The global pet food ingredient market size was valued at USD 41 billion in 2021. It is expected to expand at a CAGR of 7.2% to reach USD 77 billion during the forecast period (2022–2030). Formulated to meet the nutritional requirements of domesticated animals, pet food is a specialized diet for these animals. Typically, pet food consists of meat, meat by-products, cereals, grains, vitamins, and minerals. Among the animals used for rendering are domesticated animals, horses, and euthanized companion animals. During the 1990s, the National Animal Control Association forecast that approximately 5 million animals were shipped annually to rendition plants and recycled into pet food. They are typically referred to as bone meals on ingredient lists.
Animal parts employed as pet food can also consist of ruined carcass parts, bones, cheek meat, and organs, including intestines, kidneys, liver, lungs, udders, spleen, and stomach tissue. Cereal grains like soybean meal, cornmeal, cracked wheat, and barley are frequently employed to improvise the product's consistency and reduce the cost of the raw materials. Water and meat broth are examples of liquid ingredients.
In general, artificial flavors are not used, although smoke or bacon flavors may be added to certain candies. Vitamins and minerals are commonly added to pet food by manufacturers. The proportion of vegetable and grain ingredients in pet foods has increased significantly. The meat used in the first commercial pet foods is anticipated to be replaced with plant-based ingredients. 64% of pet foods with meat as the first ingredient contain multiple protein sources, with chicken being the most common choice.
Studies on pet nutrition have revealed that, compared to service animals, companion animals have specific dietary needs, such as pre-formed vitamin A and amino sulfone taurine in cat food and arginine in both cat and dog food. Emerging knowledge of the nutritional benefits of minerals, dietary fiber, carotenoids, and omega-3 fatty acids and the significance of meat fats and proteins in optimal pet nutrition are the primary factors being evaluated in the pet food ingredient market growth.
There is an increasing trend of staying single or childless for more extended periods, which has led to a growth in the adoption of companion animals. This trend is primarily observed in Europe and the United States, but emerging economies such as India and China are also speedily adapting. Consequently, a vast market for nutritious and healthy pet food is anticipated to drive the market.
Due to the popularity of dogs, fish, cats, and birds as household pets in recent years, the pet food industry has expanded dramatically. It is anticipated that the number of pets will increase at the same rate over the next four years, creating market opportunities for companies that manufacture pet food ingredients. With more cats and dogs being adopted, the demand for pet medications, food, and accessories has increased.
Increasing attachment to pets due to rising living standards and the cultural shift to adopt pets for companions are also anticipated to drive the pet food market. According to numerous scientific studies, pets also serve as stress relievers. This is another factor contributing to the increasing household adoption of pets, driving pet food sales and the market for ingredients.
The ingredients in pet food are an abundant source of high-quality protein and omega-3 fatty acids. When added to food, these substances increase the nutritional value of the feed and provide benefits such as increased growth rate, high protein digestibility, enhanced feed conversion, enhanced immune system, and decreased mortality of aquatic species. Thus, increasing awareness among pet food manufacturers of the nutritional benefits of protein-rich ingredients is anticipated to stimulate the supply of these ingredients.
Increasing consumer awareness of the importance of consuming foods with high nutritional value has led to a rise in the demand for protein. As the number of consumers in the Asia-Pacific region has increased, so has the demand for animal-based protein (including fish). This is likely to push demand for fish and fish products, driving the market for fish-derived pet food ingredients over the forecast period.
Numerous individuals suffer from pet-related allergies and therefore prefer not to keep pets. This variable may inhibit the expansion of the pet food industry. Attributed to the prevalence of indoor allergens such as animal dander, dust mite droppings, molds, and cockroaches, millions of people suffer from various allergies and infections year-round. Nonetheless, numerous pet owners have asthma due to cat and dog allergies.
Infants and toddlers are more susceptible to infection from pets. Tapeworms, hookworms, and roundworms are transmitted by unclean dog or cat fur. If ingested by newborns and infants, these worms can cause infection and severe health problems. Hookworm larvae are capable of penetrating adult skin and causing itchy, painful rashes. Such factors can have a long-term effect on market growth.
Controversial perceptions of gluten as an ingredient in pet food are likely to prompt manufacturers of pet food ingredients to differentiate their products. This is expected to create several opportunities for producers of pet food ingredients, as pet food producers are intensely interested in enhancing food quality standards. Ingredient procurement and energy consumption in the manufacturing process have compelled manufacturers of pet food ingredients to implement technological advances. Strong growth for pet food ingredients and sustainable production is anticipated to present producers with both challenges and opportunities. It is expected that placing a premium on long-term "off-take" agreements and production contracts with pet food manufacturers will create opportunities for ingredients producers to increase their profit margins.
Due to the widespread COVID-19 pandemic, nations worldwide saw a steep decline in their gross domestic product (GDP). To prevent the spread of the disease, the government-imposed regulations that slowed the economy, halted production, slowed the development of projects, and demanded that market participants cease operations. As a result, it affected the supply chain of the pet food industry.
Additionally, due to the prohibition on the transportation of raw materials, the pet food industry initially experienced difficulties with supply and cash flow. Nonetheless, demand for pet food increased steadily in many regions during the lockdown, as more people adopted pets out of a desire for companionship. To meet this demand, market participants shifted their focus from brick-and-mortar stores to e-commerce platforms by investing more in developing their websites.
Due to the increased adoption of pets during the pandemic, the pet food industry market experienced growth. Manufacturers in the pet food industry increased output to meet demand and supply. After the lockdowns were lifted, producers and vendors in the pet food industry resumed large-scale operations, resulting in a market expansion.
Based on Ingredients, the pet food ingredient market is classified into Specialty Proteins, Amino Acids, Mold Inhibitors, Gut Health Ingredients, Phosphates, Vitamins, and Acidifiers, Carotenoids, Enzymes, Mycotoxin Detoxifiers, Flavors and Sweeteners, Antimicrobials and Antibiotics, Minerals, and Antioxidants.
Amino acids are expected to have the highest share in the pet food ingredient market, amounting to 34% of the total market share by 2030. These are used as active ingredients in the form of supplements, powder, and liquids and can be fed directly to pets to treat deficiencies. The amino acid component includes Lysine, Methionine, Threonine, and Cysteine.
Lysine functions as a protein-building block in the animal body. As the animal body cannot produce sufficient amounts of this amino acid, it must be obtained through supplementation or diet. Lysine is a cost-effective alternative to soybean in pet food production because it has a similar biological value. Lysine is typically found in meat and milk; however, pets consuming a cereal-based diet will likely require supplementation. Usage of lysine as a pet food ingredient market share is likely to be driven by boosting immunity and promoting animal growth.
Methionine is an essential nutrient and a potent antioxidant crucial for animals' liver health and detoxification. Additionally, it prevents nail and skin issues in pets. This amino acid is often called a grass saver because it is frequently added to dog food to reduce the acidity of the urine. It is a common ingredient in fish and meat pet food. Over the forecast period, the demand for methionine in the pet food industry is anticipated by its liver-healing and calcium oxalate crystal-preventing properties.
Threonine is an essential amino acid and a structural protein component. It is also known as a gluconeogenic amino acid. Threonine is beneficial for health maintenance, particularly digestion. It is also necessary to produce energy as a precursor for numerous active molecules, such as pyruvate. Pet foods composed of meat, eggs, legumes, and dairy proteins contain threonine. A lack of threonine in an animal's diet can decrease food intake, making the animal susceptible to weight loss. It plays a crucial role in blocking cerebral dysfunction, resulting in animals' muscular incoordination.
Consequently, amino acid is anticipated to be in high demand in the feed industry as a feed supplement and pet food ingredient. Over the forecast period, the market for amino acids is predicted to be driven by the prevalence of amino acid deficiency in pets and rising concerns regarding the breakdown of animal tissue to make up for amino acid gaps.
The regional classification is done as North America, Europe, Asia-Pacific, Central and South America, and the Middle East and Africa.
Asia-Pacific is expected to account for the largest share of the pet food ingredient market, estimating about 35% during the forecast period. Expanding population, rising disposable income, and a growing humanization trend in the region have emerged as the primary factors driving up pet care expenditures. The market is shifting from mass-market to premium products as consumer preferences for natural products increase.
As a result of the entrance of new market participants, pet food prices in Asia-Pacific nations are likely to fall. In growing economies like the Philippines and Malaysia, price wars between key players and the introduction of value products expand the consumption base by making products more affordable, thereby expanding the consumer base. In contrast, a premium pricing and offering strategy are becoming the norm in developed nations such as South Korea and Japan.
North America is expected to hold the second-largest share in the market, accounting for USD 50 million at a CAGR of 7.1% during the forecast period. In the global Pet Food Ingredients Market, North America has emerged as one of the major markets due to the growing awareness of the benefit of pet food and the rising trend of pet humanization. Due to a well-developed pet food industry and a high percentage of pet ownership, the US has emerged as the leading market for pet food ingredients in North America. Regarding the populations of cats, dogs, and fish, the nation is ranked among the top five worldwide.
North America's second-largest market for pet food ingredients, Canada, is expected to record a significant growth rate over the coming years. According to the Canadian Animal Health Institute, Canada has 8.3 million cats and 8.3 million dogs. Premiumization and product differentiation are the two most significant factors driving the development of the pet food industry in the region.