Regulations around Manufacturing and Labelling to Influence Growth of Pet Food Market
Various regulatory bodies have imposed set of rules in terms of manufacturing of pet food. According to FFDCA (Federal Food, Drug and Cosmetic Act), pet food essentially must be safe for consumption and developed under extremely well sanitary conditions. In addition, they must have appropriate labelling after undergoing and passing food tests. Likewise, FSMA (Food Safety Modernization Act) laid down guidelines with respect to sterilization, certification, labelling of ingredients and hygiene for manufacturers of pet food in the United States. Moreover, strictness in regulations is less in Asian countries as compared to North America and Europe regions. After production of pet food, it is subject to FTC (Federal Trade Commission) and FDA labelling requirements, under which label must contain percentages of ingredients involved, details of manufacturer such as address and name along with feeding directions for different categories of animal along with weight criteria. Currently, FDA is exercising its control on pet food in order to reduce fatalities and recalls. In 2019, 16 pet food brands were identified by FDA that caused heart failures in dogs, and the products underwent massive recall. Such regulations are expected to favour the growth of the pet food market in the coming years.
Rising Pet Expenditure to Augment Growth of the Pet Food Market
Growing trend of humanisation of pets has resulted in increasing expenditure on various pet food. The notion of addressing pet as a family member has driven pet owners to significantly invest in pet nutrition to provide healthy lifestyle. For instance, according to APPA (American Pet Products Association) in 2018, pet expenditure was around US$ 73 billion. Moreover, in 2017, around US$ 29 billion was spent on pet food alone, which grew by 4.3% in 2018. Growth in pet ownership coupled with rising expenditure on pet food is expected to augment the growth of the global pet food market.
Pet Food Market to Grow Strong in Asia Pacific; North America’s Stronghold to Maintain Status Quo
Growing trend of pet humanisation in Asia Pacific is driving interest among people regarding functional pet food that can prevent illnesses and lifestyle diseases of pets. Manufacturers of pet food are leveraging the trend and innovating their products, which in turn is influencing the pet food market growth. For instance, in Japan, recently, Unicharm launched “AllWell” pet food product for cats, which includes dietary fibre blend that reduces regurgitation among cats facilitating improved nutrient absorption, thus shunning malnutrition. Moreover, pet food market is expected to gain momentum in developing countries such as India. Recently, shortage in pet food has been witnessed and the Indian Government is urging to boost pet food production. To fruition this, Indian government is supporting producers by giving the credit facilities, as per AWBI (Animal Welfare Board of India). However, according to pet food producers such as Royal Canine India and Mars International, high taxes, absence of quality standards and uniform framework and ambiguous business scenario are likely to pose challenges for pet food market growth.
On the other hand, growing GDP per capita in developed countries in North America coupled with increasing pet ownership is likely to boost sales of pet food in the region. According to APPA (American Pet Products Association), over 63 million households in 2019-20 own dogs. With growing inclination towards functional pet food in North America, manufacturers are introducing new treats to meet the growing demand. For instance, Hill’s Pet Nutrition introduced new functional pet food range particularly to enhance mobility, maintain dog weight and reduce dental problems and food allergies.
Pet Food Market Competitive Scenario
Players in the pet food market are focusing on enhancing their current product portfolio and introducing new products to gain market share. In 2020, Wilder Harrier, introduced Asian carp dog food. Likewise, Scout & Zoe’s launched Super Fly, new product line for dogs that includes insect based treats. Players are also focusing on acquisition and capacity expansion. For instance, in 2020, WellPet was acquired by Clearlake Capital Group. In 2021, Nestle invested around US$ 182 million for expanding the production and floor space capacity of its manufacturing facility in Virginia.
Few of the key players in the pet food market are Mars Inc., Nestle, J.M Smucker Company, Blue Buffalo Pet Products Inc., Colgate Palmolive Company and Lupus Alimentos.
Key Elements Included In The Study: Global Pet Food Market
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