Dog Treat Business Overview
The dog treat business involves creating and selling edible products intended for dogs. These treats come in various forms, such as biscuits, chews, and special diet snacks, catering to dogs’ nutritional needs and preferences. This industry attracts entrepreneurs who are passionate about pets and looking to offer quality, safe, and enjoyable products to a growing market of dog owners.
Selling pet treats is a fun and flexible business that can be run full-time or part-time to make extra money.
Related: Checklist to Start a Business
How Do Pet Treats Businesses Make Money?
Most dog treat businesses generate income primarily through the sale of their treats. The typical sales channels include direct-to-consumer through online stores, wholesale distribution to pet specialty stores, veterinarians, pet groomers, and farmer’s markets.
Profit margins vary based on ingredients, production methods, and sales channels, with premium and specialty treats generally commanding higher margins than basic treats. Most businesses price their products to achieve a 40-60% gross margin after accounting for ingredients, packaging, and production costs.
Additional revenue sources for pet treats businesses include:
- Subscription boxes: Monthly deliveries of assorted treats to regular customers
- Custom formulations: Creating specialized treats for pets with dietary restrictions or health conditions
Industry Statistics
Pet treats manufacturing falls under NAICS code 311111: Dog and Cat Food Manufacturing. This category includes businesses that produce food and treats for household pets. Here are some numbers that show what’s happening in the pet treats market:
Pet Treats Industry Size & Growth: The dog treat segment reached $4 billion in 2024, showing a 2.1% increase in dog treats from the previous year. The broader pet food and treats category hit $64.4 billion in 2023, a 10.8% increase from 2022. (Pet Food Processing). The industry is projected to grow by 9.53% annually through 2029 due to increased pet ownership and consumer interest in premium and natural treat options. (Mordor Intelligence)
Pet Treats Profit Margin: The average gross margin for small dog treat businesses often ranges from 40% – 60%. (Pack n’ Pride)
Startup Stories
Licensing for a Dog Treat Business
When making pet treats to sell, you’ll need several licenses and permits to operate legally. Let’s break down what you need:
FDA Requirements: The FDA oversees animal food safety regulations, requiring that all pet treats be safe for consumption, made in sanitary conditions, and accurately labeled. Pet treats must meet the same safety standards as human food products.
Learn more about the FDA’s pet food safety regulations.
State Permits: Each state has different rules through their Department of Agriculture regarding pet food sales. Many states require manufacturers to register their business and products, while others mandate specific licenses to sell treats within state boundaries.
Local Health Department: Local health departments often have additional regulations for food production facilities, even when operating from home. These vary by location and may include kitchen inspections or special permits.
Product Labeling: AAFCO provides guidelines for proper pet food labeling, which include:
- Name of the treat
- Weight or amount in the package
- List of ingredients
- Feeding instructions
- Your business name and address
- Nutritional information
The Association of American Feed Control Officials (AAFCO) has more information and a checklist for Model Pet Food Regulations and the Pet Food Labeling Checklist.
General Business Licenses: Beyond food-specific permits, pet treat businesses typically need:
- Business license from your city
- Sales tax permit to collect sales tax
- Tax ID number (also called an EIN) if you plan to hire employees
Before starting production, check with local, state, and federal authorities to ensure compliance with all regulations. A call to your local health department is a good place to start to learn about specific requirements in your area.
Costs To Start a Pet Treats Business
Starting a small pet treats business from home can cost between $500 and $10,000, depending on the scale of operations. This includes costs for basic equipment, initial ingredients, and required certifications.
There are several expenses involved in starting a pet treats business. Here are some of the more significant costs:
Equipment: Basic production equipment costs between $100 and $2,000. It typically includes mixing bowls, baking sheets, cooling racks, and airtight storage containers. Standard home ovens work well for small-batch production.
Initial Ingredients and Packaging: First orders of ingredients, packaging materials, and labels usually cost between $200 and $1,500. This covers raw materials like meats, grains, and preservatives, plus packaging supplies such as bags, boxes, and labels that comply with pet food regulations.
Food Safety Certification: Food safety programs and certifications cost between $100 and $2,000. This includes implementing quality control systems, obtaining necessary certifications, and setting up testing protocols.
Storage Solutions: Storage equipment ranges from $100 to $1,000. This covers food-grade storage containers, ingredient bins, and shelving units to keep ingredients and finished products organized and fresh.
These figures represent approximate costs based on industry averages, and actual expenses will vary.