Scales Corp proves booming global pet food industry is all about the best for our furry friends: Best pet food-Global pet biz

1. Premium pet food industry
2. Scales Corp pet food market
3. Global pet food trends

During the pandemic-era recession, pet food sales outpaced the overall US economy, driven by a global surge in “pet culture” among millennials and Gen Z. Scales Corporation highlighted strong trends in the $115 billion global pet food market, with a focus on quality and premiumization. The rise in pet ownership, especially among younger generations, is expected to continue, supporting the growth of the industry. With a growing demand for top-quality pet food and a rise in pet companionship, the industry remains resilient to economic downturns. Scales’ focus on innovation and diversification positions them well in a market with high growth potential.

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During the pandemic-era recession, pet food sales continued to grow faster than the overall US economy. This trend reflects the global boom in “pet culture” among millennials and members of Gen Z, who are increasingly prioritizing quality food for their furry friends. With pet ownership on the rise and a growing demand for premium pet food, it’s no surprise that the pet food business is thriving.

Scales Corporation, a NZX-listed company, recognizes the potential in the US$115 billion global pet food market. Their market presentation highlights key trends driving growth in the industry. One such trend is the increasing number of millennials and Gen Z individuals adding pets to their households. In fact, 65% of 18-34 year olds globally plan to get a pet or add one to their family by 2026.

The rise of “pet culture and humanization” is also contributing to the growth of the pet food market. More people are keeping pets for companionship, leading to a surge in pet population, especially in emerging markets. In the US, millennials make up a significant portion of pet owners, with the dog and cat retail market reaching a value of US$56.9 billion in 2023.

China has also seen a significant increase in pet ownership, with a 113% rise in the pet population between 2014-2019. This growth is attributed to relaxed ownership restrictions and a declining birth rate in the country. The global pet food industry has proven to be resilient to economic downturns, with sales booming even during recessions.

In New Zealand, where Scales Corporation operates, pet ownership is also prevalent. With around 4.3 million pets across the country, New Zealand ranks high in cat ownership rates, with 40% of households having at least one cat. The pet food industry in New Zealand primarily utilizes ingredients like beef, pork, and lamb, with a focus on high-value ingredients like salmon.

Scales Corporation’s Global Proteins business plays a significant role in the company’s revenue, contributing up to 60% of its total earnings. The company has achieved its financial targets and is looking to further expand its operations in New Zealand, Australia, the US, and Europe.

The pet food market is segmented into various categories, including dry dog food, wet dog food, dry cat food, wet cat food, and snacks and treats. Scales provides ingredients for all these segments, ensuring a diverse range of products to meet the needs of pet owners worldwide.

Overall, the global pet food business is booming, driven by a growing pet population, changing consumer preferences, and an increasing focus on quality pet nutrition. With the industry showing resilience in the face of economic challenges, companies like Scales Corporation are well-positioned to capitalize on this trend and continue to thrive in the pet food market.

Sources:
– NZ Herald
– NZ Herald