Pet food producers’ claims are increasingly mirroring those of human food makers
Los Angeles, CA (PRWEB) April 05, 2012
The Pet Food Production industry provides sustenance for pets in the US and around the world. Americans stood by their pets during the Great Recession, with canine and feline ownership growing despite falling personal disposable income. As such, IBISWorld industry analyst Josh McBee expects “Pet Food Production industry revenue to grow well above GDP growth in the five years to 2012. Over the coming five years, IBISWorld projects that an increase in disposable incomes and pet ownership will drive demand for premium wet pet food, a segment typified by high profit margins and brand-loyal consumers.”
McBee adds that “through 2017, demand for pet foods is once again anticipated to rise faster than GDP growth. A projected trend toward greater brand optimization will help manufacturers retain and expand market share during the period. Pet food producers’ claims are increasingly mirroring those of human food makers, touting healthy enrichments with multi-grains, leafy greens and fruits or foods produced without preservatives or artificial flavors.” Furthermore, organic and functional pet foods have also increased in popularity as evidenced by a host of new product introductions such as Hill's Science Diet Healthy Mobility Canine and other products featuring customized formulas. These products attract the highest margins, and demand remains relatively resilient since they target the premium segment of the buying market.
Meanwhile, recent volatility in commodity prices due to increased ethanol demand and unpredictable weather have increased purchase costs and pressured profit margins for industry firms. In turn, producers have sought to source more of their inputs from cheaper foreign markets, such as China. Producers also will continue to minimize the adverse effects of product recalls, which can damage a company's reputation and reduce brand loyalty. Because most pet owners are relatively demanding of pet food quality, companies must invest in quality control processes that ensure health, safety and ingredient quality. In turn, quality control will help producers minimize the incidences of recalls while ensuring safeguards against contamination or compromised quality during production.
For more information visit IBISWorld’s Pet Food Production in the US industry page
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This industry manufactures dog and cat food from ingredients, such as grains, oilseed mill products and meat products. This industry concentrates on wet animal feed, which is generally meat based.
IBISWorld industry Report Key Topics:
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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