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

Industry Insights

The global pet food ingredients market size was valued at USD 39.94 billion in 2018 and is likely to expand at a CAGR of 5.9% during the forecast period. The emerging awareness about the nutritional benefits of minerals, dietary fiber, carotenoids, and omega-3 fatty acids in pet nutrition emerged as the primary factors towards the development of the pet food ingredients market.

Today many of the 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, disease conditions, etc. Thus, this kind of changing dynamics is likely to boost the pet food ingredients market.

Further, it is estimated that the number of households with companion animals between 2006 and 2016 grew significantly across the globe. Especially in the United States, the growth in the total number of households in the past ten years has been observed to be less than the growth in the total number of households with companion animals.

Also, increasing dog and cat adoption along with the rising focus on improving productivity and health are some of the major driving factors for the market. At present, the majority of ingredients used in the preparation of companion animal’s food are synthetic owing to the 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 the 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 this market.

However, rising concern regarding the harmful effect of certain synthetic ingredients, a consistent decrease in the use of antibiotics such as ethoxyquin and policymakers focus on increasing the use of organic and natural products are projected to develop the natural products at the fastest growth rate over the coming years.

Ingredients Insights

In 2018, the 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 protein in the animal body. As the 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 the companion animal’s diet as it contains similar biological value as soybean.

Phosphates are another major segment in this market which is projected to grow at a significant growth rate. Some of the most widely used commercial phosphates in animal nutrition are monocalcium, dicalcium, phospholipids, and orthophosphates. These phosphates provide vital nutrients, hence improve the health of companion animals.

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

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

Increasing concern towards the use of antibiotics in the agricultural application has provided momentum in the growth of antioxidants, acidifiers, and enzymes. Some of the widely used feed acidifiers are propionic acids, formic acid, fumaric acid, citric acid, acetic acid, lactic acid, and others. 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 this market.

Regional Insights

The Asia Pacific, with a market share of more than 34% by revenue emerged as the largest regional market in 2018. Increasing population, rising disposable income, and growing humanization trend in the region emerged as the primary driving factors for boosting the consumer spending on the care of companion animals. The market is shifting from mass market to premium products owing to increasing consumer preferences for natural products.

North America led by the U.S., Canada, and Mexico emerged as the third largest regional market in 2018. The U.S. emerged as the dominating market in North America owing to the presence of well-developed pet food industry along with high ownership percentage of dogs, cats, horses, etc. Considering the population of cats, dogs, and fishes, the country is considered to be amongst the top five regions across the globe. 

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 expected to be witnessed by the 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 nearly 27% market share in 2018. The presence of developed economies, high pet ownership ratio, and consumer’s willingness to spend more on pet care are several major driving factors for the pet food industry. According to the European Pet Food Industry Federation (FEDIAF), more than 80 million households across Europe own at least one pet. The regional market is dominated by cat food products owing to the higher cat ownership.

Dogs and ornamental birds accounted for nearly 84.9 and 49.8 million in the overall European pet population. The 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 pet food ingredients 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 many other commodity’s value chains, the livestock value chains have a majority of the 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., Kemin Industries, among others.

Sourcing of ingredients coupled with energy consumption in the manufacturing process has driven pet food ingredients manufacturers toward technological advancements. Growing demand for pet food ingredients along with sustainable production is expected to remain a major challenge as well as an opportunity for the producers.

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

Market participants are focusing on developing countries of Asia Pacific, where the pet food industry is expected to grow at the robust rate which is a major driver for product market. Presence of various untapped markets owing to the lower pet ownership ratio is attracting global players to develop their operation 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

    • The U.S.

    • Canada

    • Mexico

  • Europe

    • Western Europe

      • Germany

      • The 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