Pet & Animal Food Manufacturers NAICS 3111

Jan 26, 2026 - Gen Z Gains Reshape Pet Food Mix: APPA

• The American Pet Products Association’s 2025 Bird, Small Animal & Horse Report points to stable but shifting growth opportunities for US pet food manufacturers, as bird and small animal ownership expands and younger generations influence purchasing habits across retail channels. Six million households own birds and another six million own small animals, supporting a broad food demand base, while Gen Z now represents 22% of bird owners and 34% of small animal owners, signaling long-term volume potential. In-store purchasing remains dominant, with 55% of small animal owners buying food in person and pet superstores capturing 40% of food and treat purchases, reinforcing the importance of retail distribution. Species mix is evolving, as rabbits account for 37% of small animal ownership while hamster ownership has declined 25% since 2018, affecting feed demand by category. Horse ownership, led by Millennials at 39%, continues to support feed demand, though online and direct channels are gaining share.
• Fresh and gently cooked pet food remains a meaningful growth driver for the US pet and animal food manufacturing industry, even as expansion moderates, according to a Packaged Facts report. The report estimates fresh/frozen/refrigerated pet food accounted for about 7% of total dog and cat food sales in 2025, growing at a projected 15%–20% annually, far outpacing the broader pet food category’s 3.7% CAGR through 2029. Household adoption continues to rise, with 1.8 million households purchasing Freshpet in the past six months, up from 800,000 in 2020. While economic pressure has slowed adoption rates, leading brands continue to post solid gains; Freshpet reported 14% year-over-year Q3 2025 sales growth and 12.9% volume growth. New product launches, shelf-stable gently cooked formats, and flexible feeding models are expanding access and use cases, signaling a maturing, not declining, premium segment for manufacturers.

• According to a report in DVM360, pet food manufacturers are being urged by the FDA to prepare for heightened risks related to H5N1 avian influenza in their food safety plans as the fall migratory season increases detections. This follows recent cases where raw cat food tested positive for H5N1, including a San Francisco incident in which a cat consuming RAWR Raw Cat Food Chicken Eats became infected and was ultimately euthanized. According to the American Veterinary Medical Association, raw meat, especially poultry, and unpasteurized milk have been sources of H5N1 infections in cats. Dogs may also contract H5N1, but typically present mild symptoms. The FDA advises that manufacturers source ingredients from healthy flocks and herds, use processing steps to neutralize H5N1 such as heat treatment, and apply controls throughout the supply chain to ensure the ingredients do not come from infected animals.
• US consumer confidence weakened further in December, signaling a more cautious demand environment for pet food manufacturers. The Conference Board Consumer Confidence Index declined 3.8 points to 89.1, while the Present Situation Index fell sharply by 9.5 points, reflecting deteriorating views of business conditions and employment. The Expectations Index held at 70.7 and has remained below the recession-warning threshold of 80 for 11 consecutive months. Consumers’ assessments of their current family financial situation turned negative for the first time in nearly four years, and plans to purchase big-ticket and discretionary items continued to soften. Spending patterns are shifting toward necessities and lower-cost options. For pet food manufacturers, these conditions point to relatively resilient baseline demand, as food is non-discretionary, but heightened price sensitivity, slower premiumization, and greater emphasis on value-oriented formulations, pack sizes, and pricing strategies.