China has more than 100 million registered pets, making it the third–largest pet owning country next to the US and Japan. Of the more-than-100 million registered pets, approximately 67 million are cats and 74 million are dogs. With these numbers, China has become a goldmine for the global pet industry.
Once considered a luxury reserved for the rich, pet ownership has seen significant growth among the middle-income earners. In a 2017 survey by Goumin, a leading pet community website, 73.2% of pet owners belong to the 20-35 years old, challenging the notion that only retired people have pets because they have time to spare for it.
Such growth in pet ownership has reflected on the sales increase of pet food, products, and services. The Goumin survey showed that 99.8% of pet owners spend on food, training, veterinary check-ups, services like vaccinations, neutering or spaying.
Factors influencing rapid market growth rate
daxueconsulting.com cited the following reasons influencing the high growth rate of the Chinese pet market:
- Many Chinese now treat pets like family members and are willing to spend more on pets.
- Elderly population: old parents see pets as their companions.
- Chinese now become more and more scientific in raising pets.
- E-commerce provides more convenient channels.
The changing attitudes of the Chinese market when it comes to pets and pet ownership are clearly reflected on the reasons mentioned above. Even trade shows for pets have benefitted from it as many pet owners seek high–quality pet food, products, and services that will be beneficial to the health and wellbeing of their pets.
Going natural and organic
According to marketingtochina.com, “‘natural’, organic pet food is gaining popularity and becoming more of a requirement for pet owners as the effects of ‘commercial’ food are brought to light…The figures in GFK Pet Ownership report indicate a year on year growth rate of 55%, with ‘natural pet food’ having a 24% market share.”
Imported and multinational brands lead the market while Chinese brands trail behind. This is because 66% of Chinese consumers are concerned more about the quality of the food they give to their pets. They are wary of domestic brands when it comes to food safety.
According to Goumin, other pet services that are enjoying the boom are beauty salons, with 40.9% of pet owners taking their dogs there for grooming. 25% of pet owners pay professionals to have their pets washed. 4.5% take their pets to get photographed. Other services mentioned in the survey were spa services, manicures, hair styling, and pet boarding. There are even educational toys for dogs. It is projected that pet care sales will rise by 9%.
With all of these happening, the China pet industry has become a priority to many players who want to get into the market. Having an OEM manufacturer as your partner will make it easy for your own brand to penetrate China.
Addiction Private Label as your OEM partner
Addiction Private Label is New Zealand’s largest dry food manufacturer and the world’s only manufacturer accredited to export all proteins (lamb, beef, chicken, duck, venison, salmon, kangaroo) to China.
We formulate, produce, pack, and export premium–quality pet food to the world’s fastest–growing markets, and that includes China. As your OEM partner, our team of experts from account management to our research and development will walk you through every step of the way to create your ideal recipe.
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