From home-raising animals to cute pets, after thousands of years of development, the domestic pet market has finally ushered in a development trend.
Pet products bring new opportunities with the increase of market size
With the growth of per capita GDP and the improvement of people’s living standards, the pet market will also grow. In addition, the proportion of unmarried and infertile young people in modern times is high, and pet supplies have gradually become a necessity. Pets are not only simple to raise, but also a spiritual companion, which is a very good trend. Of course, with the increase of market size, profit margins will also decrease.
In 2018, the number of cats and dogs in China has reached 90 million, and the overall pet market size has reached 170 billion. In this process, the online pet channel has developed rapidly against the background of the rise of e-commerce, and a number of online pet food and product brands have been born, such as Biruiji and Nike, which are staple foods, Century egg and small pelts, and Weishi, which are health products. Online channels account for nearly 40% of the entire pet product market, forming a unique feature of pet channels in China.
At the same time, the offline market, especially professional channels (pet stores), remains the main sales channel for the pet industry. However, compared to the smooth sailing of online channels, the development of domestic pet offline channels is much more tortuous.
The offline pet chain PetSmart in the United States has a market share of 38%, and the second place Petco also has a market share of 24%. However, both the once famous “pet bear” and some projects that are currently attracting capital attention in China are still in the early stages of development.
Due to differences in living environment (domestic apartments/domestic housing), shopping habits (e-commerce and offline), and development stage (primary stage vs. mature stage), domestic pet stores cannot completely copy foreign models and need to explore their own unique models.
Pet cleaning and care in China: supply chain standardization, domestic brands are expected to dominate
As a daily and high demand category, the domestic pet cleaning and care market has also been rapidly developing.
According to consulting data, the retail sales of pet care products in China have increased from 3.1 billion yuan in 2015 to 6.9 billion yuan in 2019, and are expected to reach 15.6 billion yuan in 2024. The compound annual growth rates from 2015 to 2019 and from 2019 to 2024 are 22.0% and 17.8%, respectively.
Pet Supplements Take Off
At the same time, the pet cleaning and care category can also achieve supply chain standardization. For example, the most important cat litter is essential for every “cat owner”.
In addition to slight differences in formula, shampoo and disinfectant products used for pets also completely overlap with human grooming products in the supply chain.
Therefore, the standardization and scaling of the industrial chain have laid the foundation for the rapid development of pet cleaning and care categories.
Thanks to the rise of China-Chic’s national spirit and the continuous expansion of the market, many pet keepers have gradually changed their stereotype of domestic pet brands, and domestic brands in the pet cleaning and care market have also begun to accelerate their rise.
According to the front-line data of daily chemicals, the top 10 brands of cat and dog shampoo bath liquid and pet perfume/deodorant on Alibaba platform in 2020 are mainly domestic brands.
New Product Categories Emerge
The pet industry has traditionally been made up of handful of product categories:
- Food
- Toys
- Beds
- Leashes
- Hygiene
- Pet grooming
But we’re starting to see significant amounts of innovation in pet product R&D.
Specifically, entrepreneurs aren’t simply launching variations of existing products. They’re creating entirely new pet care product categories.
I believe that in the future, the manufacturing industry will continue to increase investment and development efforts in the pet supplies industry, and more and more pet supplies will appear in the market, providing better services for many pet lovers.
In recent years, with the improvement of the living standard of the people all over the country, more and more people have begun to pay attention to spiritual companionship, followed by the birth and development of a new economy, the pet economy.
From the birth, aging, illness, and death of the pet army, the pet supplies industry encompasses the entire process, including pet videos, pet grooming, pet care, pet training, pet decoration, etc., which can be said to have a bright future. In the topic, pets no longer carry the role of simple companions, they have joined the complete industry chain of the market economy.
Moreover, with the development of time, it has continuously extended to various fields of manufacturing and servers. In the future, perhaps the pet industry will become one of the hottest emerging industries in China.
