Palatants Market - By Form (Dry, Liquid), By Nature (Organic, Conventional), By Source (Plant derived, Meat derived, Others), & Forecast, 2024 – 2032

Palatants Market Size

Palatants Market was valued around USD 1.4 billion in 2023 and is anticipated to register a CAGR of over 6% between 2024 and 2032 owing to the rising demand for premium and customized pet food products. The increasing humanization of pets, wherein pet owners seek pet food options that mimic human-grade ingredients, flavors, and textures.
 

The global palatants industry is experiencing significant growth, driven by several key factors. A surge in the demand for palatants that offer diverse and appealing taste profiles, encouraging manufacturers to innovate and introduce novel flavor combinations to cater to evolving consumer preferences. As the reports from PDSA and Freedonia Group stated the pet population adoption continues to grow with over 52% in UK and over 50% in U.S., the demand for pet food, including palatants, is expected to rise correspondingly. Urbanization, changing lifestyles, and higher disposable incomes in these regions have spurred pet ownership rates, thereby fueling the need for high-quality pet food products.
 

The palatants market relies on a complex supply chain involving various raw materials and ingredients. Disruptions in the supply chain, whether due to natural disasters, geopolitical tensions, or unforeseen events like the COVID-19 pandemic, can lead to shortages, price fluctuations, and production delays, impacting the overall industry. Compliance with regulatory standards and guidelines, particularly regarding food safety and ingredient sourcing, can pose challenges for palatant manufacturers. However, With urbanization, rising disposable incomes, and changing lifestyles in emerging markets. As more consumers in these regions embrace pet ownership, the demand for high-quality pet food products, including palatants, is expected to grow substantially.
 

Palatants Market Trends

Sustainability concerns and an increasing focus on environmentally friendly practices are influencing the development of palatants in the pet food industry. Consumers are becoming more conscious of the ecological footprint of pet food production, leading to a growing demand for sustainable and ethically sourced ingredients. In response, manufacturers are exploring eco-friendly alternatives for palatants, such as plant-based or upcycled ingredients, to align with consumer preferences for environmentally responsible products. This shift towards sustainability is anticipated to shape the trajectory of the palatants industry in the coming years, driving innovation and prompting companies to adopt more sustainable practices throughout their supply chains.
 

Palatants Market Analysis

Based on form, the market is segmented into dry and liquid. The palatants industry is witnessing a fascinating shift with dry form capturing the dominant share with over USD 750 Million in 2023. Dry palatants offer convenience and longer shelf life compared to liquid forms. Pet food manufacturers prefer dry palatants for their ease of handling, storage, and transportation, making them a popular choice in the industry. Liquid palatants are valued for their ability to enhance palatability and improve the digestibility of pet food formulations. The liquid form allows for better distribution and absorption of flavors, leading to a more appealing taste experience for pets.
 

Based on nature, the palatants market consists of organic and conventional. The conventional nature constitutes market with a share of over 85% in 2023 and thus dominates the market for palatants applications. Conventional palatants, formulated with non-organic ingredients and additives, often offer a more cost-effective solution for pet food manufacturers compared to organic alternatives. This cost advantage allows manufacturers to produce pet food products at competitive price points, appealing to budget-conscious consumers.  The increasing consumer preference for natural and organic products extends to pet food, driving the demand for organic palatants. Pet owners are seeking pet food options made with organic ingredients, free from synthetic additives, pesticides, and genetically modified organisms (GMOs).
 

Based on source, the market is comprised of plant derived, meat derived and other sources. The meat derived palatants constitutes the market with a share of over 45% in 2023 and thus dominates the market for palatants. Meat-derived palatants are prized for their high palatability and acceptance among pets, owing to their natural flavors, aromas, and nutrient profiles. Ingredients such as poultry, beef, fish, and organ meats are commonly used to enhance the taste and sensory appeal of pet food formulations. The increasing popularity of plant-based diets among consumers extends to pet food, driving the demand for plant-derived palatants. In addition to traditional plant and meat-derived palatants, there is a growing interest in alternative protein sources, such as insect protein, algae, and cultured meat, for use in pet food formulations. These novel ingredients offer sustainability benefits, nutritional value, and unique flavor profiles, driving innovation and diversification in the market.
 

U.S. dominated the North America palatants market in 2023. U.S. is estimated to have generated a revenue of over USD 370 million in 2023. Pet owners in the United States are increasingly treating their pets as family members, driving demand for premium pet food products. This trend, known as the humanization of pets, has led to a growing preference for high-quality ingredients, including palatants, that mimic human-grade flavors and textures. As a result, manufacturers are focusing on developing palatants with diverse and appealing taste profiles to meet the evolving demands of discerning pet owners. Increasing disposable income in countries like China and India fuels demand for premium pet food and higher-quality animal feed, leading to increased palatant usage in the Asia Pacific region.
 

Palatants Market Share

The competitive landscape of the palatants industry is characterized by intense competition among key players like Kerry Group, ADM, Symrise AG, Nestle SA and Kemin Industries AG are striving to gain a larger market share of over 40% through product innovation, strategic partnerships, and expansion strategies. Several multinational companies dominate the market, leveraging their extensive distribution networks, brand recognition, and research capabilities to maintain a competitive edge. These industry giants invest heavily in research and development to develop novel palatant formulations that meet evolving consumer preferences for taste, texture, and nutritional value.
 

Competition ranges from premium pricing by established players with strong brands to cost-effective offerings by regional and emerging players. An acquisition strategy enables a company to enter new markets and product lines instantaneously with a recognized brand having a good reputation and an existing client base. An acquisition can overcome market entry barriers that were previously challenging.
 

Palatants Market Companies

Major players operating in the market include:

• Kerry Group
• ADM
• Symrise AG
• Kemin Industries Inc.
• Nestle SA
• Diana Group
• Alltech Inc
• Pancosma SA
• Darling Ingredients
• AFB International
• Nutriad International NV
• Frutarom Group
• BHJ A/S
   

Palatants Industry News

• In April 2023, Zoetis announced the launch of its new palatant product, Zoetis Palatant. Zoetis Palatant is a natural palatant made from amino acids and nucleotides. It is designed to improve the palatability of animal feed and increase feed intake.
   
• In November 2022, ADM, a global leader in the human and pet nutrition market, announced the launch of two new products under its SUCRAM range. SUCRAM M’I and SUCRAM Specifeek are two sweeteners designed to improve feed palatability for young animals, particularly weanling pigs.
   
• In May 2022, Kemin launched two novel products – Palasurance A D370-380 liquid and Palasurance C75-90 dry. These target towards enhanced palatability in pet food. Palasurance A D370-380 is a salmon-based liquid enhancer, specifically aims to improve the performance of dogs and cats.
   

The palatants market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue and volume (USD Million) (Tons) from 2018 to 2032, for the following segments:

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 Market, By Form

• Dry
• Liquid

Market, By Nature

• Organic
• Conventional

Market, By Source

• Plant derived
• Meat derived
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Spain
  • Italy
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Indonesia
  • Australia
  • Malaysia        
• Latin America
  • Brazil
  • Mexico
  • Argentina 
• MEA
  • South Africa
  • Saudi Arabia
  • UAE
  • Egypt