Petfood Industry - January 2020 - 21

www.PetfoodIndustry.com | 21

The report showed Shanghai's cats and dogs are behind
Euromonitor estimates that from 2018 to 2022, China's dog
a 19.7-billion-yuan (US$2.8 billion) consumer market, ahead
food sales, at 29% CAGR, will continue their steady ascent
of the other three major cities surveyed. Shanghai is the most
from US$1.5 billion to US$14.1 billion.
populous city in the world with 22.3 million people.
Cat food sales for the same period (and also at 29% CAGR)
On average, every city-dwelling pet cat and dog in the
will likewise show strong growth to reach US$2 billion.
report consumes 5,561 yuan (US$800) worth of goods
Both types of pets in China love their dry food more
per year. The per-capita consumption of a single
than the wet kind, or at least that is what Chinese
pet dog is at least 6,082 yuan (US$864), a
pet owners tend to buy the most. In 2022, dry
year-on-year increase of 9%, while perfood for dogs and cats in China will bring in
Asia-Pacific
capita consumption of a single pet cat is
sales of US$2.7 billion and US$1.3 billion,
dominates pet food
4,755 yuan (US$675.50), a year-on-year
respectively. As for wet food, Euromonimarket growth potential
increase of 10.3%, the report said.
tor's forecast is US$841 million for dogs and
www.PetfoodIndustry.com/
Most spending is on pet food,
US$705
million for cats in 2022.
articles/8548
accounting for 61.4%, up 9.2% from 2018.
By end-2019, the report estimated China's
Premiumization
urban pets would have eaten some 48.6 billion
Chinese pet owners from urban centers are
yuan (US$6.9 billion) worth of pet food. However,
also leading the trend toward "premiumization" or the
this amount is much larger than Euromonitor International
move toward more expensive, high-quality pet food with
numbers, which valued the entire Chinese pet food industry
more nutritional value. Driven by issues with pet food safety,
at US$1.7 billion in 2017, ballooning to US$6.1 billion in 2022.
those who can afford to spend more are choosing imported
premium pet food over locally produced economy brands.
Pet population boom
Euromonitor data showed that in 2018, China's market for
Despite concerns about the damaging effects to the pet
premium wet and dry cat food totaled US$284 million while
industry of China's trade war with the U.S. and how China's
that for dogs reached US$745.4 million. Four years later, cats
population has actually begun to decline and age rapidly like
and dogs in the country will be meowing and barking for
in other highly industrialized countries, its pet industry is still
premium pet food to the tune of US$2.8 billion (US$793 million
looking at a very promising future.
for premium cat food, US$2 billion for premium dog food).
One reason for this is China's current pet boom as
But there are domestic pet food companies, too, like
demand for companion animals comes from almost every age
Shanghai Bridge Petcare Co. Ltd., that are able to challenge the
group. Given that the standard of living has improved across
dominance of Mars Inc. and Nestlé SA because they have the
the country of late, especially in urban centers, young people,
home-court advantage and competitive offerings. Shanghai
adult singles, families with small children and retirees are
Bridge Petcare is the maker of Vigor & Sage, Nature Bridge and
welcoming pets into their lives more than ever.
Kitchen Flavor pet food, which claim to have high product stanAccording to Euromonitor, China's pet population has
dards but are relatively cheaper than popular imported brands.
increased by a 7% compound annual growth rate (CAGR)
There's still plenty of room for more pet food vendors in a
from 2013-17, from 389 million pets to 510 million. It added
market as gigantic as China. The thing to know is where the
that the pet population explosion will continue from 2018-22,
concentration of pet owners is. Shanghai is China's pet capital
from 551 million to 755 million at 8.2% CAGR. By that time,
with the highest number of registered pets in 2016, followed
China's population will peak at an estimated 1.411 billion, but
by Beijing, Guangdong and Jiangsu. For some reason, pet
the pets' number will still be rising.
ownership is also reportedly high among residents in coastal
Fish will always be the top pet of choice in China, with
districts along the border of China. Research firm Daxue
220.5 million of them in household aquariums come 2022.
Consulting said 54% of registered pets are in towns near
Cats, whose size and demeanor make them more suitable for
the water, which sounds like the perfect place for pet food
small-space apartments, will nearly double their number from
companies to dive in. ■
2018's 87 million to 171 million in three years. With a population
growth of 18.5% CAGR, cats will become China's second most
Alma Buelva is a journalist from the Philippines. When she's not writing about business and
favorite house pet, followed by dogs at 136 million.
technology, she devotes her time to taking care of animals and writing about them, too.
Industry January 2020


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Petfood Industry - January 2020

Table of Contents for the Digital Edition of Petfood Industry - January 2020

Petfood Industry - January 2020
Contents
DCM and grain-free pet food: What will 2020 bring?
Speaking of…
News and Calendar
Smalls takes cat-first approach to customized pet food
Quality, sustainability to dominate 2020 pet food trends
Dissecting DCM: How genetics can impact canine nutrition
China’s 2019 urban pets consumer market hits 202.4B yuan
Combination feeding a popular option for pet parents
Petfood Forum Asia highlights pet food sustainability
CBD in pet foods: Has anything changed with legal status?
Onions and garlic offer flavor in the right amounts
Cat owners want first-class citizenship for their pets
New Products
Marketplace
Advertiser’s Index
Petfood Industry - January 2020 - CT1
Petfood Industry - January 2020 - CT2
Petfood Industry - January 2020 - Petfood Industry - January 2020
Petfood Industry - January 2020 - Cover2
Petfood Industry - January 2020 - 1
Petfood Industry - January 2020 - Contents
Petfood Industry - January 2020 - 3
Petfood Industry - January 2020 - DCM and grain-free pet food: What will 2020 bring?
Petfood Industry - January 2020 - 5
Petfood Industry - January 2020 - Speaking of…
Petfood Industry - January 2020 - CT3
Petfood Industry - January 2020 - CT4
Petfood Industry - January 2020 - News and Calendar
Petfood Industry - January 2020 - Smalls takes cat-first approach to customized pet food
Petfood Industry - January 2020 - 9
Petfood Industry - January 2020 - 10
Petfood Industry - January 2020 - 11
Petfood Industry - January 2020 - Quality, sustainability to dominate 2020 pet food trends
Petfood Industry - January 2020 - 13
Petfood Industry - January 2020 - 14
Petfood Industry - January 2020 - 15
Petfood Industry - January 2020 - Dissecting DCM: How genetics can impact canine nutrition
Petfood Industry - January 2020 - 17
Petfood Industry - January 2020 - 18
Petfood Industry - January 2020 - 19
Petfood Industry - January 2020 - China’s 2019 urban pets consumer market hits 202.4B yuan
Petfood Industry - January 2020 - 21
Petfood Industry - January 2020 - Combination feeding a popular option for pet parents
Petfood Industry - January 2020 - 23
Petfood Industry - January 2020 - 24
Petfood Industry - January 2020 - 25
Petfood Industry - January 2020 - 26
Petfood Industry - January 2020 - 27
Petfood Industry - January 2020 - Petfood Forum Asia highlights pet food sustainability
Petfood Industry - January 2020 - 29
Petfood Industry - January 2020 - CBD in pet foods: Has anything changed with legal status?
Petfood Industry - January 2020 - 31
Petfood Industry - January 2020 - 32
Petfood Industry - January 2020 - 33
Petfood Industry - January 2020 - Onions and garlic offer flavor in the right amounts
Petfood Industry - January 2020 - 35
Petfood Industry - January 2020 - 36
Petfood Industry - January 2020 - 37
Petfood Industry - January 2020 - Cat owners want first-class citizenship for their pets
Petfood Industry - January 2020 - 39
Petfood Industry - January 2020 - 40
Petfood Industry - January 2020 - 41
Petfood Industry - January 2020 - New Products
Petfood Industry - January 2020 - 43
Petfood Industry - January 2020 - 44
Petfood Industry - January 2020 - 45
Petfood Industry - January 2020 - 46
Petfood Industry - January 2020 - 47
Petfood Industry - January 2020 - 48
Petfood Industry - January 2020 - 49
Petfood Industry - January 2020 - Marketplace
Petfood Industry - January 2020 - 51
Petfood Industry - January 2020 - Advertiser’s Index
Petfood Industry - January 2020 - Cover3
Petfood Industry - January 2020 - Cover4
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