"China's Pet Industry White Paper 2023-2024"

"China's Pet Industry White Paper 2023-2024" was officially released: the market size reached 279.3 billion Yuan(RMB), and the number of dogs and cats achieved a "double increase"

Released by Pethaddop Reserch on December 28^th 2023 in Beijing

The ups and downs of 2023 have come to the end. Under the guidance of the National Companion Animal (Pet) Standardization Technical Committee, the Pet Industry Branch of the China Animal Husbandry Association, and the Chinese Veterinary Association, "China's Pet Industry Trade White Paper 2023-2024

(Consumer Report)" arrived as scheduled at the 2023 China Pet Industry White Paper Annual Ceremony, which is published by Pethaddop pet industry big data platform.

With more comprehensive and multi-dimensional data, let’s review the changes in the China's pet consumer market in 2023 and explore the ideas of the pet industry development in future.

In 2023, for the pet industry, the "restorative consumption" after the epidemic did not last long. This year, the industry has become more and more "volume"; this year, the market volume has not continued to surge as expected... However, everything has its AB side. Under the great changes in the market structure of the pet industry, some companies have made a series of adaptive adjustments and forward-looking layouts. Long-termism has become a consensus, and innovative technologies and categories are constantly breaking through their own boundaries.

At the same time, behind the volume, a positive signal is released, just like "sailing against the current, if you don't advance, you will retreat." What other growth opportunities will there be for the pet industry in 2024? Which categories will be the “general trend” in 2024? What new changes will market channels usher in in 2024? Now, we will use the data in the "2023-2024 China Pet Industry White Paper (Consumption Report)" to conduct an in-depth inventory.

Insights into the development of the overall pet market: Where will the big fortune go?

1. The overall market size growth is slowing down, but the market is still strong.

In 2023, the urban pet (dog and cat) consumer market will be 279.3 billion yuan, an increase of 3.2% compared with 2022, and the growth rate will further slow down. Among them, the size of the dog consumer market increased slightly by 0.9% compared with 2022, while the size of the cat market continued to grow steadily, increasing by 6% compared with 2022.

2. The average annual consumption of a single pet has declined. Are the pet owners lack of money?

In 2023, the average annual consumption of a single pet dog will be 2,875 yuan, a decrease of 0.2% from 2022. The average annual consumption of a single pet cat is 1,870 yuan, a decrease of 0.75% from 2022.

3. The number of dogs and cats has achieved a "double increase", and "stable and improving" is still the main tone of the industry.

The number of pet dogs in 2023 will be 51.75 million, an increase of 1.1% from 2022, and the number of pet cats will be 69.8 million, an increase of 6.8% from 2022.

4. The proportion of young pet owners continues to rise, while the proportion of elderly pet owners decreases.

Pet owners born in the 1990s and 1980s are still the main force in raising pets, both of which have increased compared with 2022. Among them, those born in the 1990s increased by 2.1 percentage points, and those born in the 1980s increased by 10.8 percentage points. The proportion of pet owners born in the 1970s and before the 1970s has declined. Among them, the proportion of pet owners born in the 1970s dropped by 8.1 percentage points, and that of those born before the 1970s dropped by 3.5 percentage points.

5. The distribution of pet owners in the cities of different sizes develops in a "two-end" manner.

The number of pet owners in first-tier, third-tier and below cities has increased compared with 2022. Among them, the proportion of pet owners in first-tier cities is 28.9%, and the proportion in third-tier cities and below is 30%.

6. The pet food industry firmly occupied the "number one" position, and the segment markets have "both joys and worries".

From the perspective of consumption structure, the food market will still be the main consumer market in 2023, with a market share of 52.3%. Staple foods and snacks were relatively stable, while nutritional products increased slightly. Next is the medical market, with a market share of 28.5%. Among them, drugs and physical examinations increased slightly, while diagnosis, treatment, and vaccines declined. The market shares of supplies and services are relatively low, at 12.5% and 6.8% respectively, but they have high room for growth.

Pet food market: The era of multi-dimensional "iteration" has arrived. Are you ready?

1. Emerging categories continue to gain popularity, and pet owners’ preferences are “very different”.

In 2023, dog owners’ preference for baked food and freeze-dried food will increase. Among them, baked grains have seen a larger increase. Cat owners’ preference for freeze-dried food, baked food, and puffed food has all increased, with penetration rates exceeding 40%.

2. The “Double Eleven” promotion occurs every day. Is “stockpile” no longer a trend?

Among pet owners who are accustomed to purchasing staple food periodically, 1-3 months is the most common purchase cycle, and there is a trend of gradual dispersion. Among them, dog owners accounted for 76.6% and cat owners purchased staple food between 1 and 3 months, accounting for 77.4%.

3. Live streaming platforms are “currently popular”, is traditional e-commerce “not popular anymore”?

Pet owners’ preference for traditional online channels and pet hospitals for purchasing staple food has declined slightly. The proportion of pet stores, offline shopping malls, live broadcast platforms, and dog and cat kennels increased, with the live broadcast platform increasing by 6.3 percentage points.

4. The era of "great rise" of domestic dry food brands has arrived.

Among dog owners: 47.3% of dog owners have no clear brand preference, 27.1% of dog owners only buy Chinese brands, and 17.5% of dog owners only buy foreign brands. Among cat owners: 47.7% of cat owners have no clear brand preference, 28.3% of cat owners only buy Chinese brands, and 19.0% of cat owners only buy foreign brands. Taken together, pet owners’ preference for Chinese brands has increased significantly, while their preference for foreign brands has declined.

Pet products market: Given the mixed market performance, what opportunities are worth seized?

1. The pet products section has more “drops” and less “rises”.

Looking at the various subdivisions of supplies, the entire industry as a whole shows a trend of "falling" more and "rising" less. Among dog supplies, the penetration rate of pet home appliances and smart supplies has increased slightly compared with 2022. Pet bed mats and pet clothing decreased slightly compared with 2022. Among cat products, the penetration rates of cat climbing frames and smart products have increased slightly compared with 2022, with penetration rates of 43.4% and 15.8% respectively.

2. The advantages of online channels have been consolidated, while the offline channels have slowed down.

In terms of purchasing channels, traditional online channels and live broadcast platforms have increased slightly compared with 2022. Among them, traditional online channels increased by 1.8 percentage points. The live broadcast platform increased by 1.1 percentage points. Among offline channels, pet hospitals, pet stores, offline supermarkets, and dog and cat kennels all experienced declines.

3. Tofu cat litter has obvious advantages, but mixed cat litter has fallen out of favor?

In the cat litter sector, tofu cat litter and bentonite cat litter have increased significantly compared with 2022. Among them, tofu cat litter increased by 7 percentage points. Bentonite cat litter increased by 6.9 percentage points. Pet owners’ preference for mixed cat litter has declined, down 3.4 percentage points.

4. The leading position of the three major products remains unchanged, and smart cameras "raise their head" again.

In the smart supplies sector, smart water dispensers, smart cameras, and smart feeders still maintain their leading position. Compared with 2022, smart cameras have increased significantly, while smart water dispensers, smart feeders and other categories have declined slightly.

Pet medical market: What else are pet owners“dissatisfied with”?

1. The demand for preventive care is rising, and the proportion of pets receiving hospital immunization is rising.

Compared with 2022, the proportion of pet owners who go to the hospital for immunization has increased. Among them, the proportion of pet dogs immunized was 33.3%, an increase of 2.8 percentage points. Pet cats accounted for 39.8%, an increase of 4.4 percentage points.

2. With growth at both ends, what are pet owners dissatisfied with?

Pet owners' satisfaction with diagnosis and treatment showed a "two-sided" increase, with both satisfaction and dissatisfaction increasing. Among them, satisfaction with diagnosis and treatment increased by 5.2 percentage points, and pet owners who were dissatisfied with diagnosis and treatment increased by 0.6 percentage points. In the process of diagnosis and treatment, a high proportion of dissatisfaction is caused by price. Among them, the proportion of lack of standardized prices, opaque prices, and arbitrary charges has increased compared with 2022. In addition, the proportion of poor service attitude and untimely disinfection and cleaning has also increased.

Pet service market: Will “Sam’s Mode” lead the development of pet stores?

1. Pet store’s preference has experienced a big rebound.

In terms of grooming and foster care, pet owners’ preference for pet stores has increased significantly. Among them, 59.1% choose pet stores to clean and groom their pets, an increase of 8.6 percentage points from 2022. The proportion of people who choose pet stores to foster pets is 44.9%, an increase of 11.6 percentage points from 2022.

2. Digital assets have become an important value point for offline store operations.

In 2023, pet owners will pay greater attention to cost-effectiveness, user reputation, and online or WeChat reservations. Among them, the price/performance ratio increased by 17 percentage points, user reputation increased by 12.2 percentage points, and online or WeChat reservations increased by 5.7 percentage points.

Exotic pet market: Will it become the next “blue ocean market”?

1. The prosperity of the exotic pet market has just begun.

In 2023, the number of people raising exotic pets has increased. Among them, the number of pet owners who keep aquariums has increased significantly, accounting for 12.8%, an increase of 5.5 percentage points from 2022.

2. Food and supplies account for the“big share”.

In the exotic pet market, food and supplies are the main consumer markets, followed by the pharmaceutical and medical markets. Among them, reptiles and birds have higher demand for food, accounting for 81.0% and 80.2% respectively. Aquariums have a high demand for supplies, accounting for 96.7%. Rodents have a high demand for medicines and medical treatment, accounting for 37.2% and 29.2% respectively.

3. The consumption pain points of pet owners are "scattered", and the industry still has many problems to face.

In the process of raising exotic pets, the main problems encountered by pet owners are feeding problems, time-consuming and troublesome care of exotic pets, and uneven quality of exotic pet products, accounting for more than 20%. Secondly, there are few hospitals for exotic pets to see doctors, they do not understand the behavior of exotic pets, and they are deceived when buying pets, accounting for more than 19% respectively.

The connection of it with him: How to mine new “cross-border” opportunities in data?

1. Mining new opportunities in data—pet owners’ car purchasing needs.

The survey shows that 38.0% of pet owners have difficulty traveling with their pets, 23.4% of pet owners like to travel, and 75.8% of pet owners have the idea of changing cars. Pet owners are more concerned about gasoline cars. The main models are SUVs, accounting for 71.8%. The car purchase budget is mainly between 210,000 and 300,000 yuan, accounting for 40.0%.

2. Mining new opportunities in data - the beauty needs of pet owners.

Among the pet owners surveyed, 15.7% of them pay attention to beauty products, and in daily consumption, the average unit price of beauty products is 100-500 yuan. The main products purchased are skin care products and facial masks, accounting for 72.4% and 63.4% respectively.

Judging from the data in 2023, we can deeply feel the twists and turns of the new economic wave in China's pet industry, as well as the persistence and exploration of countless pet industry people in the uncertainty. In the foreseeable future of industry development, we also see many opportunities in the industry's subdivisions.