Pet & Animal Food Manufacturers NAICS 3111

May 30, 2026 - Premium Pet Nutrition Fuels Growth

• 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.
• With consumer confidence and sentiment weakening and inflation concerns rising, growing trade-down behavior could pressure product mix and margins for the US pet and animal food manufacturing industry. In May 2026, the University of Michigan's Consumer Sentiment Index fell to 44.8, while the Current Economic Conditions Index dropped to 45.8 and the Consumer Expectations Index declined to 44.1. The Conference Board's Consumer Confidence Index also edged down to 93.1, with consumers citing inflation and higher fuel costs as key concerns. While pet food spending tends to be less discretionary than many consumer purchases, manufacturers may face increasing pressure as some consumers shift toward lower-priced products and value-oriented brands. Elevated inflation expectations and rising input costs could further intensify pricing pressures and squeeze margins, particularly for manufacturers focused on premium offerings.

• The US pet industry’s continued expansion supports pet food manufacturers, with expenditures reaching $158 billion in 2025 (up 3.7%) and projected to grow to $165 billion in 2026, according to Pet Age reporting on the APPA 2026 State of the Industry report. Pet ownership remains strong at 95 million households, with dog ownership rising to 53% (an increase of 4 million households) and cat ownership to 39% (up 5% year over year). For manufacturers, demand remains stable but increasingly value-driven. While about half of owners maintained spending, 22% reduced spend (up 10 pts year over year), signaling trading down. However, pet food demand should remain resilient as consumers prioritize essential care, with products continuing to represent a significant share of spending. Growth across Gen Z, Millennials, and Gen X supports volume, though pricing power and premium product growth may face pressure.
• 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.