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A recent report filed by IBIS World, a marketing research firm, provides details on animal food production in the U.S. Industry market.

The report reveals that the industry’s future prospects are modest, with the demand for pet foods augmenting total sales. The key drivers of the Animal Food Production industry are feed prices, downstream demand for animal products, and commodity movements.

IBISWorld industry analyst Josh McBee, shared, “Given the grain-based nature of most types of feed, movements in agricultural inputs like corn, soybeans and wheat heavily influence profit for animal food producers… With regard to commodities, corn’s relationship to oil has been increasing feed prices, but recent spikes in the crop’s value have been to the detriment of feed producers.”

IBISWorld expects the industry revenue will grow at an average of 3.8 percent per year during the five years to 2012. The positive conditions from downstream markets are believed to help revenue gain 1.9 percent to $50.4 billion in 2012.

Further, Americans are standing by their pets despite the recession, with both feline and canine ownership rising even with personal disposable incomes falling.

Some of the inherent risks associated with commodity-based goods are expected to be alleviated by advancements in crop technology, alternative energy sources, and then combining them with product innovation.

Pet food demand due to increase in disposable incomes and pet ownership will occur, with according to IBIS World, is a segment typified by high profit margins and brand-loyal consumers.

IBISWorld is an independent source for industry and market research. The company’s services include business, professional, and government organizations throughout more than 10 locations worldwide. Learn more at

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