The domestic pet food market is expected to grow at an annual rate of more than 30 percent to reach 150 billion yuan ($21.84 billion) by 2020, making it the world’s third-largest. The expectations follow a market transaction surge to 53.5 billion yuan in 2016 from 19.32 billion yuan in 2013…Full Article: China Daily Mar 2017

Key Point

  • In March 2017, China’s first international pet industry experimental zone was established in Jianggan District, eastern Hangzhou, Zhejiang Province. The zone, currently hosting the e-commerce platforms of Tmall, Beibei, and Kaola. The company, Huisen Pet Food Trading, can reportedly assist in securing import certificates for foreign pet food suppliers.

ChinaAg Comments

  • In 2016, approximately 25% of mainland China’s population had a pet dog, while 12% of the population owned a cat. At the time, cat food accounted for 31% of the pet food market.
  • In 2015, Mars Inc. (USA), Nestlé Purina PetCare Company (USA), Royal Canin (France) had a 68% share of China’s pet food market, while China’s annual pet food output totaled 700,000 MTs. Also in 2015, Chinese online pet food shops had a 35% market share, while the remaining share was comprised of supermarkets and pet food stores. In general, online purchases of cat food are more popular than dog food purchases.
  • Founded in 2015 and headquartered in Hangzhou, Zhejiang Province, Kaola is a NetEase Inc (ADR)(NASDAQ:NTES) backed e-commerce platform that sells a variety of products including food items such as snacks, beverages, wine, dairy products, fruits, meat, and processed food. Kaola was also launched in conjunction with Sinotrans Limited (HKG:0598), a shipping logistics company.
  • Founded in 2011 and headquartered in Hangzhou, Zhejiang Province, Beibei is an Alibaba Group backed e-commerce platform that sells infant and child products. Its product line includes food products such as snacks, nuts, beverages, infant formula, and baked goods.

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