The private equity firm C2 Capital Partners Alibaba Group and Bain & Co. have undertaken a survey on Chinese pet food market. Foreign brands increased from $100 million in 2016 to $1 billion in 2022.
Across 5 years, from 2016 to 2021, China’s pet food market grew by 25% each year. According to a survey by Bain & Co. in 2021, the increased number of pets and spending are resonsible fort he growth, determining 45% of new pet owners are in their 30s and 35% in their 40s.
Due to China’s one-child policy, people that were born in the 1980s and 1990s treat their pet as a real famil member paying more attention commercial pet food. Young women living in bigger cities are the strongest consumers.
Alibaba revealed that freeze-dried, functional, and wet pet food experience the strongest increase accompanied by a great demand for supplements.
After faciliating the import restrictions in 2016, popular brands including Taste of the Wild, Stella & Chewy’s, and Royal Canin have opened up the Chinese market. According to the paper, there is still room for growth since pet spending is comparativley low regarding e.g. US, Canada, and Russia. Local and foreign pet food companies will have the possibility of expansion.
Champion Pet Foods, a Canadian pet food company, has entered the market with Orijen in 2010 as one of the first importeurs to China. Now, it is famous or being the “best” imported pet food brand among Chinese pet owners.
Stella & Chewy’s, that entered the market through Alibaba’s marketplace Tmall recorded $20 million (€18.75M) in sales in under 2 years. New Zealand’s Ziwi Peak started in 2017 with wet and air-dried cat food. Sales are now more than $100 million (€94M).
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