This article was published in Pet Food Processing’s 2024 Buyers Guide. Read it and other articles from this issue in the digital edition of the Buyers Guide here.
If industry predictions remain true, sales in the pet care market will top $250 billion by 2030, according to the American Pet Products Association (APPA). Of this, pet food and treat sales are anticipated to reach around $112 billion in sales. In order to reach these lofty goals, pet food and treat manufacturers need to continue product innovation and stay closely tuned to the evolving demands of pet parents.
Source: Euromonitor International; *2024 estimated year-end salesMarket research provider Euromonitor International predicts global pet food sales will reach $151.8 billion in 2024, a 7.6% increase from 2023. The United States is set to achieve $61.9 billion in pet food sales, an increase of 5.1% over the year prior. In 2024, dog food sales in the United States rose 8.4% to $42.1 billion and cat food sales increased 10.1% to $18.5 billion.
US dog and cat food exports reached $2.41 billion in 2023, according to the USDA Foreign Agricultural Service, with the top five export markets being Canada ($1.2 billion), China ($257 million), Mexico ($206 million), Japan ($122 million) and Australia ($89 million).
Source: USDA Foreign Agricultural ServiceAccording to the APPA and its State of the Industry Report, total industry sales topped $147 billion in 2023, an increase of about $10.2 billion (7.45%) from 2022.
- $64.41 billion was spent on pet food and treats (a 10.8% increase from 2022)
- $38.3 billion was spent on veterinary care and product sales (a 6.7% increase over 2022)
- $32 billion was spent on pet supplies, live animals and OTC medication (a 1.6% increase from 2022)
- $12.3 billion was spent on other services, including grooming, dog walking and boarding (a 7.9% increase over 2022)
“The data has shown that the pet industry has remained incredibly strong since 2009 despite wide-scale economic challenges,” said Peter Scott, president and chief executive officer of APPA, following the release of the State of the Industry data. “While there are signs of slowing, the industry is resilient, especially compared to other industries. In fact, we forecast the industry’s expenditures to top $250 billion by 2030.”
According to Chicago-based market research firm Circana, almost all pet food formats saw growth between June 2023 and June 2024, except for wet dog food. And some formats, namely semi-moist cat food and refrigerated/frozen dog food, saw significant growth from the year prior.
Dry dog and cat food had increased sales growth from the prior year, though not as significant as the year before. In the 52 weeks ended June 16, 2024, Circana reported dry dog food sales increased 4.5% after a substantial 19.7% increase between 2022 and 2023. Dry cat food sales increased 8.6%, which was considerably less than the increase of 21.8% between 2022 and 2023.
After a 12.5% increase in wet dog food sales between 2022 and 2023, the category decreased 1.3% in sales this year. Wet cat food did experience a 5.8% increase, however, it wasn’t as substantial as the 14.6% sales increase between 2022 and 2023.
The refrigerated/frozen category in both dog and cat food continues to be a smaller fraction of the overall market, but both categories continue to grow significantly in market share. After strong 31.7% growth between 2022 and 2023, the refrigerated/frozen dog food category grew another 28.9% this year. On the cat side, the category grew 13.7% after a 19.4% increase the year prior.
Freeze-dried dog food and semi-moist cat food make up the smallest portion of each food category — only $7.1 million in sales for freeze-dried dog food and $6.1 million for semi-moist cat food. However, the semi-moist cat food category grew a whopping 165.2% over the previous recorded year.
The treat category saw marginal increases compared to the year prior with only a 2.1% increase on the dog treat side from $3.95 billion in 2023 to $4 billion in 2024; and a 5.4% increase for cat treats following a 15.1% increase between 2022 and 2023.
Pet parents
While pet ownership has leveled off since pandemic levels, APPA reports 82 million households own a pet (44% own a dog and 30% own a cat). The association predicts pet ownership will reach 67% of US households by 2030. Millennials and Gen Z make up 32% and 16% of pet owners, respectively.
Sources: American Pet Products Association Illustration by ©PCH.Vector – STOCK.ADOBE.COM
“While Millennials still account for the largest category of pet owners, Gen Z pet ownership is steadily rising as they age out of their parents’ homes, graduate from university, and enter the workforce,” Scott said. “On the other hand, the number of Boomer pet owners has declined since pre-pandemic as many choose not to replace their pet after a pet death. As these generational demographics continue to shift, pet food brands must evolve their marketing strategies to engage with the younger generations of pet owners effectively.”
No matter what age, pet parents continue to credit pet ownership with increased happiness in their lives. Ninety-six percent of respondents in APPA’s “2024 Dog and Cat Report: Strategic Insights from the National Pet Owners Survey” said they received general health benefits simply from owning a pet. Many reported increased stress relief (64%), less anxiety or depression (57%), and credit owning a pet with getting more exercise (34%).
As cherished members of the family, pet owners are prioritizing quality time with their pets. Dog owners are taking their dogs to parks (58%) and bringing them on daily errands more often. Cat owners are training and spending more time outdoors with their cats, demonstrated by the growing use of training aids (46% in 2024, up from 34% in 2018). Thirty-one percent of cat parents own leashes and 23% own harnesses.
Source: ©PCH.Vector – STOCK.ADOBE.COMWhile most dog owners (55%) and a growing number of cat owners (36%) tailor their travel plans to accommodate their pets, a large number of pet owners have traveled, both in a car and by plane, with their dogs or cats. In the past year, 88% of dog owners and 90% of cat owners have traveled with their pets in the car, and 68% of dog owners and 80% of cat owners have traveled by plane.
And of course, every family member deserves a birthday celebration. Forty-four percent of dog owners purchase a gift for their dog’s birthday, up from 36% in 2022, and 32% of cat owners report they purchased a birthday present for their cat, up from 24% in 2022. Twenty-seven percent of dog owners host a holiday or birthday party for their dogs, while 20% of cat owners host celebrations for their cats.
Purchasing power
APPA’s 2024 Dog and Cat Report showed pet owners’ food purchasing preferences are shifting. In previous years, there was an upward trend in premium dog and cat food purchases; however, in 2024, premium food purchases have stabilized among dog owners and declined among cat owners.
“At the same time, the data demonstrates that pet owners are looking for various ways to supplement and expand their pets’ nutritional intake,” Scott explained. “While basic food purchases are on the rise, becoming the predominant food purchased by cat owners, topper/mixer purchases are on the uptrend. Fifteen percent of dog owners and 17% of cat owners buy toppers/mixers, a statistically significant difference from 10% and 12% in 2022.”
APPA data also shows that pet owners are increasingly interested in pet food purchases that feature added attributes beyond basic nutrition — human-grade, non-GMO, sustainable packaging, containing superfood ingredients and more. Fifty-four percent of dog owners and 47% of cat owners have purchased or plan to buy their pet a food product with such attributes.
“Pet owners are taking a more active role in their pets’ wellness, particularly in the ways they supplement their pets’ diets for optimal health benefits,” Scott noted. “Pet food manufacturers that build more variety into their product offerings will be able to meet pet owners’ changing needs and interests. Flexible diet options across a range of price points will create opportunities for building brand loyalty and allow brands to meet pet owners’ evolving needs.”
Source: Euromonitor International; *2024 estimated year-end salesBrick-and-mortar shops remain the most popular place to purchase pet products overall at 39%, across all pet parents combined with online purchasing not far behind at 34%. The most common pet products purchased online in 2024 have been pet food (79% of pet parents), treats (76%) and toys (69%). Other pet products purchased online include grooming supplies (61% of pet parents), litter or bedding (55%) and medication (51%).
According to Euromonitor International, US pet food sales in brick-and-mortar outlets will reach $39.4 billion in 2024 (up from $36.6 billion in 2023) and pet food sales will reach $21.3 billion via e-commerce outlets (up from $19 billion in 2023).
Generationally, younger pet owners are more likely to purchase pet products online, while older generations shop more in brick-and-mortar stores. In 2024, 50% of Gen Z pet owners, 52% of Millennials, 46% of Gen Xers, and 42% of Baby Boomers purchased pet products online. On the other hand, 46% of Gen Z pet parents, 44% of Millennials, 51% of Gen Xers, and 55% of Baby Boomers typically purchase in-store.
Source: ©PCH.Vector – STOCK.ADOBE.COMWhile pet parents shop both in-person and online, a lot of information about nutrition and brands is sought out online.
“Our data shows the growing importance of having a visual platform strategy, and brands embracing social media and video content are seeing great success, particularly in targeting the younger generations of pet owners,” Scott said. “Fifty-five percent of Gen Z and 49% of Millennial pet owners become aware of new pet products through social media, preferring platforms like YouTube and TikTok, in particular, to learn about products. Brands must leverage these platforms through relevant and engaging content to capture the attention of and market to young and emerging pet owners effectively.”
While online messaging can help brands boost sales, there’s an ongoing concern about misinformation about pet nutrition and health on online outlets.
“A top-of-mind issue for us is the impact of the vast amount of misinformation online on pet health,” said Kelly Kanaras, director of communications and membership for the Pet Food Institute (PFI). “At no time in the past have pet owners been inundated with so much inaccurate information. We have heard from veterinarians that this misinformation is tragically causing severe nutrient deficiencies and health issues in pets.”
PFI recently updated its website to provide more science-backed information on nutrition and pet health to pet owners.
“It is important that pet food makers proactively work to build consumers’ trust,” Kanaras added. “Posting blogs and social media posts that provide science-backed information, reminding consumers that we are pet owners, too, who want the best for our pets, and providing health and wellness tips to pet parents — all these activities build trust and help to combat the misinformation pet owners are inundated with.”
Industry issues
As pet food and treat innovation continues and formulations evolve to meet growing pet parent demands, pet food manufacturers are faced with a growing list of challenges. Headlining that list are initiatives aimed at modernizing pet food labeling and regulation.
In July 2023, the Association of American Feed Control Officials (AFFCO) approved new labeling guidelines for dog and cat foods. These new model regulations aim to make pet food labels more closely resemble those on human foods. According to the PFI, the modernization of pet food labels will provide “greater consistency and understanding to pet owners when they shop for food, treats, or supplements for their dog or cat.”
Since 2015, AAFCO worked with feed and pet food regulatory professionals, industry members and consumers to develop, collect feedback and finalize strategic updates in order to develop the new label regulations.
The revised Model Regulations for Pet Food and Specialty Pet Food will include new standards for nutrition information, ingredient statements, and storage and handling instructions.
Realizing pet food and treat brands will face an arduous process to make updates to their packaging following all the new guidelines, the association is advocating for a six-year implementation period.
Source: ©PCH.Vector – STOCK.ADOBE.COMPFI is offering a series of webinars on PFLM to educate pet food makers on the guidelines and how to implement them.
“An important initiative for us is educating pet food makers on the requirements of Pet Food Label Modernization,” Kanaras said. “The guidelines are quite prescriptive, and it’s imperative that pet food makers fully understand how to implement them properly.”
In recent news, AAFCO announced its Memorandum of Understanding (MOU) with the US Food and Drug Administration (FDA), which outlines the organizations’ responsibilities for defining ingredients in animal feed and pet food, will not be renewed following its expiration on Oct. 1. It has been in place for 17 years.
Through the MOU, the FDA accepted and reviewed AAFCO Feed Ingredient Definition requests. AAFCO and the FDA are independently establishing plans to provide a “seamless” transition on the ingredient review process.
“This decision opens the doors for AAFCO to look at new and innovative solutions in the ingredient space, and to seek out additional partners that can provide strong, science-based guidance to our state officials,” said Austin Therrell, executive director of AAFCO.
AAFCO is now considering a new ingredient review proposal from Kansas State University’s Olathe Innovation Campus (K-State Olathe). Under the proposal, a panel of subject matter experts from universities and independent consultants would review ingredient submissions from the industry and provide recommendations to AAFCO membership for final approval.
“The proposal from K-State Olathe is scientifically driven, comprehensive and can be completed in half the time as the former review process we had in place,” Therrell said.
In addition, the industry is voicing concerns over pet food and treat regulations. The Pet Food Uniform Regulatory Reform Act of 2024 (PURR Act), a bipartisan legislation introduced to Congress in February, is working to modernize and streamline how pet food and treats are regulated. The legislation proposes to give the FDA centralized regulatory authority over the labeling and ingredient review process for dog and cat food and treats instead of allowing individual states to regulate ingredient and label approval. The legislation calls for new ingredient review and approval timelines for the FDA, which would be overseen by Congress.
Under the new system, label and ingredient approvals would be assigned to the FDA, while state departments of agriculture and other state agencies would still oversee quality inspections and product registrations. The result would be a system for pet food regulation that more closely mirrors that of human food.
“Pet owners agree on the need for an uninterrupted supply of safe, high-quality and innovative pet products, and now is the time for pet food regulations to be streamlined to better meet the needs of pets and pet owners in the 21st century and beyond,” said Dana Brooks, president and chief executive officer of PFI.
While industry stakeholders are continuing to debate the merits of the PURR Act, all agree that the need to modernize and strengthen regulatory oversight in the pet care industry is imperative and will take an industry-wide effort to meet the end goal of protecting the food that feeds the nation’s precious pets.
Compare these trends and numbers to our 2023 State of the Industry report here, and keep up with the latest pet food trends on our Trends page.
