Retailers report softer demand as packaged pet food prices rise 20–50 per cent amid higher input, logistics and poultry costs, with LPG-related energy constraints adding pressure across parts of the supply chain
India’s pet food market is seeing rising cost pressures, with retailers, startups and pet parents reporting higher prices and softer demand in recent months, driven by a combination of input cost inflation, logistics expenses and energy-related supply constraints.
The country’s organised pet food market, estimated at around Rs 2,700 crore in 2023 and growing at about 20 per cent annually, has been expanding steadily on the back of rising pet ownership and premiumisation trends. However, industry participants say that momentum is now facing cost pressures across the value chain.
Industry estimates suggest packaged pet food prices have increased by 20–50 per cent in recent months, although these figures vary by brand and category. Stakeholders attribute the increase to multiple factors, including higher poultry input costs, packaging inflation, transportation expenses and broader energy market volatility affecting supply chains.
Retailers say higher procurement costs and retail price increases are affecting demand. Manoj Kumar, who runs a packaged pet food retail shop in Malviya Nagar, said prices have increased significantly over the past several months.
“Pet food that was selling for Rs 100 earlier is now around Rs 150,” he said. “Customers are noticing the change, and some have reduced their purchase frequency.” He added that his sales have declined by about 10 per cent, with some customers shifting to online platforms due to discounts and offers.
Kumar also said supplier prices have increased, affecting retail margins.
“After recent cost changes, the rates from manufacturers have gone up significantly, when we place the order now the price has gone up around double from supplier” he said.
A 2024 survey by the Indian Pet Industry Association indicated that a majority of retailers in major cities reported margin pressure, citing logistics and input costs as key factors.
Pet owners are also observing higher costs and fluctuations in online pricing.
Pankhuri, a pet parent who prepares a mix of home-cooked food over electric induction and take packaged products, said prices have risen across brands.
“Prices have gone up around 20 per cent overall, though it varies by brand,” she said. “Sometimes the listed price changes during checkout, which makes it inconsistent,” BW Businesses World could not verify this price inflation Immediately.
She also noted growing caution among pet parents regarding ingredient quality and formulation, which has led some households to increase home-cooked feeding.
Navaneeth Narayanan, owner of two persian cat who take frozen pet food, who lives along and hence have to rely on market packet and frozen meal, he also cooks meat for them on electric kettle for atleast 1 time meal for them.
According to Euromonitor International (2023), home-prepared food accounts for over half of pet food consumption in India by volume, though packaged food has been gradually gaining share.
West Asia Crisis Put Input, Logistics Pressure
Fresh and cooked pet food brands are reporting cost pressure from ingredients and logistics, even when not directly dependent on LPG.
Dhanu Roy, Co-founder of Right4Paws, said poultry input costs and packaging inflation are impacting operations. “While LPG is not a direct input in our production process, the broader energy market disruption is creating a ripple effect across the ecosystem. We are already seeing cost escalations in packaging and transportation, which are beginning to put pressure on operating efficiencies. In parallel, there has also been a steep increase in poultry input prices, particularly chicken and eggs, which directly impacts the economics of cooked pet food businesses,” he said.
He added that while demand remains stable, sustained inflation across inputs could affect pricing structures in the category.
Data from the National Egg Coordination Committee shows poultry prices in major Indian markets rose 18–25 per cent year-on-year in early 2025, impacting protein-based pet food formulations.
Operational Dependencies
Large-scale pet care facilities, which rely heavily on fresh food preparation, said energy supply reliability remains important for operations.
Adnaan Khan, CEO and Founder, K9 School,a dog training campus said the organisation uses significant quantities of fresh meat for daily feeding requirements.
“This makes us directly sensitive to any disruption in LPG supply… we have proactively built contingencies such as alternative cooking methods like wood-fire setups and backup infrastructure, the larger concern lies in how such disruptions could impact the broader pet ecosystem. Fresh food brands, cloud kitchens, and home-fed pet households that rely heavily on LPG may face operational slowdowns or cost escalations.”
He added that urban pet households may gradually shift toward packaged food if convenience and availability become priorities during supply disruptions.
“The larger concern is that this is not just an LPG issue, but part of a wider energy-market imbalance. Even businesses that do not directly use LPG are feeling second-order effects through transport, vendor pricing, and agricultural inputs. For the pet food industry, where ingredient quality and cold-chain integrity are critical, sustained volatility in energy-linked costs can have a meaningful downstream impact,” Roy noted.
Additional many community pet care center have started running their kitchen on wooden stove inplace of LPG cylinders due to the shortage.
India’s pet population is estimated at over 31 million dogs and 10 million cats, with steady growth in urban pet ownership in recent years.
