Canada Pet Food - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2017 - 2029

Canada Pet Food - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2017 - 2029

The Canada Pet Food Market size is estimated at USD 4.79 billion in 2024, and is expected to reach USD 5.96 billion by 2029, growing at a CAGR of 4.47% during the forecast period (2024-2029).

Increasing pet adoption and the demand for premium pet foods are driving the pet food market in the country

• In Canada, pet ownership is highly common, with a significant percentage of households owning pets. As of 2020, 38.0% of households owned cats and 35.0% owned dogs. As a result of this trend, the pet industry in Canada has been on a continuous upward trend, with the market constantly expanding.
• Despite pet dogs having a lower population than cats in Canada, they dominate the pet food market, valued at USD 1.67 billion in 2022. This is due to their higher consumption of commercial food than cats. With the pet population steadily increasing and pet owners becoming more interested in premium pet products such as grain-free and vegan dog food, the pet food market for dogs is anticipated to be the fastest growing, registering a CAGR of 5.5% during the forecast period.
• Cats accounted for about 36.7% of the pet food market in 2022, owing to their large population in the country, which accounted for around 26.3% of the pet population in the same year. The cat food market is anticipated to register a CAGR of 4.0% during the forecast period because of the increase in the cat population. The average lifespan of a cat is about 20 years, which will also have a long-lasting impact on the market.
• Although other pet animals, including birds, fish, and rodents, accounted for 44.5% of the pet population in Canada, they accounted for 26.2% of the market in 2022. This could be attributed to these pets being typically small and, therefore, requiring relatively small amounts of food.
• The increase in pet ownership during the pandemic and the average lifespan of dogs and cats, which is around 8 to 10 years, is expected to have a long-term impact on the pet food market. Additionally, the continuous increase in pet ownership is anticipated to drive the market in the forecast period.

Canada Pet Food Market Trends

Animal shelters are preferred channels for adoption of cats with the majority adopters being millennials and younger adults

• There is an increase in the adoption of cats as pets in Canada due to the high demand for companionship and less expenditure on pet food for cats than dogs. In Canada, the adoption of cats as pets increased by 2.5% between 2017 and 2022 due to a rise in pet humanization and the lesser area cats require to live compared to dogs. For instance, in Canada, households owning a cat as a pet was 40.1% in 2020, more than that of dog ownership.
• There is an increasing trend of pet humanization among millennials adopting pets, particularly cats, in the country. For instance, in 2020, 54% of the millennials were pet parents and adopted cats to have companionship. This trend was further evident during the pandemic, which helped the rate of adoption to increase. More than 3 million are expected to adopt a pet, including a cat, in 2023. This trend is expected to last longer as the average lifespan of cats is more than 10 years in Canada.
• The animal shelter is one of the key channels for adopting pets, including cats. For cat adoption, cities such as Toronto, Calgary, and Quebec had the highest adoption rate as of 2022, with Toronto accounting for 5% of the adoptions in the country, while Calgary and Quebec accounted for 4% and 1%, respectively. About 80,000 cats are adopted annually from animal shelters as they provide authenticated information regarding health problems to potential adopters before releasing an animal for adoption, which makes animal shelters a preferred option.
• The increase in cat adoption in the country during the forecast period will be due to a rise in pet humanization and the availability of pets from animal shelters.

Pet parents seeking premium and high-quality pet foods is increasing the expenditure per pet in the country

• Canadian pet expenditure witnessed a consistent upward trend, with an increase of about 14.2% between 2019 and 2022. This rise can be attributed to two key factors: pet humanization and premiumization. As of 2020, a significant 58.0% of Canadians owned at least one pet and considered them integral members of their families, indicating the growing trend of humanization.
• Canadian pet owners are increasingly opting for premium pet foods. For instance, premium pet food brands such as "Acana" grain-free pet food witnessed retail sales growth, registering a CAGR of 7.4% from 2016 to 2020. Similarly, "Hill's Science Diet," offering specialized nutrition for pet weight management and skin health, also experienced a rise in retail sales, registering a CAGR of 7.3% during the same period. This surge in sales reflects the increasing trend of premiumization within the country.
• The average expenditure on pets in Canada has seen a significant increase in recent years. In 2018, the average expenditure amounted to USD 1,347, which rose to USD 1,557 in 2021, marking a substantial growth of 15.5% within three years. However, it is important to note that pet expenditure varies based on the type and size of the animal. As of 2022, the average annual budgets for the three most popular pets in Canada were USD 2,912 for dogs, USD 2,150 for cats, and USD 995 for rabbits. These figures encompass various expenses related to pets, including food, veterinary care, and grooming.
• Among distribution channels, offline stores were the top preference for over 79.0% of pet owners, while online sales accounted for 21.0% of the total pet food market value in 2022. The easy accessibility of online retailing is expected to boost pet expenditure during the forecast period.

Canada Pet Food Industry Overview

The Canada Pet Food Market is moderately consolidated, with the top five companies occupying 55.89%. The major players in this market are Colgate-Palmolive Company (Hill's Pet Nutrition Inc.), General Mills Inc., Mars Incorporated, Nestle (Purina) and Schell & Kampeter Inc. (Diamond Pet Foods) (sorted alphabetically).

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