Chinese market: new trend and potential

Date: 2021-09-03 View: 21 Compiler:

According to the research results of Sullivan Consulting, the basic estimate of the number of cats and dogs is 100 million. Like small pets, such as Chinchilla, the quantity is relatively large, but the consumption amount is low. The overall pet market is estimated to be at the level of 200 billion yuan.

In the next five years, the growth rate will benefit from China's current ageing and the booming development of people's social and emotional needs. The future growth rate will be around 15%. In some large consumer areas, as far as people are involved, whether it is clothing, food, housing, transportation, beverages, and packaged snacks, in the future, in terms of major categories, basically none of them can exceed 10%. However, with the development of anthropomorphic consumption, pets have experienced double-digit growth.

Returning to the comparison between China and the United States, the Chinese market has more room for growth in the future. From 2019, China's population base is basically four times that of the United States, but the penetration rate of pets in China is basically only one-third of that of the United States, and 70% of households in the United States have basically chosen to raise pets. From the perspective of single pet spending, it is still only one-half of that of the United States.

The age structure of pets in China is still relatively young. Looking at the situation of pet dogs in 2019, only 30% of them are over 6 years old. According to the American Association, dogs over 6 years old are relatively middle-aged. The proportion of adult dogs over 6 years old will be close to 40%, and the increase in age will bring more diseases to a certain extent, and the expenditure on nursing, including food will increase. Pet penetration, expenditure and aging are the core driving factors for pet growth.

In terms of track segmentation, China’s pet market is still significantly different from that of the United States. The United States is more slowly shifting from offline development to online development. However, since the Chinese market experienced the booming e-commerce around 2000, the food and supplies market is relatively mature. Looking back, the vast offline parts of China, including hospitals, such as specialty hospitals, including offline pet retail stores, are very large, but the stage of development is relatively imperfect. Because there is a lot of room for quality improvement or integration offline.