“Pet cats” and “Suck dogs” Young people are becoming more and more keen on raising pets. On any social platform, the pet section is the main source of traffic. As more and more people keep pets, related industrial chains have also developed, from pet hospitals and pet grooming to food, toys, auxiliary tools, etc.
The "shit shoveling officer" money is the best to make!
The pet economy is “just busy but not profitable”!
There are two different views on the development of the "other economy". Is the pet market "really hot" or "false prosperity"?
Let’s first look at three sets of data
The market size is getting bigger and bigger
According to the "2022 China Pet Industry Market Prospects and Investment Research Forecast Report" recently released by the China Business Industry Research Institute, from 2016 to 2021, in five years, China The market size of the pet industry has doubled. Except for the impact of the epidemic in 2020, the annual growth rate of the market size has mostly remained above 10% since 2012. It is expected to reach 269.3 billion in 2022. (Data comes from the "2021 China Pet Industry White Paper")
Source: China Business Industry Research Institute
The number of related enterprise registrations has increased significantly
According to the data of Tianyancha , the current status is active, existing, moving in, moving out There are more than 1.8 million "pet" related companies, among which the number of newly registered companies in 2021 is 3.956 million, and the annual registration growth rate is 5103.3%.
Source: Tianyancha
More and more people are raising pets and they are willing to spend money
According to the "2021 China Pet Industry White Paper" produced by the Pet Industry Branch of the China Animal Husbandry Association and the Paidu Pet Industry Big Data Platform, my country's pet industry in 2021 The number of dogs and cats reached 368.44 million, an increase of 38.7% compared with 2020.
In 2021, the annual consumption of a single dog is 2,634 yuan, a year-on-year increase of 16.5%. The annual consumption of a single cat is 1,826 yuan, which is basically the same as in 2020. The proportion of high-spending pet owners whose average monthly consumption of staple food exceeds 3,500 yuan increased from 21.7% to 25%.
These three data illustrate: The pet market is developing rapidly, and more and more consumers are raising pets and they are willing to spend money.
In this case, it is reasonable for "it is economical" to be popular, but Why does say that the pet industry is "not profitable"?
The majority of pet consumption is the "primary industry"
The "three major industries" of the "other economy" industry chain are:
The "primary industry": the food industry , accounting for 51.5 of the pet market. %.
"Second industry": the medical industry , accounting for 29.2% of the pet market, second only to food.
" Tertiary industry ": The service industry includes pet foster care, pet grooming, pet weddings and funerals, etc., accounting for 12.8% of the pet market.
Cat food and dog food are in urgent need, and it is natural to dominate the market. However, from 2019 to 2021, the market share of food has declined (except nutritional products), and at the same time the share of the medical industry has increased. In fact, pet vaccines are also a necessity, but not everyone pays attention to them. At present, it seems that pet owners’ awareness of pet health has increased.
Current status of leading companies
According to the "2021 China Pet Industry TOP50 List" released by "Internet | Weekly Magazine", Zhongpet Shares, Petty Shares, Ruipeng Pet, and Boqi Pet ranked among the top 50 pet companies four.
Among the four companies, except Ruipeng Pet belongs to the "secondary industry", the other three belong to the "primary industry" , mainly engaged in pet food. This coincides with the situation above where the food industry accounts for the majority.
How is the development of leading companies in the "primary industry"?
01
Zhongchong Shares
Zhongchong Shares released its 2021 annual report this year. Its net profit decreased by 14.29% compared with the same period last year. 5%, the market value has increased from the highest to 12 billion has been cut in half to about 6 billion .
02
Petty Shares
The 2021 performance report released by Petty Shares shows that the net profit attributable to shareholders of listed companies is expected to be 60 million yuan - 90 million yuan, a year-on-year decrease of 47.75% - 21.62%.
03
Bochi Pets
Bochi Pets’ listing in 2020 attracted great attention. In April this year, Bochi Pets received a letter from the New York Stock Exchange, stating that its total market value and shareholder equity were low during the 30 trading days. At US$50 million, if it cannot meet the continued listing standards within 18 months after receiving the letter, will face the possibility of delisting.
No wonder some people ask: Is "it economy" really profitable?
What is it that limits the development of leading companies?
The "primary industry"
1
is highly competitive.
According to the survey results of the "White Paper", 40.5% of cat owners only buy foreign brands of cat staple food. In terms of brand usage, among the top ten brands in the dog staple food market, foreign brands account for 6 . In the cat staple food market, foreign brands account for the top three . Therefore, there is fierce competition between domestic and foreign pet food brands. Especially for some natural grains, prescription grains, etc., foreign brands have obvious competitive advantages.
In fact, not only pet food, but also in the medical market, 90% of the top ten most used anthelmintic drugs for dogs and cats are foreign brands.
2
The profit compression of the "OEM model"
Most of the domestic pet food started as OEM, that is, OEM for foreign brands, and OEM sales account for the majority of revenue. However, after being filtered by dealers, the profits of OEM sales are not high. Therefore, domestic brands have been working hard to develop their own brands, but the quality is uneven. Many domestic cat foods are called "poisonous cat foods", making domestic brands even less trustworthy. With low recognition, it is difficult to break the development status quo.
The "secondary industry"
In addition to the limited development of the "primary industry", the "secondary industry" also has serious uneven distribution of medical resources There are even many pet medical accidents and arbitrary charges chaos elephant. The "Pet Medical Industry Report" shows that there were 10,000-15,000 pet hospitals in the country in 2019, of which the number of large-scale chain hospitals accounted for less than 15%.
Similar to the "primary industry", the medical industry is also highly dependent on foreign imports.. However, unlike the food industry, the medical industry is relatively polarized, with leading companies taking advantage.
"Tertiary Industry"
"Tertiary Industry" The market size is small , but with the "Animal Epidemic Prevention Law" and other relevant regulations, animal carcasses must be disinfected before being buried. More and more people are willing to purchase professional funeral services such as cremation and cemetery after the death of their pet. The "tertiary industry" animal funeral market has huge development potential.
Some small pet shops sell pets at the same time. If they do not sell, the pet shop needs to feed and treat themselves. Coupled with the impact of the epidemic, rent costs and service costs have increased, causing many small pet shops to gradually withdraw. pet industry.
From the overall market situation, the market scale is constantly expanding. More and more people keep pets and are willing to spend money on them. Domestic brands are trying to seize market share through e-commerce channels, and the market share of local brands continues to rise.
my country's pet penetration rate (that is, the proportion of households with pets among all households) is still at a lower level compared with countries with more mature pet industries. I believe that the "other economy" will have greater development in the future. space!
However, as a consumer, you must make comprehensive judgments and consume rationally. While keeping a pet makes you happy, you must also consider your personal financial situation. All expenditure activities should be carried out within your own financial capacity as much as possible, and do not be "overdrawn" by pets. Life~
Source: Visa Cai knows
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