Freshpet surpasses US$1B in annual sales as margins improve

USA – Freshpet, the frozen pet food company, crossed a major milestone in 2025 by reporting more than US$1 billion in net sales, with revenue rising 13 per cent to $1.1 billion from US$975 million the year before, driven mainly by a 12 per cent increase in sales volumes and a modest one per cent boost from pricing and product mix.

The company sold more products, reflecting broader distribution, higher household penetration and continued demand for fresh refrigerated pet food. Price and product mix contributed an additional 1.0 per cent, showing that modest pricing actions and product choices also supported revenue growth.

In the fourth quarter alone, net sales rose 8.6 per cent to US$285.2 million, up from US$262.7 million a year earlier. Volume gains of 9.7 per cent were partially offset by a 1.1 per cent decline in price and mix, suggesting promotional activity or changes in product assortment during the period.

While the company does not break down sales by product in this release, dog food remains Freshpet’s core category and the primary driver of revenue.

Growth continued to outpace the broader dog food segment, supported by expanded retail distribution and marketing efforts to attract new households. E-commerce also contributed to the company’s further momentum online.

Profitability improved alongside revenue. Gross profit increased to US$123.5 million, representing 43.3 per cent of net sales, compared with US$111.6 million or 42.5 per cent in the prior year. 

The higher margin was mainly due to lower quality-related costs and better absorption of plant expenses as production volumes increased. Higher input costs, such as ingredients and materials, partially offset these gains.

Chief executive Billy Cyr said 2025 tested the business’s resilience but highlighted that the company delivered growth well above the dog food category and surpassed US$1 billion in net sales for the first time. 

He added that Freshpet reworked its marketing model to attract more households, expanded e-commerce, tested new island fridges to improve in-store visibility and launched a manufacturing line using new technology designed to enhance product quality and profitability.

For 2026, Freshpet expects net sales growth of 7 to 10 per cent. The company plans to achieve this through deeper retail penetration, continued investment in brand awareness, further e-commerce expansion and efficiency gains from its upgraded manufacturing capabilities.

Freshpet earns Clean Label Project certification

In February 2026, Freshpet became the first dog food brand to receive certification from the Clean Label Project, an independent organisation that tests consumer products for contaminants and evaluates ingredient transparency.

The certification is awarded following laboratory testing for heavy metals, pesticide residues and plasticisers, as well as a review of sourcing and manufacturing practices. By meeting these standards, Freshpet demonstrated that its recipes comply with strict benchmarks for purity and ingredient integrity.

The recognition strengthens the company’s position in the premium pet food segment, where consumers increasingly demand transparency and clean ingredient labels. It also aligns with Freshpet’s brand strategy, which focuses on fresh, minimally processed recipes and clear communication about sourcing.

Becoming the first dog food brand to secure this certification provides Freshpet with a competitive advantage, reinforcing consumer trust at a time when scrutiny of pet food quality and safety continues to grow.

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