Update: Pet supplement segment soaring

In alignment with the humanization and premiumization trends that are already driving the pet market, it was inevitable that pet owners would embrace supplements for their cats and dogs too. As a result, some human supplement companies are seeing the pet sector as a niche market offering new expansion opportunities.

Fueling market growth

According to a market analysis report from Grand View Research (GVR), the global pet supplement market was valued at $1.9 billion in 2021 and is forecast to increase at a compound annual growth rate of 5.9%. It is expected to reach $3.2 billion by 2030.

Pet supplements are usually digestible and around two-thirds of the current market comprises soft chews, which are more palatable than pills or capsules. There are also companies producing powdered supplements, which can be added to food or water for ease of ingestion. The joint and mobility segment is currently the largest, while the skin and coat segment is gaining momentum.

Lauren DeVestern, Managing Director and Partner at LEK Consulting, believes that the supplement market offers a lot of opportunities, fueled by the rapid popularization of these products among pet parents. “Some 5 to 10 years ago it was a very small market and large players catered primarily to veterinarians,” she states. One example is Nutramax Laboratories, which used to be available exclusively through veterinarians but is now also available from stores and online.

A resilient sector to invest in

DeVestern can see parallels with the trends in human supplements and says that one could argue that it is currently one of the best sub-sectors to invest in within the pet sector, due to its resilience. “Around 75-80% of humans in the US take a supplement. While pet supplement use might not get that high, there is still a lot of potential with many brick-and-mortar stores only just starting to stock them,” she explains.

It is believed that around 20-30% of pets in the US currently receive some sort of health supplement. According to industry insiders, the pandemic helped boost supplement sales due to pet parents suddenly becoming more aware of their pet’s health and well-being.

For example, Colorado-based supplement and treat private label manufacturer PetDine recently announced it will triple its soft chew capacity with the construction of a new extrusion manufacturing plant, in order to cope with increasing demand. The US is a market leader, but Europe is likely to follow a similar trajectory despite currently being some way behind.

Expanding from humans to animals

Companies with a proven track record in producing supplements for humans are cashing in on the growing interest in dietary supplements for pets. As humanization is currently a driving force in the pet market, businesses are beginning to take a ‘whole family’ approach to healthcare by introducing supplements for dogs and cats.

Illinois-based NOW Foods has been a leading natural products company for more than 50 years, beginning as a small chain of health food stores and growing into one of the industry’s most recognizable brands. In 2015, the company saw the potential of the emerging pet supplement market and launched its first product for cats and dogs: Pet Joint Support.

Dan Richard, NOW’s Vice President of Global Sales and Marketing (and son of founder Elwood Richard), explains why they chose to become an early adopter of this new approach: “As a family-owned company, our goal is to provide total wellness solutions for the entire family, so it makes sense to support pets too. We have found that people seem to spend more on good nutrition for their pets than themselves and we’re well-positioned to offer some of the highest-quality pet products at an affordable price point. This is a long-term trend and shows how people love their pets.”

Unique formulations

NOW had already been selling items such as bone meal powder and sodium ascorbate to vets for many years, so it was a relatively small step for the company to branch out into the pet business. “Since NOW had the products in inventory, it seemed to make sense to target the same human products for pets, but with custom branding and unique formulations focused on pet health,” Dan Richard adds. The company’s pet business is still small compared to the overall activity but it is growing nicely. NOW is currently investing in marketing, and plans to expand with more products in the near future.

In 2021, the UK’s leading vitamin company Vitabiotics launched its SuperDog range of supplements – Health & Vitality and Joints & Bones – establishing its place in the pet market. Meanwhile, North American Herb & Spice recently branched out into the pet market with the launch of Houdi’s Foodies. This range of pet treats is designed to support hip and joint function, vitamin nourishment and immune wellness, with more pet nutrition formulas on the way.

Regulatory situation becomes clearer

Up until recently, there was a regulatory gray area in the US as the Food and Drug Administration (FDA) did not include pet supplements in its remit. This prompted the formation of the National Animal Supplement Council (NASC) to regulate the industry. Today, around two-thirds of companies producing pet supplements are members and follow strict quality and safety guidelines.

Mirroring the human supplement market, pet supplements are beginning to look and sound a lot less medical – and retailers also are starting to take notice. In Lauren DeVestern’s view, we are heading towards a point when people will be able to pick up their pet supplements at the same time as their own from the local grocery store. “I think we will see a move to a more proactive way of giving supplements to pets. Rather than giving them when you notice joint stiffness or itchy skin in your pet, it will be like humans taking a multivitamin supplement ‘just because’,” she comments.