The pet food industry is undergoing a remarkable transformation driven by global population growth and the increasing humanization of pets. These trends have sustained the sector’s growth for over a decade, and their influence continues to deepen. As we look ahead, businesses that align with these dynamics stand to outpace competitors and unlock new opportunities.
Diana Rosero-Pena, equity research analyst at Bloomberg Intelligence, will share highlights from the company’s recently released “2025 Pet Economy Report,” during her educational session at Petfood Forum 2025. The report suggest that the U.S. will remain the biggest pet food market, while Europe may account for about a third of the world market.
“Other markets outside the U.S. and Europe are poised for rapid growth through 2030 as pet ownership multiplies with the creation of new families in urban areas, more adults living alone and greater disposable incomes,” said Rosero-Pena. “We estimate the rest of the world may grow 60% to $137.8 billion by 2030, with double-digit gains across all categories.”
According to the report, China could grow more than 50% to US$49 billion, with Alibaba dominating the e-commerce sector.
E-commerce is expected to grow significantly over the next five years and become almost a third of the market in both the U.S. and China, according to Rosero-Pena.
“Catalysts for the sub-industry include the habitual nature of pet spending, particularly food, along with greater investments from Chewy and Amazon to expand the e-wallet beyond food and merchandise to services, which tend to have better profitability,” stated Rosero-Pena.
The “better-for-you” trend will shape the future
Like the human food sector, products that emphasize health benefits, such as improved quality of life and longevity for pets, are expected to dominate. Brands that go a step further by promoting wholesome, health-focused formulations can accelerate growth and differentiate themselves in a competitive market.
In a landscape where pet owners increasingly view their companions as family, as in the younger generations, demand for premium products is soaring.
“In our analysis of the industry, we discovered that Gen Z and Millennials tend to form more pet households, including having multiple pets, as they delay other milestones (child rearing),” said Rosero-Pena. “Outside the U.S., better economic conditions in emerging markets are significant catalysts for the growth in animal companions.
Additionally, the humanization of pets has allowed for other premium products to thrive. We see this trend inciting the growth for premium foods, healthcare to extend their lives, and premium discretionary such as clothing.”
Challenges, risks and opportunities to come
As the industry has already seen, recessions across the world could affect the demand for discretionary items. The current inflation has shown that some consumers are being more strategic with their spending and o
