Global Pet Food Additives Market - 2022-2029

Global Pet Food Additives Market - 2022-2029

Market Overview

Pet food additives are minor ingredients that ensure the stability of nutrients in the pet food diet. These additives are included to enhance food quality and ensure the food remains in good condition. The term additive can be applied to various ingredients, including essential nutrients such as vitamins and minerals that are important for the pet's health. Feed additives are used in animal nutrition to achieve an effect on the feed, animals, and food products obtained from the animals consuming the feed additive or on the environment. Increasing consumer awareness about the nutritional value of pet food drives the market for pet food additives.

The global pet food additives markets were valued at USD YY million in 2021. It is forecasted to reach USD YY million by 2029, growing at a CAGR of 9.87% during the forecast period (2022-2029).

Market Dynamics: Increasing pet population and rising awareness about their health drives market growth

In the United States, 70 % of households owned a pet as of 2021, compared to 68 % in 2016. Globally, dogs are the most popular pet worldwide. India has 32 million pets, and the population is growing at a rate of more than 12% per year. According to the national pet owner’s survey 2021-22 conducted by the American Pet Products Association (APPA), 70% of United States households or about 90.5 million families, own a pet. It is up from 56 % of United States households in 1988, the first year the survey was conducted and 67 % in 2019. Total pet industry expenditures in the United States totaled $123.6 billion, up 19 % from $103.6 billion in 2020. According to the vet charity for pets in need 2022 survey data, 52% of U.K. adults own a pet. 27% of U.K. adults have a dog, with an estimated population of 10.2 million pet dogs. 24% of the U.K. adult population has a cat, with an estimated 11.1 million pet cats. 2% of the U.K. adult population has a rabbit, with an estimated population of 1 million pet rabbits. In 2022, Italy's population will grow and boost nutrition sales. Italy has 12.2 million households that bought dog and cat food in 2021, about 1 million more than the previous year. Dog and cat food purchases increased by more than 7% in the offline channel; there are around 145 million pet animals in the European Union (including Norway and Switzerland). It is a 5 million increase compared to 2021. Among those pets are about 66 million dogs and 79 million cats. This increase in the pet population helps to increase the pet food additives sales.

Market Segmentation: Dog segment accounted for the highest share in global pet food additives market

Dog type of pet accounted for the largest market share owing to the increase in dog population worldwide. According to Statista data, the pet dog population in India amounted to 19.5 million in 2018. The pet population was forecast to reach over 31 million by the end of 2023. India's increased pet dog population has increased pet food sales from 139 million USD in 2014 to approximately 285 million USD in 2018. There are around 69 million households own at least one dog. The American Kennel Club currently finds 197 dog breeds. The worldwide dog population is estimated at around 900 million. China has the highest pet dog population in Asia, at 110 million. Russia has the leading country of the pet dog population in Eastern Europe, at over 12 million. The growing knowledge about minerals, vitamins, and omega three fatty acids in nutrition tends to increase segment growth in the forecast period. The young generation's preference for compassion for pets and growing concern for pet health and food safety drives the market growth. In addition, growing pet humanization will further provide scope for pet food additives in the dog segment.

Geographical Penetration: Asia Pacific is the dominating region during the forecast period

Asia Pacific region dominates the market due to the increase in pet population; growing disposable income and increased humanization trends boost the market's growth in the forecast period. Moreover, regional manufacturers actively launched new products, driving the market growth. Increase the population of pet in major developing countries like India and China boost the pet food additives market growth. Some key players follow an expansion strategy to increase their business. For instance, in September 2022, Drools Pet Food (Pvt.) Ltd., a subsidiary of the Indian Broiler Group, is expanding its business by starting an export business to Australia.

North America held a significant market share in the forecast period due to the availability of a well-developed pet food industry. The United States and Canada contributed the largest market share in the region due to the increased disposable income of the consumers. The key players in the region regularly launch new products in the market and follow a merger and acquisition strategy to expand their business.

Competitive Landscape:

There are only several established participants in the industry and local manufacturers; hence, the market is fragmented. Some major market players are Altrafine Gums, Balchem Inc, ADM, Bentoli Inc., Caldic B.V., Camlin Fine science ltd, Denes Natural Pet care ltd, DSM, Kemin Industries, Inc., DuPont, Nestlé and Hill's Pet Nutrition, Inc. among others. Some major key players follow to expand their business due to high consumer demand for the products in the market. For instance, in April 2021, Balchem invested US$ 5 million to expand the animal nutrition manufacturing facility at its site in Covington to produce key nutrients used in the global animal nutrition and health market. This new facility doubled the production of key nutrients used in animal nutrition. Some major key players follow the merger and acquisition of the companies to expand their business. For instance, in September 2022, DSM completed its acquisition of prodap, a leading animal nutrition and technology company. Prodap combines technology offerings, consulting services, and customized nutritional solutions to drive efficiency and sustainability in animal farming. Also, in August 2022, Nestle India bought the Purina Petcare dog and cat food business.

COVID-19 Impact: Positive impact on the global pet food additives market

During the Covid pandemic, people spent more time at home with their pets. The COVID-19 pandemic has changed the way consumers value their food choices, and that trend also appears to apply to the pet products they purchase. More time spent at home with pets during the pandemic means that pet owners were likely more tuned into their companions' needs. The COVID-19 pandemic radically shifted purchasing behavior, and many first-time pet owners adopted animals during lockdown measures. Puppy adoption rates will expand by 50-100 percent by 2020, while the cat market is expected to grow by 40%, increasing demand for pet treats. Since the news of COVID-19 was announced, 38 percent of pet owners have become more concerned about their pets' health and beauty. According to a poll, 63 percent of pet owners said they spent more time with their pets during the global lockdown. Despite the impending recession, 17% of pet parents reported spending more on pet food. Online shopping and subscription services experienced considerable gains in market share due to social distancing and hygiene-enhanced delivery options. In the US, e-commerce made up 16% of the pet food category before COVID-19 and now represents 23%.

The global pet food additives market report would provide an access to approximately 75 market data tables, 71 figures and 170 pages