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.

Jul 28, 2026 - Value Shift Reshapes Pet Food 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.
• Two closely watched consumer confidence surveys pointed to improving household sentiment in June and preliminary July, a positive sign for US pet and animal food manufacturers, even as consumers remain cautious about inflation and employment. The Conference Board's June 2026 Consumer Confidence Index edged up 0.6 points to 91.2, as improving expectations for business conditions and household incomes offset weaker perceptions of the labor market. The Present Situation Index fell to 116.4, while the Expectations Index rose to 74.4. The University of Michigan's preliminary July 2026 Surveys of Consumers showed further improvement, with the Index of Consumer Sentiment rising 9.9% month over month to 54.4, the Current Economic Conditions Index increasing 15.1% to 54.9, and the Index of Consumer Expectations climbing 6.5% to 54.0. Together, the surveys suggest improving consumer demand could support pet food sales, particularly premium products, though value-oriented purchasing is likely to persist.
• With the global dog food market projected to grow from $54.3 billion in 2026 to $97.4 billion by 2036 and pet stores expected to account for 35.4% of sales in 2026, demand trends remain favorable for the US pet and animal food manufacturing industry. According to Future Market Insights, growth is being driven by pet humanization, premium nutrition, functional diets, and increasing demand for veterinarian-backed and life-stage-specific feeding solutions. The US remains a leading market due to strong premium pet spending and widespread adoption of advanced nutrition products. Manufacturers are investing in premium formulations, freeze-dried and fresh-style offerings, personalized nutrition, and sustainable protein sources to capture growth opportunities. However, raw material price volatility, stricter safety regulations, supply chain traceability requirements, and intensifying competition in premium pet food categories could pressure costs and margins.

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).