The U.S. functional pet treat market size was valued at $100.2 million in 2022, and is estimated to reach $216.9 million by 2032, registering a CAGR of 7.8% from 2023 to 2032.
Functional pet treat is an alternative to traditional pet treat, which is increasingly given to enhance pet’s health as it is rich in nutrients, protein, vitamins, and minerals. It contains special nutritional benefits in terms of general wellness or address specific health concern of pets related to digestion, immune system strength, dental health, and joint & cartilage functions of pets, including dogs, cats, freshwater fish, reptiles, horses, and birds. It is gaining significant traction among pet owners due to benefits associated with functional pet treat to improve immune system strength, bone, brain, & muscle health, reduce postprandial glucose & insulin concentrations, and prevent diabetes‐related disorders.
Manufacturers are seizing opportunities to grow sales through manufacturing functional pet treats related to specific diseases and targeting life stages and specific breeds of pets. As consumers spending on pet food has increased, companies are manufacturing premium quality functional pet food according to categories of diseases related to pet breed, age, and lifestyle. Functional treats provide more calories than fat, protein, and carbohydrate to the overall nutritional regime. Functional pet treats provide calculated amounts of fat, protein, and carbohydrate as per the need and additional medical requirements. Furthermore, growth in pet humanization and increase in spending on pet grooming & treat are expected to boost the growth of the market during the forecast period.
The outbreak of the COVID-19 pandemic has positively affected the functional pet treat market due to undermined and unintended consequence of COVID-19 pandemic. Prior to the pandemic, the global functional pet treat industry was growing at a strong rate due to growth in pet humanization, concerns about animal welfare, and increase in spending on animal health & grooming. This was upsurged during the lockdown period as people became more concerned about pet health apart from their own, resulting in significant adoption of functional pet treat. Thus, certain COVID-19 repercussions and above factors that accelerated the market growth are further expected to sustain this growth during the forecast period.
By Pet Type
The Cat segment would witness the fastest growth, registering a CAGR of 8.2% during the forecast period.
According to the U.S. functional pet treat market analysis, the market is segmented into pet, application, and distribution channel. Based on pet, the market is categorized into dog, cat, and others. By application, it is segregated into bone health, brain health, obesity, skin diseases, and others. Depending on distribution channel, it is divided into pet stores, pharmacies, veterinary clinics, online stores, and others.
On the basis of pet, the dog segment accounted for major share in 2022, and is likely to maintain this during the U.S. functional pet treat market forecast period, owing to increase in trend of nuclear families and their demand to keep dogs for companionship and security. Nonetheless, due to concerns toward pet’s health, pet parents are increasingly opting for nutritional treat, followed by treats and snacks. Therefore, functional pet treat is the fastest-growing treat type as it delivers sufficient nutrition, containing high-moisture, protein-rich, and low calories.
Dogs are one of the most popular pets owing to various reasons and personal interests such as it is a stress buster and more resistant to allergies as compared to other pets, which means they can adapt themselves in any condition. Increase in mental disorders, including depression, is a major cause of loneliness, which encourages people to adopt dogs as pets. Furthermore, dogs are most loyal animals as compared to other pet animals and can be adopted for home protection. Therefore, an increase in adoption of dogs and rise in spending for their health & wellness are expected to boost the U.S. functional pet treat market growth during the forecast period.
Depending on application, the skin diseases segment was valued at $ 32.3 million in 2022 and is expected to reach $ 69.5 million by 2032 at a CAGR of 7.8%. This growth is attributed to rise in prevalence of skin diseases among pets. For instance, atopic dermatitis (AD), a chronic and eczematous skin disease, affects pet animals especially dogs, and requires a combination of treatments with required functional treat. Pet owners have shown increased interest in holistic, natural diets containing wholesome ingredients, such as oats & barley, which can reduce the risk of skin disease. Moreover, increase in prevalence of obesity disorders among pets coupled with rise in concerns among pet owners is expected to increase the U.S. functional pet treat market share.
By Application
The Brain Health segment would witness the fastest growth, registering a CAGR of 10.4% during the forecast period.
By distribution channel, the pet stores segment was valued at $37.7 million in 2022, and is expected to reach $78.7 million by 2032, with a CAGR of 7.4%. The rapid increase in the number of pet stores in developing economies has enabled easier availability of functional pet treat, as these stores help to increase the sales of functional pet treat products. In addition, increase in urbanization and expansion of metro cities are expected to promote the growth of this distribution channel.
The increasing number of pets across the U.S. is driving the U.S. functional pet treat market demand in the North America region. For instance, according to the U.S. Pet Food Industry’s pet ownership study, in 2020, pet ownership rose from 67% of households to an all-time high of 70%, which is confirmed by the APPA. The booming functional pet treats market in the U.S. will continue to create opportunities for market players, particularly from a supplier viewpoint. As consumers continue to be price-conscious, developing premium lines that further tap into other categories, such as breed, age, and lifestyle, are seen as an opportunity for manufacturers to offer added value.
The players operating in the market have adopted various developmental strategies to expand their market share, increase profitability, and remain competitive in the market. The key players profiled in this report include Bacterfield, DAR PRO Ingredients, IsoNova Technologies LLC, Kerry Group, Nestlé Purina PetCare Company, PDM Group (Prosper De Mulder Ltd.), Petcurean Pet Nutrition USA Inc., Roquette Frères, and The Scoular Company.
By Distribution Channel
The Online Stores segment would witness the fastest growth, registering a CAGR of 8.6% during the forecast period.
Key market benefits for stakeholders
- The study provides an in-depth analysis of the market, with current and future U.S. functional pet treat market trends to elucidate the imminent investment pockets in the market.
- Current and future trends are outlined in the report to determine the overall market attractiveness and single out profitable trends to gain a stronger foothold in the U.S. functional pet treat industry.
- The report provides information regarding drivers, restraints, and U.S. functional pet treat market opportunities with impact analysis.
- A quantitative analysis of the current market and estimation for the same from 2022 to 2032 is provided to showcase the financial competency of the market.
- The Porter’s five forces model of the industry illustrates competitiveness of the market by analyzing various parameters such as threat of new entrants, threat of substitutes, bargaining power of the buyers, and bargaining power of the suppliers operating in the market.
- Value chain analysis in the report provides a clear understanding of the roles of stakeholders involved in the value chain.
- Competitive intelligence highlights business practices followed by leading market players across various regions in the countries.
U.S. Functional Pet Treat Market Report Highlights
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 By Application |
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Analyst Review
According to the insights of CXOs of leading companies, the U.S. functional pet treat market is expected to offer remunerative business opportunities in developing economies. This is attributed to increase in adoption of pets (especially dogs and cats) and awareness regarding various pet care and pet grooming products such as functional, supplements, medicines, and nutraceuticals.
The functional pet treat market in U.S. is being largely driven by rapid urbanization and pet ownership has been increasing at a significant growth rate among millennials across the country. Increasing incidences of loneliness are contributing to increase the demand for pets, as they are effectively contributing to overcome such a mental state with their loyalty and affection. However, existing challenges, such as close substitutes of functional pet treat and lack of awareness regarding its benefits, are expected to hamper the growth of the U.S. functional pet treat market during the forecast period. Furthermore, people usually feed their pets with treats consumed by humans, such as white rice, dairy products, fish, chicken, and peanut butter, instead of recommended pet treat and functional pet treat, which is expected to hinder the growth of the market.
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