The rapid development of the pet economy has attracted a growing number of enterprises to join. According to Tianyancha’s data, a search platform for industrial and commercial information, China saw more than 560,000 new pet-related enterprises registered by the end of August. The number is expected to reach a record high at the end of this year.
According to the White Paper on China’s Pet Industry in 2021, which was instructed under the Pet Industry Branch of China Animal Husbandry Association, pet food accounts for 51.5% market share, and it is the largest segment of the pet industry. With steady demand, and high purchase and repurchase frequency, pet food has become the most important market in the industry.
In this context, Yili Holding, Ecolovo Foods, and other enterprises actively seek routes to cross the border and enter the market of pet food. In May, Yili Holding made its market entry by announcing it will release customized pet food this year. Ecolovo Foods and Shuaike Pet Products have carried out in-depth strategic cooperation in raw material procurement, raw material rough processing, and pet food R&D. The latter has launched an IPO after success in financing.
After making huge efforts, domestic pet brands are attracting more consumers, with 40% of pet owners who tend to choose domestic products, especially natural grain and canned staple food. Meituan flash sales data show that in the first half of this year, pet staple food consumption of domestic brands accounted for 60% of sales. Domestic pet food hopes to achieve an overall upgrade through its quality products and cost-effectiveness. Kurun data show that through strengthening the positioning by more specifically defining the brand’s targeted customer, domestic pet food brands are seeking differential development in target groups, brand marketing, and long-term planning to compete for the share in the blue sea market. In the future, domestic pet food will level up via product innovation, formula development, marketing, and promotion.
