A new report from OC&C Strategy Consultants highlights steady growth in the U.S. pet food and treats market, which is now valued at $50 billion. Dogs account for two-thirds of the spending, but the cat segment is growing faster.
According to OC&C, the market’s expansion is driven by premiumization, the effects of COVID-19, and inflation. Though growth has slowed in the past two years, it is expected to return to pre-pandemic levels within three to five years. Premium products will continue to lead that growth.
“The U.S. is already the most developed pet food market, and we see plenty of room for further growth,” said Coye Nokes, partner at OC&C Strategy Consultants. “Demand for high-quality, natural, and innovative products continues to give pet owners more choices.”
The report outlines seven key trends in high-growth pet food segments. Here are three leading ones:
Fresh food made with natural and human-grade ingredients has gained popularity. It currently holds 10% to 15% of the premium market and is expected to grow from $1–$2 billion in 2022 to $3–$5 billion by 2027.
Brands like FreshPet have helped drive this trend through retail-focused strategies, particularly in the U.S. Analysts expect fresh dog food to eventually reach 30% to 40% of the market.
Super-premium foods—such as freeze-dried or raw-coated kibble—are also growing. These options appeal to pet owners looking for high-quality alternatives with better storage and shelf life than frozen foods. Brands like Merrick are leading in this space, offering products that feel luxurious but remain convenient and more affordable than raw or refrigerated foods.
More pet owners are mixing wet and dry foods or using toppers to improve taste and nutrition. Products from brands like Petcurean and Tiki offer enhanced flavor and health benefits, including added moisture and supplements like glucosamine.
Sales of flavor-enhancing products grew at over 27% annually from 2019 to 2023, far outpacing the overall pet food market’s 13% annual growth. Treats made with simple ingredients, like those from Nacho Eats, have also grown rapidly—seeing around 60% annual growth between 2021 and 2023.
The report suggests that as pet owners continue to treat their pets like family, demand for premium and health-focused products will remain strong.
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