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October 6, 2025 2 mins
The global Pet Care industry is experiencing rapid change in the past 48 hours, shaped by inflation pressures, supply chain headwinds, and new product innovations. Recent data confirm robust demand for premium, tailored nutrition as leading firms such as Nestlé Purina and Mars Petcare have released dog and cat foods enhanced with postbiotics in the United States and Asia, respectively, reflecting a move toward functional, gut health-focused pet foods. The postbiotics segment alone is now projected to reach 17.8 billion dollars by 2032 at a 4.8 percent annual growth rate, with expansion fueled by increased pet humanization, scientific research on digestive wellness, and rising consumer education on the microbiome.

Industry-wide, the global pet food ingredients market is expected to reach up to 67 billion dollars by 2030, growing over 8 percent per year, as producers invest in cleaner labels, novel protein sources such as insects and algae, and natural nutraceuticals aimed at specific breed and health needs. Major players including Cargill, BASF, DSM, and ADM are prioritizing transparency and traceability to meet demands for product quality and ingredient sourcing.

This growth comes amid a complex macroeconomic backdrop. Food inflation in 2025 is up three percent globally, with sharp price rises in raw materials and packaging due to tariffs on imports from Canada, Mexico, and China, and higher fertilizer prices. These cost increases are pressuring pet food margins, resulting in some companies passing costs to consumers, while others absorb expenses to preserve market share. Supply chain disruptions linger, with longer delivery times for key ingredients, making supply chain resilience a growing priority.

Consumer behavior is shifting, with more pet owners in urban middle classes seeking premium nutrition, functional foods, and sustainable ingredients. Direct-to-consumer formats and boutique brands are gaining traction in Asia and Latin America, while North America and Europe remain focused on premiumization and innovation.

Compared to previous quarters, manufacturers now face greater regulatory scrutiny around safety and labeling, while international brands and ingredient suppliers are accelerating R and D and vertical integration to offset cost and supply risks. Overall, the Pet Care sector remains resilient and innovation-driven, but faces short-term volatility from inflation, tariffs, and evolving consumer demands, marking a departure from last year’s more stable growth patterns.

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Transcript

Episode Transcript

Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
The global PetCare industry is experiencing rapid change in the
past forty eight hours, shaped by inflation pressures, supply chain headwinds,
and new product innovations. Recent data confirm robust demand for
premium tailored nutrition as leading firms such as Nesley, Purina
and Mars PetCare have released gog and cat foods enhanced
with post biotics in the United States and Asia, respectively,

(00:23):
reflecting a move toward functional, gut health focused pet foods.
The post biotic segment alone is now projected to reach
seventeen point eight billion dollars by twenty thirty two, at
a four point eight per cent annual growth rate, with
expansion fueled by increased pet humanization, scientific research on digestive wellness,
and rising consumer education on the microbiome. Industry wide, the

(00:48):
global pet food ingredients market is expected to reach up
to sixty seven billion dollars by twenty thirty, growing over
eight percent per year as producers invest in cleaner labels,
novel pro routine sources such as insects and algae, and
natural nutrised eqals aimed at specific breed and health needs.
Major players including Cargill, base FDSN, and adm are prioritizing

(01:13):
transparency and traceability to meet demands for product quality and
ingredient sourcing. This growth comes amid a complex macroeconomic backdrop.
Fruit inflation in twenty twenty five is up three percent globally,
with sharp price rises and raw materials and packaging due
to tariffs on imports from Canada, Mexico and China and

(01:33):
higher fertilizer prices. These cost increases are pressuring pet food margins,
resulting in some companies passing cost to consumers while others
absorb expenses to preserve market share. Supply chain disruptions linger
with longer delivery times for key ingredients, making supply chain
resilience a growing priority. Consumer behavior is shifting, with more

(01:56):
pet owners in urban middle classes seeking premium nutrition, functional foods,
and sustainable ingredients direct to consumer. Formats and boutique brands
are gaining traction in Asia and Latin America, while North
America and Europe remain focused on premiumization and innovation. Compared
to previous quarters, manufacturers now face greater regulatory scrutiny around

(02:18):
safety and labeling, while international brands and ingredient suppliers are
accelerating r and D and vertical integration to offset costs
and supply risks. Overall, the pet care sector remains resilient
and innovation driven, but faces short term volatility from inflation, tariffs,
and evolving consumer demands, marking a departure from last year's

(02:40):
more stable growth patterns.
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