Globally, the pet market is mainly concentrated in Europe, The United States, Japan and South Korea and other developed countries, the United States is the world's largest consumer of the pet industry. According to APPA statistics, the consumption amount of American pet industry in 2016 reached 62.75 billion USD, with a year-on-year growth of 4.10%, a growth rate of 4.25% in recent 5 years, and a compound growth rate of 4.92% in recent 10 years. The Pet market in Europe has entered the mature stage, with a scale of about 15 billion euros and a compound growth rate of 1.8% in the past three years.
In contrast, China's pet industry still has broad space for development. Data show that in 2016, the overall consumption scale of China's pet industry market reached 122 billion yuan, and it is expected that by 2020, the domestic pet market will exceed 200 billion yuan, with an average annual growth rate of 20%.
Although the total number of pets in China ranks third in the world, the pet retention rate (number of pets/number of families) is relatively low. The pet ownership rate was just 2.6 percent nationwide, with Beijing topping the list at 7.5 percent, compared with 65 percent in the United States. It is expected that the number of pets in China will continue to grow in the future, and the domestic pet economy is a blue ocean.
On the one hand, there is a trend of "younger" pet owners. Statistics show that in the new pet owners every year, young people around the age of 25 account for 30%, and those born in the 1980s, 1990s and 2000s have become the main pet owners, with women accounting for 70.4%, showing a strong willingness to pay.
On the other hand, the role of pets for owners has also changed from "accessory" to "companion". With the addition of emotional factors, they will pursue more quality in the selection of pet products.
At present, in the domestic market, due to the low entry threshold of the pet products market, China's pet products manufacturers are thousands of, and most of them are OEM OEM of overseas big brands.
But at present, the pet products market is monopolized by some big brands in Europe, America and Japan. These big brand enterprises have high requirements for manufacturers, and some even form a dependency relationship. It is difficult for new enterprises to obtain industry recognition in a short period of time, and it is difficult to open sales channels and obtain relatively stable orders.
Compared with the experience of Europe and the United States and other developed countries, the top two industry leaders are expected to occupy 70% of the entire market share by virtue of their scale and price advantages, forcing some small enterprises out.
