China’s pet food imports have nearly doubled over the pandemic

According to China’s General Administration of Customs (GACC), most imports last year came from Canada (47%) followed by the US (20%).

A new report from the United States Department of Agriculture (USDA) has claimed that the Asian country imported 17,595 metric tons of US pet food in 2021, worth $114 million (€107M).

Canadian imports accounted for 47,895 metric tons, with the rest of the world totaling 97,560 metric tons in 2021.

In the two first years of the pandemic, imports grew by more than double. China’s overall pet food imports by metric ton went from 54,310 metric tons in 2019 to 106,672 in 2020. Imports from the United States followed the same trend, from 8,917 metric tons (2019) to 14,855 (2020).

This increase was due to several factors including a reduced import tariff for pet food from 15% to 4%. The pandemic also caused pet parents to turn to online pet food platforms offering imported products.

However, Chinese imports of pet food dropped 8.5% between 2020 and 2021. This change was primarily caused by an increase in freight prices, avian influenza outbreaks in Europe that led China to ban some pet foods, and growing competition from domestic producers.

A window for growth

In 2021, China’s Ministry of Agriculture and Rural Affairs (MARA) approved 635 stock-keeping units (SKUs) of imported pet foods to receive new or renewed feed registration. Of these, 117 were for US pet foods, amply illustrating the country’s industry’s strong interest in expanding its product offerings to China.

In its most recent releases, the MARA registered 44 SKUs of US-origin pet foods, and this number is estimated to continue to grow this year.

America’s presence is also evident as the largest numbers of facilities approved in China come from the United States, with 78 US facilities currently registered with the GACC. By comparison, the United States’ main pet food competitor, Canada, currently has only 9 facilities approved.

China’s domestic pet food production is also growing fast. According to the China Feed Industry Association, China produced 1.13 million tons of pet food in 2021, an increase of 17.3% from 2020.

As reported by Euromonitor, China’s overall pet food market grew from $719 million (€673M) to $6.72 billion (€6.29B) between 2010 and 2020. It also forecasts an expansion from $8.23 billion (€7.71B) to $16.77 billion (€15.7B) between 2021 and 2025, an increase of 103%.

The research company predicts that China’s domestic cat population will grow from 95 million in 2021 to 101 million in 2025 (+6.3%). Their domestic dog population is expected to grow, from 98 million to 100 million (+2%).

Between 75 and 80% of pet-related purchases are online, but offline purchases are also starting to grow. Demand for pet medical, beauty care, boarding, training, and photography are also on the rise.