中国宠物食品行业研究框架：长坡厚雪，国产崛起

Investment Rating - The industry investment rating is "Overweight" indicating a positive outlook for the pet food sector in China [65]. Core Insights - The Chinese pet food industry is experiencing robust growth, with a market size reaching 53.3 billion yuan in 2023, representing a CAGR of 22% over the past decade, making it the largest market in the world [2][8]. - The market is characterized by a low concentration of brands, with the top 10 brands holding only 24% market share, significantly lower than in mature markets like the US and Japan [2][22]. - Domestic brands are gaining traction, with a combined market share of 17.2% among the top 20 brands in 2022, surpassing foreign brands at 13.4% [2][30]. Summary by Sections Overview - The Chinese pet food market is valued at over 500 billion yuan, with growth rates leading globally [1][33]. - The rise of domestic brands is evident, showcasing increasing brand strength [1][33]. Current Status - The market is witnessing a shift towards domestic brands, which are beginning to establish significant market presence [2][30]. - The competitive landscape is evolving, with a trend towards consolidation and increased brand loyalty among consumers [3][41]. Trends - The industry is transitioning to a phase of steady growth, with expected market growth rates of around 10% in the next 3-5 years [3][34]. - The concentration of market share among leading brands is expected to continue increasing, with significant room for growth for top players [3][41]. - Profitability for leading companies is anticipated to improve, driven by brand strength and market consolidation [3][44]. Market Dynamics - The pet food industry is positioned in the middle of the pet industry value chain, with the largest market size [14]. - The upstream raw material costs are significant, with fluctuations impacting production costs [16]. - E-commerce channels dominate sales, accounting for 65.9% of total sales in 2023, reflecting a shift in consumer purchasing behavior [16][18]. Competitive Landscape - The competitive environment is characterized by a large number of participants and low brand loyalty, leading to a fragmented market [22][30]. - Domestic companies are increasingly focusing on brand development and marketing to enhance consumer engagement [18][20]. Financial Performance - Leading companies in the sector are expected to see improvements in profitability, with gross margins for private label products ranging from 25% to 45% [3][44]. - The financial performance of domestic brands is improving, with companies like Guobao Pet achieving significant revenue growth and profitability [49][55].