Global pet food ingredient market valuation was around USD 28.6 billion in 2014 and is expected to grow at an estimated CAGR of around 4.5% from 2015 to 2020. Increasing pet acquisition and adoption activities, rising trend of pet humanization, and improved distribution networks are expected to drive the industry over the forecast period.
Growing demand for enhanced pet food palatability especially in emerging economies such as China and India is likely to present growth opportunities for industry participants. Rising standard of living and high disposable consumer income in urban metro cities is also a major factor fueling demand for hygienic and quality-assured pet food.
Exponential economic growth of various developed and developing countries such as the U.S., Germany, the UK, China, India and UAE has driven concerns regarding sustainability and safety of pets and food ingredient. Rising awareness regarding health benefits of pet food and concern for health and nutrition among pet owners are other factors likely to drive market growth. Product launches and technological advances along with increasing R&D initiatives by major companies such as Mars and Unicharm Corp. owing to high demand are further expected to drive the industry.
Numerous companies are increasing their investment in production capacities or introducing new product lines to meet rising demand. However, differing regulatory structures and raw material scarcity are likely to hamper growth. Lack of product acceptance in under-developed economies owing to low consumer income is likely to challenge the industry over the forecast period.
On the basis of ingredient type or source, the market can be segmented as animal derivatives, vegetable and fruits, grains and oilseeds, vitamins and minerals and other additives. Animal derivatives dominated the industry in terms of revenue and volume, accounting for around 48.7% share in 2014. These animal-based raw materials are generally good sources of protein, fatty acids, B group vitamins and iron, derived from lamb, beef and chicken meat. Plant derivatives such as soyabeans, fibrous plants, processed vegetables, and even residues from human foods are expected to emerge as fastest growing segment over the forecast period.
On the basis of animal, the market can be classified into dog, cat, bird, and fish. In 2014, dog food ingredient accounted for around USD 10.0 billion, making it the largest category with approximately 35% share. Increasing adoption of cats, birds, and fish is leading to higher demand for these pet foods too.
The global market has been categorized into North America, Europe, Asia Pacific (APAC), Middle East and Africa (MEA) and Central and South America (CSA). High per ownership and adoption in developed countries such as the U.S. and Canada led to greatest market share in North America. This was followed by high demand from the UK, Germany, France, and other areas in Europe owing to increasing awareness and concern regarding animal health and nutrition along with increasing humanization of pets. Emerging countries such as China and India, and developed countries such as Japan are expected to generate high demand owing to rising disposable income and changing consumer lifestyle. Asia Pacific is thus expected to emerge as the fastest growing region within global pet food ingredient industry.
Pet food ingredient market is an emerging industry characterized by numerous new product launches, M&As, expansions, and investments by major companies to gain higher share. The market is highly competitive with leading manufacturers involved in R&D activities to introduce sustainable products and processes globally. Growing consumer awareness regarding pet health and nutrition along with development of food processing technologies is likely to foster global development.
Key players operating in the pet food ingredient market include Koninklijke DSM N.V., E.I. du Pont de Nemours and Company, Archer Daniels Midland Company, BASF SE, Ingredion Incorporated, The Nutro Company, DAR PRO Solutions, The Scoular Company, Marshall ingredient, Kemin Life Science, Roquette America, Nestle Purina and Mars Pet Care among others.
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