Competitive pattern

Under the background of foreign brands, domestic brands are rising rapidly

Foreign brands dominate the pet food industry with strong brand influence, while excellent domestic brands take the lead in breaking through the e-commerce channel. According to the data of China's pet White Paper, the market size of China's pet industry reached 134 billion yuan in 2017, and the average annual compound growth rate from 2008 to 2017 was about 40%.

The prevalence of pet economy has also promoted the development of China's pet food industry, the market size of China's pet food industry from 2010 to 2015 increased from 9 billion yuan to about 35 billion yuan, the market size of pet snacks increased from 1.4 billion yuan to about 6.3 billion yuan.

From the perspective of competition pattern, the competition pattern of China's pet staple food market is still dominated by brand competition, and foreign brands represented by the Royal Family still occupy a dominant position. Many domestic brands gradually seek to break through the e-commerce channels and build their own brand influence by constantly improving the product quality of staple food. China's pet snack market is in a period of rapid introduction, the overall competitive pattern is relatively dispersed, excellent domestic brands have been gradually distinguished by innovative business concepts and good product cost performance.

Development trend

Under the background of consumption upgrading, the industry will maintain rapid development

The consumption upgrade represents the long-term development trend of the pet food industry, and the core reason for the consumption upgrade of pet food is the pursuit of health.

First of all, from the perspective of the consumption upgrade path of "ordinary staple food - medium and high-end staple food - customized staple food", pet staple food products are increasingly diversified and personalized, and the pursuit of health is a key factor in the consumption upgrade of staple food.

At present, the market penetration rate of pet staple food in China is about 20%, while the penetration rate of pet staple food in developed countries such as Europe and the United States is more than 95%. We believe that the vigorous development of e-commerce channels and the sinking of terminal demand channels will promote the rapid growth of pet staple food market.

At the same time, the rise of the cat economy has also become a new engine for the pet industry, and the consumption of cat owners pays more attention to health, considering product quality and the pursuit of personalization, which is also expected to promote the rapid development of the pet food industry.

Secondly, the core reason for the rapid growth of the pet snack market is that pet owners hope that their pets can live in better quality, so as to further increase the emotional communication between them. Currently, China's pet snack market is in a period of rapid introduction, and the rapid growth of the pet snack market is in line with the consumption upgrade path of pet food. With the improvement of the consumption power of pet families and the change of consumption habits, the popularity rate of pet snacks will be further improved, and the overall market has broad prospects for development.