Pet & Animal Food Manufacturers
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 1,200 pet and animal food manufacturers in the US produce food for pets and other animals, such as livestock and birds. Product categories include animal feed (cattle, swine, poultry), dog food, cat food, specialty feeds (birds, fish, rabbits, laboratory animals), and rendering and meat byproducts. Animal feed manufacturers account for 74% of companies and 61% of industry sales.
Food Safety
Outbreaks of serious diseases and contaminants related to food safety have affected the livestock production and pet product industries, including pet and animal food manufacturers.
Variability In Raw Materials’ Costs
With narrow margins, pet and animal food manufacturers often struggle to deal with volatile raw materials’ costs.
Industry size & Structure
A typical pet food manufacturer employs fewer than 20 workers and generates $55 million annually.
- The pet and animal food manufacturing industry consists of about 1,200 companies that employ 73,500 workers and generate about $66 billion annually.
- Animal feed manufacturers account for 74% of companies and 61% of industry sales. The poultry and swine industries are the largest consumers of animal feed.
- Pet food manufacturing is highly concentrated, with the top 20 companies accounting for 86% of sales. Animal feed manufacturing is less concentrated, with the top 20 companies accounting for about 50% of sales.
- Large animal feed companies include Land O'Lakes, Cargill, and Archer Daniels Midland. Most major pet food brands are owned by large consumer products companies, such as Mars (Pedigree, Iams), Nestle (Purina), and Colgate-Palmolive (Hill's Science Diet).
Industry Forecast
Pet & Animal Food Manufacturers Industry Growth
Recent Developments
Sep 30, 2024 - Sales, Inventories Down
- Sales for food manufacturers, including pet and animal food manufacturers, were $172.5 billion in Q1 2024, a decrease of 12.8% year over year and down 6.2% month over month, according to the US Census Bureau. Food products shipments rose 0.7% in June 2024 year over year and declined 0.6% from the previous month while inventories fell 2.4% in June 2024 compared to a year ago and decreased 0.2% from the previous month. Producer prices for pet and animal food manufacturers fell 5.2% in July 2024 compared to a year ago, according to the US Bureau of Labor Statistics. Employment by pet and animal food manufacturers rose 2.2% in July 2024 year over year, per the BLS.
- Some 85% of pet owners in the US say inflation is making ownership more expensive, with pet food (76%), vet services (56%), and necessary supplies (40%) identified as the most expensive pet costs, according to a new survey by Lending Tree in Pet Business. When asked if they have gone into debt for their pets, 37% of pet owners say they have, with a medical emergency being the most common reason. The high costs of owning a pet have caused nearly a quarter of Americans to consider going petless, and almost 40% say they wouldn’t own another pet. Twelve percent of Americans say they have surrendered a pet due to no longer being able to afford to care for it.
- New Circana data shows that private label pet product sales grew 5.8% in the year ending June 16, 2024, according to Pet Product News. The Circana data provided to the Private Label Manufacturers Association (PLMA) showed that other product departments experiencing the most growth during the period were beauty (up 10%), liquor (up 8.8%), general food (up 6.9%), and home care (up 6.8%). For the first six months of 2024, store brands reached highs in both unit and dollar shares compared to a year ago, reaching a 22.9% and 20.4% share respectively. Total store brand sales were $121 billion for the six months, up 2.3%, while national brand sales were $472 billion during the period, a gain of 1.1%.
- Pet food and treats sales were up 10.8% in 2023, reaching $64.4 billion and accounting for almost 44% of all US pet industry sales, according to the recent State of the Industry report from the American Pet Products Association (APPA). Overall pet industry sales were $147 billion in 2023, an increase of 2.7% over the previous year. According to the APPA, $38.3 billion was spent on vet care and product sales, $32 billion was spent on supplies, live animals, and OTC medicine, and $12.3 billion was spent on “other services” including boarding, training, grooming, pet sitting, and other services in 2023. The pet industry is expected to stay strong over time, with pet industry sales to reach $230 billion by 2030 per the APPA.
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