Since the COVID-19 pandemic, pet adoptions have surged, with a 14% increase in the overall pet market in 2021. In 2024, owners spent $151.9 billion on pet goods and services in the United States.
The (fictional) vice president for product development at Nestlé Purina PetCare has a challenge to meet a still-growing pet food demand while aligning with Nestlé’s global commitment to environmental sustainability. But the supply of traditional meat-based proteins—a core element in dog and cat food—is a significant contributor to deforestation, water scarcity, and carbon emissions. This positioning makes the pet food industry a critical focal point for transforming sustainable food systems, circular resource utilization, and innovative approaches to reducing environmental impact while maintaining nutritional standards for beloved companions.
The case looks at the value chain and the competitive landscape for Nestlé Purina. It outlines major supply chain challenges, including that the demand for animal protein is outpacing supply. The protagonist must decide how to incorporate these considerations and leverage Purina’s brand image and capital to become a leader in the sustainable pet food market.