China's pet food industry is developing rapidly. Staple food account for 75% of the pet food market. With the continuous expansion of the market size of the pet-related industry and the upgrading of consumers' scientific pet-keeping ideas, both the brands and categories of the staple food industry are upgrading. Based on product forms and functions, the staple food for pets has four development stages and it's now in stage 2.0 in China.
Penetration rates of families with pets and pet food affect the market size of the pet food industry. The pet food market in China has reached 133.7 billion yuan, of which cat food market and dog food market reached 52.7 billion yuan and 66.7 billion yuan, respectively . It is expected that by 2025 the pet food market size will reach around 241.7 billion yuan.
Due to the adjustment of dog management regulations, the pandemic prevention and control methods as well as other objective factors, the number of dogs is expected to experience negative growth in 2021. Since cats can be kept at home, they have a growth rate than dogs . The monthly spending on cats is also than that on dogs, and the gap is expected to be larger and larger.
Thanks to their constantly improving product power, brand power, and supply channels, Chinese domestic companies are increasingly competitive. iResearch has found the key elements for Chinese brands' fast growth and analyzed the outstanding companies.
Due to their production area, channel strategy, R&D investment and leading categories, overseas brands have their unique product advantages. Thanks to their historical accumulation and long-term deep cultivation of the Chinese market, foreign brands have formed brand power to carry out international operations.
Foreign brands have developed for a long time in the Chinese market and Chinese domestic brands are catching up.
Market Size and Forecast of the Pet Food Industry in China
The Chinese pet food industry is developing quickly.
Chinese people are increasingly willing to keep pets. More and more Chinese are regarding pets as their family members, friends, and partners.
In 2021 39.1% of families in the first and second-tier cities have pets. The number of pets has increased.
As the staple food for pets is developing from stage 2.0, pet food, to stage 3.0, natural food, pet owners are increasingly willing to buy pet food. With rising awareness and changing market stages, more money is spent on pet food. The rising number of pets, together with the increasing pet food consumption amount, contributes to the growth of the pet food market.
Market Size and Forecast of the Pet Food Industry in China
The popularization of scientific pet keeping drives the development of the nourishment market
As more pet owners learn to keep pets in a scientific way, they have a deeper understanding of the nutrition needed by their pets. They gradually learn about and accept nourishment, which is a daily consumer good. The nourishment can satisfy pets' daily nutritional needs while preventing diseases. The CAGR of the nourishment market is expected to be 22% from 2021 to 2025, while the CAGR of the pet food market will be only 16% during the same period of time. The penetration of nourishment is expected to keep growing and its market size will hit 34.8 billion yuan in 2025.
The CAGR of the pet snack market is expected to be lower than that of the nourishment market. Without clear product classification standards and diverse product forms, pet snack, which is consumer discretionary, is easy to be replaced by staple food and nourishment. It is expected that the CAGR of the pet snack market from 2021 to 2025 will be 6% and the pet snack market size will hit 21.8 billion yuan in 2025.
Brands in the Pet Food Industry
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Source: IResearch Global