PET Food Processing - June 2020 - 52

RESEARCH

BEEF

$1.22B

LAMB

$691M

CHICKEN

$650M

SALMON

$430M

CHICKEN
BROTH

$353M

TOP 5

ingredients
used in US pet food
WHOLE
GRAIN

21.6%

CHICKEN

9.9%

MEAT &
BONE MEAL

7.3%

CORN
GLUTEN MEAL

5.5%

SOYBEAN
MEAL

5.0%

Pet food
processors
purchased 8.6
million tons
of ingredients
valued at $6.9
billion in 2018.
52

nutrient groups (e.g., animal protein vs.
plant protein). Similar ingredients on the
label, such as "carrots" vs. "dehydrated carrots" vs. "dried carrots," were combined
into one category. Then, DIS estimated how
much of the ingredients were used in the
products based on the nutritional information and price to get the total quantities.
Put simply, the recipe reverse engineering
allowed DIS to "pour out" the bag of pet
food and put each kibble back into the
bag - ingredient-by-ingredient - to
achieve the nutritional value listed on the label at the price point given without knowing
the exact pet food formulation. From there,
DIS could estimate the total amount of that
ingredient used and compare it to the national average prices for that ingredient during the time period studied to get the overall
economic value of the ingredient.
The analysis included farm- and millbased ingredients, fresh and frozen meat
and poultry products, rendered protein
meals, water, fishery products and ingredients, broth from animal and poultry
products, and major minerals. Pet food
additives, including preservatives, flavors,
colors, vitamins and minor minerals and
additives, were not measured.

The results

Overall, the research found that US pet
food manufacturers are delivering back
to the agricultural economy by using 8.65
million tons of animal- and plant-based
ingredients for dog and cat food, at a value
of $6.9 billion. Farm and mill-based ingredients topped the list at 4 million tons
valued at $1.4 billion, followed by 1.83
million tons of meat and poultry products
($3.21 billion), 1.5 million tons of rendered protein meals ($563 million) and
289 thousand tons of animal and poultry
fats ($153 million).
Of the $30.3 billion in dog and cat
food sales in 2018, an analysis of labels
found more than 500 ingredients - from
major commodity crops to specialty fruits
and vegetables to meat, poultry and seafood to rendered products - to provide
complete nutrition for dogs and cats. This
demonstrates that the industry is providing diverse options for pet food shoppers at

Charts courtesy of IFEEDER

TOP 5

most valuable
ingredients used in US pet food

food marketplace differs from that of the
feed industry, which DIS previously studied. For example, pets are often considered
"family members," and thus, pet food is
often marketed and produced similarly to
human food, with human health trends
and fads carrying over into pet food. Pet
food can use a variety of protein products
as well as fruits and vegetables, providing diverse sourcing points to pet food
manufacturers, and it does not need to be
produced in close proximity to where it
is sold. Also, with many breeds and sizes
of dogs and cats and various stages of life,
each with their own unique nutritional requirements, DIS recognized it could prove
challenging to get a complete picture of
the pet food industry.
DIS sought to analyze the total national
pet food retail volume and sales; the upstream volume and sales (i.e., benefits to
other industries through the purchases of
ingredients and supplies); and ingredient
composition. It chose to focus primarily on
dry food, wet food and treats for both dogs
and cats, as well as semi-moist food for
dogs, along with a few subcategories under
these types.
In order to conduct the study, DIS purchased Nielsen data on dog and cat food
sales in the United States from June 1, 2018
through May 30, 2019, capturing SKU/
UPC data for six pet food sales channels
(Petco, Petsense, Petsmart, PetValue, supermarket and all other channels). However,
the data only represented 68.3% of total
national pet food sales, so DIS factored up
its topline numbers by 1.465 to estimate
total sales. Next, DIS collected data on the
volume (i.e., package sizes and weight) and
dollar value and determined which products, by UPC, represented 95% of dog and
cat foods by volume.
Once the firm knew it captured most pet
food sales, it could then conduct an analysis of the ingredients used most by order
listed on the label and group them into
subgroups. Using a methodology called
"recipe reverse engineering," DIS found
the corresponding ingredient labels online,
which also included the pet foods' caloric
contents and guaranteed analyses, and categorized and prioritized the ingredients into

PET FOOD PROCESSING | June 2020 | www.petfoodprocessing.net

PFP_Jun20.indb 52

5/15/2020 3:05:39 PM


http://www.petfoodprocessing.net

PET Food Processing - June 2020

Table of Contents for the Digital Edition of PET Food Processing - June 2020

PET Food Processing - June 2020 - 1
PET Food Processing - June 2020 - 1
PET Food Processing - June 2020 - 2
PET Food Processing - June 2020 - 3
PET Food Processing - June 2020 - 4
PET Food Processing - June 2020 - 5
PET Food Processing - June 2020 - 6
PET Food Processing - June 2020 - 7
PET Food Processing - June 2020 - 8
PET Food Processing - June 2020 - 9
PET Food Processing - June 2020 - 10
PET Food Processing - June 2020 - 11
PET Food Processing - June 2020 - 12
PET Food Processing - June 2020 - 13
PET Food Processing - June 2020 - 14
PET Food Processing - June 2020 - 15
PET Food Processing - June 2020 - 16
PET Food Processing - June 2020 - 17
PET Food Processing - June 2020 - 18
PET Food Processing - June 2020 - 19
PET Food Processing - June 2020 - 20
PET Food Processing - June 2020 - 21
PET Food Processing - June 2020 - 22
PET Food Processing - June 2020 - 23
PET Food Processing - June 2020 - 24
PET Food Processing - June 2020 - 25
PET Food Processing - June 2020 - 26
PET Food Processing - June 2020 - 27
PET Food Processing - June 2020 - 28
PET Food Processing - June 2020 - 29
PET Food Processing - June 2020 - 30
PET Food Processing - June 2020 - 31
PET Food Processing - June 2020 - 32
PET Food Processing - June 2020 - 33
PET Food Processing - June 2020 - 34
PET Food Processing - June 2020 - 35
PET Food Processing - June 2020 - 36
PET Food Processing - June 2020 - 37
PET Food Processing - June 2020 - 38
PET Food Processing - June 2020 - 39
PET Food Processing - June 2020 - 40
PET Food Processing - June 2020 - 41
PET Food Processing - June 2020 - 42
PET Food Processing - June 2020 - 43
PET Food Processing - June 2020 - 44
PET Food Processing - June 2020 - 45
PET Food Processing - June 2020 - 46
PET Food Processing - June 2020 - 47
PET Food Processing - June 2020 - 48
PET Food Processing - June 2020 - 49
PET Food Processing - June 2020 - 50
PET Food Processing - June 2020 - 51
PET Food Processing - June 2020 - 52
PET Food Processing - June 2020 - 53
PET Food Processing - June 2020 - 54
PET Food Processing - June 2020 - 55
PET Food Processing - June 2020 - 56
PET Food Processing - June 2020 - 57
PET Food Processing - June 2020 - 58
PET Food Processing - June 2020 - 59
PET Food Processing - June 2020 - 60
PET Food Processing - June 2020 - 61
PET Food Processing - June 2020 - 62
PET Food Processing - June 2020 - 63
PET Food Processing - June 2020 - 64
PET Food Processing - June 2020 - 65
PET Food Processing - June 2020 - 66
PET Food Processing - June 2020 - 67
PET Food Processing - June 2020 - 68
PET Food Processing - June 2020 - 69
PET Food Processing - June 2020 - 70
PET Food Processing - June 2020 - 71
PET Food Processing - June 2020 - 72
PET Food Processing - June 2020 - 73
PET Food Processing - June 2020 - 74
PET Food Processing - June 2020 - 75
PET Food Processing - June 2020 - 76
http://digital.petfoodprocessing.net/sosland/pfp/2020_06_01
http://digital.petfoodprocessing.net/sosland/pfp/2020_03_01
http://digital.petfoodprocessing.net/sosland/pfp/2019_12_01
http://digital.petfoodprocessing.net/sosland/pfp/2019_10_01
http://digital.petfoodprocessing.net/sosland/pfp/2019_09_01
http://digital.petfoodprocessing.net/sosland/pfp/2019_06_01
http://digital.petfoodprocessing.net/sosland/pfp/2019_03_01
http://digital.petfoodprocessing.net/sosland/pfp/2018_12_01
http://digital.petfoodprocessing.net/sosland/pfp/2018_09_01
http://digital.petfoodprocessing.net/sosland/pfp/2018_06_01
http://digital.petfoodprocessing.net/sosland/pfp/2018_03_01
https://www.nxtbookmedia.com