Extensive time at home and limited social contacts - during the pandemic and lockdowns, an increasing number of people began to consider a pet as an important addition to the family. This global impact of COVID-19 has been unprecedented and staggering, delivering a positive demand shock for pets and supplies in all regions amid the pandemic. For this reason, the market is expected to grow from USD 222.93 billion in 2021 to USD 325.74 billion in 2028 registering a CAGR of 5.6%.
INCREASING IMPORTANCE OF THE MARKET
This not only increases the number of pets but also the overall demand for care products such as food, medicine and toys, thus creating opportunities for several industries.
Besides Covid-19, the rising prevalence of diseases in pets is another major factor that is expected to drive market growth in the medical space allowing pharmaceutical companies the opportunity to introduce animal health solutions. For this reason, investments in immunisation, disease diagnosis and balanced nutrition, as well as increased assistance from veterinary services in the prevention and treatment of ailments, have been generated, leading to increased production of medical products, vaccines but also alternative medicines such as oils. Studies show that more than 70% of households that own a pet visit a veterinarian each year, and overnight stays for animal intensive care units are steadily increasing.
THE CHALLENGE OF SUSTAINABILITY
Considering the humanisation of the pet, occurring due to the cohabitation of pet and owner, the price of the food loses visibility and consumers prioritise a transparent listing of ingredients without sugar or grains. In this regard, the concept of personalised pet food is particularly prevalent in developed markets and is predicted to become popular across emerging markets in the coming years. The reason for the enormous growth potential lies in pet owners becoming more conscious about the diet they feed their pets, as well as the demand for functional treats to support weight, mobility, or allergies.
This combination of a growing market for animal health and the demand for meat-based and healthy pet food is emerging as a challenge for sustainability in the animal industry. Unlikely that the importance of meat, which currently accounts for 14% of Co2 emissions, will disappear any time soon, companies in the animal food industry need to come up with innovative sustainable solutions. This is where the focus is placed on other departments, whether in terms of the supply chain by increasing the use of trains or recyclable packaging without the presence of plastic elements.
To ensure that all these trends of increasing health, meat-based feeds and sustainability in the animal feed industry are recognised and implemented in the best possible way, the corresponding skills for the respective management positions need to be in place. Whether your company needs help to meet this growth and trends or is looking for support along this journey, contact our consultant who works in the nutrition and health industry.