Core Viewpoint - The ongoing trade war between the US and China is causing anxiety among Chinese consumers regarding pet food prices, but the actual impact on the domestic pet food market may be less severe than anticipated [1][4][17]. Group 1: Impact of Tariffs - The US has imposed significant tariffs on Chinese imports, with rates reaching up to 145%, which could lead to price increases for pet food and pharmaceuticals [4][7]. - Despite the tariff announcements, there has been no significant price increase observed in US pet food brands in China as of late April [4][6]. - The pet food industry in China heavily relies on US imports for key ingredients, particularly chicken meal, with over 98% of chicken meal imports coming from the US [12][13]. Group 2: Market Dynamics - The market share of US pet food brands in China is relatively low, with only about 4% of the total market and 13% in the high-end segment [17][19]. - Domestic brands are rapidly gaining market share, with companies like Zhongchong and Guobao reporting significant revenue growth in 2024, indicating a shift towards local products [19][21]. - The competition between domestic and imported brands is intensifying, with domestic brands increasingly focusing on product innovation and marketing strategies [24][27]. Group 3: Future Trends - The trade war may lead to a reduction in US pet food imports, but the overall impact on the Chinese pet food market is expected to be minimal due to the growing strength of domestic brands [17][18]. - The cost structure of pet food production in China is less favorable for foreign brands, as local raw material prices are rising, making it challenging for them to compete [15][16]. - The long-term outlook suggests that domestic brands will continue to thrive, while imported brands, particularly from the US, may struggle to maintain their market presence [28].