Investment Rating - The report maintains an "Accumulate" rating for the pet health food industry [1] Core Insights - The pet health food sector is experiencing significant growth, with a projected CAGR of 13% from 2020 to 2024, indicating a high level of market vitality [14][15] - The industry is characterized by a clear division of labor across its supply chain, with segments that share commonalities with human health food products [18][19] - The increasing number of pets in China, estimated at approximately 124 million by 2024, presents a vast market opportunity for pet health products [20][22] - The pet health food market is expected to reach approximately 1.522 billion yuan by 2024, with a notable increase in its share of the overall pet health product market [28][29] Summary by Sections 1. Overview of Pet Health Foods - Pet health foods serve as a supplement to regular pet diets, providing functional benefits without being a substitute for medications [10] - The market for pet health foods is diverse, with various product types catering to different health needs [13][11] 2. Industry Growth Potential - The number of pets is steadily increasing, with significant room for growth in pet ownership rates compared to countries like the USA [23][24] - By 2027, the pet health food industry is anticipated to enter a phase of accelerated growth, driven by rising pet ownership and health awareness among pet owners [32][34] 3. Trends in Human Health Foods - The pet health food market is expected to follow trends seen in human health foods, such as increased specialization and a shift towards online sales channels [44][49] - The profit margins for pet health foods are projected to be higher than those for human health foods, with average gross margins ranging from 70% to 90% [54][56] 4. International Market Comparison - The USA represents the most mature market for pet health foods, with a significant reliance on traditional retail channels, while China is rapidly adopting e-commerce as a primary sales channel [21][25] - The competitive landscape in China allows for equal opportunities among various players, including both domestic and international brands [4][4]