“A person and a dog should also spend the new year seriously.”. This year’s Spring Festival, many people choose to celebrate the new year on the spot, and the pets who celebrate the new year with their owners also talk about the “sense of ceremony”, eat the “New Year’s Eve dinner” and buy the “New Year’s pet goods”.
However, the reporter found that compared with the hot consumption of online pet goods, pet foster stores are particularly cold.
A number of pet foster owners in Shenzhen told the Securities Daily: “in the past two years, foster care has been a lot colder than in previous years”, and the owner complained to reporters: “nearly all of our pet rooms are vacant this Spring Festival, so we had to queue up before booking!”
Compared with the desolation of foster stores, many young people earn the first pot of gold in their sideline business through the business of “door-to-door pet feeding” on holidays. The reporter saw from the circle of friends that according to the distance, the price of feeding a cat is 30-40 yuan / time. The service content roughly includes adding food and changing water, cleaning the cat litter basin, observing whether the pet is abnormal, playing with others, etc.
Bai Wenxi, chief economist of IPG China, told Securities Daily: “With the improvement of living standards, especially the aging population and the rapid improvement of the single population, the pet economy has achieved explosive growth in China in recent years, which has a solid socio-economic foundation, and the future development direction will show the characteristics of specialization, differentiation and diversification while increasing the scale.”
“pet custom” market is hot
It is worth noting that more and more singles are starting to keep pets. According to the 2021 pet food industry consumption insight report, the number of adults living alone in China will be nearly 100 million in 2021, while the number of pet owners will reach 62.94 million. The consumption structure of pets has quietly changed.
According to the 2021 China pet industry white paper (consumption report) produced by the big data platform of pet industry, from 2019 to 2021, the market share of pet food decreased from 61.4% to 51.5%, down nearly 10 percentage points; The market share of pet medical treatment increased by 10 percentage points from 19% to 29.2%, and the “Engel coefficient” of pet consumption gradually decreased.
Analysys analysis brand Wei Jianhui, an analyst at the retail center, told the Securities Daily: “In recent years, affected by the epidemic, we have advocated to celebrate the new year in situ. Pets, as the emotional sustenance of young people, have given young people a different kind of warmth for the new year in different places. At the same time, the new consumption trend of pet customs has further ignited young people’s desire for pet consumption. Pet related derivative services such as pet beauty have been constantly introduced to further meet the needs of young people Emotional consumer demand. “
During the Spring Festival, many e-commerce companies “attack cities and seize land” in the “pet custom” market. Among the trendy new year trends released by tmall, cat strips, CO branded gift boxes, new year energy boxes and customized pet gift boxes in the year of the tiger have become popular sales this year; In addition to tmall, jd.com also launched special events such as the year of the tiger special pet gift box and pet New Year’s Eve dinner.
According to the data of pinduoduo platform, during this year’s annual goods Festival, the sales of pet rations, pet new year clothes, luxury cat and dog kennels and pet toys all ushered in the climax of pinduoduo. Among them, the sales of pinduoduo platform pet new year clothes soared 360% during the new year goods Festival.
Sinolink Securities Co.Ltd(600109) the research report shows that driven by the consumption of “Yueji”, pets perform beautifully during the new year’s goods Festival. According to the big consumption data of Taobao live broadcast festival in 2022, the transaction volume of pet supplies live broadcast room and pet clothing live broadcast room represented by “lion awakening clothes” increased by 40% and 65% respectively; According to the 2022 goods festival consumption report released by Beijing Zhidemai Technology Co.Ltd(300785) , the popularity of pet new year goods during the annual goods Festival increased by 19% year-on-year.
“In recent years, the explosive growth of China’s pet economy is mainly caused by many factors, such as the substantial increase of per capita income, the aging population, the emotional sustenance of young people living alone and so on.” Analysys analysis brand Wei Jianhui, a retail center analyst, said: “From the consumer side, the target consumer group of pets will become larger and larger, and consumers will pay more attention to emotional consumption. In the future, the scale of basic consumer goods such as pet food will still be the largest, but the growth rate will slow down, and high-end, healthy, green and organic foods will emerge. On the whole, the pet consumption market will be upgraded from basic consumption of pets to optional consumer goods and then To service consumption. It is foreseeable that more influential local brands will be born in the field of optional and service-oriented consumption in the future. “
100 billion market “targeted” by capital
According to AI media consulting data, the scale of China’s urban pet market has exceeded 300 billion yuan in 2021, with a compound growth rate of 37.8% from 2015 to 2021. In the following three years, the compound growth rate of China’s pet industry is 14.2%, and the scale will reach 445.6 billion yuan by 2023.
The 100 billion scale market has naturally attracted the favor of many capital. According to the business data of Yilan, there were 42 financing cases in China’s pet industry in 2021, with the disclosed financing amount of more than 3.1 billion yuan, of which 9 cases were at the level of more than 100 million yuan.
On January 27, 2021, red dog, a brand of pet nutrition products, completed round a financing of RMB 200 million; On October 6, 2021, Fangyuan capital, a private equity company, reached a deal to acquire ziwi, a New Zealand pet food company.
Many large companies have also extended their commercial tentacles to the pet economy track. Meituan and are you hungry? They have launched the take out service of pet products; Three Squirrels Inc(300783) established a company specializing in the research and development of dog food; Gree applied for the patent of “pet care machine”.
According to tianyancha data, as of February 7, 2022, there were more than 1.63 million pet related enterprises in China, of which the registration growth rate in 2021 was as high as 133.41%.
It is worth noting that there are not many pet related listed companies. According to the data, at present, there are two pet food listed companies ( Petpal Pet Nutrition Technology Co.Ltd(300673) , Yantai China Pet Foods Co.Ltd(002891) ) in a shares, with a total market value of about 11.933 billion yuan and an average p / E ratio of 49.54. From 2015 to 2020, the income scale of the two listed companies increased year by year, with a total operating income of 3.573 billion yuan in 2020, with a growth rate of 31.13%; The total net profit was 93.5 billion yuan, an increase of 2.5%.
Wei Jianhui believes that compared with the 100 year history of pet development abroad, China’s pet economy still has huge room for improvement under the joint force of population structure and per capita income growth. In recent years, listed pet food enterprises such as Petpal Pet Nutrition Technology Co.Ltd(300673) , Yantai China Pet Foods Co.Ltd(002891) have continuously strengthened the layout of the Chinese market and strengthened the two wheel drive development strategy in the domestic and foreign markets. In addition, through capital assistance and strategic merger, China has also formed a number of pet medical enterprises with competitive advantages in recent years.
