Pet & Animal Food Manufacturers

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.

Sep 25, 2026 - Freshpet Signals Strong Category Demand

• Freshpet’s strong Q2 2026 results point to continued growth opportunities for US pet and animal food manufacturers, particularly in fresh and refrigerated formats, according to a Pet Food Processing report. Net sales rose 15.5% to $305.6 million, driven by a 15.7% volume increase, while gross profit grew 18.9%. Freshpet also expanded household penetration, added retail distribution, and raised its full-year sales growth outlook to 10%-12%, signaling sustained consumer demand despite economic headwinds. For manufacturers, the results support investment in fresh-food capacity, manufacturing technology, and broader retail availability. However, rising competition and startup-related quality costs suggest producers will need strong operating efficiency and product differentiation to capture growth profitably.
• Weakening consumer confidence in early fall could shift US pet and animal food demand toward lower-priced products, promotions, and larger value packs while keeping overall food demand relatively resilient. The University of Michigan’s September Consumer Sentiment Index fell 7.0% to 48.1; Current Economic Conditions slipped 1.9% to 50.9, while Expectations dropped 10.1% to 46.3, signaling greater concern about future finances. The Conference Board’s August Consumer Confidence Index fell to 89.4; its Present Situation Index rose to 121.2, but Expectations declined to 68.2. For manufacturers, softer confidence may pressure premium and discretionary pet products while favoring value-oriented formulations and pack sizes. Still, planned pet-care spending remained strong, supporting underlying demand.
• Dog owners continue to prioritize spending on nutrition despite economic pressures, supporting a resilient outlook for US pet and animal food manufacturers, although demand is shifting toward value-oriented products and retail channels, according to APPA's 2026 Dog Report. Dog ownership grew 4% year over year to 71 million U.S. households, with food accounting for 27% of pet spending, second only to veterinary care. While premium food remains the most common choice (31% of owners), more consumers are mixing premium and budget products, and feeding of basic dog food rose 11% year over year. Purchases through supermarkets (+7%) and discount retailers (+22%) also increased as owners sought better value without sacrificing nutrition. Manufacturers that offer products across multiple price points, emphasize nutritional value, and develop multifunctional offerings such as mixers, toppers, and health-focused treats are likely to be best positioned as consumers become more selective shoppers.
• New IRS guidance allowing manufacturers to immediately deduct 100% of qualifying factory construction and upgrade costs could encourage investment in domestic production capacity by US pet and animal food manufacturers, according to a PetFood Industry report. The tax break applies to new manufacturing facilities and production-related improvements, where construction began after January 19, 2025, and before January 1, 2029, provided the property is placed in service by January 1, 2031. Instead of depreciating eligible facilities over 39 years, manufacturers can now deduct the full cost in the first year, improving cash flow and reducing the after-tax cost of expansion. While office space, R&D, finished product storage, and sales areas are excluded, production floors, raw material storage, and quality testing areas may qualify. The incentive could accelerate plant expansions, modernization projects, and investment in US-based pet food manufacturing as companies seek to boost capacity and efficiency.

Industry size & Structure

A typical pet food manufacturer employs fewer than 63 workers and generates $60.7 million annually.

• The pet and animal food manufacturing industry consists of about 1,200 companies that employ 75,400 workers and generate about $73 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).