Pet Veterinary Diet Market - Growth, Trends, and Forecasts (2023 - 2028)

Pet Veterinary Diet Market - Growth, Trends, and Forecasts (2023 - 2028)

The pet veterinary diet market is projected to register a CAGR of 5.6% during the forecast period.

• Veterinary diets comprise animal foods specifically formulated to aid in managing illness and disease of a diagnosed health disorder in an animal. These veterinary diets are formulated to treat various problems in pets, such as itchy skin, digestive issues, obesity, and allergies. Pet food manufacturers are increasingly changing their product variants and making them suitable for the wellness of pets, thus driving the market studied. Based on various segment types, companies are developing products to cater to pet owners’ needs, thus improving retail sales.
• There is an increase in the humanization of pets globally, as pet owners are treating pets like their own family members. The American Pet Products Association estimates that 67% of US households owned pets during 2019-2020, equivalent to 84.9 million households, which is expected to grow further. Hence, pet food manufacturers are offering premium products targeted toward pet owners due to the increased parenting of pets. The young populations of pet owners are willing to spend more on healthy and natural pet food to maintain the well-being of their companion animals. The popularity of premium pet food among pet owners positively impacts the pet food market and is expected to contribute to significant growth during the forecast period.
• Premiumization is playing a key role in driving the sales of pet care and pet veterinary diets in these countries worldwide. Growing demand for natural pet food is gaining traction among global consumers owing to obesity risks in pets, such as dogs and cats. The prevalence of obesity in dogs and cats presents a greater opportunity for manufacturers to add quality ingredients and diets and launch added-value products to cater to the growing consumer interest in premium products.

Rapid urbanization in major developing countries worldwide has increased couples' preference for smaller families. Pet humanization has become a globally accepted term in the global pet industry. More pet owners want to provide their pets with human-like products or experiences. A study by the American Pet Products Association (APPA) under the National Pet Owners Survey (2019-2020) revealed that more than 85 million households in the United States had one or more pets, with a major percentage of households with dogs. Thus, the increasing humanization of pets is expected to drive the pet food industry.

According to the American Pet Products Association (APPA), the total sales of vet care accounted for USD 34.3 billion in the country. Other services with USD 9.5 billion include boarding, grooming, insurance, training, pet sitting and pet sitting and walking, and all services outside of veterinary care. With increased adoption rates, spending on pet food products for these pets has also increased.

Customers are treating pets as a part of the family. Thus, households began to spend on pets on par with children, which increased spending on healthy pet treats. There are nearly 150,000 retail establishments nationwide in the Brazilian pet food market. More than 90,000 outlets sell pet food products. Of those total pet products retail establishments, specialty stores include nearly 32,000 establishments, about 80% of which are independent pet shops.

Companies are increasing the number of premium products as consumers are prepared to spend more on pet food and products that are healthy and nutritious and improve their living conditions. For instance, Mars updates its entire Whiskas pouch portfolio to highlight healthy ingredients in the pack design. In addition, it launched an 11+ years range for older cats, as research suggests that more than 18% of cats are over 11 years old. The increased consumer trend toward pet adoption has driven pet food premiumization, which is anticipated to expand the pet veterinary diet market during the forecast period.

According to the American Pet Product Association 2021-2022 pet ownership survey, 70% of American households own a pet and spend an average of USD 300 annually on pet food and treats. North America is responsible for 31% of pet food production worldwide, coupled with the huge demand for pet care, driving the American pet diet market. The basic annual expenses for dog and cat owners include surgical vet visits (USD 458 for dogs and USD 201 for cats) and routine vet visits (USD 242 for dogs and USD 178 for cats). The major distribution channels through which the country supplies pet diet products are mass retail stores, pet superstores, online sales, niche specialists, grocery chains, drugstores, and agricultural supply stores.

Customers increasingly use e-commerce platforms for multitudes of purposes, and this trend has influenced online pet food product sales. With the increasing number of internet users, the e-commerce trend may fuel the market further. Pet Care is the fastest-growing e-commerce category. Pet owners are increasingly turning to online retailers rather than brick-and-mortar establishments. As a result, major pet brands are moving to online retail and digital marketing. Mars Petcare, one of the leading pet food brands in the United States, has teamed up with e-commerce platforms like Amazon and plans to invest more in online channels and research pet owners' shopping preferences. Thus, An increase in smartphone users, internet users, and young pet owners, coupled with innovations in product offering and marketing strategies in e-commerce, may encourage higher pet food sales in the Northern America region.

The pet veterinary diet market is moderately consolidated, with key players accounting for most of the share and various small companies and private labels. Mars Inc. and Nestle SA account for most of the market through their brands Royal Canin and Purina Petcare, respectively. Companies such as Hill’s Pet Nutrition and Nisshin Pet Food also play a major role in the market by developing problem-specific products and dominating the veterinary diet market in a particular region. New product launches, partnerships, and acquisitions are the major strategies adopted by the leading companies in the market. Along with innovations and expansions, investments in R&D and developing novel product portfolios will likely be crucial strategies in the coming years.

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