Core Viewpoint - The pet snack industry in China is experiencing significant growth driven by factors such as an aging population, an increase in single youths, and a growing emotional investment from pet owners, with the market size expected to reach 47.44 billion yuan in 2024, reflecting an 8.50% year-on-year growth [1][10]. Overview - Pet food is specifically designed to provide essential nutrition for pets, categorized into main food, snacks, and health products, with snacks serving various purposes such as enhancing interaction and training [2]. - Pet snacks can be classified by ingredients (meat, seafood, grains, fruits/vegetables, functional ingredients), texture (dry, moist, chewable, powder/particle), function (training rewards, dental care, nutritional supplements, interactive entertainment), and pet type (dog snacks, cat snacks, other pet snacks) [2]. Development History - The entry of foreign pet food brands in the 1990s, such as Mars and Nestlé, helped cultivate consumer awareness of pet snacks in China [4]. - The rapid rise of e-commerce in 2014 significantly expanded sales channels for pet snacks, leading to increased visibility and accessibility for consumers [4]. - Despite a slowdown in growth in 2018 due to overall retail pressures, the industry has shifted towards more refined operations, focusing on product quality and regulatory compliance, which has led to the elimination of outdated production capacities [4]. Industry Chain - The upstream of the pet snack industry includes suppliers of raw materials (meat, seafood, grains, fruits/vegetables), additives, packaging materials, and production equipment [6]. - The midstream involves the manufacturing of pet snacks, while the downstream consists of sales channels such as pet stores, veterinary clinics, and e-commerce platforms [6]. Current Development - The increasing number of pet owners, driven by demographic changes, has created a substantial consumer base for the pet snack industry, leading to a growing market demand [10]. - Pet owners are increasingly willing to invest in high-quality snacks for their pets, reflecting a shift from basic sustenance to emotional consumption [10]. Competitive Landscape - The pet snack industry in China features numerous participants, including both foreign brands like Mars and Nestlé and domestic brands such as Guobao Pet, Zhongchong Co., Tianyuan Pet, and others [12]. - In 2024, Guobao Pet is projected to achieve total revenue of 5.245 billion yuan, followed by Zhongchong Co. with 4.465 billion yuan and Tianyuan Pet with 2.764 billion yuan [12][14]. Industry Representative Companies - Zhongchong Co. focuses on the research, production, and sales of pet food, with a projected total revenue of 4.465 billion yuan in 2024, of which 3.132 billion yuan comes from pet snacks [14]. - Guobao Pet specializes in various pet food products, with an expected total revenue of 5.245 billion yuan in 2024, and pet snacks contributing 2.484 billion yuan [16]. Development Trends - The future of the pet snack industry will see a shift towards natural ingredients, with a focus on reducing synthetic additives and incorporating functional components to cater to aging pets [18]. - There will be an increasing demand for personalized pet snacks tailored to individual pet needs, potentially integrating with personalized nutrition plans for better health management [18].