Pet Food Market Expansion
Purina Petcare recently announced its plans to invest around $550 million in their facility located in Hartwell, Georgia. Purina, Nestlé’s subsidiary, sees a large potential for expansion as demand for pet ownership increases in the US. The global pet food market has been growing steadily in the last five years, in 2018 its estimated value amounted to $83.02 billion and the forecasts talk about 4.5% CAGR between the years of 2019 and 2025.
Organic pet food sector
Purina notices potential in development as consumers become more aware and healthy-oriented not only for themselves but also for their pets. The demand for a wider range of natural products increases. In particular, dry pet food and dog food see an intensified interest. According to the estimates, the organic pet food sector is set to be worth around $23.5 billion by 2029. Manufacturers are thus seeking to strengthen their position on the market by introducing food safety measurements and establish new connections with suppliers of high-quality produce. Between the years 2007 and 2017, the demand for high-quality nutritional products for pets has seen a 36% increase.
Globally, North America is a major player in the pet food sector, as around 38% claim to be cat owners with an average of two pets per owner. Europe is expected to outrun North America in the forthcoming years. The Asia Pacific must not be overlooked as from 2018 to 2019 this market increased in size by 13% due to the high demand, especially for premium-quality dog food.