A recent report from CoBank’s Knowledge Exchange reveals a significant surge in the fresh pet food category, spurred by the preferences of younger generations of pet owners in the United States. The report, titled “Seeking Wellness, Younger Pet ‘Parents’ Spur Pet Food Growth Trends,” highlights a growing trend among Millennials and Gen Z pet owners who are increasingly opting for frozen or refrigerated pet food products with wellness attributes akin to those they choose for themselves.
While traditional dry pet foods continue to dominate the market, the rising cohort of younger pet owners demonstrates a preference for products positioned as fresher, healthier, or more natural. CoBank’s analysis indicates a notable willingness among consumers to pay a premium for pet foods perceived to offer specific health benefits.
Key findings from the report include:
Since 2021, dollar sales of fresh dog and cat food have surged by 86% and 54% respectively.
Volume sales have surpassed category averages, with unit sales of fresh dog food rising by 47% and fresh cat food by 20% over the past two years.
Attributes emphasizing wellness play a central role in consumer choices, with brands encouraged to explore areas such as weight management, healthy aging, and stress reduction.
The growth trajectory of the fresh pet food segment is expected to attract new market players and create opportunities for innovative ingredient suppliers.
Billy Roberts, Senior Food and Beverage Economist at CoBank, underscores the evolving relationship between pet owners and their companions: “Today’s pet owners are treating their pets as well as, or better than, themselves. As human health trends increasingly inform pet nutrition innovations, new ways to support pets’ overall well-being will continue to emerge.”
The report also highlights the steady rise in consumer spending on pet foods in the United States, with dollar sales increasing by nearly 12% in 2023 alone. While price inflation caused slight volume attrition in the past year, growth rates are anticipated to stabilize as inflation moderates, particularly in segments focused on animal health and well-being.
Furthermore, consumer research from Mintel indicates a strong demand for fresh and healthy pet food options, with over half of U.S. pet food buyers perceiving freshly prepared foods as healthier. A substantial 79% of consumers are willing to pay more for pet food products perceived to be healthier, driving a surge in functional pet food offerings tailored to various health needs.
Roberts emphasizes the expanding market potential for pet food and related products, especially within the realm of fresh pet foods, as younger generations progress in their careers and income levels. “Consumers generally equate fresh options with natural and healthier foods, which will likely continue to fuel growth in pet food purchases,” Roberts notes.
The report concludes by pointing out that the humanization trend in the pet food industry is likely to drive further innovation. With consumers increasingly investing time and resources in their pets, the bond between humans and animals is evolving into a relationship akin to that between parent and child.
