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Pet food space gets healthy infusion at Nestlé's latest accelerator class

Pets and the food they eat is beginning to reflect the dietary choices that their owners themselves are making. From obesity-fighting formulations to the introduction of ancient grains and alternative proteins, the options for targeted, functional foods within the pet food sector are growing.

Recently, Nestlé’s Purina pet food division launched its latest class in Europe's first pet care accelerator programme, selecting pet care startups from across Europe and North Africa. The participants from this round are eniferBio from Finland; MOA Foodtech from Spain; knok from Portugal; Kibus from Spain; Feragen from Austria; and Vetwork from Egypt.

As part of this programme, startups receive six months' mentorship and CHF 50,000 (€47,972) for a proof-of-concept project to grow their business in a market that is demanding ever more innovation in the pet food space.

“After a global pandemic, the number of pet owners and animal lovers worldwide is greater than ever, and the industry is responding by accelerating its innovation, offering greener, smarter and better solutions than ever before,” Nestlé Purina PetCare, Europe CEO Jeff Hamilton said in a statement. 

Innovation is unleashed in pet food

Purina is no stranger to innovation within the pet food space. Nestlé’s pet food division has the LiveClear cat food line, which is a formula that includes an egg-based protein with Fel d1 antibodies that it developed in 2019 to neutralise the major feline allergen. For dogs, the Swiss manufacturer developed a functional canine food called Calm & Balanced that is intended to promote a calm demenaour in dogs.

The startups that were selected to participate in Nestlé's accelerator focus on a variety of different aspects within the pet food space. MOA Foodtech develops its protein from food waste; knok is working on developing wearables for pets; Kibus is producing an automated device to prepare dog food; Feragen provides DNA testing for pets; and Vetwork aims to bring pet care into the home through its app.

Humanization of the pet product marketplace

The premiumization of pet food is on the rise as more consumers consider what exactly their pets are eating. The result is that many of the trends that are popular for human food are also making an appearance in the pet food sector. Organic pet food is one category that has ballooned. In 2020, the organic pet food segment reached $22.8 billion in sales.   

Similarly, pet supplements for joint, fur, heart and oral health have been on the rise. Grand View Research found that the global pet supplements market will increase from $1.9 billion in 2021 at a compound annual growth rate (CAGR) of 5.9% through 2030.

Increased premiumization of pet food has pushed pet owners to spend more on feeding their animals. In the United States, $42 billion (€40 billion) was spent on pet food and treats in 2020, a 9.7% increase from a year prior, according to the American Pet Products Association.

The global pet food market in general is also growing. Fortune Business Insights projects the market to grow at a 5.11% compound annual growth rate from $110.53 billion(€106.25) in 2021 to $163.7 billion (€157.37) by 2029.