Summary of the Pet Food Industry Conference Call Industry Overview - The conference call focuses on the pet food industry in China, particularly during the 2025 "618" shopping festival, highlighting the competitive landscape and consumer trends in the market [1][2][3][4][21]. Key Points and Arguments Market Share and Brand Performance - During the 2025 "618" shopping festival, domestic brands captured 65% of the top 20 pet food brands on Tmall, up from 55% in 2022, indicating a growing dominance of local brands [1][4]. - The top three brands on Tmall were all domestic: Xianlang, Maifudi, and Royal Canin, with Maifudi consistently ranking in the top two since 2020 [1][4][6]. - Xianlang emerged as the fastest-growing brand, moving from fifth in 2023 to first in 2025, while Freycat also showed significant improvement, rising three places to fifth [5][16]. Sales Performance - The overall sales of pet food during the 2025 "618" festival reached 7.5 billion yuan, a 36% increase from 5.5 billion yuan in 2024 [2]. - On JD.com, pet food user transactions increased by 32%, with new pet owners growing by 39% [3][7]. Consumer Trends - There is a notable shift towards health products and prescription diets, with prescription pet food sales increasing by 60% year-over-year and baked food by 50% during the festival [1][6]. - The pet food industry is experiencing a consumption upgrade, with mid-to-high-end price segments growing significantly faster than the overall market [23]. Competitive Landscape - The competition is characterized by a "two strong, many strong" dynamic, with Maifudi and Royal Canin leading, while brands like Xianlang, Freycat, and Blue's are emerging as strong contenders [1][4][21]. - The entry of new brands such as Xiaopei and Xu Cuihua into the rankings indicates a challenging environment for smaller brands to break through [5][6]. Marketing and Innovation - Leading brands are focusing on clear brand positioning and innovative marketing strategies, with concepts like "freshness" and "safety" becoming prevalent [25]. - The trend of "spoonification" is expected to continue supporting the growth of pet ownership, particularly among younger generations [21]. Additional Important Insights - The market share of foreign brands in the top 25 has dropped below 30%, highlighting the competitive advantage of domestic brands in product innovation and marketing [22]. - The overall GMV growth for pet food across major e-commerce platforms reached 16.8% in the first five months of 2025, compared to 13.6% in 2024 [23][24]. - The investment return rates for leading brands are improving, with increased support from platforms like Tmall and Douyin for the pet segment [24]. This summary encapsulates the key developments and trends in the pet food industry as discussed during the conference call, providing insights into market dynamics, brand performance, and consumer behavior.

Core Viewpoint - The pet baking food market is expected to reach a size of 1,109.4 million USD by 2030, with a compound annual growth rate (CAGR) of 8.42% in the coming years [2][4]. Group 1: Product Characteristics - Pet baking food is made using a low-temperature slow baking process (typically 90℃-150℃), which retains the natural nutrition and flavor of ingredients, reduces protein denaturation, and minimizes the loss of heat-sensitive nutrients [1]. - Compared to traditional high-temperature puffed food, baking food has a higher fresh meat content, lower starch formulation, and does not contain meat meal, making it easier for pets to digest and absorb [1]. - The production process is complex and time-consuming, resulting in higher costs and prices compared to traditional puffed food, with a relatively short shelf life of about 12 months [1]. Group 2: Market Segmentation - By product type, cat food dominates the market due to cats' lower starch tolerance and the health premium associated with the "cat economy" [5][7]. - In terms of application, household purchases represent the largest downstream market, accounting for approximately 68.41% of the total demand [8][10]. Group 3: Market Drivers - The shift in the role of pets from "guardians" to "family members" has led to increased consumer demand for high-quality pet food, with baking food meeting the modern pet owner's desire for "pure formulas" [14]. - The new generation of pet owners (aged 25-35) exhibits "parenting-style pet care" characteristics, seeking customized solutions for different life stages and health needs, which baking food can more easily provide due to its flexible production process [14]. Group 4: Development Opportunities - Growing societal concern for pet health drives consumers to prefer nutritious, natural, and additive-free pet food, which baking food can fulfill [15]. - The rise of content e-commerce has transformed pet food consumption decision-making, enhancing market awareness and interest in baking food through visual education [15]. Group 5: Challenges - The complex production process of baking food increases energy consumption and production cycles, leading to higher production costs [17]. - The shorter shelf life of baking food compared to traditional dry food poses challenges for inventory management and logistics, potentially affecting consumer purchasing behavior [17]. - The pet food market is highly competitive, with numerous product types and brands, requiring new baking food brands to invest significantly in marketing and market penetration to establish a foothold [17].