TRENDS By Jennifer Barnett Fox | petfoodprocessing@sosland.com ACQUISITION F M&A activity in the pet food and treat industry continues to show strength despite slowing from 2021 and 2022 levels. appeal 10 PET FOOD PROCESSING | November 2023 | www.petfoodprocessing.net For the first time in history, there are as many Gen Z and Millennial pet owners as there are Gen X and Baby Boomer owners. These younger pet owners continue to set the stage for growth in the pet food and treat industry, demonstrating a dedication of time and money to their pets. Even with a normalization in the number of pets per household, spending in the category remains high, according to the American Pet Products Association (APPA), Stamford, Conn. Pet spending was up nearly 11% in 2022 from the previous year. It's also a category of the highest spend at $62.7 billion and the biggest increase at 16.2%. And ongoing economic uncertainty has not dampened the enthusiasm owners have for their pets' health and happiness. Owners continue to seek out healthy and functional foods for their pets and are willing to spend more to satiate these cravings. Proprietary survey data from Packaged Facts (March 2023) showed that among dog and cat owners, 50% were buying pet food that was priced higher than average, while only 5% were buying pet foods that were priced lower than average. This is an indication that pet food inflation hasn't ©stockphoto‑Sophia - stock.adobe.comhttp://www.petfoodprocessing.net