Owing to the westernization of traditional cultures across the developing world, the trend of owning a pet has increased remarkably. Pet owners today are more concerned about the convenience of carrying, storing and using of pet foods which has opened another front for the companies to invest in and develop advanced pet food processing systems. Owing to these factors, the pet food processing market is expected to attain a significant CAGR during the forecast period 2021-2029. The market is segmented by application into dog food, cat food and others. Out of these segments, the dog food segment is anticipated to grow at the fastest rate on the back of growing population count of dogs across the world. According to the survey statistics of over 8000 people by the Pet Food Manufacturers Association (PFMA), dog population increased from 5.1 million in the year 1970 to 9.0 million in the year 2020. It was followed by cat population, which observed a growth of 4.6 million in the year 1970 to 7.5 million in the year 2020. CLICK TO DOWNLOAD SAMPLE REPORT

Growth Drivers

Rising Trend of Pet Adoption

Leading a fast-paced life is taking a toll on everyone’s mental wellbeing. People are resorting to pet adoption as a means to avoid loneliness and to improve their psychological wellbeing. Most people try to get the best for their pets which often includes food. As a result, people are inclined to purchase pet food in bulk which often requires high end packaging in order to keep the food fresh. This acts as a significant factor that is expected to drive the growth of the pet food processing market during the forecast period. In other statistics by the PFMA, the top ten pets with the highest population count, recognized in the year 2019, were dogs, followed by cats, rabbits, indoor birds, guinea pigs, domestic fowl, tortoises & turtles, hamsters, snakes and lizards.

Rising Demand for Different Type of Pet Foods

There is a rising demand for diverse types of pet food in the market today. It is not difficult to find pet food of different shapes and sizes. People have the option to decide exactly what their pet requires and purchase that food. This increase in choice has led to a competitive market. As a result, pet food companies are spending a lot on attractive and convenient packaging. This is expected to drive the growth of the pet food processing market during the forecast period.

Increasing Investments in R&D for Food Processing

The rising demand for different types of pet food has further increased the demand for specialized equipment for pet food manufacturing. Owing to such a factor, manufacturers in the pet food processing industry are increasingly investing in the research and development of food processing technology to produce specialized products. Additionally, government of several nations are also focusing on providing grants to organizations for developing viable products that can meet a market need. For instance, the Office of Economic Development & International Trade of Colorado (OEDIT), in the month of November 2020, granted 37 start-ups in the state a total of USD 7.7 million under its Advanced Industries Accelerator Grant Program. Amongst the 37 start-ups, one of the companies named Bond Pet Foods, Inc., which is focused on re-imagining pet nutrition by developing foods made from animal-free ingredients, received USD 250 thousand as part of the program. Such factors are anticipated to drive the growth of the global pet food processing market during the forecast period.

Rising Awareness about Pet Health

Owing to the widespread availability of the internet, individuals can now easily access to a bundle of information. Aided up with such a factor, pet owners can research easily on pet health and nutrition and can gather knowledge on the wellbeing of their pets. With the growing awareness for pet nutrition amongst the pet owners, there is an increase in demand for nutritionally adequate and visually appealing pet foods. Key players therefore rely on high end pet food processing machines and technologies to serve the best products to their consumers who are often concerned about the health of their pet. This rising awareness on pet health is anticipated to drive the growth of the global pet food processing market during the forecast period.

Restraints

High Initial Investment for Pet Food Processing

The pet food processing industry requires a high initial investment in order to develop products that are of good quality. This requirement of initial capital can act as a major restraint in the growth of the pet food processing market.

Intense Competition Between Key Players

The pet food processing industry has a large population of key players which are actively involved in the production and manufacturing of pet foods. Owing to a large number of key players, there is often active competition between them. This type of competition can often force mid-scale companies to adopt a less beneficial strategy in order to sell their product, which ultimately might hamper their profitability. This can, as a result, act as a major restraint factor in the growth of global pet food processing market.

Impact of COVID-19 on Global Pet Food Processing Market

Owing to the COVID-19 pandemic, many people were forced to work from home. Many others were also forced to take up self-isolating measures. As coronavirus is unlikely to spread through pets, people turned towards pet adoption for companionship. Even though the pet food processing industry suffered losses owing to the lockdown, the increased pet ownership mitigated these losses partially.

Further, pet owners stocked up on pet food mainly as a preventive measure which resulted in a short-term sales spike. This led to empty shelves in various retail outlets leading to a rise in opportunities for sales of pet food via online distribution channel.

Additionally, disrupted supply chains and closure of local, national and international borders, restricted access to raw materials that are required for the production of pet foods, hampering manufacturers in the entire manufacturing process.