300 billion scale of the pet industry, some what segments

This is the 130th short article of the public number Li to be wealth free, this article was written on March 23, 2021, the original link

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Let's start with my own conclusions:

The pet industry, is a high-growth, and there is still a lot of opportunity.

The whole industry is very large, some segments inside or blue ocean, or not yet the head player monopoly.

At present, China's family pet ownership rate is only 4.4%, the highest in Shanghai is only 19.8%, while the United States pet ownership rate of 68%.

In recent years, with a series of factors such as the lowering of the domestic marriage rate, childlessness, aging, and the growth of the proportion of single people, the number of pets has increased year by year.

And the upward trend in the number of pets should be maintained in the coming years.

The industry market has reached 295.3 billion in 2020:

For more data, see: Pet Industry White Paper.

Post-80s and post-90s make up the majority of people who own pets.

And as the post-90s move into society, their share will rise even further.

Moreover, the concept of pet ownership is very different from before.

Before, many people look at dogs and cats and think that they are captive animals.

And now, many people will treat pets as family members or even companions.

I have a friend who is usually very frugal and spends less than 20 bucks on food for a whole weekend.

He has a cat that gets 20 bucks a can of staple food every day, not counting all the other supplements.

I also have a friend who likes rich women. Recently, he often says he's not interested in women anymore, but he's really good with his cat.

He goes to the food market and supermarket to buy ingredients to make cat meals; when the cat goes to the litter box to go to the toilet, he takes a wet tissue paper and waits outside for the cat to come out to wipe it.

So the pet industry now includes both material and spiritual needs.

Common segments in the pet industry are:

I. Upstream

1, buying and selling

Commonly, there are pet stores, intermediaries and so on.

2, adoption

Commonly there are some intermediaries, platforms or shelters.

Nowadays, some adoption agencies will design the adoption ceremony to be the same as marriage, with photos, red cloth, and oath-taking table, and they will also strictly review the qualifications of the adopters.

As I said before, one of my top ten dreams in life is to let more stray cats have a home, and I'm going to try to make that happen in the future.

Second, the midstream

1, food

Food is a segment of the pet industry that accounts for the largest share of consumption.

Now there are many brands in the food segment, but the current national brands only account for 30%.

However, to get involved in this segment, you may need to excel in both the quality and marketing of the product.

I do think that the food field, the threshold is not low and the competition is strong.

2, clothing

Clothing for pets, is a big incremental area.

Including dogs and cats now do hanfu, or other creative clothing, have eaten a wave of dividends.

3, supplies

Including toys, nesting cages and so on.

Now do these people also a lot, but there are not too many very head players, as long as you can make some good products, you can still have a lot of sales.

And over the past year or two, the number of motorized or smart supplies has been increasing, such as motorized litter boxes, motorized food feeding machines, and so on.

But there will always be safety issues with these machines, such as an electric litter box getting stuck, or a power outage where the power goes out, and all of these machines will stop working.

Third, downstream

1, medical

Now the pet hospitals in Shenzhen, can really say: "The density is almost comparable to the distribution of Shaxian snacks in second and third-tier cities."

There are many brands and many numbers, which also leads to the problem of good and bad quality.

Doctors are unprofessional or hospitals are irregular and so on.

And because most doctors' salaries are in the form of "base salary + commission", many doctors with low moral standards will have excessive diagnosis and treatment,

Originally, there was no problem, a set of screwed down by several thousand, pets and people suffer.

Medical segments, but also a huge demand, I do not know whether there will be more online and offline head of the organization to run out.

2, beauty

As with human medical beauty, the pet beauty market is also growing rapidly.

3, school

Including a variety of training.

4, insurance

My family has two cats, and I have learned something related to pet insurance,

but in general, there is not enough insurance for pets, and the cost-effective is not particularly high.

This is an area where, as the bond between people and their pets grows deeper and deeper, along with the popularity of insurance, I think there will be more pet insurance products coming out in the future.

5, boarding, door-to-door feeding

You can look at this: pets stay for the holidays, supporting a huge business

Derivative occupations

The pet industry, derived from a lot of new occupations.

For example, designing hanboks for dogs and cats.

For example, making milk tea for dogs and cats earns 3 million dollars a year.

And,

The rescue of stray cats has become a self-publishing media.

For those who make birthday cakes and throw parties for pets:

For those who do funerals for pets:

Pet-oriented restaurants, cafes, hotels, and so on.

I used to go to some cat cafes before I got a cat, and I stopped going there after I got one for fear of catching diseases.

There are also short videos and live broadcasts featuring pets.

As far as investment is concerned, there are not many targets that can be invested in now.

A-share China has Chinese pet shares and Petty shares.

Previously listed in the U.S. stock market, there is also Pokey's Pet Company, which I also won in the new listing, but the listing was broken, down 40%.

There's also Chewy, one of the largest pet product e-commerce companies in the US.

These investment targets don't seem to be particularly good at the moment, so they are just mentioned, not as investment advice.

Due to space constraints, this short article is mainly a synopsis of the common segments at the moment.

Overall, the pet industry, in my opinion,

is a high-growth industry with a lot of opportunity left.

The whole industry is very large, and some segments within it are still blue ocean or not yet monopolized by the head players.

If you really love pets, I think you can continue to look out for opportunities in the pet industry in the future.

If I find a good opportunity in a specific area in the future, I'll do some more in-depth research, and I'll talk about it in my public blog.

Welcome to the conversation.

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