The development prospects of the pet industry

The development prospects of the pet industry are as follows:

1. China's pet industry is growing at a compound annual growth rate of nearly 20%, accounting for less than 10% of the global market

With the growing development and prosperity of Chinese society, the role of pets is gradually transforming. Social media has also made pets an important part of young people's lives, and trends such as "cloud cat ownership" have made owning a pet even more desirable.

As a result, the pet market has grown rapidly over the past 10 years, with China's pet consumption market valued at RMB 72.73 billion in 2020, a year-on-year increase of 21.1% and a 10-year CAGR of 18.4%.

As the economy grows, so does pet spending, with households in most developed countries considering pets as family members and investing increased spending on them. According to Euromonitor data, the global pet market industry size of about $138.2 billion in 2020, a year-on-year growth of 4.4%, 10-year CAGR of 3.6%. Among them, China, Japan and the United States pet consumer market accounted for 8.1%, 4.2% and 41.1% of the global market share, respectively.

2. China's pet ownership rate and single-pet consumption amount have a large gap with developed countries, and there is huge room for improvement

Over the past decade, changing demographics and social structures, as well as rising incomes and adoption rates, have been the main factors driving the growth of China's pet ownership rate. Comparing to other regions around the world, China's household pet ownership rate was only about 17% in 2019, far lower than the 67% in the US, 62% in Australia and 44% in the UK. China's pet ownership rate is far below the level of developed countries, and there may be room for several-fold improvement in the future.

Since 2016, China's single pet consumption amount growth rate increased year by year, the main driving force for the rise of per capita disposable income, and pet loved ones to enhance the attributes; 2020 China's single pet annual consumption amount of $ 59. Compared with other countries, in 2020, Japan, the United States single pet consumption amount of 317, 343 U.S. dollars, China's single pet consumption amount is still lower than the level of developed countries.