Premium Pet Food Production in the US - Market Research Report (2014-2029)
New York, United States
Last Updated: August 2024
NAICS OD6157Revenue
$2.8bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
3,588
Businesses
105
Wages
$XXX.Xm
Premium Pet Food Production in the US industry analysis
Premium pet food production is enjoying revenue growth driven by the quantity of pets, namely cats and dogs, in the United States, which boomed through the COVID-19 pandemic as consumers were shut in at home. Consumer preference has continued to move to premium pet food because of the growing availability of information on pet nutrition information and the humanization of pets, expanding demand. International trade boomed as large companies with globalized operations sought to most efficiently capture this growing demand, but smaller domestic producers were challenged by rising competition as import growth outpaced export growth. Revenue has been growing at a CAGR of 4.4% over the past five years and is expected to reach $2.8 billion in 2024 when sales will expand an estimated 1.1%.
Trends and Insights
- Sustainability is shaping premium pet food production. Larger brands are adopting sustainable practices, with niche producers following suit. These initiatives, including sourcing from sustainable farms, meet growing consumer demand for environmentally responsible products.
- Mass merchandisers are increasingly popular for premium pet food shopping due to their broad product selection and discounts. While their one-stop shopping convenience attracts customers, some perceive these stores as prioritizing quantity over quality, hesitating to purchase premium items there.
- The Plains region is ideal for premium pet food production due to abundant agricultural resources and supportive business incentives. Proximity to raw materials minimizes transportation costs, enhancing efficiency and fostering innovation through local industry clusters.
- Value pet food offers a budget-friendly alternative to premium products, presenting a significant challenge. Its affordability attracts price-sensitive consumers, potentially diverting them from expensive premium options emphasizing higher quality and nutrient-rich ingredients.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 4.4 % over the past five years, to reach an estimated $2.8bn in 2024.
Trends and Insights
The pandemic resulted in expanding pet ownership, benefitting producers
- During the pandemic's peak in 2020 and 2021, the number of households with traditional pets, like cats and dogs, increased steadily as consumers found themselves with more free time and in need of companionship.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Sustainability will become increasingly important
- Sustainable production processes have become increasingly important in recent years, and the call for sustainable premium pet food will increase in the coming years as the impacts of climate change proliferate.
Biggest companies in the Premium Pet Food Production in the US
| Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
|---|---|---|---|---|
Nestle Sa | 5,835.1 | 1,019.4 | 17.5 | |
Mars Inc. | 2,987.5 | 559.6 | 18.7 | |
General Mills, Inc. | 1,674.2 | 311.3 | 18.6 |
To view the market share and analysis for all 5 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Premium dog food, Premium cat food and Other premium pet food. Premium dog food is the largest segment of the Premium Pet Food Production in the US.
Trends and Insights
Owners are less likely to slurge on premium dog food
- Premium-quality dry dog food, otherwise known as kibbles, is the most popular variety of dog food because of its affordability and convenience. Premium-quality wet dog food is typically canned and contains no preservatives, artificial flavorings and coloring, making it a more expensive option.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Wheat, Barley & Sorghum Farming in the US
- Beef Cattle Production in the US
- Animal Food Production in the US
- Pet Stores in the US
International industries
- Global Milk & Cream Manufacturing
- Global Fruit & Vegetable Processing
- Global Cheese Manufacturing
Table of Contents
About this industry
Industry definition
Operators in the Premium Pet Food Production industry primarily includes businesses that produce premium pet food for cats and dogs. Products in this industry are differentiated by their higher margin nature, compared with traditional cat and dog food brands.
What's included in this industry?
Producing high-margin dog foodProducing high-margin cat foodProducing other pet food productsCompanies
Nestle SaMars Inc.General Mills, Inc.Purchase this report to view all 5 major companies in this industry.
Related Terms
PROBIOTICBIOFUELPET PARENTSIndustry Code
NAICS 31111 - Premium Pet Food Production in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Sustainability is shaping premium pet food production. Larger brands are adopting sustainable practices, with niche producers following suit. These initiatives, including sou...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Mass merchandisers are increasingly popular for premium pet food shopping due to their broad product selection and discounts. While their one-stop shopping convenience attrac...
In this chapter
- Products & Services
- Major Markets
- International Trade
Key metrics
- Largest market segment and value in 2024
- Product innovation level
- Total imports, level and trend
- Total exports, level and trend
- Trade Balance
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
- International trade, including imports by country and exports by country
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
- Recent trends in import and export volumes, country of origin or destination, and expected future trends
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
The Plains region is ideal for premium pet food production due to abundant agricultural resources and supportive business incentives. Proximity to raw materials minimizes tra...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each state in 2024
- Number and share of revenue each state accounts for in 2024
- Number and share of wages each state accounts for in 2024
- Number and share of employees in each state in 2024
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Value pet food offers a budget-friendly alternative to premium products, presenting a significant challenge. Its affordability attracts price-sensitive consumers, potentially...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Sustainability is taking center stage. Colgate was recently championed for its environmental initiatives by the Dow Jones Sustainability Index, and Nestle and Mars have both ...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Nestle Sa's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Mars Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of General Mills, Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for 2 additional companies
Detailed analysis
- Description and key data for Nestle Sa, and factors influencing its performance in the industry
- Description and key data for Mars Inc., and factors influencing its performance in the industry
- Description and key data for General Mills, Inc., and factors influencing its performance in the industry
- Description, key data and performance trends for 2 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The Food Safety Modernization Act (FSMA) enhances safety standards. This law requires pet food producers to manage food safety proactively, leading to significant investments...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Wage costs are surging for premium pet food producers. Specialized labor for developing high-quality formulations has increased wage expenses, primarily as new producers depe...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Industry Multiples (2017-2022)
- Industry Tax Structure (2017-2022)
- Income Statement (2017-2022)
- Balance Sheet (2017-2022)
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Premium Pet Food Production in the US industry in United States in 2024?
The market size of the Premium Pet Food Production in the US industry in United States is $2.8bn in 2024.
How many businesses are there in the Premium Pet Food Production in the US industry in 2024?
There are 105 businesses in the Premium Pet Food Production in the US industry in United States, which has grown at a CAGR of 12.6 % between 2019 and 2024.
Has the Premium Pet Food Production in the US industry in United States grown or declined over the past 5 years?
The market size of the Premium Pet Food Production in the US industry in United States has been growing at a CAGR of 4.4 % between 2019 and 2024.
What is the forecast growth of the Premium Pet Food Production in the US industry in United States over the next 5 years?
Over the next five years, the Premium Pet Food Production in the US industry in United States is expected to grow.
What are the biggest companies in the Premium Pet Food Production in the US market in United States?
The biggest companies operating in the Premium Pet Food Production market in United States are Nestle Sa, Mars Inc. and General Mills, Inc.
What does the Premium Pet Food Production in the US in United States include?
Producing high-margin dog food and Producing high-margin cat food are part of the Premium Pet Food Production in the US industry.
Which companies have the highest market share in the Premium Pet Food Production in the US in United States?
The company holding the most market share in United States is Nestle Sa.
How competitive is the Premium Pet Food Production in the US industry in United States?
The level of competition is high and increasing in the Premium Pet Food Production in the US industry in United States.
