With the change in population structure, the craze of raising pets is coming! The pet food track is experiencing rapid consumption upgrades, and there is also a strong logic for the rise of domestic brands.
Pet food is a 100 billion market that many people ignore!
 iiMedia Consulting data shows that the scale of China’s pet food in 2021 will be approximately 155.4 billion yuan, and the scale of the pet food industry is expected to reach 173.2 billion yuan in 2022. The
pet food track has quietly emerged, and the core driving force is the change in demographic structure.
From the perspective of changes in the demographic structure, the aging of the population and the declining birthrate trend brought about by the family planning policy will make the group of " empty nesters " grow larger and larger. Due to the lack of companionship of their children, pets have become their emotions. sustenance.
At the same time, as the pressure of urban life increases and the concept of marriage and love changes, the trend of late marriage and childbearing among the new generation of young people has become increasingly obvious. After work, pets can provide them with spiritual companionship and spiritual comfort.
Due to the intertwining of these factors, the craze for raising pets is coming.
At present, the main pet owners in my country are young people. However, judging from Japan’s experience, the trend of pet owners starts from the need for companionship. The elderly in Japan account for the largest proportion of pet owners. In the future, the trend of pet owners among young people in my country will be Continuing, the left-behind elderly people will also join the army of pet owners, thus further increasing the penetration rate of pet families .
The status of the pet will also increase!
The improvement of pet status has led to a rapid consumption upgrade of pet food!
I also had pets at home when I was a child, but it didn’t cost much to raise pets back then. They ate only leftovers and lived in paper cages. I almost never bought anything specifically for pets.
But things are different now. According to the "2020 Pet Industry White Paper", nearly 60% of people regard pets as their children, and nearly 30% of people regard pets as relatives.
Since pets have been upgraded to children and relatives, of course they cannot eat leftovers and live in a broken house. Nowadays, raising pets is about scientific pet raising. Different foods should be selected according to different pet species, different life stages, and different health levels. According to the formula, pets eat both staple food and specialized pet snacks.
Do you think this is the end? No, this is far from it! Pet food can continue to be upgraded. Have you ever heard of natural food? Pet food products based on raw materials derived from natural animals and plants without artificial chemicals. Healthier, but of course more expensive!
There is something even more powerful, have you heard of functional food for cats and dogs? Pet food products developed for pet diseases, pet health, appearance management and other functions.
So you see, this is the consumption upgrade of pet food!
The rise of domestic brands!
There is another logic in China’s pet food market, which is the rise of domestic brands! When the
industry first started, the domestic industry had no accumulation in this area, so it was completely crushed by foreign brands. Mars and Nestlé , which were the first to enter the Chinese market, once occupied a fairly high domestic market share.
However, Chinese companies are also very capable of learning. With the rise of domestic brands, the market share of foreign companies has shrunk. Mars' market share dropped from 17.6% in 2014 to 11.4% in 2019, and Nestlé's market share dropped from 5.7% in 2014 to 2.2% in 2019.
There are two main reasons for the shrinkage of foreign investment: First, the policy restricts the import of pet food, resulting in unstable import supply; second, it is difficult for foreign companies to grasp the rapidly changing Chinese market. Our country’s channels have experienced from offline to online and then to multiple Due to changes in traffic platforms, online channels currently account for more than half of pet food sales, and marketing methods are also diverse, while overseas channels are dominated by offline channels. Secondly, China's consumer profiles are also more diverse and changing rapidly.
To sum up, China’s pet food market has a large space for growth, a fast growth rate, and fierce competition within the industry. However, there is a strong logic for the rise of domestic products, and we are optimistic about the domestic pet food track leader.
Leading listed companies include: Zhong Chong Shares, Petty Shares
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