Dairy giant Yili sells pet food?
For this market rumor, on May 18, Inner Mongolia Yili Industrial Group Co.Ltd(600887) relevant person in charge confirmed the news to the reporter of China Securities Journal: “there is pet food, the name is’ one on one ‘.”
With the development of society and the continuous popularization of the concept of pet keeping, the high growth pet industry has developed rapidly. Relevant data show that the scale of China’s pet food industry is expected to reach 173.2 billion yuan in 2022. Over the past decade, the CAGR (compound annual growth rate) of the market has exceeded 25%, and the growth rate is higher than 6.4% in the world.
one-to-one precise customization
The reporter searched on the social network platform and found that at present, xiaohongshu and Tiktok both have information about one on one customized pet food.
The introduction of one on one customized pet food is to provide one-on-one customized pet food for pets from the essence of the nutritional needs of dogs and cats. The account operator is Inner Mongolia kangyijia Biotechnology Co., Ltd.
Tianyancha shows that Inner Mongolia kangyijia Biotechnology Co., Ltd. was registered and established in 2021, and its business scope covers the research and development of biological organic fertilizer and biological feed; Technical services, pet services (excluding animal diagnosis and treatment), pet food and supplies wholesale, etc. There is no direct connection with Inner Mongolia Yili Industrial Group Co.Ltd(600887) in the ownership structure.
However, tianyancha also showed that sun Donghong, chairman of Inner Mongolia kangyijia Biotechnology Co., Ltd., and senior executives Xu Jun and Zhang Yujun all have positions in Yili.
The reporter learned from the one on one account platform as a consumer that at present, pet food for cats and dogs can be customized, one bag a day. Businesses formulate different formulas and feed intake matching schemes according to the individual differences of each pet.
Image source: Tiktok
Customer service said that the pet food formulation plan can be purchased according to the quantity of 7 days, 15 days and 30 days. The cost of customized pet food for small dogs and normal cats is about 200 yuan per month. Now there are activities to buy 7 days and send 9 days.
Taking raising cats as an example, the reporter learned that some consumers spend tens of yuan on cat food a month, and some consumers spend between 200300 yuan. These two price levels are more common. If consumers choose products such as cat snacks and cans, they may spend thousands of yuan a month.
brands with fierce competition
Changjiang Securities Company Limited(000783) research report shows that from the analysis of the main products in different price bands of PET staple food and snacks, domestic pet brands have gained a firm foothold in the field of middle-end price bands, and the relative homogeneity of products also makes the competition pattern of middle-end products more intense. High end staple grain and wet grain may become the competitive price belt of the next domestic manufacturer.
The reporter did not find the main ingredients of the product under the one on one account. According to one on one, we will choose wet food or dry food, fresh meat or meat powder according to the actual nutritional needs of pets.
According to the Research Report on investment prospect analysis and supply and demand pattern of pet food market from 2022 to 2027 issued by Sinopharm Research Institute, the scale of pet food in China is about 155.4 billion yuan in 2021, and it is expected to reach 173.2 billion yuan in 2022. Over the past decade, the average annual compound growth rate of China’s pet food market has exceeded 25%, and the average annual compound growth rate from 2016 to 2020 is 29%, higher than the global growth rate of 6.4%.
It is precisely because of the active market development that there are many brands in this track, including “new forces”. Some consumers shared with reporters that a pet food factory called maodali also makes private food customization. In order to increase consumers’ trust, its live broadcast account has been live broadcast for half a year, and the anchor eats pet food himself. “If brands like Yili make customized cat food, the trust may be higher.”
However, some consumers told reporters that at present, their pets already have food they like and are used to, and are not willing to easily try new pet food. In addition, the way of feeding a package of food to pets every day is not very different from the current common practice and is not very attractive.
The Institute believes that the six factors that pet owners give priority to in purchasing decisions are: whether they meet nutritional needs, palatability, cost performance, user reputation, pet’s own situation and brand awareness.
China Industrial Securities Co.Ltd(601377) said that the consumption amount of pet food continued to increase rapidly, showing a trend of scientization + branding + refinement. It is expected to develop into higher-end natural food and functional food, and further improve the customer unit price.
