Ageing Population and Consumption Downgrade Shape China's Pet Food Market Dynamics
Growth Amid Challenges
China's pet food market is experiencing a shift due to an ageing population and economic challenges, resulting in a consumption downgrade. As pet owners prioritize value for their furry companions, domestic manufacturers are gaining traction.
Investor Interest in Domestic Companies
Notable investors, such as Advent International and KKR, are backing local brands in this fragmented market, recognizing the potential for growth in a sector that generated 69 billion yuan in 2023.
- A surge in pet ownership demand post-pandemic boosts opportunities for local brands.
- According to UBS, local companies are growing faster than imported ones.
- The shift in consumer behavior signals a potential expansion of value propositions among domestic players.
Long-term Market Predictions
Forecasts predict a market growth of 2.6 times by 2030, emphasizing the emotional bond pet owners hold with their pets, a trend fueled by an increasing number of pet owners from older generations.
- China's pet food market was worth 69 billion yuan in 2023.
- The market expanded by 14.3% from 2019 to 2022.
Conclusion: Opportunities Await
While macroeconomic factors pose challenges to spending, innovative e-commerce platforms and local brands are likely to flourish, highlighting a paradoxical resilience characterized by transformation and investment.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.