Corporate Profiles - 2023 - 54

GRAIN-BASED FOODS
Pet food
G
Growth continues for pet food, treat industry
rowth in the pet care industry, and the pet food segment in particular,
continues on an upward sales trajectory. The global pet
industry is currently worth $320 billion and is expected to reach
$493 billion by 2030, according to Bloomberg Intelligence.
If the 54% increase is to be reached, the pet food and treat industry
will need to continue evolving. New technologies, formulations, ingredient
development and product innovations will be essential to meet
future demand.
The US pet care industry, as a whole, reported industry sales topping
$136.8 billion in 2022, according to the American Pet Products
Association's (APPA) State of the Industry data, which represents an
increase of nearly 11% from 2021. In the United States, pet food and
treat sales are expected to reach $53.2 billion by the end of 2023, and
globally, pet food sales are expected to grow to $133.9 billion in 2023,
according to year-end estimates by market research provider Euromonitor
International.
All pet food formats saw sales growth, thanks in part to higher prices,
between June 2022 and June 2023, according to the market research
firm Circana, Chicago. In the 52 weeks ended June 18, 2023, dry dog
food sales increased 20% (growth between 2021 and 2022 was 12%).
Dry cat food sales increased 22% after experiencing a 13% increase
between 2021 and 2022. Nestle Purina and Mars Petcare lead the dry
dog food category while Nestle Purina and Big Heart Pet Brands lead
the dry cat food category.
The treat category continues to produce strong sales both on the
dog and cat side. Dog treats increased 13%, to $3.95 billion in 2023
US MULTI-OUTLET
pet food sales
Dollar
sales
Product category
Dry dog food
Dry cat food
Wet dog food
Wet cat food
Refrigerated/frozen dog food
Semi-moist cat food
Dog treats
Cat treats
(millions)
$6,997
$3,382
$2,649
$3,347
$877.1
$995.7
$3,947
$1,266
% change
from
year ago
19.7%
21.8%
12.5%
14.6%
31.7%
81.8%
12.8%
15.1%
Data for 52 weeks ended June 18, 2023
Total US - Multi-outlet with C-Store (Supermarkets, Drugstores and Mass Market Retailers,
Gas/C-Stores, Military Commissaries and Select Club & Dollar Retail Chains)
Source: Circana OmniMarket Integrated Fresh
Unit
sales
(millions)
361.7
291.9
748.3
1,762.0
94.0
392.9
576.0
385.0
% change
from
year ago
-0.1%
1.9%
-14.2%
-7.7%
13.4%
9.6%
-2.8%
-1.5%
Price
per unit
$19.34
$11.59
$3.54
$1.90
$9.37
$2.53
$6.86
$3.29
% change
from
year ago
19.5%
19.5%
31.1%
24.2%
16.1%
65.9%
16.0%
16.9%
from $3.54 billion in 2022, with Big Heart Pet Brands and private label
brands leading the category. Cat treats saw slightly higher growth with
a 15% increase, to $1.27 billion in 2023 from $1.12 billion in 2021,
with Mars Petcare and Nestle Purina in the top two spots.
A good deal of the sales gains in all categories came because of price
increases. Unit sales were down 0.1% in dry dog food, 14% in wet dog
food, 8% in wet cat food, 2.8% in dog treats and 1.5% in cat treats.
According to the 2023-2024 APPA National Pet Owners Survey,
66% of US households own at least one pet, which equates to 86.9 million
households. Pet ownership is now reflected equally among younger
and older generations of pet owners. For the first time, the number of
Gen Z and millennial pet owners equals the number of Gen X and baby
boomer pet parents across the country, according to the APPA.
Pet food processors, suppliers and retailers remain optimistic despite
continued labor shortages, supply chain challenges and rising costs
throughout the manufacturing industry. Optimism is evident through
ongoing investments in facility expansions and new plant construction
over the past year.
Some notable facility expansions on the processor side included
Nestle Purina PetCare, Freshpet, Blue Buffalo, Hill's Pet Nutrition, Mars
Petcare and Mid America Pet Food. On the supplier side, ADM, Scoular,
DSM, Anchor Ingredients and Kemin Nutrisurance all made sizeable investments
in supporting the pet food industry.
These operational investments, and many others, show how the pet
food and treat industry, and the ancillary industries that support it, are
doing their part to help meet evolving consumer demand. CP
54 \ October 2023
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Corporate Profiles
INDUSTRY REVIEW: pet food
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Corporate Profiles - 2023

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