Pet Milk Replacers Market Size, Share & Trends Analysis Report By Pet Category (Dogs, Cats), By Product (Medicated, Non-medicated), By Form (Powder, Liquid), By Region, And Segment Forecasts, 2020 - 2027

Report Overview

The global pet milk replacers market size to be valued at USD 329.6 million by 2027 and is expected to grow at a compound annual growth rate (CAGR) of 7.5% during the forecast period. The rising number of household pets among the consumers is the key factor for the market growth. Moreover, the growing requirement for the nutritious and whole-food for pets is expected to fuel the market growth.

Over the past few years, the trend of household pets has significantly increased among consumers across the globe. The number of pets is substantially increasing across the globe, thus creating a growth opportunity for various companies. As households adopt more cats and dogs, demand for industry goods, such as milk replacement products, medicine, foods, and accessories, has been increasing. According to the American Pet Product associations, an average cat or dog owner spends about USD 200 to USD 300 on pet food, including milk replacements, for young animals annually.

These milk replacers play a vital role in enhancing as well as maintaining the health of various animals, especially puppies and kittens in their early stages. This nutritional food item offers a wide range of micronutrients, including minerals and vitamins, which is essential for the growth, development, and well-being of commercial pets, such as kittens and puppies.

It is a convenient way to feed infant animals as this is cost-effective compared to normal milk. They consist of the same ingredients that are present in mother’s milk and are primarily fed to young animals. A few vitamins and minerals that are not present in a mother’s milk can be incorporated into these pet milk replacers and delivered to various animals as per their requirements. These factors are expected to have a positive impact on industry growth over the next few years.

Rising prices of milk are responsible for increasing demand for milk replacers among consumers in various regions. Enhanced nutritional value, coupled with their low cost, is expected to fuel consumption of these pet milk replacers. Furthermore, the market growth is supported by rising adoption of a gluten-free diet among various animals.

In the start of the year 2020, the world has witnessed a pandemic COVID-19, which resulted in the countrywide lockdown in almost every country across the globe. This has led to the restriction for going outside houses. These panic times are propelling the demand for these pet milk replacers, which are full of nutrition and pets can consume it on a daily basis. These global industry trends are anticipated to fuel demand in the year 2020.

Pet Milk Replacers Market Trends

The global market is driven by the rising concerns for animal health and nutrition, product awareness, significant demand for dairy products, and increased investment in research and development for cost-effective and efficient milk replacers by major market players. Moreover, a prominent factor driving the growth of the market is the demand for nutritional food for pets. In some circumstances, the cost-effectiveness of pet milk replacers is strengthening the market proposition when infants lack the access.

Puppies and kittens receive sanctuary by cat and dog cafes and non-profit organizations all over the world. Orphaned and nursing puppies and kittens are offered milk replacement products at these facilities to meet their nutritional needs. Increased awareness of animal care has increased the number of programs aimed at assisting orphaned pups and kittens, which is projected to propel the market forward in the forecast period.

The need for fortified nutrients and ingredients in pet milk replacers is growing by the day, and market players are continuously working to add supplements to improve the nutritional profile of pet milk replacers. However, higher production costs are resulting from the inclusion of high-quality components and nutrients, functioning as a bottleneck in total market growth. As a result, achieving acceptable profit margins is difficult for market players owing to the competitively priced product.

The consumer trend is high as always, for having domestic animals, especially in the developing countries like India and China. Furthermore, the rising demand for nutritious food products is expected to offer new opportunities in the regional market in the projected period.

Pet Category Insights

The dogs category segment accounted for the largest revenue share of 51.4% in 2019 and is expected to maintain the lead over the forecast period owing to the large adoption of puppies among the customers across the globe. Shifting trend towards dog adoption as a companion in families is expected to have a positive impact on the segment growth. Additionally, increasing spending power among pet owners has resulted in improvement, particularly in the emerging economies, such as India, China, Brazil, and Japan.

The cats category is anticipated to be the fastest-growing segment over the forecast period owing to rising popularity among young consumers to prefer cat as a companion animal. For instance, France has numerous households who prefer having cats as pets as opposed to dogs as people in the country are cat lovers.

Product Insights

The non-medicated segment accounted for the largest share of more than 70.0% in 2019 and is expected to maintain the lead over the forecast period owing to the large adoption of puppies by the customers across the globe. Non-medicated milk replacers have widely been used to replace whole milk for cats, dogs, and calves. The product is produced using various vitamins, coccidiostats, ionophores, and probiotics as additives to support the growth of an animal immensely. These factors are expected to have a positive impact on segment growth over the next few years.

The medicated products are anticipated to be the fastest-growing segment over the forecast period. Medicated milk replacers are given to pets only if they are born with illnesses or deficiencies. These replacers are, however, not given to healthy puppies and kittens owing to the presence of numerous antibiotics as the digestive system of a newborn pet may not be compatible with the product.

Form Insights

Powder form accounted for the largest revenue share of 90.1% in 2019 and is anticipated to maintain its lead over the forecast period. Powder form of the product is widely used by consumers on account of their longer shelf life, easy transportation, storage, and handling. In addition, products have the same nutritional content as that of regular milk and are cost-effective as opposed to liquid milk replacers.

Continuous R&D by various companies to expand the product’s application scope and introduce new and innovative products is expected to open new avenues for the industry over the forecast period.

The liquid form of the product is anticipated to be the fastest-growing segment over the forecast. Demand for liquid milk replacers is driven by factors, such as rising consumption of dairy products as well as the development of various precision nutrition techniques. However, preservation and logistical advantages of the dry form of milk replacers may hinder the segment growth over the forecast period.

Regional Insights

North America accounted for the largest revenue share of exceeding 35.0% in 2019. The increasing trend of pet adoption among consumers in the U.S. is expected to fuel the demand for pet milk replacers over the forecast period. In addition, a rising number of animal shelters for unclaimed animals, including puppies and kittens, is anticipated to boost the demand for pet milk replacers.

Over the past few years, owners have been treating pets as family, and hence they provide them with expensive natural and organic kind of milk replacers. This trend, combined with the high disposable income of consumers, particularly in North America and Europe, is expected to have a positive impact on the market growth over the next few years.

Asia Pacific is anticipated to be one of the fastest-growing regional markets over the forecast period. The growing trend of humanization of pets and rising disposable income in countries, including China, Japan, India, and South Korea, have emerged as the significant factors boosting consumer spending on pet care. This, in turn, is expected to have a positive impact on the market over the forecast period.

Key Companies & Market Share Insights

The global market is slightly consolidated owing to the presence of strong players. However, many other companies are expanding their product portfolio in order to serve the lucrative market of milk replacer. These manufacturers are adopting various marketing strategies, including new product launch, expansion of product portfolio, and merger & acquisition.  

Major players in the animal nutrition and supplement market such as CHS Inc. are making changes in their top management in order to explore the untapped market across the globe. For instance, in May 2017, CHS Inc. appointed Jay Debertin as the new President and CEO of the company. With this appointment, the company aimed to expand its product portfolio and service offerings and achieve operational excellence.

Key manufacturers including CHS Inc.; Cargill, Incorporated; PetAg Inc.; and Liprovit BV are adopting marketing strategies, such as the expansion of distribution channel, in order to expand their customer base across the globe. For instance, in March 2019, CHS Inc. announced to acquire West Central Distribution, LLC, a full-service wholesale distributor of agronomy products. With this acquisition, the company aims to expand its product portfolio, services, and technologies cooperatives.

Recent Developments

• In march 2022, Opalia, Canadian food tech company launched animal free milk-based on mammary cell. The company successfully replaced the fetal bovine serum with non-animal growth substrate at comparatively lower cost.

• In November 2022, Archer Daniels Midland Company opened a new research lab in Switzerland. The company is aiming to increase the research activity on science-based feed additives to fulfill the customer needs for livestock species and pet food.

Some of the prominent players in the pet milk replacers market include:

• CHS Inc.

• Pet-Ag, Inc.

• Cargill, Incorporated

• Archer Daniels Midland Company

• Land O’Lakes

• Glanbia plc

• Liprovit BV

• Calva Products, LLC

• Jordan Agri Limited

• Nutreco N.V.

Pet Milk Replacers Market Report Scope

Global Pet Milk Replacers Market Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global pet milk replacers market report on the basis of pet category, product, form, and region:

• Pet Category Outlook (Revenue, USD Million, 2016 - 2027)

  • Dogs

  • Cats

  • Others

• Product Outlook (Revenue, USD Million, 2016 - 2027)

  • Medicated

  • Non-medicated

• Form Outlook (Revenue, USD Million, 2016 - 2027)

  • Powder

  • Liquid

• Regional Outlook (Revenue, USD Million, 2016 - 2027)

  • North America

    • The U.S.

  • Europe

    • The U.K.

    • Germany

  • Asia Pacific

    • China

    • India

  • Central & South America

    • Brazil

  • Middle East & Africa

    • South Africa