Abstract
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive
environment
Product coverage
Dog and cat food; Dog and cat food by price platform (excl treats and mixers);
Dog and cat food by price platform (incl treats and mixers); Dog and cat food
by type (excl treats and mixers); Other pet food; Pet care products
Executive summary
Continued Dynamic Value Growth Performance in 2006
Due to improvements in disposable income levels as well as changing
demographics towards favourable conditions for pet keeping, the total pet
population in China increased during 2006. This had a positive impact on total
value sales of pet food and pet care products across the country. In addition,
the continued expansion of premium wet and dry pet food through specialised
channels and of mid-priced wet and dry pet food through
supermarkets/hypermarkets into second- or third-tier cities offers wider
access to pet owners who are willing to feed their pets with packaged pet
food. All this led to dynamic value sales growth of pet food and pet care
products over the review period.
Humanisation Supports Pet Care Products
With an increasing proportion of the young working population marrying later
as well as ageing populations in big cities such as Beijing and Shanghai, more
young adults and elderly people chose pets for companionship over the review
period. This resulted in greater indulgence on cherished pets. Pet toys,
clothing, dietary supplements and even pet funeral related products tended to
be symbols of treating pets as part of the family, and thus were widely used
by many pet owners during the review period.
Nestlé (China) and Royal Canin Opening Local Production
In view of the high cost of importing dog and cat food from overseas, Nestl
(China) Ltd has set up its first local manufacturing site in Tianjin, China.
The production site was completed in early 2007, enabling the company to
reduce costs and provide tailored products for the China pet market, which
fits with the company' s intention of taking the leadership position from Effem
Foods (Beijing) Co Ltd, which had established production sites for pet food
and pet care products much earlier than Nestlé(China).
Meanwhile, premium dry dog and cat food player, Royal Canin Au Yu (Shanghai)
Pet Food Co Ltd, is planning to set up a local manufacturing site in Fengxian
district, Shanghai, over the forecast period.
Continued Expansion of Pet Superstores
Although pet shops still dominated distribution channels in pet food and pet
care products, pet superstores continued to gain in popularity during the
review period. In addition to first-tier cities, pet superstore operators such
as Cool Baby have been seen to penetrate second-tier cities across China,
including Nanjing and Yantai. This will offer pet owners in such cities better
access to a wide variety of branded pet food and pet care products.
Strong Growth in Forecast Period
Value sales of pet food and pet care products are expected to see dynamic
growth during the forecast period, due to the low penetration of prepared pet
food within overall pet food consumption as well as the increasing number of
pets being kept as companions. This will result in pet food products
continuing to see faster growth in the premium segment, as well as growing
interest in pet nutrition. Pet care products will continue to record dynamic
growth due to increasing interest in pet nutrition and other pet care items
such as pet shampoos and pet toys.
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