The direct-to-consumer pet food market has been growing rapidly due to the growing adoption of digital channels. The increase in smartphone usage and the huge diffusion of the internet further stimulate the growth of this market.

In addition, people's hectic lifestyles, user-friendly websites/apps, and accessibility of products drive the online sales of pet food. The rising pet population coupled with increasing pet food expenditure, growing incidences of zoonotic diseases in pets, the rising number of pet D2C brands and start-ups, the humanization of pets, and growing consumer preference towards online shopping are some of the major factors attributed to the growth of this market.

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Furthermore, the rise in e-commerce, demand for nutritious pet food, the growing number of millennial pet owners, and the willingness of consumers to pay a premium for pet products support the growth of the direct-to-consumer pet food market.

However, the quality issues in pet food products and product recalls are expected to hinder the growth of this market to a notable extent.

Impact of COVID-19 on the D2C Pet Food Market

The outbreak of the COVID-19 pandemic created a severe public health emergency globally due to its rapid spread across several countries. In order to combat and control the spread of this disease, numerous countries worldwide declared emergencies and announced complete nationwide, statewide, and citywide lockdowns, halting all travel, transport, manufacturing, educational institutions, and non-essential trade. These restrictions significantly reduced manufacturing and distribution, impacting numerous industries globally.

The prolonged lockdowns and social distancing restrictions presented significant opportunities for brands to develop an individual relationship with their existing consumers and attract an entirely new customer base via a more cost-effective and innovative, direct-to-consumer business model.

E-commerce for pet products witnessed a significant rise due to the COVID-19 pandemic. The fear of infection and social distancing norms drove pet owners toward online pet retail. For instance, according to a study by American Pet Products Association in 2021, pet owners shopping online increased to 86% from 72% in the prior year. Before the pandemic, 60% of pet owners purchased pet products in person at stores. During the pandemic, offline shopping dropped to 41%, aligning more closely with the 46% of pet owners who prefer to purchase online with purchases shipped to their homes.

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The U.S. government implemented social distancing norms and curfews, which shifted pet owners' preference to online shopping. According to the American Pet Products Association (APPA), the COVID-19 pandemic influenced 47% of new dog acquisitions in the U.S.

The growing pet population and increasing purchases through e-commerce channels resulted in increased pet spending due to the humanization of pets and pet owners paying more attention to elevating the food for their pets. The surging demand for e-commerce in pet food and subscription-based purchases also boosted the demand for D2C pet foods, further driving the growth of the D2C pet food market.

Hence, the growing preference of pet owners for online pet food retailers amid the COVID-19 pandemic is expected to accelerate the growth of this market in the coming years.

Rising Demand for Premium Pet Food Products To Support the DTC Pet Food Market Growth

Pet owners worldwide are becoming more conscious about choosing appropriate food for their pets, increasing the demand for premium and natural brands. These brands are in demand due to the growing awareness about the health & wellness of pets, humanization trends, and rising disposable income. For instance, according to APPA's pet ownership report 2020, 43% of dog owners and 41% of cat owners buy premium pet foods. Additionally, according to a survey from Packaged Facts, pet owners, who have purchased higher-priced pet foods/premium pet foods, especially dog food, tend to purchase online.

To capitalize on this industry trend, many pet food manufacturers have started providing a variety of premium products, including gluten-free, GMO-free, organic, and multi-vitamins & minerals-rich products offerings enhanced health benefits, such as dog food with Omega 3 and 6 fatty acids for healthy skin, probiotics in dry formulas to help maintain digestive health, glucosamine for healthy joints and strong bones, which further supports the trend of premiumization.

In addition, some of the factors that elevate premiumization include grain-inclusive diets, development of complementary dry and wet pet food formulas, whole-prey nutrition, and the use of solutions-based ingredients in wet, fresh, and frozen pet food and treats.

Thus, the rising demand for premium pet food products is expected to support the growth of the direct-to-consumer pet food market.Based on type, the direct-to-consumer pet food market is segmented into meal, treats, and supplements. The meal segment is expected to register the highest growth rate during the forecast period of 2021-2028. The high growth rate of this segment is attributed to the rising awareness about pet health, increased spending on premium meals, and the growing demand for customized meals.

Furthermore, the meal segment is divided into standardized meal and customized meal. The standardized meal segment accounted for the largest share of the D2C pet food market in 2021. The high quality of ingredients, the humanization of pets, and longer shelf life are the key factors attributed to the large market share of this segment. However, the customized meal segment is expected to register the highest CAGR during the forecast period of 2021–2028. Customized meals help monitor pet eating patterns, avoid susceptible allergens in food; address health conditions, such as dry skin, obesity, and loose stools; and enable doorstep delivery, contributing to the high growth rate of this segment

The standardized and customized meals segments are further sub-segmented into dry and wet meals. In 2021, the dry meal segment accounted for the largest share in both standardized and customized meal markets. The large market share of this segment is attributed to its increased shelf life, low cost, ease of handling, and reduced risks of plaque & tartar buildup.

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Based on pet type, the direct-to-consumer pet food market is segmented into dogs, cats, and other pets. The dogs segment accounted for the largest share of the D2C pet food market in 2021. The large market share of this segment is mainly attributed to the rising number of dog adoptions, growing demand for high-quality dog food products, and the humanization of dogs. According to the American Veterinary Medical Association 2017–2018 survey, 80% of owners consider their pets as family members and believe that having a dog at home helps them lead an active and stress-free lifestyle. Also, according to APPA, in 2020, around 70% of all households in the U.S. owned a pet, out of which 82% of millennials had dogs.

Based on health condition, the direct-to-consumer pet food market is segmented into nutrition, digestive health, heart health, allergies, dental health, skin problems, stress, joint health, and other health conditions. The nutrition segment accounted for the largest share of the D2C pet food market in 2021. The large market share of this segment is attributed to the increasing expansion of premium pet food brands and the rising awareness of pet owners towards the preferences and health conditions of their pets. However, the digestive health segment is expected to register the highest CAGR during the forecast period of 2021–2028.

Based on distribution channel, the direct-to-consumer pet food market is segmented into online and offline. The online segment accounted for the largest share of the D2C pet food market in 2021. The large market share of this segment is attributed to the growing preference for personalization, consumer convenience, availability of greater discounts compared to offline stores, and greater product selection experience.

Based on geography, in 2021, North America accounted for the largest share of the direct-to-consumer pet food market. The large market share of this region is attributed to the rising number of millennials as pet owners, the availability of a wide range of customized pet food in the region, the growing focus on the health and diets of pets, and the presence of major players in this region. Additionally, North America is also expected to register the highest CAGR during the forecast period of 2021–2028.

Some of the key players operating in the direct-to-consumer pet food market are Nestlé S.A. (Switzerland), General Mills, Inc. (U.S.), Mars, Incorporated (U.S.), Hill's Pet Nutrition, Inc. (Part Of Colgate-Palmolive Company) (U.S.), The J.M. Smucker Company (U.S.), Diamond Pet Foods, Inc. (Part of Schell & Kampeter, Inc.) (U.S.), Heristo Aktiengesellschaft (Germany), Simmon Pet Food, Inc. (U.S.), WellPet, LLC (U.S.), The Farmers Dog, Inc. (U.S.), Jinx, Inc. (U.S.), JustFoodForDogs, LLC (U.S.), Ollie Pets Inc. (U.S.), Farmina Pet Foods Holding B.V. (Netherlands), and NomNomNow, Inc. (Philippines).

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Scope of the report

D2C Pet Food Market, by Type

Meal
Meal Market by Category
Standard Meal (Dry and Wet)
Customized Meal (Dry and Wet)
Treats
Standard Treats
Dental Chews
Standard Chews
Supplements
D2C Pet Food Market, by Pet Type

Dogs
Cats
Other Pets
D2C Pet Food Market, by Health Condition

Nutrition
Digestive Health
Heart Health
Allergies
Dental Health
Skin Problems
Stress
Joint Health
Other Health Conditions
D2C Pet Food Market, by Distribution Channel

Online
Offline
D2C Pet Food Market, by Geography

North America
U.S.
Canada
Europe
U.K.
Germany
France
Russia
Italy
Spain
Rest of Europe
Asia-Pacific
Japan
Australia
China
India
Rest of Asia-Pacific
Latin America
Brazil
Argentina
Rest of Latin America
Middle East & Africa

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