Hot trends in pet food industry
With the deepening of the trend of refined pet care, pet consumption categories are increasingly rich. Natural grain and organic grain are favored; Pet snacks also provide more choices for pet owners; As well as the rise of cat economy, the consumption of cat owners 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.
Pet food is a relatively large industry in the pet economy. Domestic pet food brands have developed rapidly, and the concentration ratio needs to be further improved. Pet food is just needed by pets, which is a category of high consumption in China's pet industry. In 2020, the market share of pet food (staple food+snacks) will reach 53.7%, and that of pet products will only be 13.6%.
The pet food market in China was previously controlled by Mars and Nestle. However, with the development of domestic brands, Mars and Nestle will only account for 11.4% and 2.2% of the top 10 pet food brands respectively in 2020, and the other eight brands are domestic brands, accounting for 17.5% in total.
Main consumption of pets
Pet staple food is a relatively large and just needed category in the industry. More than 80% of users buy staple food twice or more a quarter.
Pet food includes staple food, snacks and nutriments, among which staple food is a large category of just needed food. As a tool to soothe pets' emotions, reward pets, and communicate emotions between pet owners and pets, pet snacks are popular with pet owners, especially to meet the needs of cat owners. Nutritional products meet the needs of consumption upgrading as a supplement to pet food.
The characteristics of refined feeding show that natural grains and organic grains are favored, and the functional requirements are diversified; 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, focusing on strengthening immunity, gastrointestinal conditioning, calcium supplementation and skin and hair care. 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.
The growth rate of imported high-end grain is eye-catching, and the rise of domestic brands
The competition in China's pet food market is fierce. International brands (including foreign enterprises in China and foreign purely imported brands) dominate the pet food market. In 2020, JD's top 10 pet staple food brands will take up 57.8% of the total, including 42.9% international brands and 3 seats for domestic brands; The growth of high-end pure food rations was eye-catching, and the sales of Longing, GO and Aikentake in JD increased 1-2 times; Maifudi's dual grain, which is positioned at the middle and low end, is popular with new pet owners. JD's sales increased by 68.6% year on year
The selection and purchase of pet snacks pay more attention to the quality and cost performance, pay more attention to the nutritional components, packaging specifications, and be fresh
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.
The annual expenditure on pet staple food and snacks has increased. "Eating better" is the main concern of pet owners. Whether it is market share or growth rate, pet staple food takes the lead in various performances. The food track is still the home of the pet industry.
At present, there are two A-share listed companies in the pet food industry: Zhongchong Shares and Petty Shares, which are the first two listed companies in the pet food industry. Both started with overseas pet food brands. At present, Zhongchong is doing better in its own brand, covering two categories of pet snacks and staple foods. Petty mainly sells pet chews and other snacks.
The unlisted head pet food company has also gained the attention of many capitals. Guaibao Group (brand McFudi), Crazy Dog, Douchai Pet, Fubei Pet Food, etc. have successively obtained investment from well-known investment institutions including KKR, Shenzhen Venture Capital and Fosun.