June 13, 2024 – According to a new study by FactMR, the global direct-to-consumer (D2C) petfood market is projected to reach US$2.8 billion in 2024 and expand at a remarkable CAGR of 20.6 percent from 2024 to 2034.
The D2C business strategy benefits both customers and brands. Brands enjoy higher profit margins and improved client retention by selling directly to consumers. As shoppers shift from in-person to online purchasing, companies can track key client information and offer subscription services, providing tailored solutions to meet specific customer needs.
The adoption of the D2C model, which removes the intermediary seller, is gaining momentum. While established players in the petfood market have long embraced this approach, innovative D2C petfood companies are now leveraging online stores to connect with their target audience. Through these platforms, customers can explore, purchase, interact and learn more about their preferred products.
Key takeaways from the market study
- The global direct-to-customer petfood market is forecasted to reach a valuation of US$18.3 billion by 2034.
- The North American regional market is projected to generate revenue worth US$4 billion by 2034. East Asia is forecasted to account for 25.7 percent market share by 2034.
- Sales of petfood through direct-to-consumer channels in Canada are projected to rise at 19.3 percent CAGR through 2034.
- The market in Japan is forecasted to reach US$1.1 billion by the end of 2034. Sales of dry-petfood through D2C channels are forecasted to reach US$12.7 billion by the end of 2034.
- Dog food is expected to hold 58.6 percent of the global market share in 2024.
“Companies are embracing the D2C model because it allows them to control their brand messaging effectively, enabling them to better connect with pet owners and distinguish themselves from competitors,” says a FactMR analyst.
Dog owners key consumer base for petfood suppliers
Maintaining the health and weight of dogs is becoming increasingly important due to a rise in associated health issues. Breeds like golden retrievers and labradors may suffer from weight gain or hair loss if their diet is insufficient. In addition, street dogs encounter many challenges, including food scarcity and limited access to medical care. This prompts many people to adopt them as pets, drawn by their protective instincts and companionship. The preference of affluent buyers for high-quality products tailored to their dogs’ needs is projected to drive market growth in the coming years.
Market segmentation
The study divulges essential insights into the market based on type (meals, treats, supplements), form (dry petfood, wet petfood), pet type (dogs, cats, other pets), health condition (nutrition, digestive health, heart health, allergies, dental health, skin problems, stress, joint health, other health conditions), and distribution channel (online, offline), across seven major regions of the world (North America, Western Europe, Eastern Europe, East Asia, Latin America, South Asia & Pacific, and MEA).
Regional analysis
The East Asia region is estimated to lead the direct-to-customer petfood industry in 2024 with 24.7 percent revenue share. Also, the Latin America region is projected to hold a significant market share by 2034 due to the increasing adoption of pets.
In the East Asia region, China is expected to account for 71.9 percent of the direct-to-customer petfood market share in 2024. The reason behind the rising sales volume of petfood through D2C is the increasing pet ownership in the country. China is one of the major exporters of petfood, which is contributing to the increasing sales volume.
Competitive landscape
Key players in the direct-to-customer petfood industry include Mars Incorporated, Simmons Pet Food, Nestle, the Farmer’s Dog Inc, The JM Smucker Company, Hill’s Pet Nutrition, JustFoodForDogs LLC, NomNomNow Inc, Diamond Pet Foods, Heristo Aktiengesellschaft, Farmina Pet Foods Holding BV, WellPet LLC, Ollie Pets Inc and General Mills.
Recent developments
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 petfood 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.
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