Palatants Market - Forecast(2023 - 2028)

Key Takeaways

• Geographically, the North America Palatants Market accounted for the highest revenue share in 2021. The growth is owing to a large number of players operating in the region, rising pet adoption, high consciousness regarding pet health, and high disposable incomes.
• Mounting mergers and acquisition activities, growing research and development for innovative alternatives, rising incidences of stress and depression, augmenting trend of nuclear families in developing nations like India, China, and Indonesia, and soaring GDP per capita incomes in low-income nations are said to be preeminent driver driving the growth of Palatants Market. 
• Strangled production activities, broadening campaigns and efforts by animal welfare organizations to stop animal cruelty, and a surge in inflation rates worldwide are said to reduce the market growth.Detailed analysis of the Strength, Weaknesses, and Opportunities of the prominent players operating in the market will be provided in the Palatants Market report. 

The Palatants Market based on the nature type can be further segmented into organic and conventional. The conventional segment held the largest share in 2021. The growth is owing to hassle-free process, no requirement of strict manufacturing rules and regulations, comprehensive availability, and cost-effective nature. The conventionally manufactured palatants comes from plants grown with the help of pesticides; whereas, animal-based palatants comes from poultry raised by using growth hormones and antibiotic with an aim to enhance the overall meat yield. Therefore, owing to augmenting safety concerns associated with the quality of conventionally produced palatants among pet owners, the organic segment is estimated to be the fastest-growing with a CAGR of 5.6% over the forecast period 2022-2027. The chemical fertilizers are extensively taken into account during conventional farming of plants being used in palatants which may expose pet animals to greater health hazards; as a result, the demand for the organic option is broadening.

Palatants Market Segment Analysis-By Distribution Channel

The Palatants Market based on distribution channels can be further segmented into offline and online. The offline segment held the largest share in 2021. The growth is owing to a higher number of retail outlets and most importantly their all-encompassing presence as compared to e-commerce platforms. A report claimed that in 2021 around 13 percent of sales in the U.S. happened through online mediums while more than 90 percent transpired through offline mediums. Moreover, the upsurge in up-to-the-minute retail outlets such as supermarkets/hypermarkets especially in developing countries, and the convenience of such facilities as they extend the one-stop solution to busy consumers are the prime factor behind the growth of the offline segment. However, the online segment is estimated to be the fastest-growing segment with a CAGR of 5.8% over the forecast period 2022-2027. This growth is owing to technological revolutions, wide-scale digitalization, and government support through friendly business propositions to lure businesses. On another hand, expanding competition in the telecom sector results in cheaper access to the internet which can be a potent factor in expanding the presence of online platforms even in pastoral areas.

Palatants Market Segment Analysis-By Geography

The Palatants Market based on Geography can be further segmented into North America, Europe, Asia-Pacific, South America, and the Rest of the World. North America held the largest share with 36% of the overall market in 2021. The growth in this segment is owing to the factors such as high disposable income levels, the high presence of several market players, and awareness regarding the well-being of animals. The region is known to have over 1200 companies that manufacture pet food. Also, the trend of adopting dogs from shelters is enlarging in the U.S.; with a 5 percent hike, the frequency of adoption has reached 58 percent in 2020. In addition to that, according to the American Pet Products Association survey, pets have become part of over 60 percent of homes in the US. However, Asia-Pacific is expected to be the fastest-growing segment over the forecast period 2022-2027. This growth is owing to the rapid shift from home-cooked pet food to ready-made packaged food, the mounting number of pet owners, urbanization, the strengthening retail network, the broadening size of the working population, and the increase in disposable income of people in the region has aided the market. In addition to that, the existence of plant-based palatants is projected to propel market growth because a major chunk of the population in this region follows vegetarian principles.

Palatants Market Drivers

According to a statistic on pet ownership, there were around 471 million dogs and 370 million cats throughout the world in 2021. The trend of adoption is comparatively in western society. Western culture is more inclined toward nuclear families which prompts many people to adopt a pet to cure lonesomeness. Nevertheless, rapid urbanization and growing western influence have surged the pet adoption trends in developing countries like India and China too. According to a report, in the last 2 years, the pet adoption market has witnessed a compound annual growth rate of over 20 percent in India; similarly, GenZ is contributing nearly 20 percent to pet adoption rates across the country. In addition to that, the population of pet dogs is projected to cross 31 million within the next 2 years.

The ever-growing competition race, eventful lifestyles, and ultra-modern lifestyles of people are the factors that have driven people into depression. According to a WHO report, in 2021 around 3.8 percent of the global population (270-280 million people) were suffering from depression. Moreover, the relentless spread in the Covid-19 cases has augmented depression and anxiety incidences by nearly 25 percent. Therefore, in order to have a companion who can be an emotional crutch in times of turmoil, many people are choosing to buy dogs and cats. And, it is an effective strategy to cure such complications. A few years back Human-Animal Bond Research Institute conducted a survey where around 74 percent of the respondent who had a pet retorted that having a pet at home has amended their mental health.

Palatants Market Challenges

Animal-based palatants are derived from poultry birds and aquaculture; therefore, as various animal welfare organization are voicing their support to stop animal cruelty, the palatants market is likely to take an adverse hit. In addition to that, strangled production activities because of yearlong pandemic restrictions enforced by the authorities across the globe is another challenge challenging the steady growth of the aforementioned market. Also, the surge in inflation rates in both developed and developing countries are likely to be a big setback. Euro area witnessed a slight rise in inflation rates in February 2022 as the figure soared to 5.9 percent. Lithuania is the worst-hit country as it recorded 12.6 percent IR in the first month of this year. The prices are likely to soar in the wake of the escalating Ukraine-Russia conflict.

Palatants Industry Outlook:

Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the aforementioned Market. Palatants market top 10 companies include-

1. Nestle SA
2. Diana Group
3. Alltech Inc
4. Kemin Industries
5. Pancosma SA
6. Darling Ingredients
7. AFB International
8. Nutriad International NV
9. Frutarom Group
10. BHJ A/S

Recent Developments

• On December 28, 2021, Texas, United States-based animal food manufacturing firm “Darling Ingredients” announced the successful acquisition of Virginia, US-based firm Valley Proteins (a company that reutilizes by-animal products and offers various pet food ingredients). The total value of this transaction stands at around $1.1 billion (all cash).
• On April 1, 2020, Vevey, Switzerland-based conglomerate Nestle (a firm renowned for its food and drinks business) announced the successful acquisition of London, United Kingdom-based pet food pioneer “Lily’s Kitchen.” The financials of the acquisition were not disclosed by the company. Lily has its presence in 30 different countries with 6000 stores; therefore, the transaction is anticipated to boost Nestle’s pet food portfolio.
• On January 2, 2020, Darling Ingredients, a US-based animal food manufacturer, announced that it has successfully acquired 100 percent ownership interest in Kentucky, United States-based EnviroFlight (a company that produces insect ingredients for animals feed). The transaction has strengthened the specialty protein portfolio of Darling Ingredients.

Relevant Links:

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