政策层面的积极引导尤为关键。合肥市农业农村局创新成立了全国首个宠物经济处，并在《三年行动计划》中设定了"2027年产业规模突破50亿"的目标； 深圳市在2024年印发了《深圳市福田区支持宠物行业高质量发展若干措施（试行）》；无锡市也发布了《无锡市促进宠物产业发展若干意见（公开征求意 见稿）》，力争到2027年全市宠物相关产业规模突破30亿元。 在"养宠热"持续升温的背景下，"它经济"正以前所未有的速度重塑消费结构与区域产业格局。宠物经济产业园，作为这一浪潮中的重要载体，正从地方政 策的扶持对象，逐步成长为推动产业集聚与升级的核心力量。 园区布局加速，政策红利持续释放 宠物经济正迈入千亿级赛道。根据艾瑞咨询发布的《2023年中国宠物消费趋势白皮书》显示，2023年中国宠物市场规模已达3924亿元，同比增长33.5%。 该机构预测，到2025年，这一数字将突破8114亿元。 企业数量方面，企查查数据显示，截至2025年11月，国内现存宠物经济相关企业已达498.33万家，较上一年度新增约33.7万家，覆盖食品、用品、医疗、 服务等全产业链。 园区建设明显提速。据宠业网络不完全统计，截至2025年11月，全国已有1 ...

Core Insights - The Chinese pet market is experiencing rapid growth, with a compound annual growth rate (CAGR) of 13.3%, making it the fastest-growing pet market globally [1] - The pet industry in China has seen a compound growth rate of 10% over the past six years, significantly outpacing the growth of retail sales [1] - The rise of the post-2000 generation is a new growth driver, with an expected 20 million pet owners by 2024, representing a 164% year-on-year increase [1] Market Dynamics - The pet market in China is projected to exceed 300 billion RMB in 2024 and is expected to surpass 400 billion RMB by 2027, indicating a cumulative growth of approximately 33% over three years [4] - Five key drivers are identified for the explosive growth of the pet economy: economic growth and income increase, accelerated urbanization, demographic changes, shifts in consumer attitudes, and improvements in policies and social environments [4] Consumer Trends - The average annual spending per pet is currently 2,419 RMB, with the post-2000 generation showing a preference for "parenting-style" pet care, leading to increased demand for personalized pet products, medical care, insurance, grooming, photography, and social activities [1] - The penetration rate of pet ownership among the post-2000 generation is 24%, compared to only 9% for the post-1980 generation, highlighting a significant shift in pet ownership demographics [1] Industry Innovations - Five pet companies presented at the investment conference, focusing on key areas such as pet healthcare, food, smart hardware, and service chains [4] - Innovations include advancements in medical technology for pets, development of new pet food brands, and the introduction of smart hardware to enhance pet care experiences [4] Strategic Recommendations - Companies are encouraged to deepen collaboration across various dimensions, including technological research, industry chain synergy, and international expansion [5] - There is a strong emphasis on developing high-end, functional products and leveraging technology to create competitive advantages [5] - With over 60% of the pet market being online, businesses should utilize big data and AI to enhance operational efficiency and engage in precise marketing strategies [5]

Core Insights - The 8th China International Import Expo (CIIE) has opened in Shanghai, showcasing the growing demand for high-quality and diversified lifestyles in the Chinese market, particularly through the newly established pet-themed exhibition area [1] - The pet economy is identified as a significant growth driver in the consumer sector, reflecting the modern lifestyle concept of pets as important family members [1][2] - KPMG's report highlights the transformation of the hotel industry towards quality service, adapting to new consumer demands, including pet-friendly accommodations [2] Industry Overview - The pet economy's growth is closely linked to rising consumer spending levels, with a shift from material to spiritual needs as living standards improve [2] - The urban pet market in China is projected to exceed 300 billion yuan in 2024 and is expected to surpass 400 billion yuan by 2027, indicating robust growth [2] - The role of pets is evolving from "functional companions" to "family members," driving growth in food, medical, service, and technology sectors [2][3] Market Dynamics - The pet market in China is anticipated to exceed 811.4 billion yuan by 2025, with pet food being the largest segment and a core driver of the pet economy [3] - The primary demographic of pet owners is becoming younger and more educated, with individuals born in the 1990s and 2000s accounting for over 60% of the market share, emphasizing a shift towards quality over quantity in consumption [2] - Government policies aimed at boosting consumption and industry regulations are providing strong support for the prosperity of the pet economy [2]

Core Insights - The 8th China International Import Expo is taking place in Shanghai, featuring a new pet-themed exhibition area, highlighting the growing importance of the pet economy in global consumer trends [1] - According to KPMG's report, the Chinese pet market is expected to exceed 811.4 billion yuan by 2025, with pet food being the largest segment and a key driver of the industry, alongside rapid growth in pet medical services, supplies, and other segments [1] - The pet economy in China is transitioning from high-speed growth to a phase of high-quality development, influenced by changes in family structures and consumer attitudes [1] Industry Development Recommendations - KPMG suggests three areas for future development in the Chinese pet economy: enhancing technological research and standardization, promoting industry chain collaboration and brand development, and expanding online-offline integrated consumption scenarios [2] - Companies are encouraged to invest in functional foods, innovative veterinary medicines, and smart products, shifting from merely selling products to building brands and enhancing user experience [2] - The rise of pet-friendly hotels is noted as an innovative service model that exemplifies the cross-industry integration within the pet economy, offering various services tailored for pets and their owners [2] Competitive Advantage Strategies - To establish a differentiated competitive advantage, pet-friendly hotels should focus on core aspects such as safety regulations, emotional and personalized services, and building a "pet-friendly ecosystem" through collaborations with pet stores and veterinary clinics [3] - Implementing strict safety standards and ensuring staff are trained for emergencies are crucial for maintaining safety in pet-friendly hotels [3] - Personalization of services, such as providing custom bedding and self-service dining options for pets, can enhance the overall experience for both pets and their owners [3]

Group 1: Industry Cycle - The new paradigm in livestock farming is reinforced, while the planting cycle is stabilizing after fluctuations. For pigs, the "anti-involution" policy highlights the value attributes of leading companies, with a slight decline in average pig prices expected in 2026 compared to 2025, showing a pattern of initial suppression followed by recovery [3][7]. - In the poultry sector, chicken prices are expected to remain stable due to abundant supply and moderate demand recovery, with leading companies enhancing operational resilience through integrated development across the supply chain [3][8]. - The feed industry shows long-term growth potential, particularly in aquaculture feed, supported by recovering farming profitability, while demand for livestock feed is expected to remain stable in 2026 [3][9]. - Domestic grain prices are anticipated to stabilize at the bottom, with corn prices expected to show weak fluctuations and soybean prices slightly recovering [3][9]. Group 2: Consumer Trends - The pet economy is entering a mid-stage, focusing on market share enhancement, with the pet food industry projected to grow at over 10% annually in the next 3-5 years, driven by high-quality growth and increased competition [4][11]. - In pet healthcare, the industry is rapidly expanding, with a shift from land-grabbing to quality improvement, and leading companies are expected to optimize their market positions through enhanced operational efficiency [4][12]. - The kitchen food market, valued at trillions, is seeing structural opportunities with the popularity of fresh corn products, while the tea industry is experiencing brand upgrades that enhance consumer recognition and improve consumption experiences [4][13]. Group 3: Technological Advancements - The agricultural technology narrative is shifting towards automation and biotechnology, with the mechanization of agriculture reaching a critical point due to reduced labor and increased demand for smart agricultural equipment [4][15]. - The seed industry is expected to see accelerated growth in genetically modified corn cultivation by 2026, supported by favorable policies and reduced price drag on grains [4][15]. - In animal health, the competition is intensifying, with opportunities for domestic pet health products to increase market penetration, particularly in differentiated categories like ruminant health [4][15].

Market Overview - The pet industry in China is experiencing significant growth, with the market size projected to increase from 102.2 billion yuan in 2016 to 309.6 billion yuan by 2024, reflecting a compound annual growth rate (CAGR) of 21.6% from 2016 to 2020 and a projected CAGR of 7.6% from 2020 to 2025 [1][2] - The post-pandemic era has led to a stable growth trajectory for the pet market, with the number of pet cats and dogs returning to low single-digit growth rates [1][2] Segment Analysis - The pet cat market is growing faster than the dog market, with a projected market size of 300.2 billion yuan for both cats and dogs in 2024, and a CAGR of 9.9% from 2018 to 2024. The CAGR for pet cats is 14.3%, while for dogs it is 6.7% [2][3] - Pet food remains the core expenditure, accounting for 52.8% of overall spending on pets in 2024, with staple food having a penetration rate exceeding 95% [3][4] Consumer Trends - There is a noticeable shift in consumer preferences towards domestic brands, with an increase in acceptance of local pet food brands. The proportion of dog owners choosing domestic brands rose from 27.1% in 2023 to 32.9% in 2024, while cat owners' preference increased from 28.3% to 34.8% [6][7] - The demand for pet hygiene, care, and smart pet products is rapidly increasing, with the retail compound growth rate for pet grooming products projected at 10.9% from 2023 to 2025 [5][6] Export Market - The Southeast Asian pet market is experiencing explosive growth, with a pet ownership rate of 50%. Indonesia and Thailand are key markets, with pet industry sizes of approximately 3 billion and 2.29 billion USD, respectively [9] - China's pet food exports are on the rise, with export volumes expected to grow from 26.9 thousand tons in 2022 to 33.5 thousand tons in 2024, and export values increasing from 8.26 billion yuan to 10.53 billion yuan during the same period [9][10] Industry Players - Leading companies in the pet food sector include Guobao, Zhongchong, and others, with Guobao expected to surpass Mars in market share. The market is seeing a trend towards rational decision-making among consumers, favoring domestic brands [6][8] - Various companies are innovating in the pet care space, including those focusing on smart pet products and health care, such as Yiyuan, Yuanfei, and others [10][11]

Core Viewpoint - The new consumption sector has emerged strongly in the market this year, becoming a focal point after a period of stagnation in the consumer sector [1] Group 1: Definition of New Consumption - New consumption is a relative concept that focuses on fulfilling people's spiritual needs, contrasting with traditional consumption that meets material needs [2] - New consumption emphasizes personalization and experience, while traditional consumption prioritizes practicality and product quality [3] Group 2: Segments of New Consumption - The "Guzi Economy" includes merchandise derived from copyrights of comics, animations, games, and idols, with a market size projected to reach 168.9 billion yuan in 2024, growing at 40.6% year-on-year [5][6] - The ready-to-drink tea market is expected to reach 312.7 billion yuan in 2024, reflecting a growth of 20.97% compared to the previous year [7] - The pet economy is projected to reach 300.2 billion yuan in 2024, with a year-on-year growth of 7.5% and a compound annual growth rate of 9.9% from 2018 to 2024 [7] - The "Guochao Gold" sector integrates elements of Eastern aesthetics and cultural identity, catering to young consumers' desires for individuality and fashion [7] Group 3: Reasons for Popularity of New Consumption - The rise of the Z generation as the main consumer group, coupled with their optimistic outlook on consumption, has driven the popularity of new consumption [8] - Changing consumer psychology emphasizes emotional value and personalization, leading to a preference for unique and resonant experiences [8] Group 4: Performance of New Consumption Sector - The "three stars" of Hong Kong stocks, including brands like "Mao Mart," "Golden Shop," and "Snow Ice City," have seen significant stock price increases of 268.19%, 1144.26%, and 81.38% respectively since their listings, outperforming the Hang Seng Index [8] Group 5: Future Investment Prospects - China's consumer market is vast, with a projected retail sales total of 48.8 trillion yuan in 2024, contributing 44.5% to economic growth [14] - Recent policies have been introduced to support the transformation of consumption, including measures to promote new consumption scenarios and high-quality service consumption [14][15] - The export potential of new consumption sectors, such as the pet industry, is significant, with exports to the EU expected to reach 1.12 billion USD in 2024, leading to greater growth opportunities [15]

Core Insights - The traditional pet boarding model is being challenged as pet owners increasingly view their pets as family members, leading to a demand for higher-quality pet care services [1][3][4] - The rise of on-demand pet care services, such as home feeding and pet-friendly travel options, reflects a shift in consumer preferences towards personalized and quality services [1][5][8] Pet Care Services - Many pet owners are opting for home feeding services instead of traditional boarding due to concerns about the quality of care and the environment in boarding facilities [3][4] - The market for home pet care services is growing, with platforms like Aiwopai and Cat Alley offering various packages during peak seasons like National Day [5][7] - The pricing for home feeding services varies, with costs ranging from 40 to 100 yuan per visit depending on the service and location [5] Pet-Friendly Trends - The concept of "pet-friendly" is becoming a new consumer trend, with more businesses catering to pet owners by allowing pets in their establishments [8][9] - Pet-friendly hotels are increasingly popular, with a nearly 20% year-on-year increase in the number of such hotels listed on major booking platforms [8][9] - Travel agencies are also creating pet-friendly travel packages, allowing pet owners to travel with their pets while ensuring their care and safety [11] Market Growth and Dynamics - The Chinese pet industry is experiencing rapid growth, with the number of pet-related businesses increasing from 380,000 in 2019 to nearly 4 million in 2025 [14] - The market for pet products and services is projected to exceed 400 billion yuan by 2027, with pet food accounting for over 40% of the market share [14] - The demand for quality and personalized pet care is driving innovation and competition within the industry, leading to a diversification of services offered [14][17] Challenges and Issues - The pet care industry faces challenges such as product standardization, quality control, and consumer trust due to issues like misleading marketing and inconsistent product quality [17][19] - There is a growing need for regulatory frameworks and quality standards to address these challenges and rebuild consumer confidence in pet products and services [19]

Core Insights - The "proprietary and specialized" pet services and "emotion-driven" consumption models have emerged as new highlights for business growth, prompting the release of the "Action Plan for Promoting High-Quality Development of the Pet Economy" in Suzhou's Gusu District [1] Group 1: Pet Economy Development - The action plan aims to extend the pet economy from a single consumption scenario to a full-chain industry through policy guidance and market-driven initiatives [1] - The integration of culture, commerce, sports, and tourism is emphasized as a foundation for this development [1] Group 2: Unique Consumer Experiences - The "It Economy" ecosystem created by Yangguanghui includes a three-tier structure: basic facilities for pet interaction, merchant conversion through pet sales and services, and high-level activities focused on social interaction and adoption [3] - Monthly pet sports events attract over 50 families, with more than 30% of them generating additional spending on food, toys, and clothing, leading to an 8% increase in daily sales for the shopping district [3] Group 3: One-Stop Shopping and Tourism - The Dog Road Pet Store in Suzhou offers over 2,000 SKUs, catering to the one-stop shopping needs of pet owners [4] - The introduction of pet-friendly services at the Kimpton Hotel has led to a continuous increase in pet-inclusive bookings, with some holidays experiencing a "one room hard to find" situation for pet rooms [4] Group 4: Enhanced Pet Care Services - The Renheng Warehouse Street features a dedicated area for pets, including facilities for immediate cleaning and grooming, as well as pet-friendly shopping experiences [6] - 90% of the shops in the warehouse street are pet-friendly, enhancing the shopping experience for pet owners and increasing consumer spending [6][7]

Summary of Conference Call on Pet Economy Industry Overview - The pet economy in China has reached nearly 1 trillion RMB, indicating a large market size but low market concentration, with leading companies like Guobao Pet generating only over 5 billion RMB in revenue, significantly lower than international giants like Mars and Nestlé, suggesting substantial growth potential in the Chinese market [1][2] - The global pet market is valued at approximately 200 billion USD, with pet food accounting for 130 billion USD, highlighting the lucrative nature of the industry [2] Key Trends and Characteristics - The pet economy exhibits long-term growth characteristics, with the compound annual growth rate (CAGR) in the US and Japan exceeding GDP growth over the past 20 years, indicating resilience during economic fluctuations [1][2] - The Chinese pet market is characterized by three major trends: - **Cat Economy**: The number of cats has surpassed dogs since 2021, with cats showing a higher demand for premium food due to their sensitive digestive systems [4] - **Online Sales**: Online sales account for 68% of pet food sales, benefiting from the rise of interest e-commerce platforms like Douyin [4] - **Premiumization**: The trend towards high-end products is evident, with leading companies like Guobao achieving a net profit margin of 12% and a return on equity (ROE) expected to rise further [4][5] Market Dynamics - The pet food market has seen a slowdown in growth, with a CAGR of 25% from 2016 to 2021, dropping to around 6% in recent years, but is projected to stabilize at 10% over the next five years [7] - The pet medical market is still in a high-growth phase, with a market size nearing 100 billion RMB, but profitability is still developing [7][15] - The penetration rate of professional pet food in China is about 30%, significantly lower than the 80%-90% seen in mature overseas markets, indicating a major growth driver as consumers shift from leftovers to specialized pet food [8][9] Competitive Landscape - The competitive landscape in China is less concentrated compared to the US, where the top five companies hold 65% of the market share, while in China, it is only 25% [5][10] - Domestic brands are rising due to improvements in product quality, channel strategies, and brand strength, with companies like Guobao leveraging e-commerce and brand upgrades to capture market share [11][14] Investment Opportunities - The current phase of the pet economy in China is described as a "golden era," characterized by resilient growth and market optimization, presenting significant investment opportunities for leading companies [5][16] - Investors are encouraged to focus on leading and emerging companies within the sector, taking advantage of cyclical opportunities in this thriving market [16] Additional Insights - The rise of domestic brands is attributed to their ability to cater to local needs and preferences, with successful examples in both the pet food and medical sectors [14][15] - The pet medical sector is evolving, with increasing demand for comprehensive care as pets age, necessitating improvements in veterinary training and supply chain management [15]