Canada Pet Food Market – Growth, Trends, COVID-19 Impact, and Forecasts (2021 – 2026)

Canada pet food market is projected to register a CAGR of 4.3% during the forecast period (2021-2026).
The pet food market has experienced positive and negative effects during the pandemic outbreak. The Covid-19 lockdown restrictions resulted in heavy purchases among the consumers leading to an increase in demand. On the other hand, to meet the sudden surge in demand, the companies have faced distribution and inventory issues along the supply chain. To meet the increasing demand there were production efficiency issues and supply chain disruptions for the required ingredients. Overall, the pet food industry in Canada has embraced the negative impacts and projecting positive growth in the future.

The increase of pet humanization, wherein pets are treated with increased care and hygiene, is proving to be a major driver for the market and is leading to major changes in product packing and resourcing of ethically viable products. The development of private label stores focusing on unique and locally sourced products to increase their overall appeal and the increasing density of nuclear families are the other major drivers of the market.

Key Market Trends

Increase in Pet Adoptions

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Over the years, pet adoption has increased due to varied reasons in Canada. The increase in pet ownership among young adults is influenced by social media and millennial trends. In 2019, pet adoption is a major category, with 45.0% of dogs and 60.0% of shelter cats being placed in new homes. Increase in awareness on animal welfare, has resulted in increase in adoption rate. Hence, due to the increased adoption of pets , pet food manufacturers are offering premium products targeted towards pet owners.

Dog Food Leads the market

Dogs are the major consumers of pet foods. Dogs adapt traditional eating habits, such as meat, non-meat scraps, leftovers of human food, etc. However, these unhygienic foods lead to allergic reactions in pets. Health concerns for animals and pet humanization have created an opportunity for specialized pet food. 
The major raw materials used in dog food are food-grade ingredients and additives. Commercial dog food is available in dry form or wet canned form. Dry dog pet food contains 6.0–10.0% moisture by volume, as compared to 60.0–90.0% in wet canned food. The increasing demand for healthy and hygienic dog foods is expected to substantiate the dog food market growth in Canada.

Competitive Landscape

The four companies in the pet food industry dominate the market because they have huge revenues and decades of experience in this field. The companies use this experience to have a monopoly over the market and consumers. 
They have huge research and development budgets, which help them to come out with new formulas and flavors to offer to the consumers. The Canada Pet food market is captured by four major companies. These big four companies account for more than 53.0% of the market. In fact, two of those account for 39.0% of the market share in 2020.

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