Niche Nutrition Pet Foods Are On The Rise
One of the biggest trends in the pet food market is the rise of niche nutrition pet foods. According to a report by Grand View Research, the global pet food market is expected to grow at a CAGR of 4.4% from 2024 to 2030. One of the key drivers of this growth is the increase in interest and demand for quality pet nutrition. As a result, this leads to the rise of niche nutrition pet food brands that offer a wide range of specialized products that are tailored to address specific health concerns and lifestyle preferences.
These niche nutrition pet foods can range from gain-free raw diets to hypoallergenic and breed-specific formulas. Manufacturers are also exploring new technologies, ingredients, formulations, and delivery methods to meet these evolving needs. In this article, we will take a look at how pet food niches are beating inflation, as well as the key drivers of the increase in demand and how pet product manufacturers can respond to this shift.
Pet Food Niches Are Also Beating Inflation
The increase in demand for niche nutrition pet food is also beating inflation. According to Sam Smith, associate client director of pet manufacturing and CPG at NielsenIQ, If we look at specific niches in the pet food industry, we can see the organic growth in consumption, even though the pet care market as a whole experienced significant price increases. When we compare data from 2023 to 2022, we notice the following:
- The fresh/frozen segment had a 21.4% increase in dollar growth and a 14.3% increase in unit growth.
- The freeze-dried segment had a 21.7% increase in dollar growth and a 9.6% increase in unit growth.
- The meal enhancers category had a 11.9% increase in dollar growth and a 1.6% increase in unit growth.
The data shows that these 3 niches of pet food were the only segments to witness an increase in both unit growth and dollar growth in 2023.
“..Supplements have been huge, toppers have been huge, freeze-dried, dehydrated, etc. All the different type of niche (Nutrition products) and alternative foods…are being launched and consumers are looking for those.”
– S. Smith, Associate, NielsenIQ
What Is Driving The Demand for Niche Nutrition Pet Food?
The shift towards niche nutrition pet food can be attributed to many factors, but 3 key drivers of this increase in demand are the growing awareness, health concerns, and the increasing humanization of pets.
1. Growing Awareness
With the rise of social media and niche blogs, pet owners have more access than ever to a wealth of information about pet nutrition. This information empowers consumers to make more informed decisions about their pet’s diets. As people become more educated about the dietary needs of their pets they seek foods that are more nutritionally balanced.
2. Health Concerns
As pet owners become more aware of the importance of proper nutrition for their pet’s health and well-being, they also become increasingly concerned about their pet’s health issues related to poor diet. Many pets are grappling with food sensitivities and other health concerns that require a specialized diet to meet their unique needs. This leads to a growing demand for pet foods formulated to address specific concerns like weight management, allergies, etc.
3. The Increasing Humanization of Pets
More pet owners are beginning to view and treat their pets as members of family and they want them to have the same level of nutrition. This psychographic shift is leading to a rise in demand for premium pet food products that offer high-quality ingredients and specific health benefits, from wholesome ingredients to specialized formulas.
What Does This Mean For Pet Food Manufacturers?
The increase in demand for niche nutrition pet foods presents new challenges and opportunities for traditional pet food brands. Traditional pet food brands now have to face increased competition from niche nutrition pet food brands that cater to specific dietary preferences and health concerns. These traditional brands also have to adapt their product offerings to meet the evolving needs of pet owners. Traditional pet food manufacturers may find it difficult to secure reliable sources of quality specialty ingredients on a consistent basis. Niche nutrition formulas may require rare or novel ingredients from specific suppliers and this would lead to further complexities in the supply chain.
The rise of niche nutrition pet foods also offers opportunities for innovation, differentiation and market expansion for traditional pet food brands who are willing to adapt to the trend. By diversifying their product portfolios to meet the unique nutritional needs of pets, they can tap into these emerging market segments. Traditional brands can also leverage their resources and expertise to incorporate more novel ingredients and proprietary formulas that further differentiate their products in the marketplace.
Final Thoughts
In conclusion, the rise of niche nutrition pet foods is one of the biggest trends that is shaping the pet care market. Pet food niches are also beating inflation and this increase in demand is driven by the growing awareness of pet nutrition, increasing health concerns, and the increasing humanization of pets. This leads to new challenges for traditional pet food manufacturers who have to meet the needs of these emerging market segments while competing with new niche nutrition pet brands that will emerge in the near future. This increase in demand and competition will also offer more opportunities for innovation, differentiation, and market expansion.
We hope you found this article insightful. Feel free to comment below and share your thoughts. You may also be interested in a previous article on how sustainability is shaping the pet industry. At MJE Creative, we have deep knowledge of the pet care market and we have over 30 years of experience in helping pet care brands to gain more visibility with the right retail solutions that speak to today’s consumers. Click here to view some of our work.
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SOURCES
www.globalpetindustry.com/article/rise-and-rise-niche-nutrition
www.petfoodindustry.com/pet-food-market/blog/15467155/raw-freeze-dried-other-pet-foods-gain-consumer-traction
www.grandviewresearch.com/industry-analysis/pet-food-industry
www.petfoodprocessing.net/articles/18082-niche-pet-food-categories-beating-inflation
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