Report Overview

Global Pet Treats Market- Industry Trends & Forecast Report 2027

The global pet treats market has a market worth of USD 20.3 billion in the year 2020. It is further projected to grow at a CAGR of 15.2% in the forecast period, reaching the market value of USD 55.1 billion in 2027. Expansion of pet adoption in developed regions, as well as the humanization of pets, especially in western countries, are some of the factors driving the global pet treats market forward. Furthermore, pet owners are getting more aware of the nutritional needs of their pets, which is expected to drive the market forward during the forecast period.

Source: BlueWeave Consulting

Global Pet Treats Market- Overview

The pet treats industry includes businesses that manufacture food for dogs, cats, birds, and other animals, including reptiles, and marine animals. Pet treats are nutritious treats that pet owners offer to their pets in between full-course meals. These products are not intended to meet all of a pet's nutritional needs; rather, they serve as comfort foods. Animal treats come in a range of sizes, flavors, looks, and textures to meet the needs of consumers. The pet treats are high in nutritional value to help the pets meet their nutritional requirements.

Global Pet Treats Market Forecast and Trends

Growth Drivers

Rising Adoption of Pets Driving the Global Pet Treats Market Forward

One of the major factors driving the market growth forward is the rising adoption of pets, especially in developing countries. Because of the humanization of pets, pet owners are becoming more aware of their pet’s nutritional needs and are feeding them only high-quality, nutritious food. This factor is likely to contribute significantly to the growth of the global pet treats market. Furthermore, with rising per capita income, pet owners across the world are willing to spend more toward maintaining their pet’s health.

Expanding Product Range Expected to Drive the Market During the Forecast Period

Pet treat manufacturers all over the world are focusing heavily on dominating the market by launching a diverse range of products to meet the needs of various types of pets with varying age groups and nutritional requirements. For example, dogs prefer crunchy and chewy treats, whereas cats prefer wet foods. However, in order to meet their basic nutritional needs, both of these animals require high protein treats. Other pet types, such as rabbits, have different needs for which companies create specialized treats in order to expand their consumer market.

Additionally, pet food manufacturers are nowadays offering personalized pet foods from the customer's perspective, which is emerging as a new trend in the pet food market. The manufacturers start preparing the customized food based on the information provided by the customers, such as grain or grain-free food preferences for their pets, nutritional values to be added based on the pet's activities, and other relevant details. Once the personally tailored blend is ready per the customer's request, the pet food is delivered to the customer's door, along with feeding instructions and information about the ingredients in the food. The growth of e-commerce is promoting the trend of pet food customization.

Restraints

Strict Regulations May Hamper the Pet Treats Market Growth

Some countries, especially western regions like Europe and North America, have strict regulations and guidelines for the production of pet treats. These rules are in place to ensure that the treats are of high quality and that they do not contain any ingredients that are harmful to the pet's health. As a result, they investigate food production at every stage, from raw material processing to final packaging. To adhere to these guidelines, the manufacturing companies have to face a lot of hassle, which may prove to be a hindrance in the market growth.

Additionally, rising global trade restrictions are anticipated to limit the growth of the pet foods manufacturing market during the forecast period. Several developed and developing economies are considering imposing trade restrictions in order to strengthen their domestic economies.

Impact of Covid-19 on Global Pet Treats Market

COVID-19 has had a very serious impact on the global pet treats market. As soon as the World Health Organization declared COVID-19 a pandemic, governments in several countries imposed lockdowns to prevent virus transmission, and everyone was required to follow social distancing norms. Following the announcement of a pandemic, the production and processing of pet treats came to a halt. As a result, there was insufficient supply to meet market demand. Companies and industrial units were seriously impacted as a result of the social distancing protocols, which resulted in a lack of human capital. Furthermore, as imports and exports were reduced, the issue of raw material scarcity arose.

However, in the post-COVID era, businesses began to shift to online distribution platforms for the safe delivery of their products, creating a plethora of opportunities for the global pet treats industry. Cannabidiol (CBD) infused pet food is gaining popularity among pet owners as a result of the COVID—19 pandemic, as CBD food items are assumed to last longer than conventional pet foods.

Global Pet Treats Market - By Animal Type

Based on animal type, the global pet treats market is segmented into dogs, cats, and others. The dog segment held the largest market share in the year 2020 owing to the rising preference for dogs as pets. Breed dogs require a lot of care, both in terms of hygiene and health. As a result, dog owners are very careful about what they feed their dogs, which contributes significantly to the market demand for dog foods. However, the market is witnessing a significant increase in demand for cat foods.

Global Pet Treats Market - By Form

Based on form, the market is segmented into dry pet foods, wet pet foods, snacks & treats. Dry pet foods held the highest market demand for the year 2020. This is because dry pet treats are highly durable and are therefore more preferred by pet owners. They are also reasonably priced, so they have little impact on consumers' wallets. Furthermore, dry pet foods are more suitable for the dental health of the pets, due to which pet owners prefer it over other types.

Global Pet Treats Market - By Distribution Channel

Based on distribution channels, the market is categorized into supermarkets/hypermarkets, specialty pet food stores, online channels, and others. Among these, supermarkets/hypermarkets held the largest share globally in terms of revenue in 2020. Consumers' preference for visiting large retail stores with more product ranges and prices is one of the factors driving this dominance. Furthermore, colorful and gleaming packaging displayed on store shelves benefits supermarkets/hypermarkets.

Aside from supermarkets/hypermarkets, the sale of pet treats via online channels is increasing globally due to the convenience that online channels provide.

Global Pet Treats Market - Regional Insights

Geographically, the global pet treats market is segmented into North America, Europe, the Asia-Pacific, Latin America, and the Middle East and Africa. North America registered the highest demand for pet treats in the year 2020, making it the largest consumer market. This region has a large number of pet owners who are concerned about their pets' health and only feed them high-quality treats. Europe has the second largest market share in this segment and is experiencing significant growth in pet treat demand.

Source: BlueWeave Consulting

Competitive Landscape

The key market players in the global pet treat market are Mars Incorporation, The J.M. Smucker Company, Diamond Pet Foods, Del Monte Food, Inc., Royal Canin, WellPet LLC., Nutriara Alimentos Ltd., Colgate-Palmolive Company, Nestle Purina Petcare Company, Blue Buffalo Company Ltd., Unicharm Corporation, Yantai China Pet Foods Co. Ltd., TruDog, GA Pet Foods Partners, Dogswell, ANI BRANDS, Plato Pet Treats, SmartCookieTreats.com, Total Alimentos SA, and other prominent players.

The market is dominated by top global players, who account for more than half of the market share. To gain a competitive advantage, businesses are implementing competitive strategies such as partnerships, mergers, and acquisitions. They have also spent a significant amount of money on developing and sustaining brand reputation through their innovative marketing techniques.

Recent Development

• In March 2021, Phelps Pet Products, a US-based pet treats company, announced a licensing agreement with The Walt Disney Company. Through this partnership with Disney to launch a line of products based on the theme of cartoon characters of Disney and Pixar movies. This themed product line will be known as ‘Table Scraps^TM’ and is specifically targeted towards dogs.
• In April 2021, Jinx, a US-based dog food and treats company, launched two new product categories to expand their product range. Two new meal toppers and a limited-ingredient dental chew in two sizes are among the new additions.  The additions were made by keeping in mind the omnivore needs of the dogs in this changing lifestyle.

Scope of the Report

By Animal Type

• Dogs
• Cats
• Others

By Form

• Dry Pet Foods
• Wet Pet Foods
• Snacks and Treats

By Distribution Channel

• Supermarkets/Hypermarkets
• Specialty Pet Food Stores
• Online Channels
• Others

By Region

• North America
• Europe
• Asia-Pacific (APAC)
• Latin America (LATAM)
• Middle-East & Africa (MEA)