Market Scenario

The Global Pet Food Processing Market was valued at US$ 5,296.3 million in 2023 and is projected to surpass the market valuation of US$ 8,700.3 million by 2032 at a CAGR of 5.67% During the Forecast Period 2024–2032. 

The pet food processing market has demonstrated substantial growth and diversification in recent years, mirroring the evolving preferences and spending habits of pet owners. In 2022, total pet industry sales in the US achieved a remarkable high of $136.8 billion, reflecting a 10.8% increase from the previous year. This trend is expected to continue, with forecasts predicting the US pet market will reach an impressive $195.6 billion in sales by 2030. Globally, pet food sales are projected to grow to $133.9 billion in 2023, with the US contributing significantly to this figure, expecting pet food and treat sales to reach $53.2 billion by the end of 2023. Additionally, US dog and cat food exports witnessed a substantial 20% increase in 2022, reaching $2.4 billion.

The surge in spending on pet food and treats is notable, with $58.1 billion spent in 2022, a significant 16.2% increase from 2021. This growth in the pet food processing market is not just limited to conventional pet food types; both dry and wet dog and cat food sales have seen robust growth. Notably, the refrigerated/frozen category in dog and cat food has also seen a substantial increase, with a 31.7% increase in dog food and a 19.4% increase in cat food. The treat category has similarly shown strong sales, particularly in the online sphere, where 80% of pet owners purchased their pets’ food and 76% bought treats. The pet food industry's expansion is closely linked to the changing dynamics of pet ownership in the US. Currently, 66% of US households own at least one pet, equating to 86.9 million households. There's a shift in pet ownership across generations, with younger generations (Gen Z and Millennials) now matching the number of older generations (Gen X and Baby Boomers) in pet ownership. The spending patterns also vary across generations, with Gen X pet parents spending the most annually.

With the rise in pet ownership and spending, the pet food processing market is also evolving to meet the increased demand and diversity in pet food preferences. This includes advancements in machinery for producing various types of pet food, from dry kibbles to wet foods, as well as treats and special diet formulations. Equipment that can handle a range of ingredients and produce pet food with different textures and nutritional contents is becoming increasingly important. Moreover, with the rise of online sales, the pet food processing industry is also adapting to cater to e-commerce demands, which includes packaging and distribution solutions.

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Market Dynamics 

Driver: Rapidly Growing Pet Ownership is A Key Driver of the Pet Food Processing Market

The escalating trend of pet ownership stands as a pivotal driver of the pet food processing market. In 2022, the US pet industry marked a significant milestone with total sales reaching $136.8 billion, a 10.8% increase from the previous year. This surge is underpinned by the fact that 66% of US households, equating to 86.9 million homes, now own a pet. The pet food segment alone accounted for $58.1 billion in 2022, registering a 16.2% rise from 2021. Such growth is driven by a deeper emotional bond between owners and their pets, translating into increased spending on pet care and nutrition. 

The demand for high-quality pet food is directly proportional to the rising number of pet owners. The younger generations, particularly Millennials and Gen Z, are contributing significantly to this trend, with their increasing involvement in pet ownership and their willingness to spend on pet care. Their focus on pet health and well-being has catalyzed the development of various pet food products, from organic options to specialized diets. This shift in consumer behavior has necessitated advancements in pet food processing technology and equipment to meet diverse nutritional requirements and preferences.

Trend: Humanization of Pets is A Growing Trend in Pet Food Processing Market

The humanization of pets is a trend that has profoundly influenced the pet food processing market. Pet owners increasingly view their pets as integral family members, leading to greater attention to their dietary needs. This perspective has propelled the demand for premium, high-quality pet food mirroring human dietary trends. In 2022, sales in the pet treat sector topped $11 billion, demonstrating the significance of indulgent and health-conscious options in pet diets. The refrigerated and frozen pet food categories have also seen remarkable growth, with a 31.7% increase in dog food and a 19.4% increase in cat food. This trend aligns with the rising awareness of pet nutrition and the desire for fresh, natural food options. 

The organic pet food segment of the pet food processing market is expected to continue its upward trajectory, reflecting a shift towards organic and naturally sourced ingredients. Additionally, the vegan pet food market, although controversial, is projected to grow from $9.3 million in 2021 to $15.6 million within 9 years. These developments underscore a significant shift in consumer preferences towards pet food products that are not only nutritious but also ethically sourced and environmentally sustainable. The humanization trend is thus reshaping the pet food industry, driving innovation and diversification in product offerings.

Challenge: Stringent Regulatory Policies

Navigating regulatory challenges emerges as a significant restraint in the pet food processing market. The industry faces stringent regulations pertaining to the safety, quality, and labeling of pet food products. These regulations, while necessary for ensuring pet health and consumer trust, can pose challenges for manufacturers in terms of compliance and keeping pace with changing standards. For instance, the Food and Drug Administration (FDA) in the United States imposes rigorous guidelines for pet food production, encompassing ingredient sourcing, manufacturing processes, and packaging. Adhering to these regulations requires significant investment in quality control and production infrastructure, potentially increasing the cost of production and limiting market entry for new players. 

In 2022, the pet food processing market witnessed increased scrutiny over ingredient transparency and sourcing, reflecting growing consumer demand for ethical and sustainable products. This trend has necessitated further compliance with environmental and ethical standards, adding layers of complexity to the regulatory landscape. Moreover, global trade in pet food involves navigating a myriad of international regulations, which vary significantly from country to country, further complicating the market dynamics. The need to continuously adapt to these regulatory changes and ensure compliance can act as a barrier to innovation and expansion, particularly for smaller manufacturers who may lack the resources for extensive regulatory navigation. Despite these challenges, the industry continues to evolve, with manufacturers and stakeholders working collaboratively to meet regulatory demands while innovating and expanding their product offerings.

Segmental Analysis 

By Type 

In the pet food processing market, the processing equipment segment commands the highest share, accounting for 29%. This dominance reflects the essential role of processing equipment in ensuring efficiency, quality, and safety in pet food production. These equipments, including mixers, grinders, and extruders, are crucial for achieving the desired texture and nutritional content of pet foods. As the market evolves, there is a noticeable shift towards more advanced and automated processing equipment, driven by the need for higher productivity and consistency in product quality. The preparation equipment segment, although currently smaller, is projected to grow at the highest CAGR during the forecast period. This growth is attributed to the increasing demand for specialized pet food products, requiring more intricate preparation processes. Innovations in preparation equipment are focusing on enhancing versatility and efficiency, catering to a diverse range of pet food formulations and types.

By Form

The dry segment holds the lion's share in the global pet food processing market, accounting for 72.9%. This dominance is due to the widespread preference for dry pet foods, attributed to their convenience, longer shelf life, and cost-effectiveness. Dry pet food processing involves complex procedures to ensure nutritional efficacy and palatability, making the role of processing equipment vital. The segment is also projected to grow at the highest CAGR, driven by ongoing innovations in dry pet food formulations, focusing on enhanced nutritional value and variety. The trend towards premiumization in pet food is further fueling this growth, with pet owners seeking high-quality, nutritionally balanced dry food options for their pets.

By Application

In the application segment, the dog food segment leads the global pet food processing market, holding a 40.4% share. This dominance reflects the high number of dog ownership globally and the increasing attention to canine nutrition and health. Dog food processing has become more sophisticated, with a focus on creating diverse dietary options catering to different breeds, sizes, and health requirements. The segment's growth is propelled by the rising demand for specialized dog food products, including breed-specific formulas, age-specific diets, and health-conscious options. This trend is expected to continue, with the dog food segment projected to grow at the highest CAGR, as manufacturers innovate to meet the diverse needs of dog owners and their pets.

By Distribution Channel

The online segment dominates the global pet food processing market, holding an 86.2% share. This overwhelming dominance is a testament to the convenience, variety, and accessibility offered by online retail channels. The rise of e-commerce has transformed pet food purchasing habits, with a significant number of consumers preferring to shop online. The online segment's success is driven by factors such as easy comparison of products, home delivery convenience, and the increasing prevalence of subscription models. Meanwhile, the offline segment, although smaller, is gaining strong momentum and is projected to grow at the highest CAGR during the forecast period. This growth can be attributed to the tactile shopping experience, immediate product availability, and personal customer service that offline channels offer. As consumer preferences evolve, both online and offline channels are adapting to provide a more integrated and seamless shopping experience for pet food.

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Regional Analysis 

North America, particularly the United States and Canada, is at the forefront of the global pet food processing market, holding more than 36.2% revenue share. With the highest revenue share in 2023, this region's dominance is fueled by a substantial rise in pet adoption. The United States alone saw a 6.12% increase in pet food production, reaching 10.40 million tonnes (MT), despite challenges such as high material prices and supply chain disruptions. The region's focus on innovative and specialized pet food products, such as freeze-dried and dehydrated options, which saw a 35% production increase, underscores the growing demand for premium pet food offerings​​​​.

Europe follows closely, holding more than a 27% revenue share in the pet food processing market. This growth is largely driven by a deep-seated culture of pet ownership and affection towards pets, which has resulted in a 38.7% increase in the pet food market between 2017 and 2022. The UK stands out in Europe, accounting for 14.9% of the region's pet food market in 2022, driven by a diverse range of pet food diets and an increased focus on pet health and well-being. Furthermore, Poland is emerging as the fastest-growing market in Europe, with a projected CAGR of 14.3%, primarily due to the rising trend of pet humanization and a shift from homemade to commercial pet food​.

The Asia-Pacific region, although not leading in market share, is expected to showcase the fastest growth over the forecasted period. This growth is attributed to the trend of pet humanization, particularly in countries like Australia and New Zealand. The pet food production in the Asia-Pacific region increased by 9.33% in 2022, reaching 2.48 MT. The Philippines, for instance, saw a 34% increase in its production, indicating a growing market for locally produced pet food​​.

In contrast, Africa experienced a decline in pet food production, dropping by 24.57% to 0.34 MT, with Kenya being the only area in the region to see an increase. Latin America, the Middle East, and Oceania, though still behind Europe and North America, experienced significant growth in pet food production, highlighting the expanding global reach of the pet food processing market​​.

Top Players in Global Pet Food Processing Market 

• Andritz AG
• Baker Perkins Ltd
• The Bühler Holding AG
• Clextral SAS
• F.N. Smith Corporation
• GEA Group AG
• Mepaco Group
• Precision Food Innovations
• Reading Bakery Systems
• Shandong Joyang Machinery Co., Ltd
• The Middleby Corporation
• Other Prominent Players

Market Segmentation Overview:

By Type

• Preparation Equipment
  • Cleaning
  • Grading
  • Peeling/Skinning
  • Sorting
• Mechanical Processing Equipment
  • Size Reduction
  • Size Enlargement
  • Homogenization/Emulsification
  • Mixing/Blending
• Heat Processing Equipment
  • Baking
  • Dehydration
  • Frying
  • Pasteurization
  • Others
• Processing Equipment
  • Chemical
  • Irradiation
  • Refrigeration
  • Water Reduction
• Packaging Equipment
  • Printers
  • Seamers
  • Fillers
  • Others
• Others

By Form

• Dry
• Wet

By Application

• Dog food
• Cat food
• Fish food
• Others

By Distribution Channel

• Online
• Offline
  • Direct
  • Distributor

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • Western Europe
    • The UK
    • Germany
    • France
    • Italy
    • Spain
    • Rest of Western Europe
  • Eastern Europe
    • Poland
    • Russia
    • Rest of Eastern Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia & New Zealand
  • South Korea
  • ASEAN
  • Rest of Asia Pacific
• Middle East & Africa (MEA)
  • Saudi Arabia
  • South Africa
  • UAE
  • Rest of MEA
• South America
  • Argentina
  • Brazil
  • Rest of South America