Pet food companies to cut their production, reduce production of pet food
Pet food makers are set to reduce production by up to 70% in the next five years, and will start cutting down on the use of pet foods in their products, a new report from the Pet Industry Association of America (PIAA) says.
Pet food manufacturers, which have traditionally been the backbone of the pet food industry, are increasingly moving away from the traditional use of food to make their pet foods more affordable, easier to digest, and easier to feed.
“It is time to rethink the pet foods industry,” PIAA President Mike Schindler said in a statement.
PIAB has been tracking pet food trends since 1999.
It released a report earlier this year called Pet Food Trends 2017: A Snapshot of Trends and Progress.
While the pet industry is making significant changes, Schindlers assessment said that it still represents a $1.6 trillion market for pet food makers.
The report says pet food companies are set for a “mixed bag” in the coming years.
Companies that have already made significant reductions are likely to have to make up for those lost revenue by cutting costs, and increasing their sales of pet-friendly food.
Some pet food manufacturers have already begun cutting back on the production of their pet food, according to PIAB, and are expected to continue doing so in the near future.
Other companies may not be able to keep up with demand.
More: Pet food makers’ stock prices have plunged in recent years, which has prompted the PIAAs stock-price target price of $22.50 per share.
Read more: Read the full report here.
Pet Food Trends 2016: A Snapshot, a Guide for Investors.