IBISWorld recently updated its "Animal Food Production in the US: Market Research Report" to include the latest animal food production industry statistics and trends, including in the fast-growing petfood industry, which has some animal feed producers changing products from livestock feed to food for companion animals.
According to the report, steady growth in pet ownership, spikes in feed prices and increasing demand from farm supplies wholesalers have contributed to industry revenue gains at an annualized rate of 3.8 percent since 2007.
"The industry's future prospects are modest, with slow but sustained growth anticipated through the next five years...a forecast increase in disposable incomes and, subsequently, pet ownership will likely drive demand for petfood, a segment typified by high profit margins and brand-loyal consumers," said IBISWorld industry analyst, Josh McBee.
IBISWorld's report expects industry consolidation to continue in the future, with mergers and acquisitions primarily driven by major companies such as Cargill, Archer Daniels Midland and Mars, and economies of scale contributing to fewer animal food manufacturers servicing wider geographic markets over the next five years.
New shelter data casts doubt on whether the pet population and pet ownership are truly growing.
While the pandemic caused unprecedented suffering worldwide in 2020, the disruptions to dogs, cats and other pets adoption numbers may normalize in 2021.