Imported pet food sales jumps tenfold in China

China’s pet food market is growing rapidly. In just 5 years (2016 to 2021), the sector has seen a 25% annual growth, according to a study published by Alibaba, private equity firm C2 Capital Partners, and consultancy Bain & Co.

This growth is driven by the high number of pets and increased spending in recent years. A 2021 survey by Bain & Co. revealed that around 45% of new pet parents are in their 30s, and 35% are in their 40s. 

It notes that people born in the 1980s and 1990s, the first generation under China’s one-child policy, view their pets in a different light compared to the older generations and treat their pets as family. This shift in attitudes has ignited a demand for premium commercial pet food, driving the average pet food spend to increase by 15% year-on-year since 2016. 

The white paper shows that young females from bigger cities with high incomes dominate the consumer market in the Asian country.

Pet food categories 

According to Alibaba, freeze-dried, functional, and wet meals are China’s fastest-growing pet food categories. The e-commerce giant also notes a high demand for pet supplements.

The easing of import regulations in 2016 opened the market, allowing popular pet food brands to access the country’s nascent pet industry. Top performing imported brands include Vital Essentials, Acana, K9 Natural, Taste of the Wild, Stella & Chewy’s, and Royal Canin, among others, according to the paper. 

The country has substantial growth opportunities as pet penetration, and pet expenses are still relatively low compared to countries like the US, Brazil, Chile, Romania, Canada, Poland, and Russia, it notes. 

Competitive landscape

The white paper suggests that pet food in China is still in its early stages, offering local and foreign pet food companies a competitive landscape. 

Brands like Stella & Chewy’s, which opened its flagship store on Alibaba’s marketplace Tmall, reached $20 million (€18.75M) in retail sales in less than 2 years.

Ziwi Peak, a New Zealand premium pet food manufacturer, stepped into China in 2017 with wet and air-dried cat food. Today it is estimated to have sales of over $100 million (€94M). 

Canadian premium pet food firm, Champion Pet Foods, has amplified its success in the country since entering in 2010 with its Orijen brand. It was one of the few international brands to export to China. Since then, it has created a name for itself in the market, known as the “best” imported pet food brand among Chinese pet parents