Development Opportunities for the Pet Industry

Development Opportunities for the Pet Industry

(1) The downstream market scale of the industry continues to expand

With the increasing popularity of the concept of pet raising, the market size of the pet industry in various countries has shown a gradual expansion trend. According to the data of the American Pet Products Association (APPA), as the largest pet market in the United States, the market size of the pet industry in the ten years from 2010 to 2020 increased from US$48.35 billion to US$103.6 billion, with a compound growth rate of 7.92%; According to data from the European Pet Food Industry Federation (FEDIAF), the total pet consumption in the European pet market in 2020 will reach 43 billion euros, an increase of 5.65% compared with 2019; the Japanese pet market, the largest in Asia, has shown steady growth in recent years. The growth trend is to maintain an annual growth rate of 1.5%-2%; and the domestic pet market has entered a stage of rapid development in recent years. From 2010 to 2020, the size of the pet consumption market has rapidly increased from 14 billion yuan to 206.5 billion yuan, with a compound growth rate of 30.88%.

For the pet industry in developed countries, due to its early start and relatively mature development, there is a strong rigid demand for pets and pet-related food products, and it is expected to maintain a stable and rising market size in the future; China, as an emerging pet industry In the market, based on factors such as economic development, the popularization of pet raising concepts, and changes in family structure, it is expected that the domestic pet industry will continue to maintain a rapid growth trend in the future.

In summary, the deepening and popularization of the concept of raising pets at home and abroad has driven the vigorous development of pets and related pet food and supplies industries, and will usher in greater business opportunities and development space in the future.

(2) Consumption concept and environmental protection awareness promote industrial upgrading

Early pet products only meet the needs of basic functions, with single design function and simple production process. With the improvement of people's living standards, the concept of "humanization" of pets continues to spread, and people pay more and more attention to the comfort of pets. Some European and American countries have issued laws and regulations to strengthen the protection of pets' basic rights, improve their welfare, and strengthen the supervision of municipal cleaning of pets. Relevant multiple factors have prompted people to continuously improve their requirements for pet products and their willingness to consume. Pet products have also become multi-functional, user-friendly, and fashionable. The upgrading is accelerated, and the added value of products continues to increase.

At present, with the increasing willingness to consume pets, the proportion of pet products purchased will also increase rapidly, and the resulting consumer demand will strongly promote the development of the industry.