General

According to the Huacheng Import and Export Data Observation Report, this year's "Double 11", JD, Tmall, Vipshop and other platform data show that the sales of pet products have exploded, confirming the strong rise of the "other economy".

Many analysts said that with the refinement and scientization of consumer pet care, the competition point of the 100 billion level blue ocean market of China's pet industry has arrived. At present, the market pattern is changing rapidly and is in a period of rapid development, and domestic leading brands are expected to emerge.

This year, the number of pet families in China will exceed 100 million

In the morning of November 13, Li Jia, a citizen of Shenzhen, received the smart cat litter basin snapped up by the "Double 11". She published her "Double 11" list of goods to be received: cat food, cans, cat litter, cat climbing frames, etc. accounted for more than half of the total. She said: "After raising cats, I found that there were so many supporting products, such as fish oil and cat grass."

According to JD data, after the opening of the "peak 28 hours" at 8:00 p.m. on November 10 this year, the new Chinese brand of pet freeze-dried food continued to grow by more than five times year-on-year, and the turnover of the pet drug brand Puant flagship store grew by more than six times year-on-year. However, the war report at the beginning of the "Double 11" of JD Pets since 20:00 on October 31 showed that the turnover of JD Pets in the first four hours exceeded the record of 28 hours in the same period. According to the data released by Vipshop on November 12, the sales of pet staple food increased by 94% year on year, the sales of pet immune products increased by 115% year on year, and the sales of pet insect repellent and pet medical care increased by more than 80% year on year. Tmall's war report calls pet category, fashion play, outdoor sports and jewelry category as the "new four king kong", which corresponds to the "old four king kong" beauty, fast disappear, consumer electronic products and clothing.

Xue Xue, President of Taobao Tmall's Industrial Development and Operation Center, said: "It can be clearly observed that the changes in consumer lifestyle and consumption habits have led to the rapid growth of the new consumption track."

The popularity of "its economy" can also be seen from the new changes in e-commerce platforms. JD Double 11 has launched a new "service butler" product, and the first launch is to support the service butler. This product covers pet feeding, training, daily interaction, disease and prevention, beauty cleaning, outdoor sports, foster care, etc.

According to JD's White Paper on Trend Insight of China's Pet Industry in 2022, the number of pet families in China will reach 91.47 million in 2021, and it is estimated that this year, the number of pet families in China will exceed 100 million. According to the report from Crow Rui, among the urban pet raising population, the "post-90s" and "post-95s" have the fastest growth, accounting for 46% in 2021. Huacheng Import and Export Data Observation Report.

According to the observation of Huacheng import and export data, the penetration rate of pets in Chinese households is about 20% at present, while in the United States, Australia, Britain and Japan it is as high as 68%, 62%, 45% and 38% respectively. Bao Yuezhong, a special researcher of the Economic and Social Network E-Commerce Research Center and the chairman of Baum Enterprise Management Consulting Co., Ltd., said, "Compared with the pet market in developed countries, the number of pets per capita in China is still relatively small, and there is relatively large room for development in the future. With China's economic development and consumption upgrading, the pet market will continue to grow rapidly."

The development of domestic brands of pet track accelerated

These furry animals are also truly "gold swallowing animals". According to the Huacheng Import and Export Data Observation Report, from 2017 to 2021, the scale of China's pet economy will nearly double, approaching the 400 billion yuan mark. It is estimated that this scale will reach 493.6 billion yuan in 2022, with a year-on-year growth of 25.2%, and will increase to 811.4 billion yuan by 2025.

The supply chain of pet industry is divided into upstream, middle and downstream. The upstream is the pet breeding and selling market, which is lack of large-scale business institutions. Middle reaches are all kinds of pet products, including pet staple food, pet snacks, pet supplies and pet toys. The downstream provides pet services, including pet medical care, pet beauty, pet insurance, etc.

According to the data released by the Pet Industry Branch of China Animal Husbandry Association, in the pet industry, the food industry accounts for 51.5% of the market, the medical industry accounts for 29.2% of the market, and the service industry, including pet foster care and pet beauty, accounts for 12.8% of the market.

At present, there are many pet concept listed companies in A-share, including Petit, Zhongchong, Luce, Yuanfei pets in pet food track, etc. In the first three quarters of 2022, the above companies achieved growth in net profit attributable to the parent company.

At the same time, a number of IPO companies are on the way. The companies that have passed the meeting include Tianyuan Pets and Guaibao Pets, among which, Tianyuan Pets has disclosed the results of its initial public offering of shares and lottery on the GEM on November 11. In addition, Forbes Pet rushed to the main board of Shanghai Stock Exchange and is still in the process of listing; Shueke Pet completed the pre IPO round of financing of 500 million yuan in May this year, and completed the share reform in August, entering the substantive stage of listing preparation.

According to the observation report of Huacheng import and export data, the total financing amount of pet track in China in 2021 will exceed 3.62 billion yuan, with 57 financing cases. According to Xingkuang data, since 2022, there have been 32 domestic pet related enterprises, involving pet food, supplies, services, medical care and other aspects.

According to the monitoring data of Dianshubao under NetEase and Economics, from October 2019 to October 2022, there were 15 investment and financing events in the domestic pet e-commerce field, with the total financing amount exceeding 1.39 billion yuan.

Meng Xin, an analyst with Guosheng Securities, said: "Compared with the mature overseas market, the opportunity of China's pet industry lies in: first, the high growth of the industry is sustainable, and second, the domestic substitution space is broad. Overseas giants temporarily lead by relying on the first mover advantage. Domestic brands have developed rapidly in recent years, and important market segments such as food and animal protection are expected to rise."

President of Pet Industry Branch of China Animal Husbandry Association Liu Lang, secretary-general of Beijing Small Animal Diagnosis and Treatment Industry Association, said: "The pet industry in China is developing rapidly, and the topic about pets has become a traffic topic in people's daily life. But behind the rapid development, there are new challenges. The main reason is that the investment in the pet industry is relatively concentrated, which, like other domestic industries, may experience a painful period. When the industry is highly integrated, China's pet industry will develop more steadily."