Core Insights - The recent closure of all physical stores by Pet Fresh, a pet fresh food brand founded by former Hema founder Hou Yi, has raised questions about the viability of the pet fresh food market [1][2] - Pet Fresh aimed to create a new retail model similar to Hema but faced significant operational challenges leading to its decision to focus solely on online sales [1][3] Company Overview - Pet Fresh offered a variety of products including fresh pet food, refrigerated food, and over 300 types of snacks, utilizing an integrated online and offline retail model [2] - The company initially opened its first store in Shanghai in February and completed a $25 million angel round of financing in May, aiming to expand to 100 stores by the end of the year [1][2] Market Challenges - The closure of Pet Fresh's stores is attributed to high operational costs, including rent and labor, as well as the need for specialized kitchen equipment and cold chain logistics [2][3] - The pet fresh food market has a lower purchase frequency compared to traditional grocery shopping, making it difficult for physical stores to maintain consistent customer traffic [3][4] Competitive Landscape - Other players in the pet fresh food market, such as "Duke is Here," have also faced challenges but have managed to survive by building a loyal customer base and integrating online sales [4][5] - New entrants like "Pure Paw Pet Bakery" are attempting to navigate the market by focusing on high-quality ingredients and local customer bases [5][6] Cost Structure - The operational costs for pet fresh food businesses are high, with significant expenses related to rent, utilities, and quality ingredients, making profitability challenging [6][8] - The price sensitivity of consumers often leads them to choose cheaper options like traditional pet food, limiting the market for premium fresh food products [9][10] Regulatory Environment - There is currently no unified safety standard for pet fresh food in China, leading to consumer concerns about product quality and safety [11][12] - Existing regulations primarily cover pet feed but do not extend to fresh food, creating a regulatory gap that could impact market growth and consumer trust [12][13] Future Outlook - The pet economy in China is projected to reach a market size of 1.15 trillion yuan by 2028, indicating potential growth opportunities despite current challenges [14] - Experts suggest the need for a multi-tiered standard system to ensure product safety and quality in the pet fresh food sector [15][16]

Core Viewpoint - The closure of all "Pet Fresh" stores by Hou Yi, the founder of Hema, indicates challenges in the pet fresh food market, which is deemed not a good market due to its small scale and unresolved issues [1][6]. Company Overview - "Pet Fresh" was Hou Yi's second entrepreneurial project after leaving Hema, initially aiming to open 100 stores in Shanghai and successfully raising $25 million in angel funding, setting a record in the pet industry [2][6]. Market Analysis - The global pet fresh food market is projected to exceed $4.5 billion by 2025, with a compound annual growth rate (CAGR) of 21.3%, significantly outpacing the traditional dry food market's growth of 5.2% [8]. - However, the penetration rate of fresh food feeding in China is below 5%, compared to 36% in the U.S., indicating potential growth opportunities despite current market challenges [8]. Consumer Behavior - Consumers typically mix pet food types, with dry food being the primary choice, and fresh food purchases often influenced by marketing rather than nutritional needs [8][9]. - The cost of fresh food is significantly higher, with monthly expenses for dry food around 150 RMB, freeze-dried food at 300 RMB, and fresh food ranging from 500 to 600 RMB [8]. Future Outlook - Hou Yi plans to continue his entrepreneurial journey, focusing on the retail and fresh food sectors, emphasizing a strong product brand and system [10].

Core Insights - The former CEO of Hema, Hou Yi, has announced the suspension of the "100-store" plan for his new venture, Pet Fresh, due to ongoing operational pressures on physical stores [1] - Pet Fresh plans to close all 18 physical stores by mid-December 2025 and will shift its focus to online operations [1] - The company had previously aimed to open 100 stores in Shanghai by 2025, but has now faced significant challenges in the physical retail space [1][2] Company Summary - Pet Fresh was founded in February this year, focusing on fresh pet food, refrigerated food, and innovative snacks, with over 300 types of pet snacks and products from leading brands [1] - The company raised $25 million in angel funding in May, marking a record high for the pet industry [1] - Following the announcement of store closures, Hou Yi addressed market concerns through a live broadcast, stating the decision to exit the physical pet store market was approved by the board [1] Operational Challenges - Hou Yi highlighted challenges faced by the physical retail model, including significant price competition from established brands, with Pet Fresh's fresh food priced at approximately 11-12 RMB per 100 grams compared to as low as 4 RMB for competitors during promotional events [2] - The initial strategy of operating discount stores did not succeed, as consumers preferred established brand products, making it difficult for new brands to compete on scale [2] - The reliance on snacks for sales in physical stores resulted in low overall repurchase rates, leading to substantial losses [2] Market Context - The pet food market in China is growing, with a reported market size of 300.2 billion RMB in urban areas, reflecting a year-on-year growth of 7.5% [3] - The pet food retail landscape is characterized by specialized, personalized small stores, which poses challenges for large-scale chain operations in terms of supply chain and management capabilities [3] - In response to the shift away from physical stores, Pet Fresh launched an online brand focused on pet fresh food called "Pet Tian Tian," aiming to leverage its supply chain and collaborate with pet nutritionists for product development [3]

Core Viewpoint - The recent closure of all physical stores by Pet Fresh, a pet fresh food brand, has raised concerns about the viability of the pet fresh food market, highlighting the challenges faced by companies in this segment [1][3]. Company Overview - Pet Fresh, founded by former Hema founder Hou Yi, aimed to create a pet food retail brand similar to Hema, launching its first store in Shanghai in February and raising $25 million in angel funding by May [3][4]. - The company planned to open 100 stores by the end of the year but has now decided to close all physical locations due to operational pressures, retaining only its online business [3][4]. Market Dynamics - The pet fresh food market has attracted numerous entrants as the pet economy expands, but Pet Fresh's rapid expansion and subsequent closure raise questions about the sustainability of such business models [3][5]. - The operational model of Pet Fresh, which included high overhead costs associated with physical stores and specialized kitchen equipment, proved incompatible with the market's characteristics [4][5]. Financial Challenges - The high costs of rent, labor, and cold chain logistics, which account for about one-third of total costs, have made profitability difficult for Pet Fresh, especially given the lower margins of fresh pet food compared to traditional dry food [4][10]. - The average monthly costs for a pet fresh food store can reach approximately 40,000 yuan for rent and utilities, with additional costs for equipment and ingredients [7]. Consumer Behavior - Pet owners typically purchase pet food infrequently, averaging only 1-2 times per month, which limits the effectiveness of physical store models that rely on high foot traffic and immediate delivery [5][9]. - The price sensitivity of consumers also plays a significant role, as many opt for cheaper dry food options over more expensive fresh food, which can cost significantly more per meal [9][10]. Regulatory Environment - The lack of established safety standards for pet fresh food in China has led to consumer concerns regarding product quality and safety, with many brands operating under unclear guidelines [11][12]. - Current regulations primarily cover pet feed but do not extend to fresh food, creating a regulatory gap that could impact market growth and consumer trust [12][14]. Recommendations for the Industry - Experts suggest the need for a multi-tiered standard system to establish clear guidelines for pet fresh food, including ingredient quality, microbial standards, and cold chain requirements [14][15]. - There is a call for industry associations to develop group standards that can eventually evolve into national standards, ensuring better regulation and consumer protection [14][15].

21世纪经济报道记者 易佳颖 11月17日晚，侯毅在一场采访直播中公开回应，表示将关闭所有"派特鲜生"门店。 另一位小狗珞珞的"爸爸"小于则表示，派特鲜生刚开业时，由于国内人宠共处的公共空间有限，对其门 店还很期待。"认为它不光是消费场所，也是小狗的社交空间。" 欧睿国际数据显示，2025年全球宠物鲜粮市场规模将突破45亿美元，年复合增长率达21.3%，远超传统 干粮市场5.2%的增速。但鲜食喂养在国内的市场渗透率不足5%，远低于美国的36%，仍有不错的增长 空间。 与市场前景形成鲜明对比的是，当下的实际现状。 "大家一般是混着喂食，狗粮为主，也会加一些其他饮食改善。"小于解释道，购买鲜食类宠物食品很难 说是出于营养上的需要，还是受广告营销的影响。"鲜食品牌的广告往往宣称，小狗生命短暂，每天都 吃狗粮太可怜，如果爱它，要多补充一些鲜食等等。" "有一个潜在鄙视链，喂鲜食的看不上喂冻干主食的，喂冻干主食的看不上喂狗粮的，而且价格也有阶 梯。"他进一步介绍道，以自家宠物为例，一个月喂狗粮花费150元，冻干主食则在300元，鲜食的花销 在500-600元左右。小于表示，鲜食兴起的比较晚，是一个新兴赛道，每次打开社交 ...

Investment Rating - The report maintains an "Outperform" rating for the agriculture, forestry, animal husbandry, and fishery industry [1]. Core Views - The report highlights a continued decline in pig prices and strong performance in pet food sales during the "Double Eleven" shopping festival [1]. - The industry is currently trading at lower price-to-earnings (P/E) and price-to-book (P/B) ratios compared to historical averages, indicating potential for valuation recovery [1]. Summary by Sections Market Review - In October 2025, the agriculture, forestry, animal husbandry, and fishery index rose by 0.19%, outperforming the CSI 300 index, which had a return of approximately 0% [8][11]. - The pet food sector experienced a decline, while the wood processing sector showed strong gains [11]. Livestock Farming Data Tracking - Pig prices continued to decline in October 2025, with an average price of 11.52 yuan/kg, down 11.46% month-on-month and 34.77% year-on-year [16]. - The average price for white feather broilers was 3.38 yuan/jin, showing a slight decrease of 0.29% month-on-month and 7.65% year-on-year [26]. Pet Food Sales Performance - During the "Double Eleven" period in 2025, total sales of pet food reached 9.4 billion yuan, a year-on-year increase of 59.3% [35]. - Pet food exports in September 2025 totaled 30,500 tons, up 18.78% year-on-year, while the cumulative export amount from January to September was 1.057 billion USD, down 3.73% year-on-year [32][35]. Investment Recommendations - The report suggests focusing on companies such as Muyuan Foods, Pulaike, QiuLe Seed Industry, GuaiBao Pet, ZhongChong Co., and Petty Co., all rated as "Buy" [1].

Core Insights - The pet consumption market in China continues to thrive, with significant sales growth reported during the 2025 "Double 11" shopping festival, particularly for domestic brands like Guibao Pet and its brands Maifudi and Fleagart [1][2] - The overall pet market in China is projected to exceed 811.4 billion yuan by 2025, with pet food being the largest segment, indicating strong demand and growth potential in the pet economy [3] Company Performance - Guibao Pet's self-owned brand sales reached nearly 1.1 billion yuan during the 2025 "Double 11," with Maifudi and Fleagart achieving sales of 688 million yuan and 335 million yuan, respectively, marking year-on-year growth of 35% and 51% [1] - Other leading companies like Zhongchong Co. and Petty Co. also reported strong sales growth during the same period, confirming the robust demand in the pet food market [1][2] - Guibao Pet maintained its leading position in the domestic pet food market, with a strong brand presence and high user recognition [2] Market Trends - The consumer base for pet products is increasingly favoring online purchasing, particularly through short videos and social media, reflecting a shift towards more informed and quality-focused buying decisions [3] - The pet industry is transitioning from basic feeding to a more refined approach, with consumers seeking higher quality and brand reputation in their purchases [3] Global and Local Strategies - Zhongchong Co. has established over 22 modern production bases globally and is actively promoting its brands internationally, achieving significant market recognition [4] - Petty Co. is focusing on the pet baking food segment and is investing in product innovation and supply chain collaboration to ensure quality and stability in new product offerings [4] - The industry is witnessing a shift from price competitiveness to technological advantages, with companies leveraging digitalization across their operations to enhance user insights and product iterations [4]

Core Insights - The report emphasizes the cyclical nature of the pig farming industry, indicating that the downward cycle is nearing its end, with a potential upward turning point expected in 2026 [3][19] - The pet economy remains a key growth area, highlighting investment opportunities in niche sectors [4] Group 1: Industry Overview - The agricultural sector, particularly the pig farming segment, is experiencing a downturn, with 2025 expected to see continued losses, leading to a price bottom in the first half of 2026 [5][19] - The chicken farming sector is also under pressure, with expectations of supply-side stabilization and demand recovery in 2026 [20] - The cattle farming sector is projected to face a supply contraction starting in 2026, which may last until 2027 [21] Group 2: Investment Opportunities - The pet food industry is anticipated to maintain its growth trajectory, with leading companies increasing their market share despite challenges in export performance [5][4] - The blueberry market in Yunnan is expected to see profit realization from 2024 to 2025, with growth potential continuing into 2026-2027 [5] - The artificial cultivation of Cordyceps is gaining traction as natural production declines, with early movers in this space likely to see performance improvements [5] Group 3: Key Companies to Watch - The report identifies several key companies for investment consideration, including Muyuan Foods, Wens Foodstuff Group, DeKang Agriculture, TianKang Biological, and others in the pet food sector [5]

人民财讯11月18日电，乖宝宠物（301498）公众号11月18日消息，截至11月14日24时，2025年"双11"期 间乖宝宠物自有品牌全网销售额近11亿元，累计发货超880万单。其中，麦富迪品牌销售额突破6.88亿 元，同比增长35%；弗列加特品牌销售额突破3.35亿元，同比增长51%。 ...

Core Viewpoint - The article discusses the significant business adjustments of the pet fresh food retail project "Paiteshengsheng," founded by Hou Yi, highlighting the closure of all physical stores while retaining online operations due to market challenges and consumer behavior [2][4][12]. Business Adjustments - Paiteshengsheng plans to close all physical stores by mid-December 2023, focusing on online sales instead [2][4]. - The project, which initially aimed to open 100 stores in Shanghai, is now undergoing a major restructuring after less than a year of operation [3][12]. Market Challenges - Hou Yi stated that the pet fresh food market is not currently favorable, with a small market size and limited consumer interest in switching from traditional pet food [4][20]. - The fresh food products require thawing, making them less convenient for consumers, which has impacted the competitiveness of physical stores [4][20]. Consumer Behavior - The article notes that while the concept of fresh pet food is appealing, actual consumer adoption is slow, requiring time for market education [20][22]. - There are concerns among pet owners regarding the safety and quality of the fresh food products, with some reports of adverse reactions from pets consuming these products [24][25]. Financial Aspects - Paiteshengsheng raised $25 million in angel funding earlier in the year, which is the highest amount for a front-end brand in the domestic pet industry this year [11][28]. - The business model faces challenges in balancing costs and profitability, particularly with the commitment to low pricing leading to low profit margins [25][26]. Future Outlook - Despite the current setbacks, the article suggests that the adjustments made by Paiteshengsheng do not signify the end of the pet fresh food market, but rather a necessary evolution [29][30]. - Hou Yi remains optimistic about future ventures in the retail sector, emphasizing the importance of product quality over sales channels [5][30].