2024
Insights Report
An inside look at the
future of pet nutrion
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What’s inside:
Secon 1:
Introducon................................................................3
Secon 2:
Category growth.........................................................4
Secon 3:
Daily treang...............................................................6
Secon 4:
Health and sustainability.............................................9
Secon 5:
Human-like products and services............................12
Secon 6:
How ADM can help...................................................14
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Introduction
Powered by evolving percepons of pet ownership across the globe, the pet
care industry is poised for connued growth in 2024. Surveys show that a
majority of owners consider their pets members of their family, and this societal
shi in perspecve is expanding across major pet-owning markets.
1
Furry family
members connue to receive preventave care, mental smulaon, and high-
quality nutrion on a daily basis—and there is no sign that modern pet parents
are slowing down.
Consumers are also showing their excitement for novel avors and mul-
sensorial experiences in their buying behaviors. Today’s pet parent is looking for
the next big thing in pet care and willing to try new products if they meet their
expectaons for quality and aordability. When you layer in a focus on health
and wellness through funconal ingredients, the pet care market is ripe for
innovaon this year.
Read on for more ADM insights that can help you achieve success in 2024.
Secon 1:
4
Category growth
Global humanizaon trends and increasing
pet populaons connue to drive consistent
growth across the pet care industry. The
APAC and LATAM regions are in the lead
with higher-than-average CAGR compared
to the rest of the world.
1
In 2024, pet
brands need to globalize and diversify their
oerings to remain compeve.
Secon 2:
65% of Millennials
plan to acquire a pet by
2025.
1
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As inaon cools, consumers are sll looking for the best value in pet products,
yet premium products connue to sell, aributed partly to humanizaon
trends. Overall, the global pet care market shows strong resistance to inaon
as pet owners generally avoid making sacrices when it comes to pet health
and wellness.
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70% of owners
consider their pets a
family member.
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72% would not
cut pet food expense
regardless of
finances.
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Premiumization persists
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Daily treating
Whether it is for enrichment, training,
or nutrional benets, daily treang is
becoming commonplace across pet owners.
Many pet parents are looking for treats with
health and wellness benets to provide a
guilt-free treang experience. In fact, 85%
of pet owners say they consider proper
nutrion and supplements just as important
for their pets as they are for themselves.
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Secon 3:
73% of pet
owners say they
still prioritize fun
items or treats for
their pets despite
rising costs.
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63% of dog owners
and 60% of cat owners
participate in
daily treating.
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Overall, the rise in funconal benets added to treats may encourage pet
owners to engage in healthy treang more frequently, raising the potenal for
future category growth. Consumers across the globe are connuing to show
strong interest in treats and supplements with 79% stang that they would
spend money on preventave care in an aempt to avoid larger vet bills.
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From so chews to baked treats, there is connuous demand for innovaon
in treats and supplements as pet owners mirror their own health and wellness
habits to their pets. Treats that make science-backed funconal claims remain
popular in store and online.
The global pet treat and
supplement market is
forecasted to grow at an
8% CAGR through 2028.
1
US retail sales of pet
treats are forecasted
to grow 5.5% in 2024.
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Focusing on function
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Growth opportunities:
Innovaon in ingredients and formulaon to create
new types of healthy treats
Scienc research into acve ingredients and their
role in health and wellness
Treats that mimic indulgent human food while
providing nutrional benet to pets
Healthy training and enrichment treats that provide
pet owners a guilt-free treang experience
Focus on ingredients that boost gut health to
improve overall wellness
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Health and sustainability
Given the rise in humanizaon of pets by modern pet parents, it’s no surprise
to see human-oriented buying habits reected in their pets. As the modern
consumer becomes more familiar with acve ingredients promoted on human
food labels, their desire to see these same ingredients in their pet’s food grows.
Similarly, pet brands are nding that consumers are increasingly focused on
products’ environmental impacts, from where and how ingredients are grown
to how those ingredients are processed.
Secon 4:
10
Consumers are aracted to innovaon in food and treats, especially
when ingredients are sourced from familiar health categories such
as superfoods and vegetables. These products make similar claims to
their human-product counterparts, so owners feel safe feeding their
pets a food or treat with healthy ingredients that they would willingly
consume themselves.
Human health and environmental sustainability research is oen
promoted on news outlets and social media, and pet owners are
looking to see this research reected in pet products as well. These
trends are driving high rates of innovaon in pet care products,
especially at the intersecon of health-focused and sustainable
manufacturing.
54% of pet owners
are looking for healthy
ingredients in food.
1
New pet owners are more
likely to place emphasis
on quality and premium
products.
2
Gut, brain, and heart health claims are on
the rise in new products.
2
Echoing human trends
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When presented a choice, more consumers
are choosing sustainable and healthy
opons for themselves and their pets, and a
majority of pet owners are trying to make a
dierence on the environment through their
buying habits. It’s safe to say, pet brands are
paying aenon.
As 2024 unfolds, we expect to see an
increased focus on sustainability iniaves
from pet care brands, big and small.
42% of pet owners
prefer sustainable
packaging.
1
Pet owners are more
likely than non-pet
owners to say they
are worried about
climate change.
1
66% of pet owners
globally are worried about
climate change and try to
have a positive impact on
the environment through
their actions.
1
63% of pet owners
aged 18-34 prefer pet food
brands that limit their
environmental impact.
2
The takeaways
12
Human-like products and services
As owners connue to humanize their pets, they are spending more me
together through common acvies. This might mean bringing their pet to the
coee shop or on a trip to the home improvement store. Owners now want to
share their lifestyle with their pets, and that includes their favorite foods and
beverages. From pumpkin spice dog treats to pet-safe beer, owners are ready to
invest in excing new experiences and make long-lasng memories with their
favorite furry friend.
Secon 5:
New pet owners (<3 years)
are driving growth in unique
feeding experiences, such as
incorporating dog food toppers;
35% say they purchased sauce
or mixers in 2023.
2
13
The fun doesn’t stop with edible endeavors. Some pet shops are
now providing spas, salons, health and wellness centers, and even
swimming pools to cater to modern pet owners.
1
Workplaces are
becoming increasingly dog friendly, and a large poron of Gen Z pet
owners say they are willing to spoil their pet with birthday presents
and cake.
3
It’s safe to say that pet owners want to share their lives with
their favorite pets, and consumer spending habits reect these trends.
In 2024, the most successful pet care companies will develop lifestyle
brands on social media and diversify their products to include health
and wellness. Others may venture into products that boost a pet’s
mood, promote mental wellbeing, or regulate energy levels.
Overall, variety and innovaon will be key to capturing future market
share, so pet brands should partner only with the most capable
co-manufacturers to ensure success.
Variety and innovation
14
How ADM can help
Whether you want a reliable partner to help you develop a new product or
you’re looking for science-backed funconal ingredients, ADM has the experse
and porolio you need. Using our diverse team of formulaon sciensts and
state-of-the-art facilies, we regularly help our partners bring new products to
market. Our teams will monitor consumer trends, conduct scienc research,
and use our experse to help your pet brand succeed.
Secon 6:
140 sciensts, technicians, and employees dedicated to animal nutrion
13 Research & Development and applied research centers globally
A porolio of patented biocs with sciencally veried ecacy and stability
Signicant resources dedicated to supporng partners in the pet industry
Full integrated soluons that range from ingredients to turnkey products
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ADM’s 360-degree approach includes services, customer insights, and
tailor-made soluons that enable us to help our partners move quickly from
ideas to innovaons, giving them a compeve advantage with today’s pet
parents. As a go-to partner for our customers, ADM’s pet nutrion soluons
help advance the role of foods, treats, and supplements as a way to strengthen
the bond between pets and their owners.
Insights and expertise to advance innovation
Request a consultation today
800-775-3295 | petnutri[email protected] | adm.com/petnutrion
THIS INFORMATION IS INTENDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT IMPLY ANY EXPRESS RECOMMENDATIONS FOR THE CURE, MITIGATION, TREATMENT, OR PREVENTION OF
DISEASE. CONSULT WITH A VETERINARIAN FOR THE CURE OF ALL ANIMALS DURING HEALTH CHALLENGES.
THE INFORMATION PROVIDED IN THIS DOCUMENT IS BASED ON THE CURRENT KNOWLEDGE AND EXPERIENCE OF ADM OR ITS AFFILIATED COMPANIES AND IS ONLY INTENDED TO BE RECEIVED BY
THE ADDRESSEE (THE “ADDRESSEE”). THE INFORMATION PROVIDED TO THE ADDRESSEE “AS IS” AND NO WARRANTIES, EXPRESS OR IMPLIED, ARE GIVEN OR LIABILITIES OF ANY KIND ARE ASSUMED
BY ADM OR ITS AFFILIATED COMPANIES WITH RESPECT TO SUCH INFORMATION.
1
Euromonitor: World Market for Pet Care - June 2023
2
Mintel: Pet Food US - September 2023
3
Megna, Michelle. “Pet Ownership Stascs 2024.” Forbes, 25 Jan. 2024 hps://www.forbes.com/advisor/pet-insurance/pet-ownership-stascs.
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Morning Consult: ADM Pet Food Study - December 2023