Pet care in China

A fast expansion

Pet care is set to witness rapid current value growth in 2017 due to pet population growth and the pervasive premiumization trend. On the one hand, alongside increasingly busy lifestyles and growing work and home pressures, more consumers are adopting pets as companions and to help relieve stress. On the other hand, consistently rising income levels and growing sophistication in terms of pet care encourage owners to choose premium products. This premiumization trend is fuelling the fast expansion of pet care in China.

Product innovation and development

The increasingly strong emotional connection to pets encourages manufacturers to innovate and develop products by empathizing with pet owners. Higher awareness of food safety and health sees owners move towards pet food made with fresh ingredients and healthy additives. In addition, manufacturers introduce treats, similar to snacks for humans, to satisfy the various dietary needs of pets.

Domestic players versus foreign competitors

Domestic players, in line with a booming market and aided by internet retailing, developed fast to compete with multinational players in 2016, which used to overwhelmingly dominate pet care in China.

Although foreign players Royal Canin Au Yu (Shanghai) Pet Food and Mars Foods (China) continued to occupy the first two places in terms of retail value sales, local players, led by Shanghai Bridge Petcare, gained shares through rapid product innovation and competitive pricing.

Internet retailing develops fast

Internet retailing, which benefits from the convenience trend and wider accessibility, is set to continue to close the gap on pet shops in 2017. Listing a comprehensive selection of pet care brands and products, internet retailing allows consumers to compare and contrast prices, formulas, ingredients and packaging at the same time. Besides, fast developing delivery services contribute to the boom in internet retailing in pet care.

Robust growth is expected

Pet care is expected to sustain dynamic retail value growth at constant 2017 prices over the forecast period. Growth is fuelled by the steadily rising pet population and developing premiumization trend. Thus, it is anticipated that premium dog and cat food will register the strongest value growth rates.