Global Palatants Market - 2024-2031

Overview

Global Palatants Market reached US$ 3.1 billion in 2023 and is expected to reach US$ 4.76 billion by 2031, growing with a CAGR of 5.5% during the forecast period 2024-2031.

With the increasing pet adoption and premiumization, the expenditure on pet food and maintenance is increasing rapidly. According to the American Pet Products Association, total pet industry expenditures in the United States are valued at $123.6 billion, up 19 % from $103.6 billion in 2020. According to a report by Forbes in 2023, Americans spent $136.8 billion on their pets in 2022, up 10.68% from 2021 ($123.6 billion).

With the increasing demand for high-quality animal feed, animal producers are constantly seeking ways to improve animal performance and feed efficiency. Palatants can help animals consume more feed and gain weight faster, leading to higher profits, and driving the market growth. Manufacturers are continuously developing new palatants with improved functionality, catering to specific taste preferences and dietary needs of different animals helping in the wide expansion of the market.

North America dominated the global palatants market. The high pet population in this region drives the need for better pet care. North Americans are increasingly willing to spend large amounts of money on pet care and pet food. APPA 2021-2022 estimated that the total U.S. pet industry expenditures reached US $99.0 in 2020. These regions have a well-established pet food industry and a strong presence of leading palatant manufacturers positively helping the market growth.

Dynamics

Rising Pet Ownership and Pet Humanization

The global pet population is growing continuously. India has 32 million pets, and the population is growing at a rate of more than 12% per year. The Pet Food Manufacturers Association estimates that since the epidemic commenced, 3.2 million families in the United Kingdom have added a pet, bringing the country's overall pet population to 34 million. 53% of UK adults own a pet as of 2023. Pets are increasingly viewed as family members, leading to a focus on their well-being and nutrition.

Pet owners are willing to spend more on premium pet food incorporating palatants to enhance taste and appeal. The humanization of pets and the premiumization of pet care in developed and emerging countries are driving the market growth of pet food ingredients. With the increasing adoption of animal rearing and pets globally, feed and pet food production and consumption are also increasing.

According to Agri-Food Outlook 2023 study of Alltech, an animal health firm, Asia-Pacific produced 466 billion tonnes (36.8%) of the world's compound feed, which was 1.266 billion tonnes in 2022. In 2022, Italy had 12.2 million households that bought dog and cat food in 2021, about 1 million more than in 2021. Pet owners are taking care of the importance of pet health and nutrition. Palatants can play a role in ensuring pets consume all the nutrients they need by making food more palatable.

New Product Introductions

With growing animal rearing and pet adoption, pet owners are taking good care of pets' specific needs and requirements by providing them with better quality, nutritional, and efficient feed and pet food. To enhance food and pet food consumption, pet owners are highly appreciating the need for better quality products with increased palatability to improve the pet food consumption by the animals. To meet the increasing demands of pet owners, manufacturers are also introducing new products.

To enhance the nutrition experience for young animals, ADM, a major player in human and pet food, introduced two new products in November 2022. These sweeteners, SUCRAM M'I Sweet and SUCRAM Specifeek, are part of ADM's existing SUCRAM line and are specifically designed to improve the taste of feed for piglets as they transition from milk to solid food.

In October 2020, Kerry Group plc, launched palatant enhancer, Kerry PurePal, a revolutionary plant-based flavor technology that tackles unpleasant pet food smells. By bridging the gap between human and pet preferences, Kerry PurePal empowers pet food manufacturers to create products that satisfy both pet and owner needs.

Higher Cost of the Palatants

Effective palatants often rely on high-quality ingredients, such as concentrated meat extracts, specific yeast cultures, or specially processed plant materials. Obtaining and processing these ingredients can be expensive. The manufacturing processes for palatants can be complex, involving multiple steps like extraction, purification, and concentration. This adds to the overall production cost.

The cost of palatants can lead to higher production costs for animal feed companies. This can make it challenging for them to incorporate palatants into their products, especially for budget-conscious consumers. The high price point of palatants can be a barrier for smaller animal feed producers who might not have the resources to invest in premium ingredients. This limits the overall market penetration of palatants.

Segment Analysis

The global palatants market is segmented based on form, nature, source, distribution channel, application and region.

Convenient Nature of Dry Palatants

The global palatants market is segmented based on form into liquid and dry form. The dry form of the palatants dominated the market growth with the various advantages related to their use including storage and handling, cost-effectiveness, and end-use applications. Dry palatants typically have a longer shelf life and require less specialized storage compared to liquid palatants, which might need refrigeration or specific containers to prevent spoilage.

Dry palatants can be easily incorporated into dry animal feed during the manufacturing process by blending them with other ingredients. This simplifies production compared to liquid palatants, which might require additional mixing steps. They are generally less expensive to produce and transport compared to liquid palatants. This makes them a more budget-friendly option for many animal feed manufacturers.

Geographical Penetration

Increasing Pet Ownership in North America

North America dominated the global palatants market with high pet ownership and rising pet premiumization in this region. According to the 2021-2022 National Pet Owners Survey conducted by the American Pet Products Association (APPA), 70% of U.S. households, own a pet. According to the World Population Review 2024, there are approximately 70 million domestic dogs and 74 million domestic cats in United States.

The region has high production, consumption and trade analysis of animal feed and pet food that use palatants as ingredients for better feed consumption. According to the American Feed Industry Association, in 2022, the overall export value for feed, feed ingredients and pet food was $7.5 billion and the total volume of exports of these products was 9 million metric tons. DIS estimated the baseline consumption at the beginning of 2020 at 252.6 million tons with an estimated value of $66.7 billion.

Competitive Landscape

The major global players in the market include Kemin Industries, Inc., AFB International, Trilogy Essential Ingredients Inc., Innovad SA, Essentia Protein Solutions, ADM, Kerry Inc., Susheela Group, Symrise and BioCYCLO.

COVID-19 Impact Analysis

COVID-19 related lockdowns and travel restrictions disrupted global supply chains, impacting the availability and cost of raw materials used in palatant production. Manufacturing slowdowns due to lockdowns limited palatant production capacity. The disruption in the distribution channel had a greater impact on the reach of the product to the end-use application delaying the market sales.

Lockdowns and restrictions led many people to adopt pets for companionship. According to the American Society for the Prevention of Cruelty to Animals, more than 23 million American households, nearly 1 in 5 nationwide adopted a pet during the pandemic. This drove up demand for pet food, potentially increasing the use of palatants by manufacturers to make pet food more appealing. With increased pet ownership, there was a growing focus on pet health and well-being, positively impacting the market growth.

By Form

• Dry
• Liquid

By Nature

• Organic
• Conventional

By Source

• Plant-Derived Palatants
• Meat-Derived Palatants
• Insect-Derived Palatants
• Others

By Distribution Channel

• Retail Stores
• E-Commerce
• Others

By Application

• Bovine
• Swine
• Poultry
• Fish/Aquaculture
• Pet Food

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• In May 2023, Alltech, an American company acquired Agolin, a Switzerland-based animal nutrition company, that has developed and produced plant-based nutrition products.
• In April 2023, Zoetis added a new product into its portfolio with the launch of its new palatant product, Zoetis Palatant. The new product is a natural palatant made from amino acids and nucleotides and helps in improving the palatability of animal feed.
• In October 2022, Kemin Industries Inc. introduced PALIVATE, a new palatant line for wet cat food formulas. The new product enhances the palatability of wet formulas.

Why Purchase the Report?

• To visualize the global palatants market segmentation based on form, nature, source, distribution channel, application, and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of palatants market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The global palatants market report would provide approximately 78 tables, 73 figures and 225 pages.

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies