Conventional extruded kibble remains the largest segment of the global pet food industry. However, classic kibble sales have increased in volume and value more slowly than alternative formats. Four of these formats have grown more than 20% as segments of the pet food industry, compared to kibble’s 2% to 4% in recent years, according to investment firm Cascadia Capital’s “Pet Industry Overview: Summer 2024" report.
Nevertheless, freeze-dried, fresh, baked and air-dried pet foods are far from replacing kibble. From a financial perspective, alternative pet food formats need more sales data over longer periods to allow fair valuation of the brands, Cascadia’s analysts wrote.
Growing alternative pet food formats
Cascadia’s analysts noted that these four pet food formats had grown more quickly than the rest of the market.
Freeze-Dried Pet Food: Freeze-drying involves removing moisture from raw ingredients while preserving their nutritional value. This method maintains the original ingredients' taste, texture and nutrients. Freeze-dried pet food is lightweight, easy to store, and has a long shelf life. It rehydrates quickly, providing pets with a meal that mimics fresh food. This style may be favored by pet owners who prioritize raw diets but want convenience.
Air-Dried Pet Food: Air drying can be a gentler process than freeze-drying or dehydrating. Air dryers slowly remove moisture from raw ingredients without exposing them to high temperatures. This method may retain more nutrients compared to traditional cooking methods. Air-dried pet food is easier to handle and store than raw pet food.
Baked Pet Food: Baked pet food is cooked at lower temperatures than extruded kibble, preserving more natural nutrients. The baking process creates a denser, more digestible product with a pleasant aroma for humans and taste for pets. Baked pet food may appeal to health-conscious pet owners seeking nutritious and palatable meals.
Fresh Pet Food: Fresh pet food typically consists of minimally processed, whole ingredients delivered in a ready-to-serve format. It is often refrigerated or frozen to maintain freshness. Fresh pet food often provides a high moisture content, supporting hydration and overall health. It appeals to pet owners who want to offer their pets a diet akin to homemade meals.
These pet food styles reflect ongoing trends towards natural or minimally processed diets, catering to pet owners' increasing demand for premium and superpremium products.
