SINOLINK SECURITIES(SH:600109) 智通财经网·2025-12-25 06:44Core Viewpoint - The pet hospital market in China is projected to reach approximately 47.3 billion yuan by 2024, driven by factors such as increasing pet ownership, enhanced healthcare awareness, pet aging, and the trend of treating pets as family members, along with improved quality of medical services. The compound annual growth rate (CAGR) is expected to be around 7% over the next three years [1]. Market Size and Expansion Drivers - The pet medical and examination market is expected to reach about 47.3 billion yuan by 2024, with a potential growth to approximately 58 billion yuan by 2027, driven by increased pet ownership, higher visit rates, and rising per capita medical spending [1][2]. - Key drivers for market expansion include: 1. Growth in pet numbers, with significant potential for increased penetration compared to mature markets [2]. 2. Enhanced healthcare awareness leading to more frequent veterinary visits [2]. 3. Aging pets resulting in higher spending per case [2]. 4. Increased willingness to spend among pet owners due to the trend of treating pets as family members [2]. 5. Development of specialized veterinary services to meet the rising demand for quality care [2]. Competitive Landscape - The pet hospital industry in China is characterized by low chain operation rates and a fragmented competitive landscape, with only about 21.8% of pet hospitals being part of chains compared to 36% in the U.S. [3]. - Major players include New Ruipeng and Ruipai, with New Ruipeng leading in terms of store numbers, although it has recently reduced its store count from nearly 2,000 to about 1,400 [3]. - The market is witnessing a trend of capital consolidation, with significant investments directed towards leading companies, and the emergence of new players like Ruichen, which has over 200 hospitals [3]. Operational Challenges in Chain Pet Hospitals - The industry faces challenges such as a shortage of qualified veterinary professionals, with a significant portion of veterinary students coming from lower-tier educational institutions [4]. - Profitability concerns exist, particularly regarding the ability of chain hospitals to improve their profit margins and operational efficiency [4][5]. - The market is currently under pressure due to rapid expansion leading to a high proportion of new stores in the cultivation phase, low technical barriers, and high competition among community hospitals [5].