The global pet food market is anticipated to gain impetus from the ever-increasing demand for natural and premium products. Besides, the governments of several countries are emphasizing on the usage of natural, healthy, and safe ingredients in pet food products. They are also enabling more transparency in selling such products. Fortune Business Insights™ provides this information in a recent report, titled, “Pet Food Market Size, Share & Industry Analysis, By Animal Type (Dogs, Cats, and Others), Form (Dry Pet Food, Wet Pet Food, and Snacks & Treats), Distribution Channel (Supermarkets/ Hypermarkets, Specialty Pet Food Stores, Online Channels, and Others), and Regional Forecast, 2020 – 2027.” The report further mentions that the pet food market size stood at USD 90.13 billion in 2019 and is projected to reach USD 127.21 billion by 2027, thereby exhibiting a CAGR of 4.60% during the forecast period (2020-2027).
The outbreak of COVID-19 has been affecting several industries since the past few months. Owing to the stringent preventive measures, such as lockdown, the production and manufacturing of goods have come to a standstill. However, we will be able to pass this difficult phase with time and patience. With the growing support from the regulatory bodies and other similar agencies, the highly impacted industries are slowly able to move towards success. Our research reports offer extensive analysis of the effects of this pandemic on various industries.
Drivers & Restraints-
Manufacturers Begin Production by Adhering to Social Distancing Amidst Covid-19
Since the past few years, industry giants, such as Mars Inc., Nestle, and The J.M. Smucker have been introducing premium these food products in the market to grab the attention of more consumers. They have also been striving to address the urgent needs of the rising number of pets. Prominent manufacturers are mainly aiming to address the requirements of various types of animals belonging to numerous age groups and breeds. To do so, they are launching wide range of products. Nestle Purina PetCare, for instance, unveiled its premium range of dog food named Supercoat, in India in 2018. These factors are expected to propel market growth in the near future.
However, the emergence of the COVID-19 pandemic has forced the ruling bodies to implement preventive measures, such as complete lockdowns across the globe. This pandemic is also affecting the global economy severely. The pet food market is not an exception. Owing to the sudden halt in production, the market is likely to exhibit reduction in manufacturing and packaging of products. But, many manufacturers have begun production processes by following the governmental guidelines, such as social distancing, to fulfil the demand from the pet owners.
Dog Segment to Dominate Owing to Their Rising Adoption Worldwide
In terms of animal type, the market is segmented into cats, dogs, and others. Out of these, the dogs segment held 57.35% pet food market share in 2019 and is set to dominate throughout the forecast period. This growth is attributable to the increasing adoption of dogs as pets worldwide. In addition to this, the rising expenditure associated with the well-being and maintenance of dogs is anticipated to augment the demand for premium quality and natural food. Numerous companies are also unveiling new nutrition-rich dog food products. These factors would drive the growth of this segment.
Rising Pet Humanization to Drive Growth in North America
In 2019, North America generated USD 35.78 billion in terms of revenue and is set to lead the market in the near future. This is expected to occur because of the presence of several industry giants, such as Nestle and Mars Incorporated in this region. Additionally, the masses in this region are rapidly shifting towards humanization of pets and it is resulting in their rising adoption. The American Pet Products Association (APPA) mentioned that approximately 85 million households in the U.S. own a pet. It accounts for 67% of the total households. This factor is causing the manufacturers to produce new nutritious food products.
Asia Pacific, on the other hand, is likely to be the fastest-growing region followed by South America. China, Australia, and Japan are considered to be the main contributors to market growth. India and China would grow significantly backed by the rising investments by key companies in launching new products. Also, the increasing expenditure of customers on nutritious food products for their pets would accelerate growth in these countries. Japan is considered to be a prime importer of cat and dog food products worldwide.
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