According to the "White Paper on China's Pet Consumption Trends in 2021" released by iResearch, the epidemic has driven the rapid growth of the pet consumption market. The market has reached almost 300 billion Yuan (38.52 billion Euro) in 2020, compound growth rate has reached 32.8% from 2015 to 2020. iResearch predicted that the compound growth rate of China pet industry would reach 14.2% in the next three years, and the scale would reach 445.6 billion yuan (57.215 billion Euro) by 2023. As the increase of residents’ income in China, the number of pet parents continues to expand, the products and services of pet continue to be enriched.
The pet service industry can be further subdivided into pet grooming service, pet care service and pet training service, which account for approximately 65%, 30%, and 5% of the pet service market size respectively. Pet grooming service due to high consumption frequency, its overall scale is higher than the market scale of pet care service. The pet training service industry has the smallest market size, and most pet owners choose to train their pets on their own.
As pet owners continue to refine their needs for pet services, businesses continue to innovate in the content and form of pet services. Pet grooming service, as a relatively large service industry in the pet industry, has become a new trend in the pet service industry. Pet groomers came into being and became a sunrise profession in the pet service industry. Since 2010, pet groomers have been officially listed as one of the new professions of the Ministry of Human Resources and Social Security of China.
The pet grooming market continues to expand
Pet grooming refers to the use of beauty products, trimming techniques, and dyeing to hide body defects and add beauty to pets, so as to achieve the effect of making pets and their owners physically and mentally happy. With the development of the pet industry, pet owners' demand for pet services is higher than before, therefore, the grooming industry has developed rapidly.
At present, China's pet grooming market is still dominated by basic needs such as cleaning. For example, the demand for shampoo accounts for about 95% of the overall Chinese pet grooming market. There is still a lot of room for improvement in the pet grooming market in the future.
Due to the increasing demand for pet grooming services, pet companies have the opportunity to enter new markets and reach new customer groups by providing products such as balm, shampoo, spray and other products.
Standardization of live pets
At present, the number of pet stores entering the China pet industry has surged at a rate of thousands each year across the country. The domestic market will undergo a comprehensive industry reshuffle in the future. Those facing elimination will mainly be individual stores that do not have brand advantages and resource reliance due to huge industry competition, and what will be retained will be comprehensive chain stores with strong brand advantages and platforms with livestock supply chains. The reason is that, on the one hand, the biggest pain point in livestock is unhealthy living standard, with a mortality rate of as high as 38%, and the country does not have any relevant tax policy support, on the other hand, the service of pet shops and vet are single profit model, which lack of stable passenger flow, moreover, the customer's consumption experience is satisfied.
One-stop pet shop is emerging in China, such as iPet Town (based in Qingdao) and Jack Pet (based in Nanjing).
These kinds of store are the representative of new retail mode, offering cat and dog livestock adoption and selling, cleaning and grooming, cat and dog supplies, pet care service, pet medical treatment, reptile livestock selling, reptile supplies, and even coffee. iPet Town is the largest one-stop pet store in Shandong Province, also the first domestic pet breeding base jointly built by the government and a number of listed companies.
In the post-epidemic era, the China pet industry has accelerated its development, bringing challenges and opportunities. CIPS will continue to promote the industry development and lead China's pet industry in a healthy direction.