Why is the pet market favored when capital lords are planning in succession?

At the end of last year, McDonald's launched a "McDonald's cat nest" activity. As long as consumers buy a designated set meal at McDonald's, they may get a specially designed hamburger shaped cat nest.

Once this activity was promoted, it instantly captured the hearts of a large number of consumers. Not only did it lead to the temporary collapse of McDonald's APP, but also made the two topics # McDonald's Cat's Nest # and # McDonald's Collapse # reach the top of the hot search. After the heat was superimposed, it directly captured more than 300 million readers.

After all, who doesn't want to make a cat's nest that is cute and fits in with the characteristics of a cat's diamond box?

However, the popularity of McDonald's cat nest is not accidental. In recent years, more and more people have raised pets and become "cat slaves" and "dog slaves", and various pet products have more and more consumers.

According to the Analysis Report on the Development Status and Market Research of China's Pet Economy Industry in the First Half of 2021, the scale of China's pet market in 2020 will be 295.3 billion yuan, with a year-on-year growth of 33.5%; It is estimated that the market size of China's pet industry will reach 592.8 billion yuan by 2023.

It can be seen that the pet market is growing.

The rising pet economy under specific conditions

The rapid rise of the pet market is inseparable from the unique development factors of the domestic pet industry.

In the past two years, the pet market in China has grown rapidly, which is not an accidental phenomenon. There are also some reasons behind the development of the pet market in China.

In recent years, the aging of the population in China has been increasing, and the number of empty nesters has also increased.

According to the data of the seventh population census released on May 11, 2021, the proportion of aging in China has reached 18.4%. Some experts said that in the next few years, empty nest families may account for 90% of the total elderly population.

In this case, many elderly people choose to keep pets to enrich their lives and alleviate the loneliness of being unaccompanied. According to relevant data, the number of people over 45 who keep pets accounts for 8% of the total population in China.

In addition to empty nesters, more and more young people living alone in China have started to raise pets.

These young people living alone may be for work or for freedom, but in any case, there is always a sense of loneliness and emptiness that can not be ignored when they are alone. As a result, many lonely people also choose to keep pets to alleviate their loneliness.

According to the 2021 Pet Food Industry Consumption Insight Report, the number of adults living alone in China will approach 100 million in 2021, and the number of pet owners will reach 62.94 million.

In this case, whether for the empty nester or the solitary person, pets playing the role of companion are a kind of spiritual comfort for themselves. More and more people begin to regard pets as soul mates or family members.

Supported by this emotion, pet owners are more willing to consume for their pets. All kinds of food should be carefully selected to buy the best. I would rather save some, but also let my "master" live a comfortable life.

In this demand, the sales of related industries in the pet market also increased.

On the other hand, with the increasing proportion of social software and short video software in people's lives, the topic of cute pets has also flooded into people's eyes and captured the hearts of many viewers.

Data shows that Tiktok's pet blogger, "talking Erdou", ranks No.1. So far, Tiktok has more than 40 million fans, and many people are trapped in its videos.

There is also the famous food video program "Eclipse", a micro blog number "Crispy Pie Lord" specially opened for the cat owners. At present, there are also 6.04 million fans, and even their own micro blog super words.

With the temptation of countless cute pet topics and videos, more and more users have begun to have pets. At the same time, various pet products used by pet bloggers in the topic can easily catch the eye of pet owners, driving the sales of related brands and the development of related industries.

In the 2021 Tiktok E-commerce Pet Economic Insight Report, Tiktok believes that various industrial chains in the pet industry have been newly activated in Tiktok.

In short, driven by various factors, the pet economy has witnessed rapid development in recent years.

Deep development of pet market

With the rapid development of the pet economy, the pet market has begun to develop in depth and breadth.

First of all, the most basic pet food industry was the first to develop in the pet market.

According to statistics, the per capita annual consumption of cats and dogs by pet owners has increased year by year. By 2020, the per capita annual consumption of cats and dogs by pet owners will reach 6653 yuan, up 14.98% year on year.

In this context, many enterprises began to wake up and joined the track of pet food.

According to the relevant report released by Smart Research Consulting, there will be 191633 pet food and related enterprises in China in 2020, with a year-on-year growth of 234.58%; As of June 23, 2021, there were 274624 pet food and related enterprises in China.

Among them, Jianhe Group acquired Solid Gold, an American high-end pet food brand; New Hope Group also launched the brand "Sincere Love" to enter the high-end pet staple food track.

It can be said that the pet food industry has become a breakthrough for many enterprises to enter the market.

Secondly, in addition to basic needs such as food, pet owners now also attach importance to the spiritual needs of pets, hoping to bring more humane experience to pets.

As a result, various pet care services and products began to appear in the market. From hair beauty to claw protection to pet SPA, pet care, pet beauty and other fields have become new outlets.

Data shows that the retail sales of China's pet care product market has increased from 3.1 billion yuan in 2015 to 9.6 billion yuan in 2021.

Under such a circumstance, Unilever has launched Dolly Planet DOLI PLANET, a pet brand, focusing on pet shower gel and sterilized wipes, and even launched shower gel with hair beautification, skin disease prevention and other functions.

While the material and spiritual needs have been met, pet owners are increasingly concerned about the health of pets, and the pet medical industry has also risen rapidly in recent years.

According to the data of several research institutions, the scale of China's pet medical market will reach 40 billion yuan in 2020, and it is estimated that the market scale will reach nearly 100 billion yuan in 2025. Many capitals have also started to enter the pet medical industry.

Among them, Hillhouse Capital entered the pet medical industry as early as 2015, and successfully entered the pet market.

In 2019, Hillhouse Capital integrated more than 700 offline pet hospitals, including Yunchong, An'an, Chongfuxin, and many other partners, together with nearly 500 pet hospital brands under Ruipeng, forming the first domestic pet medical "aircraft carrier" with a scale of more than 1000, Xinruipeng. This has also established Hillhouse Capital's unshakable position in the pet market.

At the same time, Alipay and many other Internet giants have also squeezed into the pet medical industry. In 2020, Alipay launched pet insurance jointly with Dadi Insurance and Zhong'an Insurance.

In a word, more and more capital is entering the pet market, the industry classification of China's pet market is becoming more and more detailed, and the pet market has prospered in many fields.

Future prospects of pet market

As we all know, the development law of the industry is generally a development process from the blue ocean market to full competition and then to the industry oligarch, which is also an inevitable trend of the industry development.

It is understood that in 2019, the domestic pet raising rate in China was only about 17%, far lower than 67% in the United States, 62% in Australia and 44% in the United Kingdom.

It is not difficult to see that China's pet raising rate is far lower than that of developed countries, which also shows that China's pet market has great room for improvement in the future.

In addition, from the perspective of consumption amount, the annual consumption amount of a single pet in China in 2020 is 59 dollars. It is far lower than the single pet consumption amount of 317 dollars in Japan and 343 dollars in the United States in 2020. The single pet consumption amount of China is still lower than that of developed countries.

On the whole, China's pet market is still in the early stage of development. From the event that Hillhouse Capital, a capital giant, forcefully integrated the pet hospital, it also fully shows that there are huge development opportunities in the pet market.

Similarly, because the domestic pet market is in the early stage of development, there are also many chaotic phenomena in the market, such as substandard pet food quality and arbitrary charges by pet hospitals.

However, in the early stage of the development of any industry, there are practical temptations such as high returns and industry disorder caused by factors such as industry irregularities, which is also a necessary process for the industry.

Therefore, we should start from the whole industry and look at the development process of the industry. Due to China's huge population base, aging and young people's life pressure and other factors, China's pet market will have unprecedented development space in the future.