods since organic foods are often more expensive. The average cost per pound of pet food is USD 2.28, which jumps to USD 3.66 a pound for organic pet food. Due to the higher labor inputs per unit of output and the inability to attain economies of scale due to the larger diversity of businesses, the production costs for organic foods are often higher. The expense of cultivating the food, which includes labor and labor-intensive chemical management, growing, harvesting, transporting, and storage, is more accurately reflected in the organic price tag. Similarly, first-time certification costs are high, averaging around USD 700 to USD 1,200 per operation, but other certification costs are also involved. As a result, the market expansion for organic pet food will probably be hampered by the high cost of organic pet food.
The pet industry has several emerging markets that are expanding quickly. For instance, India is home to approximately two crore pet dogs. The value of the food they consume is approximately USD 160 million annually, growing at a healthy pace. In addition, about 19 million other domestic pets are also currently kept in homes, and about six lakhs more are being adopted.
Similarly, Brazil's rapidly urbanizing middle class is working more, earning more, buying more and more dogs as pets, and having kids later. Brazilian news portal G1 reported that there are 52.2 million dogs kept as pets in the country, compared to 44.9 million children between the ages of 0 and 14. Furthermore, pet ownership is rising in Asian countries such as Indonesia, the Philippines, Thailand, and Taiwan. Likewise, there is increasing consumer awareness and the high propensity of millennial consumers with the growing disposable income in the region, which will bring several lucrative growth opportunities for marketers investing in these emerging markets.
The global organic pet food market is segmented by type, end-user, and distribution channels.
Based on type, the global 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. Organic kibbles, pillows, and dental sticks are considered dry organic pet foods. Traditionally, dry foods are the most popular pet food among pet owners. According to a 2019 article in the Canadian Veterinary Journal (CVJ), about 85% of pet owners in the US feed their animals dry food. Moreover, dry organic pet foods have several advantages over wet pet foods, driving market sales. For instance, dry organic foods are a cost-efficient option for pet food.
Pet foods such as chunks in gravy, chunks in jelly, casserole, and meatloaf are included in the wet organic pet food segment. Wet organic pet food contains higher levels of moisture or water, making up 60 to 85% of the total weight, and lower dry matter portions such as protein, fat, carbohydrate, vitamins, and minerals. Moreover, wet organic pet foods contain high levels of meat and meat by-products. The high palatability of wet organic pet foods is a significant cause for the growth of this segment.
Based on end-user, the global 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. Like the growing health and wellness trend in the human food industry, dog foods are also undergoing a similar trend as dog owners seek ways to pamper their pets. Currently, pet owners are becoming more aware of the dietary requirements of their dogs, due to which the demand for better-quality dog food products has increased. Moreover, the growing popularity of organic foods in the human food industry is also finding its way into the dog food industry. Thus, the dog end-user segment accounts for the largest market share.
The growing ownership rate of pet fish due to shrinking living spaces and increasing demand for soothing interiors are mainly augmenting the growth of the organic fish food market. Fishes make ideal pets for people who love animals but lack the time or space to have a bigger animal, such as a cat or dog. As people worldwide are migrating to cities, urban living spaces are shrinking. This leads to limited spaces to live and roam. Moreover, fishes are believed to have a tranquil and calming effect on people watching them glide through the water, further supporting the pet fish ownership rate.
Based on the distribution channels, the global 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. Hypermarkets/supermarket stores provide a wide range of food products for consumers' needs. The organic pet food sector continues to expand due to sectoral consolidation and efforts to provide greater consumer convenience through alternative grocery outlets and payment methods, driving the demand for the hypermarkets/supermarkets segment. Furthermore, supermarkets and hypermarkets such as Walmart, FoodHall, and Star Bazaar allow customers to shop online through mobile apps and provide free home delivery.
Pet stores offer a variety of accessories and supplies for animals. The food products sold in these shops include dry food, wet food, treats, and snacks. Pet shops are extremely popular in modern society in developed countries. Specialized pet shops are gaining popularity and preference by high-profile consumers due to the availability of various branded, natural organic pet foods products and varieties for all pet animals. Various animal supplies, pet accessories, and pet services are also sold in pet shops, fueling the demand for pet shops.
Based on region, the global organic pet food market is bifurcated into North America, Europe, Asia-Pacific, and RoW.
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. The demand for organic pet food is growing fast, owing to increasing consumer awareness regarding the beneficial impact on pet health. The United States is anticipated to have the highest contribution to the North American market. The growing trend of adopting pets among millennials is further anticipated to support market growth. As stated by the American Pet Products Association (APPA), about 38% of the people across the United States own cats, and two as an average number of cats per household.
Furthermore, dogs are the most popular pets adopted across the region, and key players are focusing on offering pet food to them to gain a significant share of the market. As per the 2017-2018 National Pet Owners Survey by the American Pet Products Association (APPA), 68% of United States households (about 85 million families) own a pet. Moreover, the positive attitude of North American consumers towards pet humanization and its wide adoption is boosting the market growth of organic pet food products for pet animals.
Europe is estimated to exhibit a CAGR of 8.7% over the forecast period. Europe accounts for a significant chunk of the major share in the market and will continue to grow in the subsequent years due to increased pet ownership. The trend for pet adoption is also prominent in the European region. The increasing preference for healthy pet foods is the major factor boosting Europe's market. Furthermore, Europe is considered a major market for quality-driven organic pet food. Almost 80 million European households own at least one pet, per the European Pet Food Industry Organization (FEDIAF). According to the Industry Association of Pet Care Manufacturers, Germany is a major market for organic pet food products, with 34.3 million pets and 83 million of the world's wealthiest consumers. Likewise, according to the European Pet Food Industry's annual reports, more than 140 million cats and dogs lived in Europe in 2017. This is resulting in the growth prospects in the European organic pet foods market.
The Asia-Pacific region acquired a substantial global market share. The expansion of the regional pet food industry can be attributed to the surging need for these products in nations like China and Japan. Increasing disposable income and growing urbanization primarily fuel the Asia Pacific market. Keeping pets has become a trend owing to an increase in nuclear families. Moreover, factors such as demand for nutritional food products are resulting in the optimistic growth of the Asia Pacific market. In addition, there is a discernible growth in the organic food market, which is attributable to the growing awareness about the same people. Since pet owners demand similar safety regarding what their pets regularly consume, this trend is visibly replicated in pet foods. This potential arcade of organic pet foods creates business opportunities in the Asia-Pacific organic pet foods market.
The RoW region comprises the Middle East and Africa and South America region. Currently, South America is the smallest yet fastest-growing market for organic pet food, with the growth of the pet food sector and an upsurge in the region's fortified organic pet food products. The market's main growth drivers include increased demand for organic pet food due to food product fortification, expanding pet health awareness, and rising disposable income levels. Further, increasing awareness regarding the health benefits of organic pet food across the Gulf Cooperation Council countries drives the growth of the market in the Middle East region.
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