This article will introduce the booming market of Pet Food in China, trends and distribution for Foreign Business
I) The Petfood Forum China
The seventh Petfood Forum China attracted pet food professionals from China and Southeast Asia as well as other parts of the world.
At this forum were attended 130 pet food professionals from China.
During the conference, it was shown that pet food sales in China are particularly important and are up 30.8% year-on-year, although growth slowed by 40.7% in 2017.
Participants had the exclusive opportunity to learn from world-renowned pet food experts on a variety of topics, including:
- An update on China’s new pet food regulations,
- Choosing the right food safety management system
- The monitoring of strong growth in China and Southeast Asia,
- The effect of the size of dog croquettes
They were also able to interact with Petfood Forum China sponsors, including AFB International, Alltech, Darling Ingredients, DSM Nutritional Products, Extru-Tech Inc., Schenck Process, Sonic and Wenger Manufacturing.
II) Some data to know about pet food sales in China
On August 23, 2018, pet food sales reached US$2.2 billion.
a) Cat or Dog?
Online sales now account for more than half (51.8%) Chinese pet food market.
Regarding the distribution of online outlets:
- Pet stores have a 69.3% share
- Hypermarkets 18.6%
- 1% for veterinary hospitals
b) Cat food sales
In terms of sales, cat sales are up in all channels and account for 40% of the market.
c) Dog food sales
Sales of dog food are down in hypermarkets and increasing in other channels, but not at the same rate as for cats.
This can be explained by the fact that some cities place restrictions on dogs, such as the maximum allowable size.
III) Pet feeding habits in China
- Dry feed predominates in the Chinese market.
- Natural and cereal-free products account for 29% and 10% respectively in the pet food market.
IV) Foreign brands
The market consists of 66% foreign brands but this figure has been declining since 2017 (74%).
In contrast, national brands are becoming increasingly popular, especially in the field of high-end products.
V) New regulations
According to Professor Wang Jinquan Ph.D., who is also present at the Petfood Forum China, 15 companies now have revenues of over RMB100 million (US$14.5 million) in 2017.
Also the editor of the new pet food regulations in China on June 2018, Wang used the forum to stipulate certain rules including definitions of pet food types: food wholemeal foods, addictive foods, premixes, and snacks…
These rules also include licensing requirements for each of these types of foods in addition to labeling, hygiene and safety rules.
Professionals now have until September 1, 2019, to comply with the new regulations.
Today, having a pet in China is seen as proof of financial success.
Some pets can sell very expensively and owners will be even more generous in feeding their beloved cubs.
The pet food market is, therefore, a market of the future and with great potential provided it knows how to seduce Chinese consumers.
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