Why Pet Owners Are Paying More for Premium Nutrition and What It Means for R&D?

42% of pet owners now prioritize spending on high-quality nutrition, fueling interest in organic, natural, and minimally processed pet food.

Pet parents are becoming increasingly attentive of their pet’s health. This shift pushes R&D teams to explore gut-health formulations and bioavailable nutrients that improve digestion and immunity in companion animals. With pet obesity rates exceeding 59% in dogs, reformulating for weight management without compromising palatability remains a top challenge for pet food companies.

As the industry shifts, R&D leaders must stay ahead of scientific innovations, regulatory changes, and emerging consumer preferences to ensure their products remain competitive. This article explores the latest trends shaping pet nutrition, offering insights into how innovation drives pet food development.

Discover more than pet nutrition in our State of Pet Nutrition 2025, where we explore the latest trends in pet nutrition, new veterinary treatments, and changing regulations. Stay ahead with data-driven insights on emerging trends, consumer preferences, and cutting-edge innovations transforming the pet care industry.

Why is the Pet Nutrition Market Growing?

The COVID-19 pandemic increased pet adoptions worldwide. Millions of new pet owners emerged in the U.K., Australia, China, and the U.S.

The pet nutrition market is driven by increasing health consciousness among pet owners, who seek food that supports digestion, weight management, and overall well-being, reflected in the $150.6 billion spent on pet food in 2024. The shift toward premium nutrition has led to a demand for human-grade, organic, minimally processed ingredients, exemplified by The Honest Kitchen. Personalization is another growing trend, with pet owners opting for tailored diet plans based on their pets’ specific needs, a demand met by subscription-based services like Nom Nom.

Sustainability is also a key factor, with consumers favoring ethical sourcing, cruelty-free products, and eco-friendly packaging, as seen with brands like Wild Earth.

The pet food industry is evolving with growing demand for personalization, sustainability, and premium nutrition. Staying competitive requires real-time insights on key innovations, functional ingredients, alternative proteins, and AI-driven formulation.

With Slate, you can quickly access market trends, scientific advancements, and regulatory updates to guide your R&D strategy. Whether you’re exploring new ingredients, AI-powered formulation, or alternative proteins, Slate delivers instant, research-backed answers to keep you ahead.

Book a demo today and see how Slate can accelerate your innovation process.

What are the Emerging Pet Nutrition Trends?

1. Pet Food is Moving Beyond Meat with Alternative Proteins

Plant-Based Proteins: A Sustainable Shift

Along with sustainability, this shift is being driven by health concerns. Some pets are allergic to meat, so their owners switch to plant-based options.

A study of 2,536 dog owners compared the health of dogs fed meat-based and vegan diets. Dogs were on conventional meat (54%), raw meat (33%), or vegan (13%) diets for at least a year. Health was assessed using seven illness indicators and 22 specific disorders.

Dogs on vegan diets had the best health, with fewer illnesses (36%) compared to those on conventional meat (49%) or raw meat (43%). Vegan-fed dogs had lower risks for multiple disorders.

Due to such benefits, pet owners are picking plant-based food.

These days, instead of meat, peas, lentils, and chickpeas are being used in pet food. They help provide protein, fiber, vitamins, and essential minerals.

Brands like Wild Earth make pet food that provides essential nutrients without meat.

Innovation in Plant-Based Proteins

A key innovation in this space is Roquette Frères’ dry-textured legume protein made from peas and faba beans.

A recent patent describes a high-protein formula with 60-80% protein and over 80% dry matter. It improves texture and digestibility using heat.

Plant-based proteins often struggle with poor texture, making them too soft or tough to chew. The innovation uses heat processing to enhance chew resistance and create a more meat-like consistency.

Soy is a common protein source, but many pets and people have allergies to it. This soy-free formula offers a safe alternative without compromising nutritional value.

Some plant-based proteins lack essential amino acids, limiting their effectiveness as a complete protein source. This formula ensures a balanced protein profile, making it a healthier option.

This works in pet and human nutrition, including meat substitutes and baked goods. It provides a digestible, high-protein alternative that supports dietary needs across different applications.

Insect-Based Proteins: A Growing Market

Insect-based proteins are becoming more common, especially in Europe, where they are a sustainable and ethical alternative to meat.

Black soldier fly larvae, crickets, and mealworms are high in protein, eco-friendly, and less likely to cause allergies. This makes them a good choice for pet food.

Innovation in Insect Protein

A cricket protein drink is one new product. It gives pets essential vitamins, minerals, and protein.

Scientists have created a special way to get protein from crickets. They use freeze-drying and hot-water extraction processes to make a nutritious supplement that helps with pet health and digestion.

2. Fulfilling Pet Owners Demand For More Functional Ingredients

A report by ADM highlights that 85% of consumers believe proper nutrition and supplements are as crucial for their pets as for themselves.

This reflects a growing demand for pet care products targeting digestive support, joint health, healthy aging, skin and coat care, and dental and oral health.

Key Functional Ingredients

Pet food companies are adding specific nutrients to improve pet health:

• Glucosamine & Chondroitin – Help with joint movement and reduce pain.
• Antioxidants from Fruits & Vegetables – Protect pets from age-related damage.
• Probiotics & Prebiotics – Aid digestion and improve nutrient absorption.

Brands Leading the Way

Some companies provide personalized pet food based on health needs:

• Nom Nom – While many brands offer specialized feed categories based on breed, age/weight, and health concerns like obesity or coat shedding, Nom Nom provides a more tailored approach. It uses fresh, whole ingredients like chicken, beef, pork, carrots, kale, and squash, which are gently cooked to preserve nutrients. The meals are specifically customized to meet the individual health needs of each pet, factoring in things like breed, weight, and specific health conditions. 

• Hill’s Prescription Diet – Hill’s stands out with its scientifically formulated diets developed with the guidance of veterinarians and nutritionists. For example, their Metabolic + Mobility formula helps dogs lose weight by activating their metabolism and improving joint mobility. They also offer the i/d Low Fat Digestive Care formula, which is clinically proven to support digestive health. These specialized diets are tailored to address specific medical conditions, ensuring the right balance of nutrients for pets’ overall health and recovery.

3. Rising Investment in Gut Health Research

A 2022 survey found that 29% of pet supplement buyers know probiotics help with health. But only 9% know about prebiotics.

Despite this knowledge gap, demand for gut health products is rising. NielsenIQ data shows gut health pet product sales surged 213%, while probiotic-labeled products saw a 78% increase in year-over-year sales.

Advancements in Prebiotic Ingredients

Studies show that prebiotic fibers help older dogs improve stool quality, balance gut bacteria, and retain water. This makes them helpful in managing loose stools.

Beyond digestion, prebiotics support immune health, making them essential for overall pet wellness. Among these, galactooligosaccharides (GOS) have shown benefits for gut and immune health.

Innovation in Prebiotic Pet Nutrition

In October 2024, Clasado Biosciences released Bimuno® Pet, a prebiotic made from GOS. Over 120 studies and 20 tests support it.

Bimuno® Pet aids digestion, strengthens immunity, and improves stool quality by feeding healthy gut bacteria. Since it comes from dairy, it suits meat-eating pets better than plant-based prebiotics.

4. Artificial Intelligence and Machine Learning Will Change Pet Health Analysis

Many companies, big and small, use AI to improve pet food, health tracking, and personalized diets.

• Mars Petcare has invested $1 billion over three years to enhance its AI and digital capabilities, focusing on improving pet health and nutrition. Their AI-driven tools analyze pet health data, optimize nutrition formulations, and streamline supply chains for better product development.
• PawCo, they leverage AI to refine their plant-based pet food recipes, ensuring that they taste good and meet the nutritional needs of pets. AI helps PawCo analyze ingredients and create balanced meals tailored to pets’ dietary requirements.

AI in Pet Food Formulation

AI analyzes vast datasets on ingredients, nutrition, and consumer preferences. This allows for:

• Personalized Nutrition: Diets tailored to breed, age, and health conditions.
• Better Taste and Digestion: AI considers ingredient interactions to enhance palatability and digestibility.
• Higher Nutritional Quality: Data-driven improvements ensure pets get the nutrients they need.

Leading companies using AI in pet food innovation include:

• Ollie – Ollie acquired DIG Labs to improve real-time pet health tracking by integrating advanced AI and machine learning technologies. This acquisition allows Ollie to gather and analyze pet health and behavior data, enabling them to create more accurate and personalized feeding plans. The data collected from wearables and health devices can now be used to adjust diet recommendations in real time, ensuring pets receive the most tailored nutrition based on their specific needs.
• PawCo Foods – PawCo Foods uses AI to optimize its GreenMeat ingredients by analyzing various plant-based components and their nutritional profiles. AI helps the company create highly customized pet food formulations by assessing the specific dietary needs of different pets. The AI system analyzes data on pet health, preferences, and ingredient interactions, enabling PawCo to refine and enhance its plant-based ingredients for better taste, digestibility, and overall nutrition.
• BESTMIX® Software – BESTMIX® Software uses advanced algorithms and data analysis to optimize pet food recipes by evaluating ingredient combinations for maximum nutritional value and cost efficiency. It also predicts demand by analyzing market trends and historical data, helping manufacturers adjust production schedules and reduce waste. Additionally, the software streamlines ingredient sourcing by identifying the most reliable suppliers and optimizing the supply chain, ensuring that ingredients are available for consistent production.

AI in Manufacturing and Process Optimization

AI makes pet food production smarter and more efficient by optimizing manufacturing processes:

• Better Texture and Nutrition: AI systems monitor real-time data from the production process, including temperature, humidity, and mixing times. Based on this data, the AI adjusts process settings such as cooking temperatures and times to ensure optimal texture, nutrient retention, and shelf life. It uses predictive algorithms to calculate the ideal conditions for each batch, based on the ingredients and nutritional requirements.
• Less Waste, More Sustainability: AI helps reduce waste by continuously analyzing production data and predicting the ingredients needed for each batch. The system automatically adjusts ingredient quantities or process steps when discrepancies or inefficiencies are detected. This reduces excess production and minimizes resource consumption by ensuring that only the required amount of food is made, thus improving sustainability.
• Stronger Quality Control: AI employs sensors and data analysis to monitor the consistency of pet food during production. It compares the current batch’s nutritional content with preset standards, identifying variations. Suppose the data shows that the nutrient profile deviates from the target. In that case, the system automatically adjusts the production settings (such as ingredient ratios or mixing times) to ensure that each batch maintains consistent quality.

Some key AI tools in pet food manufacturing include:

• METER Group’s SKALA – SKALA uses AI to monitor and analyze real-time data from the production process, including moisture levels, temperature, and ingredient consistency. The AI system continuously adjusts the process to ensure food safety by detecting any potential risks, such as contamination or improper conditions. 
• BESTMIX Software: BESTMIX Software uses data analytics and AI to refine pet food formulations by analyzing ingredient interactions and nutritional content. The AI evaluates past production data and customer preferences to suggest formula adjustments that improve nutrition and reduce waste. 

5. Algal Oil is Gaining Popularity

Algal oil is a sustainable and nutritious alternative to fish oil in pet food. It provides essential omega-3s, which support healthy skin, a shiny coat, brain function, and heart health.

Fish oil has been the main omega-3 source for years, but algal oil offers the same benefits without depleting ocean resources. It contains DHA and EPA, which improve cognitive function and cardiovascular health, keeping pets well-nourished.

Research confirms that algal oil is safe for pets, even for pregnant and nursing animals, making it a reliable choice for pet food.

Companies Driving Innovation in Algal Omega-3s

Companies like Corbion produce sustainable DHA from microalgae using precision fermentation. Their AlgaPrime™ DHA P3 offers 35% DHA in biomass powder, a vegetarian fish oil alternative.

This ingredient keeps pets’ brains, hearts, and skin healthy, using fewer ocean resources. Corbion’s process uses renewable energy and cane sugar, making it a greener choice.

As Tim Rutten, Vice President at Corbion Algae Ingredients, states:

“The launch of AlgaPrime™ DHA P3 furthers Corbion’s mission to preserve what matters by offering sustainable ingredients for healthier people, pets, and the planet.”

Future Outlook

Pet owners increasingly view their pets as family, driving demand for products that support long-term health and well-being. Studies also show that dogs on plant-based diets experience better health, with fewer visits to the vet. These shifting preferences are reshaping the pet nutrition industry, making it crucial for companies to adapt and innovate.

For R&D leaders, staying ahead in the pet nutrition industry means keeping a close eye on emerging research, patents, and market trends, especially as demand for functional ingredients, novel proteins, and AI-driven nutrition solutions grows. 

GreyB experts identify key industry shifts early and help industry leaders develop next-generation pet nutrition solutions that meet consumer expectations while driving sustainable growth. Align your R&D strategy with the evolving trends using GreyB’s expert insights. Reach out to us today.

Authored By – Aman Bhushan and Mayank Maloo, Solutions.

Edited By – Ridhima Mahajan, Market Research