Market Research Report
Global Pet Food Extrusion Market - 2021-2028
|Global Pet Food Extrusion Market - 2021-2028|
Published: July 26, 2021
Content info: 180 Pages
Delivery time: 2 business days
The market for pet food extrusion is showing significant growth with a rise in the popularity of pet adoption, pet humanization, and rapid urbanization in developing economies. The growing pet population across the globe is one of the leading factors that contribute to the demand for extruded pet food products, worldwide. The need to fulfil the growing demand for pet food is simultaneously fueling the growth of the pet food equipment manufacturing industry. On the other hand, the demand for food extrusion is increasing which will further create new opportunities for the pet food extrusion market in the forecast period. The global pet food extrusion market is estimated to be valued at USD XX million in 2020, and expected to grow at a CAGR of XX% to reach USD XX million by 2028
Market Dynamics: Increase in the pet population is expected to drive the pet food extrusion market
Global pet food extrusion market is expected to increase due to increasing pet population. The Companion animal ownership trend is continuing to increase. For instance, Sixty-two percent of US households now own a companion animal (excluding horses), equating to 72.9 million homes. Emerging markets such as Brazil, China, India, Mexico, and Russia are spending on companion animals. Along with an increase in the pet population, the global industry has also grown due to the increasing expenses of pet owners for various pet food products. For instance, in the USA, spending has increased from a total of USD 23 billion in 1988 to an estimated USD 55 billion in 2018. Around 25% of this spending was on veterinary care (including medicines) and a further 20% on over-the-counter products and supplies, with the remainder on food, accessories, and others. Other major pet care spending countries are Britain (USD 95 per person), France (USD 93 per person), Switzerland (USD 89 per person), Germany (USD 65 per person), Italy (USD 60 per person), Japan (USD 40 per person) and Spain (USD 39 per person).
However, few strict regulations regarding ingredients used in pet food extrusion can hinder the growth of the pet food extrusion market.
Market Segmentation: Complete diet segment is expected to be the largest segment with a share of XX% during the forecast period.
The global pet food extrusion market has been segmented by type into complete diet, and treats. The complete diet segment held the largest share as of 2020. The rapidly growing demand for nutrient-rich and balanced extruded pet food has been driving the growth of the complete diets segment.
During the forecast period, the single screw extruder segment is projected to grow at the highest CAGR, in the pet food extrusion market. Various benefits such as low capital cost and simplicity offered by single screw extruders have been driving the growth of this segment over the last few years. A single screw extruder offers simplicity and ease of operation, whereas a twin-screw extruder offers versatility and flexibility. Low capital cost and easy maintenance are some of the major factors responsible for the high demand for single screw extruders.
Geographical Penetration: Asia Pacific is expected to be the fastest growing region in the global pet food extrusion market
By geography, Asia Pacific is expected to grow with a CAGR of xx% during the forecast period. The growth in the number of distribution channels such as e-commerce and rising demand for premium and super premium products coupled with the trend of pet humanization are expected to drive the market in this region. It has been estimated that there are about 100 million families which is approximately 22% of the total households that own a pet. Unlike the cities in the US and other European countries, most millennials in the country are pet owners and it has been reported that more than 45.2% of pet owners in the urban cities are below the age of 30. As such, pet food extrusion market is expected to grow in this country. India has one of the fastest growing pet food extrusion market globally owing to the increase in disposable income in most of the prominent middle-class families living in the urban cities of the country. Currently there are ~23 million dogs and ~4 million cats as pets and cared-for pets in the country with 600,000 pet adoptions happening each year, which present a huge potential for pet food extrusion industry in India.
On the other hand, North America dominates the pet food extrusion market due to thriving pet food processing industry and presence of major companies such as Mars and Nestle. The United States is expected to dominate the North America pet food extrusion market. Almost 70% of U.S. household has one or more pets, while remaining 30% do not own any pet due to personal and financial issues. Dogs and Cats are most common pets in the country, amounting to nearly 100 million together. As per the American Pet Products Association, U.S. pet owners spent nearly USD 30 billion on pet care products in 2018, which is an increase of over 4% from the previous year. Hence, there is an increasing demand for the pet food extrusion market.
The global pet food extrusion market is highly fragmented with key manufacturers such as The J.M. Smucker Company, Mars, Nestle, Andritz and American Extrusion International among others. The key players are focusing on strategies such as acquisitions, mergers, and product launches to gain significant position in the market. For instance, in May 2020, International pet food producer United Petfood has announced the signing of letter of intent for the acquisition of Jonker Petfood in Waalwijk. In May 2018, Blue Buffalo was acquired by General Mills.
COVID-19 Impact: Global pet food extrusion market is expected to have positive impact during the pandemic
The rapid spread of the COVID-19 pandemic across the world and the ensuing lockdown in several countries brought unprecedented testing times for the entire global economy, and also positively impacted pet food extrusion market as more and more pets are adopted for companionship. During Covid-19 pandemic, people around the world seeked for companionship in pet animals most preferably responsive animals such as dogs, cats, birds, and others in countries such as Japan where individual and nuclear family life style is becoming a common culture, people tend to fill their companionship gap with adoption of pet animal. Mars, has taken a digital transformation approach to enable a wider audience reach for its pet care segment that has shown massive demand in the covid-19 times.