Surge in Adoption of Furry Companions amid COVID-19
Kaveri Rana Bhardwaj, President of People For Animals (PFA), said, “The pandemic has led to the rise in the number of pet adoptions. Since July-August-2020, around eight to ten of the indies in our shelter homes have been adopted.” Moreover, according to PetPoint, the overall number of foster pets has increased by 8% across U.S. households. What is driving the sudden rise in pet parenting? Well, the pandemic has had a dramatic impact on human lives as stress and insecurity take a driver’s seat.
As per a study published in the Journal of Veterinary Behavior, May 2020, dogs have the potential to absorb the emotions and feelings that their owners are going through. This has led to the increasing rate of pet adoption as people find that their pets help them deal with isolation. This is likely to bode well for the demand for pet foods worldwide.
The world has witnessed a significant rise in pet ownership in recent years. Globally, the increasing number of people adopting pets leads to a proportional growth in the global pet food market size that is expected to reach USD 127.21 billion by 2027 while exhibiting a CAGR of 4.60% between 2020 and 2027, according to Fortune Business Insights.
Bygone are the days when pets were considered merely for security purposes. People today have been emphatic more than ever and are treating pets as their children that have put in light the term, Pet Parenting. The humanization of pets has led to the massive development of the pet food industry, leading to high demand for nutritional food products globally.
Product Innovation at the Fore! Companies Cater to Growing Demand for Premiumization
The global pet food market is experiencing significant growth due to the growing demand for a premium or super premium food products. Jared Koerten, Pet Care Head at Euromonitor International, says, “Consumers are buying premium-priced pet foods that claim to be grain-free, natural, and high-meat or protein-induced.” Factors such as values for money, sustainability, and food personalization are the major factors driving the demand for super premium food products for furry animals.
85% of the global consumers were of the view that they try to positively impact the environment through their actions, according to Euromonitor. This drives the demand to integrate sustainable proteins, recycled packaging solutions, and locally sourcing of ingredients. Companies invest in sustainable practices and further introduce more value-for-money pet food products to suffice the pet owners’ needs. Asia is turning out to be a new frontier due to its robust growth in affordable premium pet food categories. Although North America stood at USD 35.78 billion in 2019, Asia is perceived to be the fastest-growing region in the global pet food market.
Additionally, the high demand for personalization of pet food among customers has led several companies to consolidate lucrative opportunities. The companies are introducing food products based on specific formulas such as therapeutic diets and breed-specific food. Though small, the personalization category is growing at a steadier pace worldwide.
Several companies have been innovating and launching products to cater to the demand from pet parents. The market is gaining considerably by the proactive presence of companies operating globally. Let’s take a look at some of them.
Pet Releaf Launches Peppered Bacon Flavor to its Edibites Range
In March 2021, Pet Releaf announced expanding its hemp CBD-infused supplements, Edibites for dogs, by including a peppered bacon flavor. The company reports that the new flavor contains antioxidants through the black pepper content that aids in subsidizing inflammatory disease in dogs while supporting proper brain functioning and maintaining normal blood sugar levels in them. The product is completely devoid of grain, corn, fillers, soy, wheat, chemical preservatives, or dairy. Additionally, the company received the Quality seal from the National Animal Supplement Council (NASC) that evaluates pet supplement components for food quality and safety.
Mars to Invest USD 200 Million in Expansion of Pet Food Plant
In March 2021, Mars, Inc., a leading pet food manufacturer, announced its plan to expand its manufacturing facility in Lebanon. The company reports that it will be investing around USD 200 million to install five automated production lines to double the plant capacity. Additionally, it will add around 108,000 sq ft of new space at the site. Cecile Coutens, Regional President of the company, said, “We are very much excited at our investment to develop our Lebanon site. We are the industry leaders in pet health and food products and have experienced tremendous growth in the pet food category. We are committed towards our goal of catering to the growing number of pets we serve with premium quality products and services.”
Kakato Hunts for 2000 Pet Owners in a Bid to Recruit Mini Paw Influencers
In March 2021, Kakato, a Hong-Kong-based leading pet food brand, announced its marketing plan to collaborate with 2000 pet owners to promote its food brand in Singapore. The company has collaborated with a pet parenting website, Pawjourr, that connects pet owners to products, information, and services. The company is looking forward to promoting 16 variants of its wet pet food for cats and dogs and further informing people about its highly nutritious, human-grade, and ethically-sourced products. Moreover, Kakato is running an online six-month campaign calling interested pet owners to try their products and post a social media review with their pets’ pictures.
United Petfood Announces Acquisition of Cambrian Pet Foods
United Petfood, a global pet food producer, announced the acquisition of Cambrian Pet Foods, a leading British manufacturer. The acquisition is expected to strengthen United’s position as a full-service private label pet food producer while giving its customers complete access to its complete range of in-house manufactured products. The company has three production plants and operates 17 pet food facilities located across eight different European countries.
Innovation, Facility Expansion, and Acquisition!
According to a survey by the American Pet Product Association (APPA), around 85 million people in the U.S. own a pet. A positive attitude towards pet humanization and the growing demand for quality pet food products is anticipated to drive the global market in the foreseeable years. This development has further propelled the companies to adopt dynamic strategies to develop products that will cater to the growing nutritional requirements of pet animals. Moreover, this will lead to the introduction of innovative recipes that will ensure the well-being and overall health of the pets.
The rising pet ownership and the growing awareness regarding the benefits of owning a pet that includes companionship and emotional support will boost the demand for pet food worldwide. In addition to this, the surging number of online retail platforms have caught the eye of pet parents. For instance, Amazon registered a staggering USD 1.4 billion in pet food sales as these platforms offer people a wide variety of pet food options to choose from and convenience.
The pet food industry is developing rapidly, and the significant contribution by pet parents to provide sustainable and nutritional food products is likely to ensure a strong growth trajectory for the market in the forthcoming years.