"It economy" has risen strongly, and the domestic pet market has entered a stage of rapid development
This year's "Double 11", JD, Tmall, Vipshop and other platform data show that the sales of pet products have exploded, confirming the strong rise of "its economy". With the continuous development of China's economy and society, the people's living standard is constantly improving, and the demand for pet care is surging with the increase of the scale. According to Essence Securities, in the medium to long term, the domestic pet market has entered a stage of rapid development. As the largest segment of the industry, pet food will benefit from the rise of the pet economy first.
Specifically, JD data shows that after the opening of the "peak 28 hours" at 8:00 p.m. on November 10, this year, the new Chinese brand of pet freeze-dried food continued to grow by more than five times year on year, and the turnover of Puant flagship store, a pet drug brand, increased by more than six times year on year. However, the war report at the beginning of the "Double 11" of JD Pets since 20:00 on October 31 showed that the turnover of JD Pets in the first four hours exceeded the record of 28 hours in the same period.
According to the data released by Vipshop on November 12, the sales of pet staple food increased by 94% year on year, the sales of pet immune products increased by 115% year on year, and the sales of pet insect repellent and pet medical care increased by more than 80% year on year. Tmall's war report calls pet category, fashion play, outdoor sports and jewelry category as the "new four king kong", which corresponds to the "old four king kong" beauty, fast disappear, consumer electronic products and clothing.
China's pet industry is currently at a stage of rapid development. With the improvement of consumers' economic level and the change of ideas, people have further derived the demand for companionship and emotional value from the instrumental positioning of "cat catching mouse, dog guarding the hospital" for pets. According to the White Paper on China's Pet Industry in 2021, the scale of China's pet market will reach 249 billion yuan in 2021, with a year-on-year growth of 20.4%. In the past three years, the CAGR has reached 13.4%, higher than that of the United States and Japan. However, the penetration rate of urban pet households (dogs and cats) in China is still far lower than that of mature markets in the pet industry such as the United States.
At present, the penetration rate of pets in Chinese families is about 20%, while in the United States, Australia, Britain and Japan, it is up to 68%, 62%, 45% and 38% respectively. According to JD's White Paper on Trend Insight of China's Pet Industry in 2022, the number of pet families in China will reach 91.47 million in 2021, and it is estimated that this year, the number of pet families in China will exceed 100 million. According to the report from Crawley, among the urban pet raising population, the "post-90s" and "post-95s" have the fastest growth, accounting for 46% in 2021.
According to the consulting report of Ai Media, from 2017 to 2021, the scale of China's pet economy will nearly double, approaching the 400 billion yuan mark. It is estimated that this scale will reach 493.6 billion yuan in 2022, with a year-on-year growth of 25.2%, and will increase to 811.4 billion yuan by 2025.
It is worth noting that the pet industry became hot in October. Two financing projects worth more than 100 million yuan, involving pet food and pet supplies, were launched on the track. The "Tianyuan Pet" conference growth enterprise board, which mainly deals with pet nest mats and cat climbing frames, also appeared in the secondary market. Inquiries and subscriptions were launched in early November. In addition, the pet intelligent hardware brand "accompanied by pets" has obtained about 100 million yuan of financing, and there are many well-known investment institutions such as Xiaomi, Shunwei Capital and Amiba Capital.
Data shows that since 2022, there have been 32 domestic pet related enterprises, involving pet food, supplies, services, medical care and other aspects. From October 2019 to October 2022, there were 15 investment and financing events in the domestic pet e-commerce field, with total financing exceeding 1.39 billion yuan. In the future, with the increase of per capita income and the number of pet owners in China, the domestic pet industry will have vast market space and market potential.