Growth Of Pet Food Online Delivery Services And Pet Food E-Commerce
9 Apr, 2020
The number pet food delivery service providers is increasing. The advantages of pet food delivery services such as convenience and customizability is driving pet food delivery service subscriptions by the millennial demographic class. At the same time, there are added advantages for the number of pet food delivery service providers such as guaranteed monthly income from their subscribers. As a result, the high market potential is attracting a number of startups into the market. The Farmer’s Dog, Bark Chef, and Just Right by Purina are a few players in the pet food delivery services market. In January 2019, The Farmer’s Dog raised an amount of $39 million from its series B financing to scale up its business.>
Many pet food manufacturers are using online platforms to sell pet food products. Ecommerce platforms allow pet food manufacturing companies to access new markets without heavy investment in distribution channels. For example, Chewy is a US-based online retailer of pet food products. Big box retailers such as Lowe’s, Home Depot, Harris Teeter, Petco, and PetSmart offer online ordering services for local delivery, which pet food companies can leverage to increase sales. In North America, Amazon has a website dedicated to pet food called Wag.com. In 2016, ecommerce sales accounted for 7% of pet food sales in the USA. In Asian markets such as China and Korea, about one-third of cat and dog food was purchased online.
According to the American Pet Products Association (APPA) 2017-18 National Pet Owners Survey Debut, the majority of pet owners are purchasing food, treats, and medicines for their pets from online stores. Out of 8,701 dog owners, 50% of owners buy food and treats online, and out of 6,773 cat owners, 48% and 44% buy food and treats online respectively.
The global pet food market is expected to grow from around $75 billion in 2019 to $88.5 billion in 2023 at a compound annual growth rate (CAGR) of 4.4%.
Pet food manufacturing companies are using automation technologies such as advanced production lines and software solutions to improve safety and operational efficiency. These technologies automate formulation, extrusion, batching, drying, coating and liquid delivery processes. This results in cost-effective processing and consistent product quality. For example, Champion Petfoods, a Canadian producer of pet food, has video monitored production lines, with cooking processes connected through Rockwell hardware and software systems. It also uses bulk bins and conveying systems, votator heat exchangers, and advanced extrusion and drying systems. United Pet Group’s pet food manufacturing plant in St. Louis used FactoryTalk software from Rockwell Automation to reduce overtime by 10% and increase labor efficiency by 15%.