Welcome to the 2021 Top Companies Issue, where we take our annual look at the top pet food companies around the world (p. 10). 2020 was a wild year for every industry, but unsurprisingly pet food, considered an “essential business” early on during the COVID-19 pandemic, managed to grow.
Reasons for pet food growth in an unprecedented year
Mergers and acquisitions continued in the pet space, giving some companies the growth needed to get through the year (p. 20) and making their mark on the ever-shifting landscape of pet food. Meanwhile, pet owners suddenly working from home in isolating lockdown conditions looked to their pets for more companionship than ever. As a result, pets got a lot of attention and their humans became increasingly concerned with their health and wellness (p. 28).
A shift of “more pets in the right places,” as Jared Koerten, head of packaged food for Euromonitor International, put it in an April 2021 Petfood Industry webinar “The pet food market: 2020 update and 2021 projections and trends” (for which I was also a speaker), saw new pet ownership in 2020 skew to those who had the money to spend in more developed markets such as North America. This was good news in particular for anyone in the premium pet food space, as that’s precisely the demographic most likely to flock to more expensive price points while looking to provide the best nutrition for their pets.
Trends continue to evolve in the pet space
Whether more complex (sustainability) or more straightforward (functional ingredients), trends in the pet space are diverse and often overlap. Supplements, for example (p. xx), are seeing the same needs from consumers that functional foods and treats are seeing, but obviously supplements address those needs in different ways. When it comes to plant-based proteins (p. xx), consumer needs are driven by both desires for top-of-the-line products and considerations such as ecological challenges facing the world.
As you read through this issue, keep in mind that 2020 challenged the pet food industry in unique ways — and by all accounts the industry came out the other side successfully and with more expectations to meet than ever.
