The global functional pet treat market was valued at $291 million in 2021, and is projected to reach $722.8 million by 2031, growing at a CAGR of 9.2% from 2022 to 2031.Functional pet treats are specialty feed formulations enriched with natural ingredients that are aimed to provide a wide range of health benefits to pets. Weight management, dental health, digestive health, and immune system boosting are key functional areas of interest among pet owners. Functional pet treats aid in disease prevention & treatment among dogs & cats. They are popular alternatives to traditional pet treat and are given to pets that maintain their overall health.
Shift from pet ownership to parenting has been a crucial & defining trend in the pet care market, especially in developed countries. One-third of the households in developed countries own a pet. Traditionally, pet owners fed leftovers & scraps from family meals to their pets. However, pet owners are becoming aware of pet treat & functional pet treat, which are manufactured with the focus to improve health of these animals. In addition, there has been rise in adoption of pets owing to various benefits associated with them, Including improving mental health and decline in stress. A study conducted by American Veterinary Medical Foundation (AVMF) shows that nine out of ten Americans, who own pets, consider them as a part of their families. According to the 2018 National Pet Owners Survey conducted by the American Pet Products Association (APPA), 68% of households in the U.S. owned a pet. The expenditure on pets in the country Increased from 41.2% in 2007 to 69.4% in 2018, out of which, the money spent on pet treat occupied over 40% to 45%. Collectively, it shows that Increase in pet humanization is expected to raise the demand for functional pet treat during the forecast period.
Functional pet treat is a new & innovative product segment in the pet treat industry, which not only requires advertisement for its awareness but also a wide distribution network. Rapid Increase in number of large retail stores, Including supermarkets and hypermarkets in developing economies has enabled easier availability of functional pet treat, as these stores help Increase sales of organic & conventional functional pet treat products. Supermarkets and convenience stores have served as better distribution points for various pet supplements. In addition, growth in urbanization is expected to boost growth of the retail sector, which, in turn, generates demand for functional pet treat.
The concept of pet ownership is not just limited to developed countries, such as U.S., the UK, and Australia, but is also escalating in developing nations such as India, China, and Brazil. With rapid Increase in personal disposable Income, people in such nations are able to own a pet and provide the best quality of life to them. Mexico alone owned around 18 million pets that resulted in around 8% of Increased pet treat sales in 2015. In addition, the Asia-Pacific functional pet treat industry is growing tremendously, owing to Increase in pet population. For instance, India’s pet population has witnessed growth from 7 million in 2006 to more than 10 million pets in 2011. Improvement in consumer lifestyles and Increase in Incomes in developing countries resulted in Increased acceptance for pets among all Income groups.
Rise in regulatory constraints in pet treat, pet functional treat, and pet supplement industry are expected to negatively affect the functional pet treat market during the forecast period. For instance, in the U.S., pet treat is highly regulated by the U.S. FDA to meet both federal and state requirements. The U.S. FDA has imposed laws on both finished pet supplements and their application. Any ingredient cannot be used in pet treat supplement until it has been accepted by the FDA and Association of American Feed Control Officials (AAFCO). These organizations develop model bills & legislations for pet supplements.
Under the Food Safety Modernization Act (FSMA) 2010, guidelines for pet supplement manufacturers in the U.S. were issued related to certification, sterilization, hygiene, and labeling of food. In addition, owing to lack of a universal regulatory structure, global trading becomes difficult. Huge investments are made in manufacturing functional pet treats additives and different regulations & guidelines lead to severe losses for manufacturers. Therefore, it becomes expensive to frequently update manufacturing raw material and facilities in accordance with changing guidelines. The aforementioned factors are expected to hinder the growth of the market during the forecast period.
The functional pet treat market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. In 2021, North America dominated the functional pet treat market, and is expected to sustain its dominance during the forecast period. This is majorly attributed to rise in adoption of pets and Increase in spending on pet care products, Including healthcare & grooming products. Furthermore, growth in innovation in pet treat & supplement packaging is expected to escalate the demand for functional pet treat in North America. Furthermore, rise in research to find natural & organic pet ingredient, which can be used in functional pet treat creates potential opportunities for growth of the market. Moreover, pet owners look for premium & super premium functional pet treat, owing to growth in concerns regarding health of their pets & animal welfare in North America. Canada and Mexico are lucrative markets for pet supplements, growing at a CAGR of 9.6% and 9.3%, respectively, during the forecast period.
For the purpose of analysis, the global functional pet treat market scope covers segmentation based on pet, application, distribution channel, and region. The report provides information on various pets such as dog, cat, and others. In addition, it outlines the details about different applications, Including bone health, brain health, obesity, skin diseases, and others. Furthermore, the key distribution channels covered in the study Include pet stores, pharmacies, veterinary clinics, online stores, and others. Moreover, it analyzes the current market trends of functional pet treat across different regions such as North America, Europe, Asia-Pacific, and LAMEA.
Further, the report covers strategies adopted by key market players to sustain the competitive environment and Increase their market share. Archer-Daniels-Midland Company, Bacterfield, DAR PRO Ingredients, IsoNova Technologies LLC, Kerry Group, Nestlé Purina PetCare Company, PDM Group (Prosper De Mulder Ltd.), Petcurean Pet Nutrition USA Inc., Roquette Frères, and The Scoular Company are some of the major players discussed in the report, which cater to the functional pet treat market.
Shift from pet ownership to parenting has been a crucial & defining trend in the pet care market, especially in developed countries. One-third of the households in developed countries own a pet. Traditionally, pet owners fed leftovers & scraps from family meals to their pets. However, pet owners are becoming aware of pet treat & functional pet treat, which are manufactured with the focus to improve health of these animals. In addition, there has been rise in adoption of pets owing to various benefits associated with them, Including improving mental health and decline in stress. A study conducted by American Veterinary Medical Foundation (AVMF) shows that nine out of ten Americans, who own pets, consider them as a part of their families. According to the 2018 National Pet Owners Survey conducted by the American Pet Products Association (APPA), 68% of households in the U.S. owned a pet. The expenditure on pets in the country Increased from 41.2% in 2007 to 69.4% in 2018, out of which, the money spent on pet treat occupied over 40% to 45%. Collectively, it shows that Increase in pet humanization is expected to raise the demand for functional pet treat during the forecast period.
Functional pet treat is a new & innovative product segment in the pet treat industry, which not only requires advertisement for its awareness but also a wide distribution network. Rapid Increase in number of large retail stores, Including supermarkets and hypermarkets in developing economies has enabled easier availability of functional pet treat, as these stores help Increase sales of organic & conventional functional pet treat products. Supermarkets and convenience stores have served as better distribution points for various pet supplements. In addition, growth in urbanization is expected to boost growth of the retail sector, which, in turn, generates demand for functional pet treat.
The concept of pet ownership is not just limited to developed countries, such as U.S., the UK, and Australia, but is also escalating in developing nations such as India, China, and Brazil. With rapid Increase in personal disposable Income, people in such nations are able to own a pet and provide the best quality of life to them. Mexico alone owned around 18 million pets that resulted in around 8% of Increased pet treat sales in 2015. In addition, the Asia-Pacific functional pet treat industry is growing tremendously, owing to Increase in pet population. For instance, India’s pet population has witnessed growth from 7 million in 2006 to more than 10 million pets in 2011. Improvement in consumer lifestyles and Increase in Incomes in developing countries resulted in Increased acceptance for pets among all Income groups.
Rise in regulatory constraints in pet treat, pet functional treat, and pet supplement industry are expected to negatively affect the functional pet treat market during the forecast period. For instance, in the U.S., pet treat is highly regulated by the U.S. FDA to meet both federal and state requirements. The U.S. FDA has imposed laws on both finished pet supplements and their application. Any ingredient cannot be used in pet treat supplement until it has been accepted by the FDA and Association of American Feed Control Officials (AAFCO). These organizations develop model bills & legislations for pet supplements.
Under the Food Safety Modernization Act (FSMA) 2010, guidelines for pet supplement manufacturers in the U.S. were issued related to certification, sterilization, hygiene, and labeling of food. In addition, owing to lack of a universal regulatory structure, global trading becomes difficult. Huge investments are made in manufacturing functional pet treats additives and different regulations & guidelines lead to severe losses for manufacturers. Therefore, it becomes expensive to frequently update manufacturing raw material and facilities in accordance with changing guidelines. The aforementioned factors are expected to hinder the growth of the market during the forecast period.
The functional pet treat market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. In 2021, North America dominated the functional pet treat market, and is expected to sustain its dominance during the forecast period. This is majorly attributed to rise in adoption of pets and Increase in spending on pet care products, Including healthcare & grooming products. Furthermore, growth in innovation in pet treat & supplement packaging is expected to escalate the demand for functional pet treat in North America. Furthermore, rise in research to find natural & organic pet ingredient, which can be used in functional pet treat creates potential opportunities for growth of the market. Moreover, pet owners look for premium & super premium functional pet treat, owing to growth in concerns regarding health of their pets & animal welfare in North America. Canada and Mexico are lucrative markets for pet supplements, growing at a CAGR of 9.6% and 9.3%, respectively, during the forecast period.
For the purpose of analysis, the global functional pet treat market scope covers segmentation based on pet, application, distribution channel, and region. The report provides information on various pets such as dog, cat, and others. In addition, it outlines the details about different applications, Including bone health, brain health, obesity, skin diseases, and others. Furthermore, the key distribution channels covered in the study Include pet stores, pharmacies, veterinary clinics, online stores, and others. Moreover, it analyzes the current market trends of functional pet treat across different regions such as North America, Europe, Asia-Pacific, and LAMEA.
Further, the report covers strategies adopted by key market players to sustain the competitive environment and Increase their market share. Archer-Daniels-Midland Company, Bacterfield, DAR PRO Ingredients, IsoNova Technologies LLC, Kerry Group, Nestlé Purina PetCare Company, PDM Group (Prosper De Mulder Ltd.), Petcurean Pet Nutrition USA Inc., Roquette Frères, and The Scoular Company are some of the major players discussed in the report, which cater to the functional pet treat market.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the functional pet treat market analysis from 2021 to 2031 to identify the prevailing functional pet treat market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the functional pet treat market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report Includes the analysis of the regional as well as global functional pet treat market trends, key players, market segments, application areas, and market growth strategies.
Key Market Segments
By Application
- Bone Health
- Brain Health
- Obesity
- Skin Diseases
- Others
By Pet
- Dog
- Cat
- Others
By Distribution Channel
- Pet Stores
- Pharmacies
- Veterinary Clinics
- Online Stores
- Others
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- UK
- France
- Germany
- Russia
- Spain
- Italy
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- Rest of Asia-Pacific
- LAMEA
- Brazil
- Argentina
- Saudi Arabia
- South Africa
- Rest of LAMEA
Key Market Players
- Sunshine Mills Inc.
- The J.M. Smucker Co.
- Plato Pet Treats
- Mars, Incorporated
- Real Pet Food Company Pty. Ltd.
- General Mills Inc.
- Thai Union Group PCL.
- Wellness Pet Company, Inc.
- Natural Balance Pet Foods, Inc.
- Colgate-Palmolive Company
- Nestle S.A.
- Nulo Pet Food
- Pure Treats Inc.
- Charoen Pokphand Foods PLC.
- Better Choice Company Inc.
Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: FUNCTIONAL PET TREAT MARKET, BY PET
CHAPTER 5: FUNCTIONAL PET TREAT MARKET, BY APPLICATION
CHAPTER 6: FUNCTIONAL PET TREAT MARKET, BY DISTRIBUTION CHANNEL
CHAPTER 7: FUNCTIONAL PET TREAT MARKET, BY REGION
CHAPTER 8: COMPETITIVE LANDSCAPE
CHAPTER 9: COMPANY PROFILES
List of Tables
List of Figures
Executive Summary
According to a new report, titled, 'Functional Pet Treat Market,' The functional pet treat market was valued at $290.96 million in 2021, and is estimated to reach $722.8 million by 2031, growing at a CAGR of 9.2% from 2022 to 2031.Functional pet treat is an alternative to traditional pet treat, which is increasingly given to enhance pet’s health as it is rich in nutrients, protein, vitamins, and minerals. It contains special nutritional benefits in terms of general wellness or address specific health concern of pets related to digestion, immune system strength, dental health, and joint & cartilage functions of pets, including dogs, cats, freshwater fish, reptiles, horses, and birds. It is gaining significant traction among pet owners due to benefits associated with functional pet treat to improve immune system strength, bone, brain, & muscle health, reduce postprandial glucose & insulin concentrations, and prevent diabetes‐related disorders.
Manufacturers are seizing opportunities to grow sales through manufacturing functional pet treats related to specific diseases, and targeting life stages and specific breeds of pets. As consumers spending on pet food has increased, companies are manufacturing premium quality functional pet food according to categories of diseases related to pet breed, age, and lifestyle. Functional treats provide more calories than fat, protein, and carbohydrate to the overall nutritional regime. Functional pet treats provide calculated amount of fat, protein, and carbohydrate as per the need and additional medical requirements. Furthermore, growth in pet humanization and increase in spending on pet grooming & treat are expected to boost the growth of the functional pet treat market during the forecast period.
The outbreak of the COVID-19 pandemic has positively affected the functional pet treat market due to undermined and unintended consequence of COVID-19 pandemic. Prior to the pandemic, the global functional pet treat industry was growing at a strong rate due to growth in pet humanization, concerns about animal welfare, and increase in spending on animal health & grooming. This was upsurged during the lockdown period as people became more concerned about pet health apart from their own, resulting in significant adoption of functional pet treat. Thus, certain COVID-19 repercussions and above factors that accelerated the market growth are further expected to sustain this growth during the forecast period.
The functional pet treat market is segmented into pet, application, distribution channel, and region. Based on pet, the market is categorized into dog, cat, and others. By application, it is segregated into bone health, brain health, obesity, skin diseases, and others. Depending on distribution channel, it is divided into pet stores, pharmacies, veterinary clinics, online stores, and others. Region wise, it is analyzed across North America (the U.S., Canada, and Mexico), Europe (UK, France, Germany, Russia, Spain, Italy, and Rest of Europe), Asia-Pacific (China, Japan, India, Australia, and Rest of Asia-Pacific), and LAMEA (Brazil, Argentina, Saudi Arabia, South Africa, and Rest of LAMEA).
- On the basis of pet, the dog segment accounted for major share in 2021, and is likely to maintain this during the forecast period, owing to increase in trend of nuclear families and their demand to keep dogs for companionship and security. Nonetheless, due to concerns toward pet’s health, pet parents are increasingly opting for nutritional treat, followed by treats and snacks. Therefore, functional pet treat is the fastest-growing treat type as it delivers sufficient nutrition, containing high-moisture, protein-rich, and low calories.
Dog is one of the most popular pets owing to various reasons and personal interest such as it is stress buster and more resistant to allergies as compared to other pets, which means they can adapt themselves in any condition. Increase in mental disorders, including depression, is a major cause of loneliness, which encourages people to adopt dogs as pets. Furthermore, dogs are most loyal animals as compared to other pet animals and can be adopted for home protection. Therefore, increase in adoption of dogs and rise in spending for their health & wellness are expected to boost the growth of the functional pet treat market during the forecast period.
Depending on application, the skin diseases segment was valued at $93.7 million in 2021 and is expected to reach $231.3 million by 2031 at a CAGR of 9.2%. This growth is attributed to rise in prevalence of skin diseases among pets. For instance, atopic dermatitis (AD), a chronic and eczematous skin disease, affects pet animals especially dogs, and requires a combination of treatments with required functional treat. Pet owners have shown increased interest in holistic, natural diets containing wholesome ingredients, such as oats & barley, which can reduce the risk of skin disease. Moreover, increase in prevalence of obesity disorders among pets coupled with rise in concerns among pet owners is expected to increase the functional pet treat market share.
- By distribution channel, the pet stores segment was valued at $109.1 million in 2021, and is expected to reach $262.9 million by 2031, with a CAGR of 8.9%. Rapid increase in number of pet stores in developing economies has enabled easier availability of functional pet treat, as these stores help to increase the sales of functional pet treat products. In addition, increase in urbanization and expansion of metro cities are expected to promote the growth of this distribution channel.
The increasing number of pets across the U.S. is driving the demand for functional pet treat market in the North America region. For instance, according to the U.S. Pet Food Industry’s pet ownership study, in 2020, pet ownership rose from 67% of households to an all-time high of 70%, which is confirmed by the APPA. The booming functional pet treats market in the U.S. will continue to create opportunities for market players, particularly from a supplier viewpoint. As consumers continue to be price-conscious, developing premium lines that further tap into other categories, such as breed, age, and lifestyle, are seen as an opportunity for manufacturers to offer added value.
The players operating in the global functional pet treat market have adopted various developmental strategies to expand their market share, increase profitability, and remain competitive in the market. The key players profiled in this report include Archer-Daniels-Midland Company, Bacterfield, DAR PRO Ingredients, IsoNova Technologies LLC, Kerry Group, Nestlé Purina PetCare Company, PDM Group (Prosper De Mulder Ltd.), Petcurean Pet Nutrition USA Inc., Roquette Frères, and The Scoular Company.
Companies Mentioned
- Sunshine Mills Inc.
- The J.M. Smucker Co.
- Plato Pet Treats
- Mars, Incorporated
- Real Pet Food Company Pty. Ltd.
- General Mills Inc.
- Thai Union Group PCL.
- Wellness Pet Company, Inc.
- Natural Balance Pet Foods, Inc.
- Colgate-Palmolive Company
- Nestle S.A.
- Nulo Pet Food
- Pure Treats Inc.
- Charoen Pokphand Foods PLC.
- Better Choice Company Inc.
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 281 |
| Published | May 2023 |
| Forecast Period | 2021 - 2031 |
| Estimated Market Value ( USD | $ 291 million |
| Forecasted Market Value ( USD | $ 722.8 million |
| Compound Annual Growth Rate | 9.5% |
| Regions Covered | Global |
| No. of Companies Mentioned | 15 |
