According to a report by Markets and Markets, the pet food ingredient market is estimated at $34.96 billion in 2018 and expected to grow to $45.44 billion by 2023, representing a CAGR of 5.4%.
Markets and Markets reported this growth is driven by an increase in pet ownership and the humanization of pets, investments in research and development and product innovation, and strategic acquisitions and production facility expansions among top pet food companies. Archer Daniels Midland (ADM), Cargill, Darling Ingredients, DowDupont and Kemin Industries are among the top 13 companies in the pet food ingredient market listed in the report.
Animal-based ingredients are expected to grow at a higher CAGR than plant-based or synthetic ingredients for several reasons, including availability, low cost and palatability, according to the report. The CAGRs of fats and fruits are projected to exceed those of other ingredients, such as cereals, meat products, vegetables and additives. Markets and Markets attributed this to the growing popularity of vegan and grain-free pet food, which is expected to accommodate the inclusion of fruits in pet food for taste, texture and flavor, and fats for functional benefits.
The Asia Pacific region is projected to be the fastest-growing pet food ingredient market from 2018 to 2023, driven by India, China and Japan, according to the report. China is expected to lead the region both in value and volume because local manufacturers can offer pet food ingredients at lower prices than other countries in the region.
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