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 1,100 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
47 million annually. A typical pet food manufacturer employs fewer than 20 workers and generates $81 million annually.
- The pet and animal food manufacturing industry consists of about 1,100 companies that employ 71,500 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
Nov 16, 2023 - Sales Fall, Employment Steady
- Sales for the food industry, including pet and animal food manufacturers, were flat in the second quarter of 2023 compared to the previous quarter and fell by over 3% compared to a year ago. Food product shipments grew modestly in the third quarter of 2023 compared to 2022 while inventories remained mostly flat. Producer prices for pet and animal food manufacturers grew in the first few months of 2023 before trending downward after mid-year as inflation declined. Employment levels in the industry have stayed relatively steady throughout 2023.
- A new report by NIQ shows that consumers increasingly use sustainability as a deciding factor when choosing a brand, according to Pet Food Processing. NIQ (formerly NielsenIQ) recently released its "Green Divide" report, examining consumers' views and behaviors related to sustainability. About 70% of consumers say sustainability is more important when selecting products now than it was two years ago. When ranking the factors behind their purchasing choices, price (18%) was ranked first by consumers, followed by safety and hygiene (13%), healthier options (13%), environmental friendliness and sustainability (11%), and trusted/familiar brands (11%).
- The Association of American Feed Control Officials (AAFCO) recently approved new consumer-friendly pet food labeling guidelines designed to align better with human food labeling and be more consistent and transparent with nutritional information, according to AVMA.org. The first significant update in over 40 years includes four primary areas of change to the label: the Nutrition Facts Box, Intended Use Statement, Ingredient Statement, and Handling and Storage Instructions. The changes were developed by feed regulatory professionals in the US and Canada and were part of the AAFCO’s “Pet Food Label Modernization” project, which began eight years ago. The AAFCO is advocating for a six-year implementation period for the new labels.
- The pet treats market is cooling under inflationary pressures after pandemic-era increases in 2020 and 2021, according to a Packaged Facts report in Pet Product News. US retail sales of pet treats were $11 billion in 2022, with growth driven by inflation-related price increases rather than unit sales. Online sales accounted for 34% of sales, the largest portion of the market. Indulgent treats comprise the largest category of sales (36%), followed by rawhides/long-lasting chews, functional treats, and dental treats. Nearly 60% of pet owners are concerned about the increased prices of pet treats, and many are reducing their spending on discretionary items. Shoppers are looking for multi-functional treats, such as dental treats and those with health and wellness benefits, to maximize spending. Packaged Facts projects the pet treat market will continue to grow over the next five years, with value-positioned treats, cat treats, and treats featuring alternative proteins performing well.
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