Direct-to-Consumer Pet Food Market Size & Forecast

The Direct-to-Consumer Pet Food Market is projected to reach $13.06 billion by 2031, at a CAGR of 19.8% during the forecast period 2024–2031. The growth of this market can be attributed to several factors, including the rising pet population and food expenditure, growing incidences of zoonotic diseases, rising demand for premium pet food products, rising number of pet DTC brands, and rise in e-commerce. However, the quality issues related to pet food products and product recalls restrain the growth of this market. Moreover, the use of cannabis in pet food is expected to generate significant growth opportunities for the stakeholders in the direct-to-consumer pet food market. The latest trends in the direct-to-consumer pet food market are the rising demand for customized pet food and the humanization of pets.

Direct-to-Consumer Pet Food Market Growth Drivers

Rising Demand for Premium Pet Food Products Driving Market Growth

Pet owners worldwide are becoming more conscious about choosing appropriate food for their pets, increasing the demand for premium and natural brands. These brands are in demand due to the growing awareness about pets' health and wellness, humanization trends, and rising disposable income. For instance, according to the American Pet Products Association (APPA) pet ownership report 2023, 45% of dog owners bought premium dog foods in 2022.

To capitalize on this industry trend, many pet food manufacturers have started providing a variety of premium products, including gluten-free, GMO-free, organic, and multi-vitamins & minerals-rich products offering enhanced health benefits, such as dog food with Omega 3 and 6 fatty acids for healthy skin, probiotics in dry formulas to help maintain digestive health, glucosamine for healthy joints and strong bones, which further supports the trend of premiumization.

Thus, the rising demand for premium pet food products is expected to support the growth of the direct-to-consumer pet food market.

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Rise in E-commerce to Boost Market Growth

In recent years, e-commerce has become popular in the pet care industry. The growing preference for online shopping of pet products is expected to provide immense opportunities for players operating in the pet care business. E-commerce offers hassle-free delivery, user-friendly websites/apps, and a wide range of products. Hectic lifestyles have led individuals to choose online retail channels for expeditious doorstep delivery.

Furthermore, the easy accessibility of pet products through online retail channels has influenced numerous leading retailers to launch their online websites. Numerous startup pet stores have also started operating their e-commerce stores in recent years. Thus, modern shopping methods and advanced e-commerce technologies have magnified pet product sales. Moreover, e-commerce sales trends in the pet food market provide huge scope for personalized pet food. Various startups focus on offering customized pet meals based on lifestyle, breed, age, current illnesses, and environment. Personalized pet food is gaining huge popularity among pet owners who want the best food for their pets.

Thus, the rise in e-commerce is expected to support the growth of the direct-to-consumer pet food market.

Direct-to-Consumer Pet Food Market Trends

Rising Demand for Customized Pet Food

Customized pet food is made specifically for pets depending on sex, age, breed, weight, activity level, health condition, and appetite to meet the overall health condition. This type of food avoids allergens, helps to monitor dog eating patterns, and easily addresses health conditions, such as dry skin, obesity, and loose stools. It also reduces the need for switching brands to check suitability. Most importantly, the food comprises fresh ingredients that avoid excessive processing and maintain the final product's nutritional composition. Further, custom food gets delivered to the doorstep. Thus, custom food is a great choice for consumers who seek the convenience and health of their pet.

Numerous related start-ups also support the trend of custom food in developed regions. For instance, Farmer’s Dog Food is one of the leading start-ups in custom food. It provides fresh, ready-to-serve meals for dogs and delivers them to homes. Start-ups focus on using human-grade ingredients in their recipes, sourcing them from providers that meet USDA standards. Thus, the present market trend of custom pet food is expected to increase soon due to the rising number of millennial pet owners and the foremost willingness of consumers to spend on quality products.

Humanization of Pets

Pet humanization is also one of the key trends, as pet owners are willing to provide their pets with human-like products or experiences. The humanization of pets has made pet owners seek higher quality goods, accessories, and premium pet food products where consumers are ready to spend money. The annual APPA report on pet spending found that overall spending in the U.S. pet industry increased between 2015 and 2020 to USD 103.6 billion. Spending on pet food reached USD 147 billion in 2023 (Source: American Pet Products Association (APPA). Other pet services gaining huge attraction from pet owners are grooming, boarding, walking, training, and daycare. Thus, the humanization of pets is the key trend supporting retailers and manufacturers to expand their shelves.

Direct-to-Consumer Pet Food Market Opportunity

Use of Cannabis in Pet Food Generating Growth Opportunities for Market Players

In December 2018, the Agricultural Improvement Act was approved, which was a significant step forward by separating hemp and hemp-derived CBD from marijuana-based products. This act placed hemp-derived products under the control of the Department of Agriculture as a crop. The Farm Bill defines marijuana as cannabis with a THC of 0.3% or greater (under the DEA) and hemp as cannabis with a THC of less than 0.3%.

Moreover, after the approval of the Agricultural Improvement Act of 2018, many players entered into the manufacturing of cannabis-based food products, especially treats, and were seen at many trade shows globally. For instance, recently, CBD products were highly visible at the Global Pet Expo in Orlando (March 2019), the signature trade show of the American Pet Products Association (APPA) and the Pet Industry Distributors Association (PIDA). These cannabis-based pet foods are mainly sold through the Internet (via Amazon).

According to a CannaUse Study conducted in 2019, adult pet owners are likely to give their pet hemp-CBD in the next 12 months; among them, 48% said they would use it to treat back or joint pain, 41% said episodic anxiety or stress, 39% said chronic anxiety or stress, 38% said arthritis and 32% said to promote general health and wellness.

Consumers' willingness to adopt cannabis-based pet foods indicates the opportunity for market players in this space.

Direct-to-Consumer Pet Food Market Analysis: Key Findings

By Type: In 2024, the Meal Segment to Dominate the Direct-to-Consumer Pet Food Market

Based on type, the direct-to-consumer pet food market is segmented into meal, treats, and supplements. In 2024, the meal segment is expected to account for the largest share of 75.9% of the direct-to-consumer pet food market. The large market share of this segment can be attributed to the rising awareness about pet health, increased spending on premium meals, and the growing demand for customized meals.

The meal segment is divided into standardized meals and customized meals. In 2024, the standardized meal segment is expected to account for the larger share of 71.5% of the direct-to-consumer pet meal market. The high quality of ingredients, longer shelf life, and the humanization of pets are the key factors attributed to the large share of this segment.

By Pet Type: In 2024, the Dogs Segment to Dominate the Direct-to-Consumer Pet Food Market

Based on pet type, the direct-to-consumer pet food market is segmented into dogs, cats, and other pets. In 2024, the dogs segment is expected to account for the largest share of 75.1% of the direct-to-consumer pet food market. The large market share of this segment can be attributed to the rising number of dog adoptions, the growing demand for high-quality dog food products, and the humanization of dogs.

By Health Conditions: The Digestive Health Segment to Witness Highest Demand During the Forecast Period

Based on health conditions, the direct-to-consumer pet food market is segmented into nutrition, digestive health, heart health, allergies, dental health, skin problems, stress, joint health, and other health conditions. In 2024, the nutritional conditions segment is expected to account for the largest share of 25.5% of the direct-to-consumer pet food market. The large market share of this segment can be attributed to the increasing expansion of premium pet food brands and the rising awareness of pet owners towards the preferences and health conditions of their pets.

However, the digestive health segment is projected to witness the highest growth rate of 23.9% during the forecast period of 2024–2031. This growth is driven by the increasing number of customized nutritional formulations to prevent digestive problems and the introduction of prebiotics and probiotics in pet food diets.

By Distribution Channel: In 2024, the Online Segment to Dominate the Direct-to-Consumer Pet Food Market

Based on distribution channel, the direct-to-consumer pet food market is segmented into online and offline. In 2024, the online segment is expected to account for the larger share of 91.6% of the direct-to-consumer pet food market. The large market share of this segment can be attributed to the growing preference for personalization, consumer convenience, availability of greater discounts compared to offline stores, and greater product selection experience.

Geographical Analysis

By Geography: In 2024, North America to Dominate the Direct-to-Consumer Pet Food Market

In 2024, North America is expected to account for the largest share of 47.9% of the direct-to-consumer pet food market, followed by Europe, Asia-Pacific, Latin America, and the Middle East & Africa. North America’s significant market share can be attributed to several key factors, including the rising number of millennials as pet owners, the availability of a wide range of customized pet food in the region, the growing focus on the health and diets of pets, and the presence of major players in North America.

Moreover, it is also slated to register the highest growth rate of 22.5% during the forecast period. The growth of this regional market is driven by the growing adoption of digital channels.

Direct-to-Consumer Pet Food Market: Key Companies

The report offers a competitive analysis based on an extensive assessment of the leading players’ product portfolios, geographic presence, and key growth strategies adopted in the last 3–4 years. Some of the key players operating in the direct-to-consumer pet food market are Nestlé S.A. (Switzerland), General Mills, Inc. (U.S.), Mars, Incorporated (U.S.), Hill's Pet Nutrition, Inc. (Part of Colgate-Palmolive Company) (U.S.), The J.M. Smucker Company (U.S.), Diamond Pet Foods, Inc. (Part of Schell & Kampeter, Inc.) (U.S.), Heristo Aktiengesellschaft (Germany), Simmon Pet Food, Inc. (U.S.), WellPet, LLC (U.S.), The Farmers Dog, Inc. (U.S.), Jinx, Inc. (U.S.), JustFoodForDogs, LLC (U.S.), Ollie Pets Inc. (U.S.), Farmina Pet Foods Holding B.V. (Netherlands), and NomNomNow, Inc. (Philippines).

Direct-to-Consumer Pet Food Industry Overview: Latest Developments from Key Industry Players

• In November 2021, Hill’s Pet Nutrition partnered with Bond Pet Foods, Inc. (U.S.) to develop meat protein produced through fermentation.
• In August 2021, WellPet, LLC launched Wellness Complete Health wet diets for kittens and WHIMZEES Value Packs assorted dental treats for dogs and is planning to launch a CORE Digestive Health diet in 2022.
• In June 2021, Nestlé Purina PetCare Company invested USD 182 million to expand manufacturing operations in King William County (Virginia) and enhance business operations for its Tidy Cats litter products in the U.S. and Canada.
• In May 2021, Nestlé Purina PetCare expanded in Dunkirk, New York, with an investment of USD 19 million to increase production capacity for Fancy Feast Savory Cravings, a new cat treat.

Direct-to-Consumer Pet Food Market Research Summary

Key questions answered in the direct-to-consumer (DTC) pet food market report: