Attractive Growth Opportunities in Pet Food Ingredient Market

Growth opportunities and latent adjacency in Pet Food Ingredient Market

(EMAILWIRE.COM, November 07, 2019 ) 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.

The key players in this 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.

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.
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.

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Among the ingredients, fats, and meat & meat product segments are projected to grow at the highest CAGRs from 2019 to 2025. Vegan and grain-free pet food have been gaining popularity in the industry. These trends are also expected to increase the popularity of different fruits in pet food to provide varied taste, texture, and flavor. Fats, which form one of the essential ingredients in pet food, form a segment that is projected to grow at a higher rate due to the functional benefits of including fish oil in pet foods and the cost-effective nature of fats such as tallow and lard. These factors are contributing to the popularity of the fruits and fats in the pet food ingredients market.

The South American region is estimated to grow at the highest CAGR between 2019 and 2025. The demand for pet food products in South America is increasing rapidly due to the increasing use of pet food ingredients, along with the growing number of pets per household. Brazil imports most of its pet food products, but it also exports most of the pet food ingredients to manufacturers in other countries. Increasing concerns about the health of their pets in Brazil has led to a high demand for healthy and high-quality pet food products.

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 also looking to CBD as an alternative to mitigate pain and allergies. The major players in the industry are focusing on new product launches, expansions, mergers & acquisitions, and agreements & partnerships to increase the global footprint in the pet food ingredients market.

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