U.S. Pet Food Packaging Market 2024 Impact of Pet Humanization and Non-traditional Sales Channels

The demand for pet food and treat packaging is projected to increase at a rate of 3.3% annually, reaching $4 billion by 2028, with the volume rising by 2.9% annually to 26.2 billion units. This growth is being driven by two major consumer trends: the humanization of pets (treating pets like family members) and the rise of nontraditional retail channels such as e-commerce, subscription services, and club stores. These trends are influencing market growth and reshaping packaging choices.

Among the various packaging materials, plastic film-based packaging is expected to experience the fastest growth due to its performance and convenience. It is predicted that plastic will soon become the dominant material for pet food packaging in terms of units.

Market Analysis and Forecast

This report provides a detailed analysis of the US pet food and treat packaging market, exploring key trends in product and market segmentation. It includes historical data from 2013, 2018, and 2023, along with forecasts for 2028 and 2033. The analysis addresses year-by-year market volatility and provides data in both units and dollar value, including annual historical and forecast data from 2020 to 2027. The report also includes an overview of key industry players and their market shares.

Impact of Fresh Refrigerated and Frozen Pet Food on Packaging Demand

As with human food, there is a growing consumer preference for “fresh” products, which are often seen as healthier and of higher quality than shelf-stable alternatives. This perception, along with the rise of subscription pet food services, is driving significant growth in the refrigerated and frozen pet food segment. Fresh foods require different packaging formats compared to traditional dry and canned foods, leading to increased demand for packaging solutions such as pouches, chubs, and brick packs.

Shift from Traditional Packaging to New Formats

Historically, pet food packaging was dominated by paper and woven polypropylene bags for dry food and metal cans for wet food. However, this is changing as new packaging formats, such as pouches, flexible packaging, and plastic cups and trays, continue to gain market share:

  • Pouches (stand-up and flat formats) are increasingly replacing bags and containers for dry and semi-moist food due to their superior shelf appeal, resealability, durability, and better graphic capabilities.
  • Flexible packaging made from plastic film, including chubs and brick packs, is becoming more popular for fresh pet food due to its performance and low cost.
  • Plastic cups and trays with lidding are gaining traction in wet food packaging due to their convenience, easy opening, and low cost, offering competition to traditional metal cans.

Changing Retail Landscape and Its Impact on Packaging

The growing shift from traditional grocery stores to alternative retail outlets, such as subscriptions, club stores, specialty pet stores, and e-commerce, is also affecting pet food packaging. Key changes include:

  • The rise of subscription services, such as The Farmer’s Dog and Ollie, which focus on selling fresh, frozen pet food in new packaging formats.
  • The increasing popularity of pet food purchases through specialty pet stores (e.g., Petco, PetSmart) and club stores (e.g., Costco), which influences the packaging formats and sizes offered.
  • E-commerce is expanding the variety of pet food options available to consumers and driving the need for bulk packaging and secondary packaging for shipping.

Pet Food Packaging Product Trends

The pet food packaging market remains dominated by traditional materials such as metal cans, paper bags, and pouches. However, corrugated boxes and folding cartons are also important for multipacks and shipping individual containers. The overall demand for pet food packaging is expected to grow by 3.3% annually, reaching $4 billion by 2028. While growth in value will follow unit gains, smaller package sizes and moderate inflation will offset the rise in more sophisticated, higher-value packaging.

Material Competition in Pet Food Packaging

Pet food packaging is made from various materials, each competing on cost, performance, customer appeal, and sustainability. Key materials include:

  • Paper and paperboard: Versatile, low-cost, and eco-friendly, paper is used for both flexible and rigid packaging options.
  • Plastic: Offers benefits like lightweight, enhanced graphics, moisture protection, and cost-effectiveness, making it increasingly popular for pet food packaging.
  • Metal: Known for strength, durability, and long shelf life, metal cans are still popular for certain pet food applications, particularly for wet food.
  • Woven polypropylene: Provides puncture resistance and protection during shipping, and is often used for larger bags of dry food, although it is losing market share to pouches.

Trends in Pet Food Products

Dry dog food remains the largest category in the pet food industry due to its low production cost, convenience, and long shelf life. However, dry food is expected to lose market share to fresh and frozen formats, as well as growing competition from refrigerated foods. In contrast, wet (canned) cat food continues to hold a significant share due to its convenience, cost-effectiveness, and the dietary needs of cats.

Fresh refrigerated and frozen pet foods are seeing rapid growth, driven by trends in pet pampering, perceptions of higher nutritional quality, and the increasing popularity of online subscription services. These products cater to dogs and cats and offer several advantages over traditional dry and canned foods, including higher-quality ingredients, health benefits, and convenience.

In addition, the market for specialty pet foods, such as those for birds, rabbits, hamsters, and reptiles, is growing, supported by new products and an increasing demand for niche pet food offerings.

Source link