Is Nanhe becoming the new epicenter for pet food production in China?

Nanhe district, located in Hebei – China’s sixth-most populous northern province known for its agricultural sector  – has rapidly emerged as the nation’s “home of pet food,” according to Chinese media People’s Daily. However, its growing pet economy is also diversifying into other product categories.

Nanhe was home to over 11,000 pet-related businesses as of 2023, including 47 large-scale pet food companies, 44 cat litter producers and 95 firms tied to the pet supply chain, generating ¥17.2 billion ($2.4B/€2.2B) in total revenue.

Beyond a pet food district

Media reports highlight that Nanhe produces 60% of China’s pet food, establishing itself as a dominant player in the local market.

The district launched the “Nanhe Pet Industry” trademark and a pet food quality inspection center to solidify its standing. Currently, 7 pet food businesses hold the ISO:9001 quality management system certification and the ISO:22000 food safety quality management system certification.

Besides pet food, Nanhe has seen significant growth in the cat litter, pet bed and clothing sectors, with 30% of China’s cat litter produced by companies headquartered in the district.

Nanhe is also believed to provide 100,000 jobs across 9,300 e-commerce and marketing businesses linked to the pet industry.

Upgrading capabilities

Over the past 6 years, the Nanhe Pet Industry Expo has generated ¥20 billion ($2.8B/€2.5B) in transactions. International participation in trade shows has secured over ¥100 million ($14.2M/€12.9M) in deals for district-based companies.

Now, Nanhe has ambitions to increase the operating income of the region’s pet industry to ¥70 billion (€9.9B/€9B) by 2035.

Regional investments

Recent efforts reflect Nanhe’s ambition to become a comprehensive pet industrial hub, with investments flowing into veterinary medicine, pet supplies, toys, clothing and pet beds.

Key investments in the pet food sector include a capital injection of ¥311 million ($44.3M/€40.3M) into a local pet food company called Paide to expand its production capacity to 180,000 tons annually by year-end.

Similarly, an investment of ¥120 million ($17M/€15.5M) is expected to ramp up the pet food, cat litter and pet product production of local pet care company Aode to 50,000 tons annually.

Nanhe-based pet products company Hebei Douke has also pumped ¥150 million ($21.3M/€19.4M) into pushing the annual production of cat litter made from tofu and plant-based materials to 80,000 tons.