Australia’s pet food market is worth $580 million with ‘pet humanisation’ key to sucess

The Australian pet food industry is booming because of a surprising trend that has turned the industry on its head.

Exclusive: Australians are splashing millions of dollars on pet foods and indulgent treats to give their Covid fur babies the experience of what is being labelled “pet humanisation”.

New data from pet suppliers Pet Circle and Petbarn has revealed what supermarket giants Coles and Woolworths are also seeing – pet food is now almost a whole supermarket aisle in itself as people splurge on treats for their four-legged friends.

According to research by IBISWorld, the pet food production market is worth $580m in Australia and is estimated to continue strongly growing over the next five years, fuelled by the growth of online shopping.

By 2026, industry revenue is estimated to reach $845.5 million, with new services like pet meal subscription options and telehealth vet services.

Pet Circle VP Business Management Will Roney said premium brands lsuch as Absolute Holistic and Ziwi have “taken off”, with Absoloute Holistic sales up 188 per cent and Ziwi up 136 per cent.

Alice Needham and partner Philip Chaplin owners of Wagalot with their golden retriever Cliffy enjoying some of the diverse treats they make for dogs. Picture: David Caird

“Training treats have seen phenomenal growth, more than double last year, clearly driven by all the new puppies and kittens out there,” Mr Roney said.

Petbarn’s Senior Category Manager Emma Power said the biggest trend in pet food was “undoubtedly” the growing trend of “pet humanisation”.

“Research shows that up to 40 per cent of Australians are cooking home prepared meals for their pets, with 60 per cent of Australian’s considering their pet as equal to any other member of the family,” Ms Power said.

Petabarn launched The Nosh Project Daily Diets, pre-prepared slow cooked meals, and Nourish 27, a vitamin and mineral mix that is like a supplement, to meet the demand.

“The Nosh Project is quickly on track to be one of Petbarn’s most popular pet food offerings in a high growth category and is expected to be the third largest food brand in Petbarn within three years,” she said.

Alice Needham and partner Philip Chaplin have seen a surge of interest in their dog treats they produce. Picture: David Caird

Melbourne company Wagalot, based in Carrum Downs, has launched Vegemite-infused dog biscuits in August and is on track to sell almost 900,000 cookies in the first year. The range includes a Cannabis Hemp Seed option.

Wagalot co-founder Alice Needham said the company was expecting to need more 500 kgs of Vegemite due to the popularity of the biscuits she dubbed “crack for dogs”.

She noticed her dog was drawn to her vegemite toast, so she and co-founder Philip Chaplin saw an opportunity.

“We started Wagalot almost 12 years ago, as Diamond Dog Food and Bakery, making handmade doggie biscuits and loved seeing wagging tails come into our store. Our new biscuits are forecasted to sell 32,000 packets this year - that’s 896,000 cookies. Our focus over the next three years is to see Wagalot reach $5 million a year, and with sales like we’re positive we can achieve this,” he said.

“We make very specialised stuff … and we go for quite a range from really healthy treats to special occasion because people still want to treat their dogs like for their birthdays,” she said.

The evolution in pet foods and treats can be attributed to one major factor, Ms Needham said.

“It’s gradually more and more being humanised. So if it’s something we really like, as humans, and it’s something that’s really popular out there, people want to find an equivalent for their dogs. And they didn’t want to just give them a slab of meat or something for their birthday,” she said.

Originally published as Australia’s pet food market is worth $580 million with ‘pet humanisation’ key to sucess