Latest developments in China’s pet industry
Investments and an IPO filing are moving the pet industry in the Asian country in the first 2 months of 2023.
China’s pet industry is booming, as with the rest of the world, brought on by the pandemic and other factors such as companionship. Investors are seeing potential in the sector.
According to China’s financial insights platform, EqualOcean, functional pet food manufacturer Bright received an investment from listed e-commerce service provider Guangzhou Ruoyuchen Tech. The amount has not been specified but is believed to be in the “tens of millions” of Chinese yuan (CNY).
Bright will use the funds to improve products, upgrade supply chain systems, and expand marketing and sales channels. The company received an additional $1.48 million (€1.37M) capital injection in November 2021.
Ruoyuchen also invested in pet medical research, illness prevention company Best Care and veterinary brand MoreCare.
Meanwhile, smart products manufacturer Els Pets secured a similar capital injection in a Series A round of funding. Local media reported that the firm would use the investment to boost its supply chain.
A Statista study on China’s pet industry in April 2022 revealed that the sector is worth more than $31.5 billion (€29B), drawing interest and investments from domestic and overseas businesses.
It suggests that those driving the growing pet industry in China are millennials and Gen-Z, primarily born under the one-child policy rule. “Younger Chinese are less willing to become parents than previous generations. Instead, they prefer to satisfy their emotional needs by keeping one or more ‘fur babies’ at home.”
$100 million for going public
Shenzen-based pet hospital operator New Ruipeng recently filed its initial public offering (IPO) with the US Securities and Exchange Commission (SEC) on 23 January.
The company has applied to list its shares on Nasdaq under the symbol RPET and said it aims to use the funding to improve pet medical services, build its brand, and invest in research and development (R&D).
New Ruipeng Pet Group operates more than 1,900 pet hospitals in China.
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