Pet food companies are struggling to make ends meet as the pet industry slows.
Pet owners are paying more for pet food and buying more expensive pet food.
A new report from the nonprofit Pet Food Alliance shows that pet food costs are more than triple those of the industry’s overall cost of goods sold.
Pet food costs, as of May, were $8.2 billion in the United States and $15.2 trillion globally.
A survey of food service professionals found that only 5% of the professionals surveyed knew of pet food companies that had an “A” grade rating, while 20% said they had an A+ rating.
The report, released Tuesday, was based on more than 500 responses to a survey conducted in March and April.
The Pet Food Association, which represents pet food manufacturers and distributors, said in a statement that the report shows the need for companies to “immediately scale back their costs and focus on quality.”
“We need to make sure pet food suppliers are offering pet owners and veterinarians the best value and value for their money,” Pet Food America CEO Jim Balsillie said in the statement.
Pet foods are among the top three most-expensive products sold by consumers, the Pet Food Institute said in March.
While pet food prices are still higher than food companies’ overall cost, the industry is working on increasing its profits and increasing its share of the market.
According to the Pet Industry Alliance, pet food is currently the top-selling product in the U.S. But, as the industry continues to experience growth, so are its competitors, the organization said.
“While some of the top players have been on a steady growth trajectory for a while, it’s important to remember that this is a small sector,” the Pet industry organization said in its statement.
“Pet food is a critical component of the food system and the cost of production can be very high.”
The Pet Industry Association, whose members include the nation’s top three food companies — General Mills, Kellogg, and Mars — said that its members “share the responsibility of ensuring that pet foods are affordable and accessible to our pet families.”