农林牧渔行业深度报告：宠入万家系列报告（一）-Z世代驱动宠物经济：国货裂变与头部集中双机遇

Investment Rating - The report maintains a "Positive" investment rating for the pet economy sector, driven by the Z generation and opportunities in domestic brands [4]. Core Insights - The pet economy in China is experiencing robust growth, with market size projected to increase from 170.8 billion in 2018 to over 300 billion by 2024, fueled by the emotional connection of pets as family members [5][25]. - The penetration rate of pet ownership in China is currently at 21%, significantly lower than the 60% in the US and 40% in Japan, indicating substantial growth potential [38][24]. - The rise of domestic brands is reshaping the market, as they leverage e-commerce and social media to capture market share from foreign brands, which are losing ground [25][29]. Summary by Sections 1. Young Consumers and Pet Ownership - The emotional value of pets has transformed them into family members, driving the growth of the pet economy [5][16]. - The number of cats in China is expected to exceed 70 million by 2024, with the rise of cat ownership attributed to lifestyle changes and social media influence [18][21]. - The shift towards pet-friendly environments is facilitating pet ownership, with increasing numbers of pet-friendly venues emerging [22]. 2. Growth Opportunities in Pet Consumption - The pet industry is projected to grow by 7% in 2024, outpacing the overall retail growth of 3.5%, driven by resilient consumer spending [7]. - The average annual spending per pet is expected to increase, with significant room for growth in the pet food market, currently valued at 100 billion [7][45]. - The report highlights the importance of the "育儿式养宠" (parenting-style pet care) approach among younger consumers, leading to increased spending on high-quality and personalized pet products [47]. 3. Rise of Domestic Brands - Domestic brands are rapidly gaining market share, with their sales growth outpacing that of foreign brands, which are struggling to adapt to new consumer behaviors [25][30]. - The market share of foreign brands like Mars and Nestlé has declined significantly, from 23% to 17% in recent years, as domestic brands capitalize on e-commerce and social media [29][30]. - The report anticipates that domestic brands will capture over 40% of the market by 2029, driven by innovation and competitive pricing [30]. 4. Market Dynamics and Future Trends - The pet food market is expected to reach 1.072 trillion in 2024, with a potential market size of 2.284 trillion, indicating significant untapped potential [48]. - The report emphasizes the need for brands to innovate and build trust with consumers, particularly in the context of rising quality concerns among foreign brands [34][35]. - The emotional connection consumers have with pets is leading to new business opportunities across various segments, including food, healthcare, and services [36].