Source: Wind Wind information. The second China international import expo was held in Shanghai on November 5, 2010. ROYAL CANIN, a product of global food giant MARS, will also make a comeback. "China's pet industry is in the best opportunity period in history, and we firmly believe that the pet market will be in China in the next 50 years," CAI xiaodong, general manager of China, told thepaper.cn.
Mars, inc. is a Frank c. Mars was established in 1911 a family enterprise, the main business including snacks, pet and electronic product manufacturing and marketing, Mars Petcare is Mars pet business, is one of the largest business category, Mars, the headquarters is located in Brussels, Belgium, more than 33000 staff, products cover 199 markets around the world. Mars is a world-renowned manufacturer of specialized pet food with a long history. Mars entered the pet market in 1935 and has become the leader in the global pet market after 82 years of operation. During this period, it has experienced the establishment of food and scientific research group, the entry of dog food and cat food into China in the early 1990s, the establishment of a factory in Beijing in 1995, a series of m&a events and other important development processes. Mars in strengthen their brand at the same time, through the acquisition of other brands to enrich its product matrix, the current MarsPetcare, a total of 41 brands, including five billion brand: Pedigree, Whiskas, Royal Canin, Banfield, Lams, after three brands are obtained through its acquisition of the brand, there's also NUTRO, Sheba, Kitekat brands, products cover all kinds of the staple food, snacks, pet supplies, multiple brands to meet different user requirements, the company market share ahead of other companies.
China's pet market has exceeded 170.8 billion yuan in 2018 and is expected to exceed 200 billion yuan in 2019, maintaining double-digit growth. According to the latest data in 2019, the total size of the pet market is nearly 200 billion. The number of pet cats and dogs in China actually exceeds the population of many developed countries. From an investment point of view, pet track is likely to be one of the fastest growing of the many consumer segments over the next few years.
Is a pet a child, a friend or a companion? This question should be asked not only to pet owners, but also to businesses that provide goods and services for pets. Generally speaking, the pet market and maternal and child market have certain similarities. The biggest similarity between them is the separation between the buying decision maker and the user. Secondly, both of them have many brands and relatively low market concentration. But on closer inspection, there are many differences. From the perspective of product structure, the biggest consumption in maternal and infant market is food (milk powder), infant clothing and education input, while the pet market is food and medical treatment.
Food and medical care have long been hot tracks in the pet industry, but foreign products dominate the market. As a rigid demand, pet food accounts for the highest proportion of 33.8% in the industry, followed by pet medical treatment accounts for 22.9%. In the field of pet food, Mars alone has a market share of 76.4%, according to Euromonitor. Domestic brands are obviously not competitive enough. In the medical field, domestic pet hospitals expand at an obvious speed, but they rely heavily on foreign medical products. The market share of imported pet vaccines, veterinary drugs, diagnostics and other products is nearly 90%.
What's more, while humans are crying out for a "downgrade", pets are constantly "upgrading". On the one hand, sales growth of middle and high-end pet food is far greater than that of the low-end market. According to the report on pet consumption trends 2018, middle and high-end food for dogs and cats (40 yuan to 50 yuan per catty) showed the highest year-on-year growth, reaching 100.69% and 136.54%, respectively, more than twice the growth of low-end food, indicating that consumers are more willing to buy big brands and high-quality rations for their pets. On the other hand, insurance, grooming, training, photography, foster care and pet funeral services are emerging around the downstream industry chain. People between 25 and 35 years old account for nearly 70 percent of these emerging pet service markets, reflecting young people's higher acceptance of novelty and willingness to pay for services.
In the face of billions of blue ocean market, capital players have long been ready to move. From the middle of last year to the middle of this year, a number of well-known venture capital institutions have sold on platforms related to the pet economy, with about 50 financing cases. But actually, capital has already had layout to pet industry. Relevant statistics show that since 2015, A number of pet companies have listed or sought financing on the new third board, a-share and Hong Kong stock exchange.
In the primary market, the financing amount and scale of pet enterprises have also increased rapidly since 2014. Hillhouse capital is the most active. According to incomplete statistics, from 2016 to 2018, hillhouse capital held more than 100 pet related enterprises with numerous tracks, including pet medical care, retail, supplies, etc.