- Published: October 2014
- Region: Global
Pet Food Manufacturing in the US
- ID: 1052520
- June 2014
- Region: United States
- 10 pages
- First Research
Brief Excerpt from Industry Overview Chapter:
Companies in this industry manufacture food for dogs and cats, using grains, oilseed products, and meat products. Major companies include divisions of Colgate-Palmolive (Hills Pet Nutrition), Del Monte (9Lives, Gravy Train, Milk-Bone, and Meow Mix), Mars (Pedigree and Whiskas), and Procter & Gamble (Iams), all based in the US, along with Nestlé (Switzerland), Royal Canin (France), and Witte Molen (the Netherlands).
Global pet food sales exceed $65 billion per year, according to the Italian Pet Food and Pet Care Association. That figure is expected to rise to more than $95 billion in 2017. The top four markets for pet food imports -- Japan, the US, Canada, and the European Union -- account for about 60 percent of total global imports. Emerging markets account for around 30 percent of import demand.
The US pet food manufacturing industry includes about 200 companies with combined annual revenue of about $21 billion. Growth opportunities include premium and organic products.
Pet ownership drives demand. The profitability of individual companies depends heavily on effective marketing. Large companies have advantages of scale in manufacturing, marketing, and distribution. Small companies can compete effectively by offering specialized products or by serving a local market. The US pet food manufacturing industry is highly concentrated: the eight largest companies account for about 85 percent of sales.
The pet food industry is highly competitive, with large companies spending millions on marketing to maintain share....
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