Pet News

The worldwide pet food manufacturing sector experienced a notable deceleration in its expansion throughout 2025. After several years of robust increases, the industry recorded a more subdued growth rate of 2.4%, culminating in a total output of 39.276 million metric tons. This represents a significant shift from the 4.5% growth observed in 2024, as detailed in the Agri-Food Outlook report compiled by Alltech, a prominent US-based producer of animal feed ingredients.

This slowdown was primarily influenced by a normalization of demand in North America, following a surge in pet ownership during the pandemic era. The region notably saw a marginal decrease of 0.6% in its production volume, amounting to 11.4 million metric tons, making it the sole region to report a decline. In contrast, Europe and Asia Pacific emerged as growth drivers, with Europe’s production rising by 3.5% to 23 million metric tons and Asia Pacific achieving a robust 5.6% increase, reaching 4.4 million metric tons, largely propelled by the Chinese market. Latin America also showed modest growth of 1.5%, totaling 8.2 million metric tons, while Africa led in percentage growth at 11.7%, albeit from a smaller base of 1.5 million metric tons. Key markets such as the US, China, and Brazil maintained their positions as leading producers, with the US accounting for 10.5 million tons of pet food, Brazil 4 million tons, and China 1.9 million tons.

The report underscores that varying demographic shifts in pet ownership, such as a move towards smaller dog breeds and cats in the US, contributed to the moderation in volume growth, as these animals consume less feed. Despite these challenges, factors like a weaker US dollar enhancing export competitiveness and an increased demand for premium protein ingredients, including seafood, helped to offset some of the negative impacts. Looking ahead to 2026, Alltech anticipates a continued positive trajectory for the pet feed sector globally, although growth in established markets may be constrained by consumer purchasing power and broader economic price sensitivity. The overall resilience of demand suggests a stable outlook for the industry, adapting to new market realities and evolving consumer preferences.

This period of moderate growth underscores the pet food industry's adaptability and ongoing evolution. Despite global economic pressures and changing consumer behaviors, the sector continues to demonstrate resilience and a capacity for strategic adjustments. The emphasis on premium products and the expansion into emerging markets signify a dynamic industry committed to meeting the diverse needs of pet owners worldwide, fostering continued innovation and market development.

In response to a notable downturn in certain agricultural and pet food exports, the United States government has intensified its financial support for various trade associations. This strategic move aims to bolster market access and facilitate diversification efforts in the global arena. Despite a challenging trade landscape, particularly for sectors like pet food which saw a 3.5% reduction in exports in 2025, the increased funding underscores a commitment to fostering long-term growth and exploring untapped international markets.

The proactive approach taken by the US Department of Agriculture (USDA) through its Market Access Program (MAP) reflects a broader strategy to navigate complex global trade dynamics. By channeling more resources into trade promotion, the government seeks to empower American producers to overcome current obstacles and capitalize on emerging opportunities. This initiative is especially crucial for industries facing declining demand in traditional markets, necessitating a pivot towards regions with high growth potential and evolving consumer needs.

Enhanced Government Support for Export Diversification

The US Department of Agriculture significantly boosted its financial allocations for various trade organizations in 2026 through the Market Access Program. This decision was largely influenced by a 3.5% decrease in US dog and cat food exports in 2025, signaling a pressing need for industry players to broaden their reach into new international territories. The increased funding saw state departments like the California Agricultural Export Council receiving a substantial 33.7% rise, while product-specific associations for soybeans, dairy, apples, seeds, and feed also benefited from notable increases, ranging from 20.4% to 27.6%. Even the Pet Food Institute (PFI), dedicated to promoting American pet food globally, secured a 1.5% increase, reaching $1.4 million, underscoring the broad impact of this initiative.

This surge in financial backing through the MAP program is a direct response to a weakening trade environment that has impacted several American agrifood sectors. For instance, despite the overall decline in pet food exports, amounting to $2.4 billion, the US government's investment aims to counteract this trend by facilitating market development activities. The American Feed Industry Association (AFIA) also received a significant sum of $205,392 to support the creation of new foreign markets. This strategic investment is designed to help American producers overcome trade barriers, explore new consumer bases, and mitigate the risks associated with an unpredictable global market, ultimately supporting the long-term sustainability and growth of these vital industries.

Strategic Shifts to Conquer New Global Markets

In light of recent export declines, particularly a 3.5% drop in dog and cat food exports in 2025, US pet food manufacturers are aggressively pursuing market diversification strategies. This involves actively seeking out and developing new opportunities in emerging regions, with a strong focus on Central and South America, as well as specific Asian markets that show significant potential for sustained growth. This strategic pivot is essential for mitigating the impact of reduced demand from traditional importers like Brazil, the UK, France, Malaysia, and Portugal, which saw substantial decreases in their imports of US pet food products.

The Pet Food Institute (PFI) is at the forefront of these efforts, outlining a comprehensive strategy for 2026 that includes participating in major international pet trade shows, engaging with veterinary communities in key markets, and launching consumer outreach programs through both in-person and virtual events. For example, in Brazil, PFI representatives have been involved in adoption campaigns to educate new pet owners about proper nutrition and to introduce US pet food as a premium option. These initiatives, along with similar activities planned across 19 active countries, aim to capitalize on increasing demand in regions like Central America, which saw a 2.7% growth in exports in 2025. Despite a slowdown in demand from major partners like Canada, other countries such as Thailand, the Netherlands, Taiwan, Colombia, and Singapore have shown increased imports, signaling new avenues for growth and emphasizing the importance of a diversified market approach.