Consumers worldwide have adapted to, even accepted, what’s become the new normal of economic uncertainty and volatility, meaning their needs, demands and purchasing strategies are steadily evolving. Given that scenario, it’s no surprise that a group of pet food industry professionals ranked these changing consumer preferences and demands as their businesses’ biggest challenge in 2026.
According to a recent poll on PetfoodIndustry.com, 39% of respondents chose this — less predictable consumer behavior — as the top challenge facing the industry now, far outweighing challenges such as tariffs/global trade policy, raw material costs or workforce issues/talent retention, each at 17%. (Speaking of accepting situations as the new normal, I find it interesting that tariffs and trade have fallen down the list of concerns, perhaps indicating that most people and companies have come to expect that volatility, too.)
With the challenge of changing consumer preferences as the context, the poll respondents are tempering their industry growth outlooks for the year: A third (33%) are projecting modest growth, but just 17% expect strong growth. On the other hand, nearly 28% expect industry sales performance to remain flat, while the remaining respondents predict a slight decline or significant headwinds and contraction (11% each).
At the individual business level, projections are also modest, with the majority of respondents, 33%, expecting their revenues to grow just 1% to 5% in 2026. However, almost 22% project revenue increases of 6% to 10%, and some are very bullish, predicting growth of 11% to 15% or more than 16% (projected by nearly 13% of respondents each).
Innovation on the horizon — but mind today’s consumer attitudes
To me, one of the most interesting data points in the poll results — and definitely a bright spot — is the 39% of respondents who plan to invest in innovation and new product development this year. (Marketing and brand-building efforts drew the same level of responses.) This is welcome news after a lull in new product development the past several years.
Even more importantly, it’s in line with those changing consumer expectations. In a fall 2025 report, “Consumer outlook: Guide to 2026,” NielsenIQ (NIQ) provided data and insights on consumer acceptance of volatility and uncertainty, as well as how that’s affecting their demands and buying behavior. A chart outlining myths vs. reality included this: Constant disruption at the retail level has lowered consumer expectations. The reality? “The opposite is true! Consumers are demanding that manufacturers and retailers lean into innovation and technology to solve disruption before it affects them.”
In response, the report said, manufacturers that can “quickly pivot when commodity prices force reformulation,” for example, will have an upper hand. As will companies that “can find — and capitalize on — opportunities to solve for volatility before it inconveniences their consumers.”
Other advice from NIQ: Invest in understanding the product traits desired by consumers and deliver the tangible benefits that simplify shoppers’ lives. It seems those pet food businesses looking to invest in innovation and product development in 2026 have a recommended roadmap to follow.
