Direct-to-Customer Pet Food Market

Direct-to-Customer Pet Food Market Outlook (2024 to 2034)

Revenue from the global direct-to-customer pet food market is expected to reach US$ 2.8 billion in 2024 and thereafter increase rapidly at 20.6% CAGR to settle at US$ 18.3 billion by the end of 2034.

Direct-to-customer or D2C pet food is a business method in which pet food producers sell to customers directly via the Internet or physical retail outlets. The quality of ingredients, openness in sourcing, and customization choices for pet owners are frequently emphasized by direct-to-customer pet food manufacturers.

D2C, which eliminates the seller as an intermediary, has begun to reshape the market. Although this strategy was initially employed by top companies involved in the pet food market from the start, innovative direct-to-customer (D2C) pet food companies reach their target audience through their online stores, where clients can research, buy, interact, and learn about their preferred products.

Commerce businesses seeking to modernize want to explore switching to this more straightforward business model. This is a promising e-commerce strategy for the future, not only cutting costs associated with intermediaries but also streamlining the buying process for consumers and fostering direct relationships between brands and customers.

Key Market Growth Drivers

• There has been a noticeable increase in the number of pet owners globally, which is significantly contributing to the direct-to-customer pet food market growth.
• The continuous rise in the number of e-commerce portals for pet food distribution is helping increase sales volume.
• In contemporary times, there has been a notable increase in the number of animal shelter homes, pet shops, and pet adoptions, leading to an increased demand for pet food.
• Direct-to-customer pet food market trends such as growing demand for premium and organic pet food to maintain the diet of pets are further driving market expansion.
• There is a growing trend among customers towards customized pet food, driven by a desire to maintain the health and wellness of their pets. This has gained traction due to the increasing number of cases related to zoonotic diseases.

Report Attributes	Details
Direct-to-Customer Pet Food Market Size (2024E)	US$ 2.8 Billion
Forecasted Market Value (2034F)	US$ 18.3 Billion
Global Market Growth Rate (2024 to 2034)	20.6% CAGR
East Asia Market Share (2024E)	24.7%
North America Market Value (2024E)	US$ 600 Million
Sales of Dry Pet Food (2034F)	US$ 12.7 Billion
D2C Sales of Food Meant for Dogs (2034F)	US$ 10.7 Billion
Key Companies Profiled	Mars Incorporated; Simmons Pet Food; Nestle; The Farmer's Dog, Inc.; The J.M. Smucker Company; Hill's Pet Nutrition; JustFoodForDogs, LLC; The NomNomNow, Inc.; Diamond Pet Foods; Heristo Aktiengesellschaft; Farmina Pet Foods Holding B.V.; WellPet, LLC; Ollie Pets Inc.; General Mills

Why is the Global Direct-to-Customer Pet Food Market Size Expanding Swiftly?

“Direct-to-Customer Models Facilitating Stronger Client Retention”

To enhance their net profit margin, companies in the market are increasingly favoring direct-to-customer models for product sales. This approach benefits both consumers and brands, as brands experience elevated profit margins and assured client retention through direct sales channels.

While consumers are shifting away from traditional e-commerce towards direct-to-customer models, businesses retain crucial consumer data, provide subscription services for customer retention, and devise solutions tailored to individual needs. In addition, more consumers are shifting towards purchasing from trusted brand portals, further fueling the D2C pet food market share.

What are the Challenges Faced by Providers of Pet Food through Direct-to-Customer Channels?

“High Cost of Home Delivery and Challenges Related to Supply Chain Logistics”

Brands operating in the pet food industry must consider that shifting to a direct-to-customer model brings in the challenge of addressing supply chain logistics initially. Pet owners often demand free shipping, and home delivery tends to be more expensive than wholesale deliveries to stores. To reach a larger audience of pet owners while mitigating shipping and fulfillment expenses, brands may opt for a distribution partner or establish logistical capabilities near densely populated urban centers.

Country-wise Insights

The East Asia region is estimated to lead the direct-to-customer pet food industry in 2024 with 24.7% revenue share. Also, the Latin American region is projected to hold a significant market share by 2034 due to the increasing adoption of pets.

Can Direct-to-Customer Pet Food Suppliers Expected Business Growth in China?

“Increasing Pet Ownership Contributing to Increased Sales of Pet Food”

Attribute	China
Market Value (2024E)	US$ 500 Million
Growth Rate (2024 to 2034)	20.9% CAGR
Projected Value (2034F)	US$ 3.3 billion

In the East Asia region, China is expected to account for 71.9% of the direct-to-customer pet food market share in 2024. The reason behind the rising sales volume of pet food through D2C is the increasing pet ownership in the country. China is one of the major exporters of pet food, which is contributing to the increasing sales volume.

Why is Demand for Personalized Pet Food Gaining Traction in the United States?

“Growing Demand for Custom Pet Food to Avoid Allergies Among Pets”

Attribute	United States
Market Value (2024E)	US$ 500 Million
Growth Rate (2024 to 2034)	20.1% CAGR
Projected Value (2034F)	US$ 2.9 billion

The United States is poised to account for over 70% share of the North American market in 2024. Demand for personalized pet food products is gaining traction among many pet owners in the United States to maintain the health and well-being of pets.

Many cat and dog breeds are allergic to certain foods, leading to various health issues including digestive problems, heart conditions, allergies, hair loss, and notably, weight gain. Pet owners are more conscious about their pets' diets than ever, significantly contributing to direct-to-customer pet food market size in the United States.

Rising demand for custom pet food is also driving the need for products like smart and automatic pet feeders in the nation. Companies in both industries are strategically marketing these products together to cater to consumer preferences.

Category-wise Insight

Based on health condition, the market is segmented into nutrition, digestive health, heart health, allergies, dental health, skin problems, stress, and joint health. The digestive health segment is projected to expand at a significant pace compared to other segments due to increasing demand for custom nutritional meals and probiotics to prevent digestive issues.

Why is Dry Pet Food Preferred over Wet Variants?

“Cost-Effectiveness and Lower Risk of Bacterial Contamination Associated with Dry Food”

Attribute	Dry Pet Food
Segment Value (2024E)	US$ 1.9 Billion
Growth Rate (2024 to 2034)	20.7% CAGR
Projected Value (2034F)	US$ 12.7 billion

Primary difference between wet and dry pet food lies in their water content, which varies among brands. Dry food typically has a higher calorie content, allowing dogs to consume up to three times more to meet their daily calorie needs. Thus, long-term costs for wet food may increase.

Convenience is a key benefit of a dry food diet for dogs. Buying dry dog food in bulk is more cost-effective due to its easy storage and transportation. Dry food can be stored outside for extended periods without bacterial contamination and is generally less messy than wet food.

Nutrient-dense foods, such as kibble high in protein and carbs, offer benefits. Softened dry kibble is suitable for weaning puppies and senior dogs with dental issues. Soaking dry food in warm water enhances the meat scent, appealing to dogs, and can be used as a training reward. These benefits of dry pet food are attracting more pet owners.

Which Pet Type Accounts for Higher Revenue Generation for Market Players?

“Focus on Maintaining Weight of Dogs Due to Increased Prevalence of Related Health Conditions”

Attribute	Dogs
Segment Value (2024E)	US$ 1.6 Billion
Growth Rate (2024 to 2034)	20.5% CAGR
Projected Value (2034F)	US$ 10.7 billion

By pet type, the dog segment is estimated to hold 58.6% of the market share in 2024. Maintaining the health and weight of dogs has become a top priority due to the increasing number of related health conditions. Breeds like golden retrievers and labradors may experience weight gain or hair loss if their diet is inadequate.

Street dogs face various challenges, such as food scarcity and lack of medical care, prompting people to adopt them as pets. Dogs offer several benefits, including home protection and companionship, further fueling pet adoption. The rising preference for reliable, high-end brands for dogs is projected to drive the D2C pet food market growth in the coming years.

Competitive Landscape

Key players in the direct-to-customer pet food industry include Mars Incorporated, Simmons Pet Food, Nestle, The Farmer's Dog, Inc., The J.M. Smucker Company, Hill's Pet Nutrition, JustFoodForDogs, LLC, NomNomNow, Inc., Diamond Pet Foods, Heristo Aktiengesellschaft, Farmina Pet Foods Holding B.V., WellPet, LLC, Ollie Pets Inc., and General Mills.

• In February 2024, the direct-to-customer meat and seafood company ButcherBox announced its entry into the pet industry with its ButcherBox For Pets range of dog treats, dry food, and hip and joint supplements.
• In August 2023, Pets Table, HelloFresh's new luxury pet food brand, was officially launched. The subscription-based service, which was created in collaboration with veterinarians, provides human-grade fresh and air-dried meals that are tailored to each dog's specific calorie requirements at a competitive pricing point.
• In April 2022, Perfectly Made, a fresh pet food firm located in Bengaluru, India, received a US$ 1 million investment from Licious, a direct-to-customer distributor of fresh meat and seafood. According to a top Licious official, the firm that offers customized pet food would go on operating as a distinct business with its own supply chain and manufacturing procedures.
• On November 11, 2022, Pet's Table, a direct-to-customer (DTC) pet food start-up, concluded its seed round, bringing in US$ 2 million. The money will be used by the business to grow its staff and infrastructure. Goodwater Capital participated in the seed round, which was led by Left Lane Capital.

Segmentation of Direct-to-Customer Pet Food Market Research

• By Type:

  • Meals
    • Standard Meal
    • Customized Meal
  • Treats
    • Standard Treats
    • Dental Chews
    • Standard Chews
  • Supplements

• By Form:

  • Dry Pet Food
  • Wet Pet Food

• By Pet Type:

  • Dogs
  • Cats
  • Other Pets

• By Health Condition:

  • Nutrition
  • Digestive Health
  • Heart Health
  • Allergies
  • Dental Health
  • Skin Problems
  • Stress
  • Joint Health
  • Other Health Conditions

• By Distribution Channel:

  • Online
  • Offline

• By Region:

  • North America
  • Western Europe
  • Eastern Europe
  • Latin America
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa