Dairy giant sells pet food? Focusing on precision customization, aiming at the 100 billion level market

Dairy giant Yili sold pet food?

For this market rumor, on May 18, the relevant person in charge of Yili Shares confirmed the news to the reporter of China Securities Journal: "There is pet food, whose name is' one on one '."

With the development of society and the constant popularization of pet raising concept, the high growth pet industry has developed rapidly. Relevant data shows that the scale of China's pet food industry is expected to reach 173.2 billion yuan in 2022. In the past decade, the CAGR of this market has exceeded 25%, with a growth rate higher than the global 6.4%.

Many brands compete fiercely

According to the research report of Changjiang Securities, from the analysis of the main products in different price bands of pet staple food and snacks, domestic pet brands have gained a firm foothold in the field of mid tier price bands, and the relative homogeneity of products also makes the competition pattern of mid tier products more intense. High end staple grain and wet grain may become the next competitive price belt for domestic manufacturers.

According to the data in the Report on Investment Prospect Analysis and Supply and Demand Pattern Research and Forecast of Pet Food Market from 2022 to 2027 of China Research Puhua Institute, the scale of pet food in China will be about 155.4 billion yuan in 2021, and is expected to reach 173.2 billion yuan in 2022. In the past decade, the compound annual growth rate of China's pet food market has exceeded 25%. The compound annual growth rate from 2016 to 2020 was 29%, higher than the global 6.4%.

It is precisely because of the active market development that this track has many brands, including "new forces". A consumer shared with the reporter that a pet food factory named Maodali also made private food customization. In order to increase the trust of consumers, its live broadcast account has been live fed by the anchor himself for half a year. "If Yili is a brand that makes customized cat food, it may be more reliable."

However, some consumers told reporters that their pets already have food they like and are used to and are unwilling to try new pet food easily. In addition, the way of feeding a package of food to pets every day is not very different from the current common practice, and has no great attraction.

Zhongyan Puhua Research Institute believes that pet owners give priority to the following six factors in their purchase decisions: whether they meet the nutritional needs, palatability, cost-effectiveness, user reputation, pet's own situation, and brand awareness.

Industrial Securities said that the consumption amount of pet food continued to increase rapidly, showing a trend of scientific+branding+refinement, which is expected to develop into more high-end natural food and functional food, and further increase the customer price.