Investment Rating - The industry investment rating is "Outperform the Market" [85] Core Viewpoints - The pet food market is expected to grow steadily, with the market size reaching 300.2 billion yuan in 2024, a year-on-year increase of 7%. Pet staple food accounts for 36% of the pet economy [3][6] - The trend towards refined feeding is evident, with a growing preference for baked food and specialized diets among pet owners [3][38] - Online channels remain the primary battlefield for pet staple food, with 57.7% of pet owners choosing to purchase online [3][54] - Domestic brands are performing well, with a significant shift towards local brands as consumers show a preference for them over foreign brands [3][75] Summary by Sections Pet Staple Food: Core Track of the Pet Economy - The pet staple food segment is projected to maintain stable growth, driven by the increasing number of pet owners and the trend of treating pets as family members [3][20] - The pet market is expected to reach 404.2 billion yuan by 2027, with a CAGR of 10% from 2024 to 2027 [6] Products: Rapid Growth of Baked Food - Baked food is experiencing rapid growth, with a preference for refined feeding trends continuing among pet owners [3][42] - The preference for ordinary staple food is declining, while interest in specialized and prescription diets is increasing [3][48] Channels: Online Dominance - Online purchasing remains dominant, with major platforms like Taobao and JD.com leading the market [3][54] - Douyin is rapidly rising as a significant channel for pet food purchases, reflecting changing consumer behaviors [3][61] Competitive Landscape: Strong Performance of Domestic Brands - Domestic brands are increasingly capturing market share, particularly in the mid-range and low-end segments, as they offer competitive pricing and quality [3][72] - In 2024, 35% of consumers preferred domestic brands for cat food, reflecting a 7 percentage point increase year-on-year [3][75]