A recent study conducted by the strategic consulting and market research firm, BlueWeave Consulting, revealed that the global pet treats market was worth USD 20.3 billion in the year 2020. The market is estimated to grow at a CAGR of 15.2%, earning revenue of around USD 55.1 billion by the end of 2027. The growth of the global pet treats market can be attributed to various factors like rising adoption of pets, growing awareness of pet owners towards pet’s health, and the use of healthy and natural ingredients. These factors will further contribute to the market growth during the forecast period.
Increasing Awareness towards Pet’s Health is Contributing to Pet Treats Market Growth
Pets were once served human food which was prepared for the people living in the house by their owners. However, gradually pet owners started gaining knowledge regarding their pets and their nutritional needs. Pet owners are becoming more aware that not all foods are healthy for their pets and that some can do more harm than good to their pets. As a result, the demand for dedicated pet treats has increased dramatically in recent years.
Rising Consumer Expensiture on Pet Treats Driving the Market Forward
Consumers' disposable income is steadily increasing, allowing them to keep a high-maintenance pet. The growing trend of pet adoption, especially in developing economies such as China, Japan, and India, is boosting the pet treat market. Pet owners nowadays choose to offer their pets only quality treats made entirely of organic and natural ingredients, which is positively impacting the overall market development.
Online Segment Expected to Witness Substantial Rise During the Forecast Period
Since the novel coronavirus is still present in the atmosphere of many regions, people are afraid to go outside these days. The online segment of the pet treats market is rapidly growing across all distribution channels. The millennial and Gen-Z are already dependent on online platforms for most of their purchases, including pet treats. This gradual move to the online segment is due to the high convenience it provides, such as a wide range of product availability, door-step delivery, and return options, among other things.
The growth of e-commerce is also promoting the trend of pet food customization. Pet food manufacturers are now offering personalized pet foods from the perspective of the customer, which is emerging as a new trend in the pet food market. Manufacturers begin preparing customized food based on information provided by 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 information.
Dry Form of Pet Food is the Most Preferred Food Option
Based on form, dry form of pet treats is leading the global pet treats market. This is because dry pet food is more convenient and has a longer shelf life than wet food. The dry form of pet treats is the most common choice for dog owners because it is less expensive and therefore more affordable to them. Moreover, the solid texture of dry pet food benefits pets’ dental health in addition to preserving their dental hygiene.
North America is expected to witness significant growth in the market during the forecast period
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 holds the largest market share, followed by Europe. These regions have high pet adoption rates along with the humanization of pets, which is propelling the demand for pet treats. However, with the rising expenditure for their pets' wellbeing, the Asia-Pacific region is emerging as a potential market for pet treats. This region is expected to pull high demand for pet treats during the forecast period.
Impact of Covid-19 on the Global Pet Treats Market
The outbreak of the COVID-19 induced pandemic has had a very negative impact on the global pet treats market. 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 as a result of the social distancing protocols, which resulted in a lack of human capital. In addition, as imports and exports were reduced, the issue of raw material scarcity became more acute. However, in the post-COVID era, businesses started moving to online distribution platforms for the safe delivery of their products, which opened up a multitude of opportunities for the global pet treats industry.
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, Dogswell, ANI BRANDS, Plato Pet Treats, SmartCookieTreats.com, Total Alimentos SA, and other prominent players. The market is dominated by top global players who hold more than half of the market share. The companies are adopting competitive strategies like partnerships, mergers, acquisitions, etc. to gain a competitive edge. They have also been spending a hefty amount in creating and maintaining brand reputation through their unique marketing techniques.
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