To the dogs: Falling input prices have resulted in industry revenue declines

The Animal Food Production industry has declined marginally over the five years to 2018. Industry revenue has been supported by a number of positive trends over the past five years, including increased pet ownership. Conversely, as the price of industry products is mostly determined by feed costs, which are based on the market value of grains such as wheat and corn, declines in the prices of feed grains and livestock for use as inputs has served to inhibit industry revenue expansion. However, though input price declines have served to curtail revenue growth, they have lent themselves to increased industry profitability. Over the five years to 2023 overall conditions are expected to be favorable, supporting revenue growth...purchase to read more.

Industry Statistics & Market Size
Revenue
$63bn
Annual Growth 13-18
-0.7%
Forecast Growth 18-23
Profit
Employment
63,212
Businesses
3,864

Industry Threats & Opportunities

  • Though input price declines have served to curtail revenue growth, they have lent themselves to increased industry profitability
  • Falling input prices are often beneficial to the industry because they bolster profit margins
  • Demand for pet food is anticipated to continue to increase as pet ownership is forecast to accelerate
  • Industry Report - Industry SWOT Analysis Chapter

    The Animal Food Production industry is in the mature stage of its life cycle and is characterized by industry products that have achieved market acceptance, limited opportunities for technological innovation and a stable number of establishments entering and exiting the industry. The industry’s overall contribution to the overall economy, measured by industry value added (IVA), is projected to rise at an annualized rate of 3.6% over the 10 years to 2023. GDP is projected to grow at an annualized rate of 2.2% over that same period.The number of establishments is expected to rise over the 10 years to 2023 at an annualized rate of 2.9% t...purchase to read more.

    Additional Insights for the Animal Food Production Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Animal Food Production Industry are

  • Access to high-quality inputs
  • Ability to adapt to changing regulations
  • Production of premium goods and services
  • IBISWorld analysts also discuss how external factors such as Number of pets (cats and dogs) and Price of corn in the Animal Food Production industry impact industry performance..

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    What's in this report

    What is the Animal Food Production Industry?

    Operators in this industry produce food for animals such as livestock and pets by processing raw ingredients. The products are then packaged and sold to cattle ranches, dairy farms, other animal production farms, grocery wholesalers and retailers.

    Industry Products
  • Dog food
  • Cat food
  • Poultry feeds
  • Cattle feeds
  • Pig feeds
  • Other animal foods
  • Industry Activities
  • Prepared animal feed production
  • Canned animal food production
  • Bird feed production
  • Cattle lick production
  • Chaff production
  • Crushed grain production
  • Dog biscuit production
  • Grain offal production
  • Canned pet food production
  • Prepared poultry feed production
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Number of pets (cats and dogs)
  • Price of corn
  • Per capita disposable income
  • Price of oilseeds
  • Trade-weighted index

  • Current Performance
  • Pet food purchases drive demand
  • Falling input prices
  • Bucking the trend
  • Chart: Revenue Growth

  • Industry Outlook
  • Pet food products
  • Favorable trade dynamics
  • Profit and price
  • Table: Animal Food Production Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Animal Food Production Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Livestock Ranching & Farming
  • Grocery Wholesaling
  • Farm Supplies Wholesaling
  • Supermarkets & Grocery Stores
  • Pet Stores

  • Key Selling Industries
  • Corn Farming
  • Corn, Wheat & Soybean Wholesaling
  • Flour Milling
  • Oilseed Farming
  • Soybean Farming
  • Vegetable Farming
  • Wheat, Barley & Sorghum Farming

  • Products & Services
  • Dog food
  • Poultry feeds
  • Cattle feeds
  • Cat food
  • Pig feeds
  • Other animal foods
  • Chart: Animal Food Production Industry Products and Services Segmentation

  • Demand Determinants
  • Livestock numbers
  • Farming intensity
  • Changing dietary trends
  • Pet ownership

  • Major Markets
  • Farm supplies wholesalers
  • General line and supermarket wholesalers
  • Pet stores
  • Exports
  • Other
  • Chart: Major Market Segmentation for the Animal Food Production Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesOther
  • Chart: Cost Structure Benchmarking – Sector vs Animal Food Production

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Animal Food Production Industry

  • Industry Globalization
    Mars Inc., Cargill Inc., Nestle SA,
  • Table: Mars Inc. - financial performance
  • Table: Cargill Inc. - financial performance
  • Table: Nestle SA - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Animal Food Production Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Animal Food Production Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • Agricultural Price Index (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Biofuel
  • A type of fuel whose energy is derived from biological carbon fixation.
  • Ethanol
  • A form of alcohol used as a fuel that is made primarily from grains such as corn and soybeans. It is considered to be a renewable fuel with fewer pollutants than gasoline.
  • Probiotic
  • A live microorganism thought to be healthy for the host organism.
  • What Our Customers Say

    Why buy this report?

    The Animal Food Production industry market report contains strategic analysis of the key drivers influencing the industry. Save hours of time on research and prospecting using IBISWorld’s standardized, up-to-date reports on thousands of industries. Our industry research provides growth and profit forecasts for a five-year outlook period, presented in a clear and user-friendly format.

    IBISWorld industry market research reports enable you to:
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    • Inform your decisions for marketing, strategy and planning
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    This report on Animal Food Production:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Animal Food Production market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Animal Food Production, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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