Top 3 trends in 2025: Customization, functionality, premiumization

Humanization 2.0 or even 3.0 is in full force in the pet space, with a majority of pet owners looking to provide their animals with the best, longest possible lives. What does that mean, exactly, for the pet food industry going into 2025? Well, according to industry experts themselves, it means some top trends dedicated to furthering that goal, including tailored pet food solutions (customization); functional ingredients covering a variety of preventive and acute health and nutrition challenges; and continued premiumization of all trends, in spite of current economic challenges.

“The humanization of pet trend has moved into hyperdrive, which reflects the growing bond between pets and their owners,” said Kate Wadman, customer marketing manager for Scoular, a corporation dedicated to the buying, selling, storage, handling and processing of grain, feed and food ingredients. “People consider pets as core members of the family and want to share their lifestyle and values with them. This trend will continue to revolve around keen interest in high-quality and human-grade foods but will also revolve around new food formats and messaging around emotional bonding and shared moments with owners.”

Tailored solutions: Customizing the pet ownership experience

There are many options these days when it comes to pet food — inarguably more than any time in the history of pet ownership. Dry kibble, wet food, freeze- and air-dried, fresh and frozen, raw — each of these forms of feeding has a seat at the table, not to mention the myriad toppers, add-ins, supplements, etc. available for completing what humans deem to be a well-rounded meal for their pet.

[In 2025] there will be an increase in desire for couture and highly specialized pet food offerings by pet owners,” said Taylor Harnois, general manager of eTailPet, an all-in-one, cloud-based point of sale platform created specifically for independent pet retail businesses. “Today, generally speaking, there are more resources available to pet owners to help them better their pets. Because of this, they are looking to provide their pets with a more personalized lifestyle, especially when it comes to their diet.”

Toppers and mix-in items are a straightforward way for a pet owner to feel like they’re customizing their animal’s meal experience, which is why the segment has so much potential.

Food toppers and mixers have emerged as exciting ways to enhance pets’ experience,” said Jon Copeland, research manager of MarketPlace, owners of Nextin Research. “According to our 2024 survey of U.S. pet parents, 1 in 10 dog parents, as well as cat parents, report purchasing something to put on top of or mix into their pets’ food. Toppers and mixers provide ways to make pets’ food more flavorful and nutritious.”

A key to keeping up with such a widely felt trend is innovation, according to the industry.

“In a fiercely competitive pet food market, innovation has become more than just a buzzword — it’s a critical strategy for survival and success,” said Dr. Francesca Susca, global category manager for pet at Lallemand Animal Nutrition, a producer of yeasts and bacteria for the livestock and pet industries. “Pet brands are differentiating themselves not only through novel ingredients and functional benefits but also by leveraging advanced processing techniques and cutting-edge technologies that transform traditional approaches to pet nutrition.

“Personalized nutrition is at the forefront of this evolutionary wave,” said Susca. “Pet owners are increasingly seeking tailored dietary recommendations that address their individual pet’s unique health requirements and specific wellness concerns. This goes beyond a one-size-fits-all approach, reflecting a deeper understanding that each pet is as unique as a family member. Consumers want more than just a product; they desire a sense of doing something truly exceptional for their beloved companion. By offering personalized nutrition solutions, brands can create a deeper emotional connection with pet owners, making them feel empowered and attentive to their pet’s individual needs.”

Functional ingredients: Providing enhanced health and wellness for pets

As part of the personalized experience, pet owners are increasingly looking to the functional aspects of their pets’ food and treats, aiming for solutions to any number of current or potential issues.

“Pet owners are increasingly interested in tailored and proactive solutions for pet well-being,” said Jorge Martínez, president, Pet Nutrition at food processing and commodities trading corporation ADM. “Our research finds the top concerns among pet parents include healthy aging and general wellness; joint health and mobility; dental and oral health; skin and coat health; and digestive health. New product launches featuring functional ingredients span across pet foods and supplements and are steadily rising. Notably, the global pet treat and supplement market has an anticipated CAGR of 8% through 2028 (according to 2023 Euromonitor data). Cold extrusion is an exciting technology that enables pet treat and soft chew supplement production that retains more active ingredients than traditional processing methods. Much like functional gummies for humans, soft chews provide a tasty reward with the added advantage of convenience and wellness benefits.”

Gut health in particular is gaining more nuanced focus as the conversation around the microbiome continues.

“Just like with humans, gut health determines overall health,” said Amanda Rolat, CEO and founder of plant-based pet food company Bramble. “We’ll see more focus on functional foods that improve our pets’ microbiome.”

The microbiome angle is slated to grow as people become more educated in the still-developing idea of the gut-brain axis.

“Consumer understanding around gut health keeps evolving, but it will remain a top priority for pet parents, as many take a more proactive approach to maintaining a balanced microbiome and supporting overall well-being,” said Heather Scott, chief marketing officer at pet supplement company Vetnique. “By now, most of us now understand that the gut refers to far more than just digestion and is a gateway to whole body health, with approximately 70% of one’s immune system housed in the gut. There is a gut-brain axis that needs to remain healthy and balanced with the right type of bacteria in the body for optimal health. Probiotics will play an even larger role in pets’ daily health regimens, and additionally, products containing prebiotics, postbiotics and synbiotics — which work together to support and enhance gut balance — will rise in popularity. However, it’s not just about providing a generic probiotic when you notice loose stool or gas; pet parents are getting wiser and are understanding that a proactive approach to gut health is the best way to keep their pet thriving, opting for supplements with multiple, high-quality strains tailored to specific aspects of gut health.”

In fact, gut health may be the unexpected breakout of 2025, with science leading the way and everyone’s interest piqued.

“Consumers are increasingly seeking holistic health and wellness solutions for their pets and the gut is emerging as the ultimate pet health influencer in consumers’ eyes,” said Chad Wethal, global marketing manager for Pet at Cargill, a company providing food, ingredients, agricultural solutions and industrial products to various industries. “We have only just begun to understand the role the gut microbiome plays in supporting pet health. With gut health being a top claim amongst premium and super premium brands, educating consumers about the gut microbiome can help brands tell a differentiated gut health story and help consumers connect the dots between gut health and total pet health.”

Premiumization: Against all odds, an established trend still has legs

Financial choices have been among the most stressful for all consumers in the last several years, and the pet food industry has, as always, proven to be oddly resistant to such economic instability — pet owners, it would seem, simply refuse to compromise when it comes to their animals. However, even pet owners have their breaking point, and while the sharp drops seen in other consumer packaged goods segments aren’t happening in the pet space, current data shows that when it comes to pet food, trading sideways (choosing another brand in the same category at a cheaper price); downgrading slightly (purchasing cheaper food and supplementing with toppers or mixers); and private label, which has vastly improved its offerings in the eyes of pet owners, are now on the table as options.

In spite of all this, however, premiumization in the pet food space persists.

Despite economic pressures, premium positioning will remain strong,” said Steven Riley, head of B2B and corporate marketing at research and development company Clasado Biosciences. “Grand View Research, for example, projects a robust 4.4% compound annual growth rate (CAGR) in the global premium pet food market. What’s clear is that pet parents may economize in other areas, but they’re increasingly willing to invest in products that demonstrably support their pets’ health and longevity. This underlines the importance of scientifically backed ingredients that deliver clear, verified benefits — similar to the imperative driving success in human health and nutrition.”

One area that got a lot of play in 2024 is the premium cat space.

Premiumization in the cat food category is especially noteworthy with significant runway for growth,” said Ryan Budlong, managing director, Consumer Group at global investment bank Harris WIlliams. “Cat owners will continue to become more aware of their pet’s well-being, buoying demand for healthier food formats with better quality and more nutritious ingredients.”

Once again, innovation comes into play in the premium space.

“From unique ingredient functionality and appealing pet food formats to tech-enabled customer service and intuitive user experiences, there’s a wide host of ways for premium cat food companies to differentiate within their niche,” said Budlong.

Succeeding in the pet space in 2025

Rather than excelling at a single trend, the companies bound for success in 2025 will likely have to navigate the implementation of several trends into their business strategy, helping pet owners weave the threads of health and wellness for their pets.

“For the big guys, it is about elevating the image of their brands to compete with smaller, niche, specialist brands,” said Phil Cook, head of strategic marketing for natural coloring provider Oterra. “Pet owners have lots of choices outside of the traditional options. There are frozen meals, custom blends, alternative proteins, lots of options that reflect the lifestyles and beliefs of the owner. The challenge for these producers is to find their place in the mainstream, outside of their niche. The challenge for the big brands is to retain their customers and keep their traditional products interesting for the pet parents.”

Of course, as the industry is beginning to notice, finances are finally coming into play, with 2025 promising to perhaps sharpen that truth.

“While pet parents are happy to spend on their pet, their resources are not infinite, so a challenge for specialist producers will be to support the point of difference while keeping cost under control — especially if they are to appeal to a broader audience,” said Cook.

Technologies in the pet space in 2025

2025 trends in the pet space bring technology into the pet food conversation as pet owners look to track their pets’ health and wellness with gadgets and apps.

www.petfoodIndustry.com/TBD

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