Attractive Growth Opportunities in the Pet Food Ingredient Market

Northbrook, IL, USA, 2019-Oct-31 — /EPR Network/ —

The pet food ingredients market was valued at USD 34.9 billion in 2018 and is projected to reach USD 54.3 billion by 2025, recording a CAGR of 6.62% during the forecast period. The growth of this market is primarily driven by the increase in the global pet population, high production of pet food, and the rise in the trend of pet humanization. However, different regulatory structures for the use of pet food ingredients and the scarcity of raw materials are factors inhibiting the growth of this market.

How is the use of cannabis in pet food products is offering new opportunities?

The Agricultural Improvement Act of 2018, passed in December 2018, took a significant step forward by separating hemp and hemp-derived CBD from marijuana-based products, thereby placing hemp-derived products under the control of the Department of Agriculture as a crop, rather than under the Justice Department as a controlled substance. The Farm Bill defines marijuana as cannabis with THC of 0.3% or greater (under the DEA), and hemp as cannabis with THC of less than 0.3%.

The use of cannabis in pet food treats has gained popularity, as the regulations have become less stringent. Cannabis-based pet food is available in concentrates, isolates, and synthetic forms. In cannabis-based food products, anxiety curing products are most useful to lower down anxiety. Additionally, pet owners are looking at CBD as an alternative to mitigate pain and allergies.

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Cannabis-based products were highly visible in the recent Global Pet Expo in Orlando (March 2019). Cannabis-based pet food is majorly sold through the Internet (via Amazon). Pet businesses have identified cannabis-based pet products as one of the growth areas of 2019.

How is the preference for counterfeit products creating challenges for the growth of the pet food ingredients?

In recent years, there has been tremendous growth in the pet food ingredients market; however, counterfeit products have emerged as a problem for the industry in recent years. Counterfeit products are dangerous to the health of pets. This counterfeit practice is negatively affecting the market and the health of pets; further, the revenue generated from these products is unknown. The industry has to deal with these products, as they serve as a threat to the growth of the extruded pet food industry. For instance, in 2015, Champion Pet Foods, one of the prominent players in the pet food industry, announced that counterfeit versions of its pet food were being sold online. Such false practices may impact the overall health of pets as well as hamper the growth of the extruded pet food industry.

South America is projected to grow at the highest rate during the forecast period

South America, followed by Asia Pacific, is expected to grow at high rates from 2019 to 2025. Brazil and Argentina are the most leading markets in the South American region. The market in this region is in the early stage of development, and hence, provides growth opportunities for key companies. The South American region is projected to grow at a high rate in the pet food ingredients market, as some countries in this region offer profitable growth opportunities for the pet food industry. Brazil is the largest pet food ingredients market and is also one of the fast-emerging markets for South America. In 2018, pet food sales accounted for 81% of all the pet care products. Dog food ingredients accounted for 46% of pet foods, followed by cat food.

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The key players in the pet food ingredients market are Cargill, Incorporated (US), Archer Daniels Midland Company (US), BASF SE (Germany), DowDuPont Inc. (US), and Ingredion Incorporated (US). Manufacturers are adopting strategies such as new product launches, expansion & investments, mergers and acquisition, agreements, collaborations, joint ventures, and partnerships to strengthen their position in the market.

Key Questions addressed by the report

• What are the growth opportunities in the pet food ingredients market?
• What are the major and new products launches in pet food ingredients?
• What are the major trends that are disrupting the pet food ingredients market?
• What are some of the major regulatory challenges and restraints that the industry faces?
• Which region is expected to emerge as the global leader by 2025?

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