Covid-19 and global pet food market

“If COVID-19 has taught us anything, it’s that pets are not just animals to many people, they are now family, friends, companions, with a unique ability to ease the stress and isolation that owners can feel. Faced with growing social seclusion and economic hardship, many are now looking to companion animals to help provide company and comfort.”

Robert Kaczmarek
President
GAPFA – Global Alliance of Pet Food Associations

The global pet food market value is estimated at $100 billion as of 2019, and is expected to continue to grow. GAPFA, the Global Alliance of Pet Food Associations, represents 13 pet food associations from all corners of the world and three global pet food manufacturers. In the lead up to the pandemic, these individual associations reported that humanisation and premiumisation were accelerating at a rapid rate, resulting in continued growth.

Entering the new post-pandemic age, GAPFA anticipates that the pet food industry will continue to show its resilience and remain one of the winning fast-moving consumer goods categories globally.

And, with consumers looking to save money, many will still invest in their pet’s nutrition so as to keep them fit, happy and healthy for many years to come.

PET ADOPTION DURING COVID-19
During the global pandemic, we’ve seen indications across many countries that there has been an increase in pet fostering, adoptions and puppy acquisition.

We also note that many shelters are concerned that future financial hardship may lead to abandonment in some instances. COVID-19 restrictions are causing major challenges to shelter activities, and they need volunteers to help, food and financial support now more than ever. As a result, a number of GAPFA members are providing additional support to pet shelters.

If COVID-19 has taught us anything, it’s that pets are not just animals to many people, they are now family, friends, companions, with a unique ability to ease the stress and isolation that owners can feel. Faced with growing social seclusion and economic hardship, many are now looking to companion animals to help provide company and comfort.

“During the global pandemic, we’ve seen indications across many countries that there has been an increase in pet fostering, adoptions and puppy acquisition. We also note that many shelters are concerned that future financial hardship may lead to abandonment in some instances.”

STRONG INDUSTRY RESPONSE TO CHALLENGES IN THE PROCESS
Once the COVID-19 lockdown period began, the industry faced significant uncertainty, with social isolation, shifts in shopper behaviour, strained supply chains and an unprecedented recession on the immediate horizon.

Pet food makers have quickly adapted to meet the increased demand for nutritious pet foods by navigating through supply chain challenges while also working to assure the health and safety of employees.

According to our estimate, the alliance represents at least 92% of global pet food production, and thankfully, for most of their markets around the world, the pet food industry has proven its resiliency as many countries deemed it as an essential service. Many organisations have significantly scaled up their production to supply the increased demand for pet food during the crisis, while proactively responding to supply risks and the need to keep their workers safe.

IMPORTANCE OF RESPONSIBLE PET OWNERSHIP
In many parts of the world, a surge in the adoption and fostering of animals during lockdown surpassed expectations of animal welfare organisations. Pet food manufacturers have a responsibility to not only make safe and nutritious food for animals but also educating consumers on the importance of responsible pet ownership and supporting local shelters where we can.

Many pet owners are also expressing greater interest in bringing their pets with them to their workplace, and this will result in more employers taking steps to create pet-friendly offices. We also expect to see growing demand for pet-friendly housing, outdoor restaurants and other pet-friendly public spaces as people look for ways to enjoy more quality time with their pets.

Our members are the heart behind the (pet food) industry, and we admire the work our members do every day to ensure that our pets are kept happy and healthy.

As we move into the next phase of a COVID-19 world, we will continue to share industry learnings and best practice from around the globe, as well as scientific knowledge to help pet food manufacturers continue to produce safe pet food that provides cats or dogs with their nutritional needs.

“In many parts of the world, a surge in the adoption and fostering of animals during lockdown surpassed expectations of animal welfare organisations. Pet food manufacturers have a responsibility to not only make safe and nutritious food for animals but also educating consumers on the importance of responsible pet ownership and supporting local shelters where we can.”

NEW TRENDS IN PET FOOD INDUSTRY
One trend we’re observing is that pet food shoppers globally have driven a dramatic shift to e-commerce preferences throughout the pandemic. Largely a result of social distancing and increased hygiene measures, consumers began stockpiling essential products like pet food and turning increasingly to online retailers for ‘no-touch’ delivery options. In the US, e-commerce made up 16% of the category before COVID-19, and now sits at 23%.

Pet food innovation and sustainability also remain high priorities for our members as we continue to evolve to meet the nutritional needs of pets while protecting the planet. By using parts of the animal that aren’t typically consumed by humans, but still provided great nutritional value, pet food makers are able to avoid food waste and advance sustainability. In addition, some pet food makers are exploring novel agricultural materials and methods of production, including the use of plants, insects and single-cell (e.g. algae, fungi, or yeast) ingredients.

One thing that isn’t changing is our commitment to making safe, nutritious pet foods that help dogs and cats live long, healthy lives.