Pet Food Ingredients Market Size, Share & Trends Analysis Report By Ingredients (Amino Acid, Specialty Protein, Phosphates, Vitamins, Acidifiers, Antioxidants, Enzymes), And Segment Forecasts, 2019 - 2025

Industry Insights

The global pet food ingredients market size was valued at USD 37.57 billion in 2017. It is  anticipated to expand at a CAGR of 5.9% during the forecast period. Rise in awareness regarding nutritional benefits of minerals, dietary fiber, carotenoids, and omega-3 fatty acids in pet nutrition has encouraged the development of the market over the past few years.

In recent times, several pet food manufacturers offer wide-ranging products with multiple options that serve various purposes. Customers can choose products depending on various factors such as breeds, life stages, price points, ingredient preferences, and disease conditions. Therefore, easy availability of an array of products is projected to work in favor of the market.

Further, it is estimated that the number of households with companion animals grew significantly between 2006 and 2016 across the globe. Over the last decade, the United States, especially, has registered sharp rise in the number of households with companion animals.

In addition, increasing adoption of dogs and cats, along with rising focus on improving productivity and health, is one of the primary growth stimulants for the market. At present, a majority of ingredients used in preparation of companion animals’ food are synthetic owing to low cost and ease of availability.

According to the Pet Food Industry, nearly 95% of pet owners assume their companion animals as a part of their family and thus, give importance to quality of ingredients in the food that is served to them. Consumer’s preference for high-quality ingredients is a major driving factor for premium and super premium products in the market.

However, rising concerns regarding harmful effects of certain synthetic ingredients and declining use of antibiotics such as ethoxyquin and policymakers are leading to increased focus on use of organic and natural products for manufacturing pet food. The market will experience a paradigm shift in consumer preference towards natural ingredients.

Ingredients Insights

In 2017, amino acid emerged as the most significant pet food ingredient segment. The segment consists of lysine, methionine, threonine, cysteine, among others, wherein lysine is observed to dominate the segment.

Lysine acts as a building block for proteins in animal body. As animal body is unable to produce this amino acid in adequate quantity, it is provided through supplementation or diet. Lysine is considered to be an economical option to be used as an ingredient in companion animal’s diet as it contains similar biological value as soybean.

Phosphates are another major segment in the pet food ingredient market, which is expected to exhibit noteworthy CAGR during the forecast period. Some of the most widely used commercial phosphates in animal nutrition are monocalcium, dicalcium, phospholipids, and orthophosphates. These phosphates provide vital nutrients and thus, improve the health of companion animals.

Gut health ingredients have been further classified into beta-glucan, Mannan-oligosaccharide (MOS), Fructooligosaccharides (FOS), probiotics, and prebiotics. These ingredients stimulate antimicrobial and anti-tumor activities through binding of receptors on white blood cells and macrophages, owing to which the product is gaining wide acceptance in this industry.

Palatants are also witnessing steady growth in the demand owing to increasing focus on developing pet food palatability. Most of the animals make decisions about palatability based on three sensory characteristics, namely macronutrient profile, texture, and aroma of the food. Especially in case of dogs, the smell of food plays an important role, owing to hypersensitive olfactory senses.

Rising concerns regarding the use of antibiotics in agricultural application is providing momentum to the antioxidants, acidifiers, and enzymes segments. Some of the widely used feed acidifiers are propionic acids, formic acid, fumaric acid, citric acid, acetic acid, and lactic acid. Fumaric acid is known to be an efficient and less expensive energy source, similar to glucose, which is a primary driver for the product.  

Specialty protein, mold inhibitors, vitamins, minerals, mycotoxin detoxifiers, carotenoids, flavors & sweeteners, and antimicrobial & antibiotics are some of the other major product segments in the market.

Regional Insights

Asia Pacific dominated the global market with a share of approximately 35.0% in 2017. Increasing population and rising disposable income in the region is poised to stir up the demand for pet food ingredients in APAC. Soaring consumer spending on companion animals is causing a shift from mass market to premium products. Increasing consumer preferences for natural products is also likely to stimulate the growth of the regional market.

North America emerged as the third largest regional market in 2017. The U.S. was the leading revenue contributor in the regional market owing to presence of well-developed pet food industry along with high ownership percentage of dogs, cats, and horse, among others.

Countries such as the U.S. and China have a balanced demand-supply situation in the animal feed and pet food industry, owing to which positive developments are anticipated to be witnessed by companies operating in these markets. Chinese ingredient manufacturers have consolidated at a faster pace compared to the rest of the world, in terms of acquisitions and integrations.

Europe accounted for over 27.0% of the overall market revenue in 2017. Presence of developed economies, high pet ownership ratio, and consumer’s willingness to spend more on pet care are projected to spur the growth of the regional market. According to the European Pet Food Industry Federation (FEDIAF), more than 80 million households across the region own at least one pet. The regional market is dominated by cat food products, owing to a higher cat ownership.

Dogs and ornamental birds accounted for nearly 84.9 and 49.8 million in the overall European pet population. Presence of nearly 132 pet food manufacturing firms along with 200 production facilities makes Europe a very competitive market for pet food ingredient companies.

Pet Food Ingredients Market Share Insights

The market is highly fragmented. Major manufacturers have adopted several strategic initiatives such as acquisitions, mergers, partnerships, joint ventures, agreements, expansions, and new product launches to increase their footprint in the global market.

Unlike value chains of several other commodities, livestock value chains have a large number of participants, thereby having easily discernible and distinct transactions. Key companies in this market include DuPont Nutrition & Health; FoodSafe Technologies; Diana Pet Food; AFB International; Lallemand, Inc.; American Dehydrated Foods, Inc.; and Kemin Industries.

Sourcing of ingredients, coupled with energy consumption in manufacturing process, has driven pet food ingredients manufacturers towards technological advancements. Growing demand for pet food ingredients along with sustainable production is poised to shape the future for producers.

Prioritizing on long-term “off-take” agreements and production contracts with pet food manufacturers are likely to benefit ingredients producers by creating opportunities for boosting profit margin.

Market participants are focusing on developing countries of Asia Pacific, where the pet food market is expected to post a robust rate over the coming years. Presence of various untapped markets owing to lower pet ownership ratio is attracting global players to develop their operations in this region.

Report Scope

Segments Covered in the Report

This report forecasts volume and revenue growth at global, regional, and country levels and provides an analysis of latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global pet food ingredients market report on the basis of ingredients and region:

• Ingredients Outlook (Volume, Kilo Tons; Revenue, USD Million, 2014 - 2025)

  • Specialty Proteins

    • Beef Proteins

    • Egg Proteins

    • Blended Proteins

    • Hydrolyzed Proteins

      • Hydrolyzed Feather

        • Hydrolyzed Chicken

      • Hydrolyzed Collagen

    • Pork Protein

      • Pork Plasma

      • Pork Powder

    • Fish Protein

      • Salmon

      • Whitefish

      • Others

    • Poultry Protein

      • Chicken

      • Others

    • Ovine Proteins

      • Lamb

      • Others

    • Cervine Proteins

    • Other Animal Proteins

    • Plant Proteins

    • Algal Proteins

  • Amino Acids

    • Lysine

    • Methionine

    • Threonine

    • Cysteine

    • Others

  • Mold Inhibitors

  • Gut Health Ingredients

    • Beta-Glucan

      • Cereals

      • Mushroom

      • Yeasts

      • Seaweed

    • FOS & MOS

    • Probiotics

    • Prebiotics

  • Phosphates

    • Monocalcium

    • Dicalcium

    • Phospholipids

    • Others (Ortho phosphates, SAPP, TSPP, etc.)

  • Vitamins

    • Water-soluble

    • Fat-soluble

  • Acidifiers

    • Phosphoric Acid

    • Propionic Acid

    • Fumaric Acid

    • Formic Acid

    • Citric Acid

    • Acetic Acid

    • Lactic Acid

    • Others

  • Carotenoids

    • Astaxanthin

    • Beta-Carotene

    • Zeaxanthine

    • Lutein

    • Others

  • Enzymes

    • Phytases

    • Carbohydrases

    • Proteases

    • Others

  • Mycotoxin Detoxifiers

    • Binders

    • Modifiers

  • Flavors & Sweeteners

    • Palatants

    • Flavors

      • Natural

        • Poultry Flavors

      • Synthetic

        • 2-methyl-3-furanthiol

    • Sweeteners

  • Antimicrobials & Antibiotics

    • Tetracycline

    • Penicillin

    • Others

  • Minerals

    • Calcium

    • Potassium

    • Magnesium

    • Zinc

    • Others

  • Antioxidants

    • Natural

      • Rosemary

      • Spearmint

      • Mixed tocopherols

      • Green tea extracts

      • Clove

      • Oregano

      • Thyme

      • Others

    • Synthetic

      • Bha

      • Bht

      • Ethoxyquin

      • Others (TBHQ, Propyl gallate, etc.)

• Regional Outlook (Volume, Kilo Tons; Revenue, USD Million, 2014 - 2025)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Western Europe

      • Germany

      • U.K.

      • France

    • Eastern Europe

      • Russia

  • Asia Pacific

    • China

    • Japan

    • Thailand

    • Australia

    • South Korea

    • Taiwan

  • Central America

  • South America

    • Brazil

    • Argentina

    • Chile

    • Colombia

  • Middle East & Africa

    • Turkey

    • Morocco

    • Saudi Arabia

    • South Africa