Palatants Market, Pet Food Market

Global Palatants Market: Pet Humanization to Transcend Growth 

With the focus lying on the palatability profile of pet food, the entire gamut of the pet food industry is concentrated on premium pet food offerings. Pet ownership is now associated with the need for companionship and stress relief. This, being the case, the concept of 'pet humanization' is taking center stage in the pet food industry. This essentially means that, pet owners are extremely cautious about the nutrition needs and food of their pets. 

These shifts towards flavorful and nutritious pet food have not only amplified the demand for palatability enhancers but have encouraged manufacturers to develop shelf-stable flavors. With the lines between animal and human food getting blurred, pet food manufacturers are under pressure to cater to specific palatant needs for different pets. 

Taking into account the transition in consumer preference towards pet food and gauging the magnitude of growth of the pet food industry, Transparency Market Research (TMR) has conducted an exhaustive analysis of the global palatants market. In its study, TMR covers the key growth aspects and trends in the market, which will help manufacturers take a deep dive into the current consumer behavior and preferences.

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Global Palatants Market: A Technology-driven Evolution 

The pet food industry has been undergoing transitions that are mainly prompted by changes in consumer perspectives and evolving technologies. Manufacturers in the pet food industry have realized that developing highly nutritious pet food will fetch no results if rejected by pets. This has led to a rise in the emphasis on the 'aroma' of pet food products. The palatability quotient of pet food gets its very own eminence from the strides towards the 'premiumization' of products and inclination towards assessing the behavior of pets to gauge their food preferences. Over the years, reliance on the sensory characterization of food has increased, since the industry revolves around pets’ preferences. 

While 'pet preference' is one side of the aisle, the other is technologies used to manufacture palatants and pet food in general. In 2007, the development of electronic tongue technology by AFB International added a real feather in the cap of the global palatants industry. This technology helped in assessing the overall smell and taste of pet food. This innovation was followed by many other discoveries such as formulation of quality low-molecular weight pet food products in 2010, and the development of high barrier film applications for pet food packaging in 2019. 

According to TMR analysts, the global palatants market is anticipated to attain a valuation of ~ US$ 3 Bn by 2027, progressing at a CAGR of ~ 4.5%. However, the high prices of premium and super premium pet food products may descend the market’s growth. It may even drive away customers who are keen on buying premium pet food products. 

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Compelling Trends Redefining the Palatants Market 

'Diet Claims' to be the New Catchphrase for Pet Owners 

There is mounting pressure on manufacturers in the palatants industry to stay true to swaying diet claims such as fresh, organic, non-GMO, gluten-free, and natural. Pet owners are inclined towards products that come from a natural source or offer specific nutritional benefits. The real struggle for pet food manufacturers is developing products that are high in the natural or organic quotient while maintaining palatability. It also pushes manufacturers to develop palatability enhancers with high protein content and additional antioxidant protection, thus inculcating diet claims in their end products. 

Pet Food Products with Clean Labels 

'Mindful choices' is what customers believe in when it comes to pet food. Consumers are welcoming products that not only provide transparency in terms of ingredients used but provide peace of mind by satisfying the ethical and environmental claims. Clean label is not just a trend but a consumer requirement. Consumers are keen on knowing what the ingredients are and where they are derived from. This means that, manufacturers are increasingly using raw materials that offer traceability.

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Key Winning Imperatives in the Palatants Market 

Specific Product Launches to Fetch Revenue Benefits 

Diet and nutrition requirements vary depending upon the species of animal. Moreover, these days, pet owners are highly aware of the nutrition requirements of their pets. Resultantly, they are likely to choose a specific product that suffices the nutrition needs of their pets, rather than a common pet food product. Sensing this change in consumer behavior, manufacturers are concentrating their efforts on launching separate products to cater to the supplement demands of different animals. 

Strengthening Ties with Organic Grain Farmers 

High demand for organic palatants means an increased dependency on raw material for organic feed. Moreover, it demands a continuous supply of organic grains. In a bid to reduce production costs and ensure the incessant supply of organic grains, manufacturers are strengthening their ties or engaging in backward integration with organic farmers. This will not only help them gain the supply of grains but considerably reduce production costs by reducing the volatility in organic grain prices. This is a key strategy that will help players enhance revenue benefits from the global palatants market. 

Competitive Landscape: Expansion of Consumer Base to Remain Key Growth Strategy 

The global palatants market features a highly fragmented vendor landscape with the presence of numerous market payers. Key companies operating in the market include AFB International, Frutarom Group, Kemin Industries, Alltech Inc., Nestlé S.A., Nutriad International NV, and others. Tier one companies alone accounted for a market share of ~ US$ 930 Mn in 2018. 

Leading companies in the global palatants market are resorting to expansion of consumer base, looking at the rising demand for palatants. To do so, they are enhancing their geographical presence. They are targeting developed regions such as North America, Latin America, and Europe, in particular, gauging the high pet ownership and increased awareness among pet owners in these regions. Companies are also increasing the production of consumer products to enhance the sales of their products. For instance, Nestlé deployed the strategy of adding high value-added product lines and increased the focus on consumer products to cater to evolving consumer preferences. Similarly, Alltech Inc. is investing substantially in research and development facilities to come up with products that are highly demanded by consumers, globally. 

Companies are also laying considerable emphasis on new product launches to garner consumer attention. Frutarom Group is focusing on innovation in product development and new product launches to support its core competencies and attract a large consumer base, while Kemin Industries Inc. developed a P series product in the Palasurance range that contains plant-based alternatives as a source. Apart from these strategies, manufacturers are also engaging in mergers and acquisitions, strategic investments, and expansion of production capacities to gain a strong foothold in the palatants market.

Analysts’ Viewpoint 

Authors of the report on the global palatants market are optimistic about its growth during the forecast period of 2019 to 2027. North America is perceived to be the most attractive region in the market, compelling players to consolidate their position in this region. Companies responding quickly to consumer trends are expected to gain an edge over other players in the market. Moreover, expansion in the production of organic palatants and increasing consumer awareness through clean labeling will help players attract consumer attention in the market. Overall, an expansion approach will bring good fortune to enterprises operating in the palatants market. As a result, players are expanding their product offerings across the globe and strengthening partnerships in high growth regions. Additionally, the market is expected to see an increasing inclination towards biologically-advanced products, encouraging players to increase the production of these products.