Australia’s pet food industry has grown significantly, with annual spending now exceeding that on seafood, cheese, or lamb. According to the latest Food for Thought – Spring 2025 report from ANZ, the sector is being shaped by consumer preferences for health, convenience, and sustainability.
Michael Whitehead, Executive Director of Food, Beverage and Agribusiness Insights at ANZ, explained that over the last twenty years pet food has become a “sophisticated consumer product – now competing with human food for shelf space, packaging design, and brand loyalty.” He noted: “In Australia, pet food is now a $4.6 billion category – putting it ahead of national household spending on seafood, cheese or lamb. When including veterinary services, insurance, grooming, accessories and supplements, total annual household pet spending exceeds $10 billion. This is higher than total household expenditure on public transport.”
The report details how modern pet foods often reflect trends seen in human diets. “From DNA-personalised meals to insect protein snacks, today’s offerings mirror human food trends – and consumers are willing to pay for it,” Whitehead said. Growth in the market comes as retailers expand into areas like personalised services and vet care.
Despite some customers opting for mid-range products or supermarket brands due to cost concerns, overall spending remains strong as many households continue prioritising their pets’ needs. Whitehead pointed out: “Pet food often remains one of the last items people are willing to cut – particularly for older animals or those with dietary needs.”
Dog and cat foods dominate the market but demand exists across a range of animals such as birds, rabbits and reptiles. There are more pet fish than dogs in Australia; apartment dwellers are increasingly choosing smaller animals like birds or rabbits due to limited space.
Premiumisation continues within the industry. Shelves now feature products such as chilled beef medallions and air-dried salmon bites. Many consumers seek options aligned with their own eating habits—such as grain-free diets—prompting manufacturers to focus on high-protein ingredients and natural claims.
Innovation includes new protein sources like insects and algae as well as subscription meal delivery tailored to individual pets’ profiles. These services invest in refrigerated logistics and sustainable packaging solutions.
Whitehead also highlighted emerging challenges facing producers: “Sustainability demands are rising – from packaging and sourcing to emissions data.” Cold chain management is becoming increasingly important given growth in fresh products.
Consumer expectations around ethics and nutrition continue evolving rapidly among younger households who may request vegetarian dog food or specialised gut-health formulas for cats.
“What used to be a side aisle in the supermarket...today is where brand strategies are built,” said Whitehead. He concluded: “For investors, retailers and agribusinesses, this is a bowl with bite – and it’s not slowing down.”
Further information can be found in ANZ’s Food for Thought Spring 2025 report.