Pet Food Nutraceutical Market - Growth, Trends, and Forecasts (2023 - 2028)
The pet food nutraceutical market is projected to register a CAGR of 4.8% over the forecast period.
Key HighlightsPet humanization is becoming a globally accepted term in the global pet industry because more and more pet owners want to provide their pets with human-like products or experiences. A study conducted by the American Pet Products Association (APPA) under the National Pet Owners Survey (2020-2021) revealed that more than 90.5 million households in United States had one or more pets, with a major percentage of households having dogs. Thus, increasing pet humanization is anticipated to drive the pet food nutraceuticals industry.
Further, in China, according to Chinese Pet Industry White Paper Data, in 2021, the pet ownership rate was 58.4% for cats and 52.8% for dogs. Since the rise of the animal welfare movement in China, an organization called Pet Form, which educates and trains stray dogs and cats before returning them to shelters, has helped about 10,000 rescued cats and dogs enter human homes in the eight years from 2011 to 2019. With increased adoption rates, spending on pet food and nutraceutical products for these pets has also increased. Customers are treating pets as a part of the family, and thus, households are beginning to spend on pets on par with children. This has led to an increase in spending on accessories, gifts, treats, etc. In the Brazilian pet food and pet care market, there are nearly 150,000 retail establishments nationwide. More than 90,000 outlets sell pet food products, including pet food nutraceutical products.
North America Dominates the MarketThe North American market is the first respondent to any major global trend or consumer pattern; the high level of market penetration and corresponding infrastructure are cited as reasons for the pioneering attitude. The concept of pet humanization is the major trend for pet food markets in the sense of overall pet well-being. One significant outcome of this trend is the consumer's focus on nutraceutical foods and remedies from comfort or treat foods. This focus is well visible in the marketing and new product launches of the major firms.
United States is expected to lead the pack, followed by Canada and Mexico. The rapid increase in urbanization rates and income levels that are expected of Mexico are fuelling the high expectations of the market. The increasing forces of globalization and infrastructure improvement are giving rise to considerable growth in other regions of North America. According to the American Pet Products Association (APPA), in 2021, the pet industry expenditures accounted for USD 123.6, in which the Vet Care & Product Sales stated USD 34.3 million, and Supplies, Live Animals & OTC Medicine accounted for USD 29.8 million.
Competitive LandscapeThe pet food nutraceutical market is a highly consolidated market, contributing almost a majority of the market share as the pet food nutraceuticals market is niche and there is a limited number of players contributing to this sector. These players include BASF, Purina Pet Care, DSM, Kemin Industries, Symrise, Danisco Animal Nutrition, and Boehringer Ingelheim. The greater market share of these players can be attributed to their large geographical presence and highly diversified product portfolios. These players are known to be focusing on R&D, large product portfolio, wide geographical presence, an aggressive acquisition strategy.
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