Companies in this industry manufacture food for dogs and cats, using grains, oilseed products, and meat products. Major companies include Blue Buffalo Pet Products and divisions of Colgate-Palmolive (Hill's Pet Nutrition); JM Smucker (Big Heart Pet Brands); and Mars (Pedigree, Whiskas, and Iams), all based in the US; along with Affinity Petcare (Spain), Heristo (Germany), Nestlé (Switzerland), Royal Canin (France), and Unicharm (Japan).
Global pet food industry revenue is about $80 billion per year, according to Euromonitor International. The largest markets are the US, Brazil, Japan, the UK, and France, according to Nielsen. Sales in Latin America and Eastern Europe have been increasing by double-digit percentages in recent years.
The US pet food manufacturing industry includes about 300 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $25 billion.
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 80% of sales.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products include dry dog food, which accounts for about 45% of industry revenue, dry cat food (20%), dog and cat treats (15%), wet cat food (10%), and wet dog food (10%), according to the Pet Food Institute.