White Paper on China's Pet Consumption Trend in 2021
Industry scale and growth: In 2020, the market size of China's pet industry will be close to 300 billion yuan. Driven by policy, economic, social and technical factors, as well as more potential pet feeding groups and emotional consumption brought by the epidemic, the industry will continue to maintain a steady growth in the next three years, with a compound growth rate of 14.2%. By 2023, the scale will reach 445.6 billion yuan.
Pet characteristics.
Description of pet owners: In the new era, married families have stepped into the mainstream of pet rearing. They give pets emotional roles, pursue healthy and happy pet rearing, and show a trend of intelligent pet rearing. The epidemic has promoted more young people to become cat owners, and the new cat owners are more mature in refining their pet care concept.
Pet consumption hot spots: With the deepening of the trend of refined pet care, pet consumption categories are increasingly rich. Pet snacks also provide more choices for pet owners; The safety and convenient design of products are concerned, and intelligence and appearance become the trend.
Industry trend outlook: The cat economy is rising, and the cat owner's consumption is growing strongly; The improvement of the quality of Chinese goods and the trend of rational care will promote the popularity of Chinese goods; The sinking of pet raising will become a new opportunity for the increase of pet industry; The online pet medical model will become an important supplement to offline medical care; The demand for pet services is diversified; The omni channel operation mode will become a strategic channel for future development and expansion of merchants.
Market size of pet industry
The scale of the industry will approach 300 billion yuan in 2020, and it will maintain stable growth in the next three years
With the increase of residents' income and the continuous expansion of pet raising population in China, the types of goods and services related to pet consumption are increasingly rich, and the scale of domestic pet industry is expanding rapidly. The scale of China's urban pet market will approach 300 billion yuan in 2020, and the compound growth rate will reach 32.8% in the six years from 2015 to 2020. With the continuous improvement of pet family penetration and industry maturity, the pet industry will continue to grow steadily. IResearch predicts that the compound growth rate of China's pet industry will be 14.2% in the next three years, and the scale will reach 445.6 billion yuan by 2023.
Driving factors of pet industry development (PEST analysis)
Policy norms, economic development, demographic changes and technological progress jointly promote the development of the industry
The introduction of national normative documents and pet raising related policies/regulations has promoted the standardized development of the pet industry. With the improvement of residents' income and consumption concept, the emphasis on quality of life and emotional consumption will promote the diversified development of pet industry consumption. With the change of population structure and the increase of empty nest elderly and empty nest youth, more and more people place their desire for companionship on pets. At the same time, the progress of new media technology and the outbreak of social media such as short videos have driven the development of "Cloud Pet Attraction", bringing more market scale and potential consumers to the pet industry.
Affected by the epidemic, pet consumption accelerated to online transfer
Affected by the epidemic, the increase of pet company time drives the growth of overall pet consumption, and pet owners pay more attention to pet health
The epidemic accelerated the expansion of online "cloud attracting pet" population, and cultivated more new potential consumers for the industry. At the same time, under the influence of the epidemic, the offline physical store customer flow decreased, but the upgrading trend and consumption intention of consumers are still there, more consumers are transferred to online, and the sales of e-commerce platforms are growing rapidly.
The pet types are mainly dogs and cats, with diversified types
70% of dog breeds and more than half of cat breeds, with a trend of multi breed breeding
Aquatic animals account for 16%, which is the number one choice among non dog and cat pets. Birds, reptiles and rabbits account for 9% of the pets. Rodents and amphibians are relatively rare, accounting for 6% and 4% respectively.
Pet portrait: dog
Dogs have a higher proportion of exclusive pets, mainly large dogs, and small dogs are popular among VIP/Teddy
The average number of dogs in dog households is 1.2. The "only dog" accounts for 88%, the average age is 2.7 years old, the male proportion is high, and the proportion of non sterilization is as high as 26%.
Large dogs are still the mainstream, mainly huskies and golden retrievers. At the same time, influenced by the breeding regulations and living environment of large dogs, small dogs have become the choice of dog lovers, among which the proportion of poodles/teddy dogs is higher than huskies.
Pet portrait: cat
The average age of cats is younger than that of dogs, and the number of Chinese rural cats in the breed is the highest
The Chinese rural cats are loved by Chinese people because of their good physique, less genetic diseases and high face value, among which orange cats and white cats have a higher proportion of breeding. The non sterilization rate of cats is 15%, which is lower than that of dogs. Cats receive more care.
The new generation of married families advanced to the mainstream population
The proportion of pet owners after 1985 reached 74%
The proportion of female pet owners is higher. The percentage of pet owners with bachelor's degree is more than 70%, and the percentage of pet owners with monthly household income of more than 1.5w is 72%.
The compound motivation of emotion and function to pamper
Pets are given more emotional roles to accompany their owners and add interest
The average number of pet owners' motives is 3.4. Ninety percent of pet owners keep pets out of emotional motives such as adding interest, decompressing, and relieving loneliness. The heavy work continues to squeeze the life of modern people. Pets can bring more happiness to people and help modern people relieve stress and loneliness. Most pet characters are friends and family with accompanying function. Twenty percent of pet owners regard pets as children and cultivate love through parenting relationship similar to that of parents and children
The concept of pampering health, happiness and hygiene rank top 3
Nearly 20% of pet owners began to take advantage of the new technology "intelligent pet care"
It is precisely out of emotional and companionship motives that pet owners pursue health, happiness and companionship. At the same time, affected by the epidemic in 2020, pet owners will pay more attention to health and hygiene issues.
Consumption demand and behavior characteristics of main categories of pets
The characteristics of refined pet care appear
Natural grain and organic grain are popular, with diversified functional requirements
As the basic staple food, general grain ranks third, and canned staple food is also favored.
Pet owners pay attention to the multiple functions of staple food, strengthening immunity, gastrointestinal conditioning, calcium supplementation, skin care and hair beauty. The diversification of functional requirements for staple food shows that pet owners' pet care needs vary greatly, and the characteristics of refined pet care begin to appear.
Major grain brands are highly concerned and have strict requirements on product quality
Pet owners pay attention to the brand/origin, the brand of the product, whether it is imported or domestic; It also pays attention to quality safety, product quality, authenticity, safety and trustworthiness; At the same time, pay attention to the cost performance, whether the products are cost-effective and affordable, and the rationalization of pet giving more opportunities to domestic brands and e-commerce platforms with high cost performance.
Refined pet care promotes high-frequency purchase of pet snacks
The channel mainly relies on online
The purchase frequency of snacks is higher than that of staple food, with 35% of them being purchased 2-3 times a month, 27% higher than that of staple food; The unplanned purchase of snacks is also higher than that of staple food. 6% of snacks are compared with 3% of staple food, which means more impulsive consumption.
More attention is paid to the quality and cost performance of pet snacks
Care about nutrition, packaging specifications and freshness
In terms of nutritional ingredients, there are many kinds of meat, including chicken, beef, duck, fish, etc; For snacks, we pay more attention to the packaging specification and whether the weight is moderate; At the same time, they also pay more attention to the efficacy of the product, such as regulating the intestines and stomach, targeting picky food and grinding teeth; The focus on pet snack brands is weaker than that on staple foods.
Pet products: intelligent, safe and convenient
Daily consumption and beauty washing are high, belonging to high-frequency consumption
Pet travel supplies are mostly durable consumer goods, and the purchase frequency is relatively low.
Compared with the general pet products, pet products attract more attention from consumers in terms of product intelligent technology attribute, product safety and product design convenience. Smart products meet the needs of pet owners to save time and effort.
Pet products are also favored by pet owners
In addition to quality and function, the appearance and design convenience are also highly commented
When pet owners buy pet products, they still look at the beauty of their faces. In the hot reviews, it is more mentioned that the products have beautiful packaging, appearance and color; Pet cages, cat litter basins, drinking fountains and other supplies need to be easy to install and clean, and the comments are highly concerned.
Prospect of hot trends in pet industry
The rise of the cat economy and the refinement of cat raising promote the development of the industry
Time cost, feeding cost, living space and urbanization process boost cat economy
The number of cats has increased faster, with more new cat owners (23% vs 16%);
Cats are more refined, cat owners buy more goods for their pets, and the penetration rate of daily use and toy categories is significantly higher than that of dog owners for the corresponding categories; Cat owners also choose more refined and diversified food for their pets. Cat owners buy more canned food and freeze-dried food, while dog owners prefer to buy general food.
"Cat" has a large public opinion volume and high attention
3.15 million "cat" messages and 1.76 million "dog" messages
Pet owners are open to domestic brands in all pet categories, and their preference for domestic brands is higher than that of imported brands
For each sub category of pet products, the proportion of consumers who prefer to buy domestic products or only domestic products is higher than that of staple food and snacks.
In terms of pet products, domestic brands are favored by pet owners because of their high cost performance and better understanding of the needs of Chinese pet owners. Consumers pay relatively little attention to the brand when purchasing aquarium and exotic products. Low tier cities have a higher preference for domestic brands, especially in the categories of staple food, snacks, cats and dogs, and cosmetics.
Benefiting from the rationalization of pet care, domestic brands are ready to develop
Domestic pet products have become the choice of rational pet keepers by virtue of cost performance and high quality
With the entry of capital and the influx of foreign high-quality brands, orderly competition in the domestic market has been stimulated and domestic brands have been promoted to thrive. The high cost performance and good quality of domestic products can meet the needs of pet owners, and more and more rational pet keepers will choose them. The psychology of Chinese people to support domestic products also contributes to the rise of domestic products. In addition, the market sinking trend has brought more growth space to domestic brands. In addition, the period of validity of imported brands and the stability of supply also give more development opportunities to domestic brands.
Subsidence of pampered people becomes a new opportunity for industry increment
The penetration rate of household pet raising and pet category consumption in low tier cities has room to increase, and the consumption potential is worth looking forward to
With the development of China's urbanization process, the awareness of low line consumers to support pets has been further enhanced. The penetration rate of family support in low line cities from the third to fifth line has reached 12.3%, but there is still a certain gap with the high line cities (39.1%) represented by the first line, new first line and second line cities. With the further improvement of the penetration rate of family support, the population of low line pet support will also increase.
Online medicine will become an important supplement to offline pet medicine
The development prospect of online purchase/offline use and remote consultation is promising
The overall penetration rate of online medical services is still low, and the service form of online purchase and offline use is more experienced, mainly focusing on vaccines. In the future, preventive medicine can be made into standardized products for online purchase and offline use; Online diagnosis and treatment (remote diagnosis and treatment) has a low penetration rate at present, but the use intention in the future ranks second. With the gradual improvement of Internet medicine, online diagnosis and treatment, as an important offline drainage method, will have a lot of room for development in the future.
Users' demand for pet services is diversified
Pet service consumption is frequent, and the form and content are constantly refined and innovated
With the increase of pet owners' income and consumption, pet owners' demand for pet services continues to increase. From the perspective of purchase penetration rate, the penetration rate of pet service purchase is close to 60%. From the perspective of purchase frequency, it is 3.3 times per quarter, with an average of 1 time per month+, closely following the food category just needed. In the future, with the further development of pet owner pet care refinement, there will be more anthropomorphic pet services.
The omni channel model of pet commodity sales is the trend
The omni channel operation mode is the strategic channel for the development and expansion of brand sales scale
The ideal channel mode for pet food product manufacturers/agents is to "make brands offline and win sales online". Online can surmount regional barriers and let products face more consumers directly. For small brands and some import agent brands, e-commerce provides them with the opportunity to quickly reach consumers.
Pet shops and pet hospitals, which mainly provide pet life services and medical services, are also exploring an omni channel development mode. They are attracting customers offline, developing their own small programs to drain online, and then promoting pet food, supplies and service cards to members online. Online service cards, vaccines, and online consultations need to enter offline stores to achieve services, and then drain online to offline again.