Bird feed: Industry opportunities as demand increases

According to the American Pet Products Association’s (APPA) 2021-2022 National Pet Owners Survey, 8% of US households (9.9 million) now own a pet bird. In 2019, the number of households owning a pet bird was only 5%.

With the advent of a younger generation of owners, as well as the premiumization of diets, new opportunities are fast unfolding within this category. Let’s have a look at recent trends.

Diets that match the needs of birds

There are many different types of diets available for pet birds, as well as varying approaches on how and what types of diets are most beneficial for birds.

The most common types of diets are seed-based blends and extruded pellets. These are often mixed to give the bird a balanced diet, allowing foraging behaviors, as well as providing mental stimulation. Most diets for parrots will also have fresh fruits, vegetables and other human foods mixed in.

Preference for premium options

As pet spending increased during 2020-2021, so did the tendency of many owners to opt for higher-quality food options for their birds. Owners were more likely to consider premium diets as the best choice to fully meet their animals’ nutritional needs, thereby ensuring greater health and longevity.

Unfortunately, various economic factors have recently caused a shift in these trends. The pet bird food industry is currently seeing a slight move, with bird owners opting for less expensive formulas, larger pack sizes, and fewer treat purchases.

These trends are common whenever there are major changes in the economy that lead to tightening consumer spending and a decline in impulse purchases. However, as the shock of inflation wears off and the economy improves, a shift back to premium products seems likely.

Popular pet bird species

Whereas the pet bird food industry has remained relatively stable under the recent economic disruptions compared to other pet categories, one sub-sector has continued to grow at an impressive rate: feed for smaller pet bird species, such as parakeets, conures and other small parrots.

Demand has been driven by the fact that these species have been more readily available than other popular types of pet birds. Historically, cockatiels have been the most popular pet bird in terms of percent of ownership, followed by parakeets and conures. However, a reduction in the number of cockatiel breeders has caused a shortage of available animals for the trade.

A recent survey shows that parakeet and conure ownership has increased, whereas cockatiel ownership has dropped.

The future of the industry

The past few years have been tumultuous for many industries. However, compared to other sectors, the pet bird food market has remained relatively stable throughout 2022.

Although supply chain disruptions and inflation have since curbed consumer spending, there is reason to be optimistic that the pet bird food industry will continue enjoying steady growth. The pandemic has led many people to discover the joys and benefits of owning birds and pets in general.

Younger generations also are increasingly showing an interest in bird ownership – according to the APPA survey, two-thirds of bird owners are members of Gen Z or Millennials, with Millennials accounting for 45% of the number of owners. These pet owners are likely to continue investing in their birds’ nutrition and health.

Innovation in bird diets

Experts predict that the industry will see many innovations, particularly in the pet bird treat and toy spaces.

Innovations in diets, on the other hand, are likely to be much slower due to the high level of research and testing required, coupled with rigid consumer buying habits.

Additionally, industry experts see great opportunities for foraging-style mixes. Parrots are natural foraging animals and highly intelligent, instinctively seeking diversity and enjoying the process of opening seeds, nuts and other foods. Having a diverse diet encourages them to explore and enjoy the process of eating, while also providing mental stimulation.

Guidance for bird owners

The Bird Enjoyment and Advantage Koalition (BEAK) is a non-profit organization comprised of many different bird product manufacturers and associations who are working to provide resources and guidance to current as well as potential bird owners.

BEAK created MyBird, the largest Facebook community dedicated to pet birds, and is one of the leaders in bird-focused content on social media. Through these channels, BEAK intends to bring bird lovers across the world together and be an authentic and reliable source for all matters pertaining to pet birds.