Abstract:Benefiting from multiple driving factors such as the continuous development of China's economy, the improvement of per capita income level, the change of population and family structure, and the upgrading of consumption concepts, the number of pets raised by Chinese residents is growing rapidly, and the demand for pet feed is expanding day by day, according to the statistics of China Feed Industry Association, the total output of industrial feed in China in 2023 will be 321.627 million tons, a year-on-year increase of 6.42%, of which the output of pet feed will be 1.463 million tons, a year-on-year increase of 18.27% In the future, with the improvement of Chinese's per capita income level and the upgrading of consumption concepts, China's pet feed will usher in more growth space, and the market prospect is very impressive.
1. Definitions and Classification
Pet feed, also known as pet food, is food prepared specifically for pets and is designed to provide them with the nutrients they need to maintain their health and good living conditions. According to the use of different products, pet food can be divided into pet staple food, pet snacks and pet health products, among them, pet staple food is an essential product for pets' daily life, similar to the staple food in human food, can be divided into dry food, semi-dry food and wet food three categories;
Second, industry policies
1. Competent departments and regulatory systems
The competent authorities of the pet feed industry are mainly the National Development and Reform Commission, the Ministry of Agriculture and Rural Affairs and the General Administration of Customs, and the industry self-regulatory organizations are mainly China Feed Industry Association, China Quality Agricultural Products Development and Service Association, China Entry-Exit Inspection and Quarantine Association and China Etiquette and Leisure Products Industry Association Pet Industry Branch.
The National Development and Reform Commission is mainly responsible for the macro management of the development of the industry, and is responsible for the research and formulation of industrial policies, the management and planning of the industry, etc.; the Ministry of Agriculture and Rural Affairs is responsible for formulating the relevant policies and overall plans of the industry, formulating departmental regulations for the industry, issuing administrative rules, and organizing the formulation of technical policies, technical systems and technical standards for the industry; and the General Administration of Customs is mainly responsible for the entry-exit inspection and quarantine of industry-related products.
The main functions of China Feed Industry Association are to assist the administrative departments in formulating relevant laws, regulations and policy recommendations for the industry, providing information consulting services and publicizing and popularizing the basic knowledge of the feed industry; the main functions of China Association for the Development and Service of High-quality Agricultural Products are to organize the formulation and implementation of industry standards and national standards for the quality of agricultural products; the main functions of China Entry-Exit Inspection and Quarantine Association are to formulate regulations and regulations for entry-exit inspection and quarantine, and to provide inspection and quarantine technology. The main function of the pet industry branch of China Etiquette and Leisure Products Industry Association is to carry out the cultivation of national and industry brands in the field of pet industry, and to organize enterprises to participate in national professional exhibitions in the field of pet industry entrusted by the government or according to the development needs of the market and industry, and to organize international and industry key technical exchanges and economic and trade activities and conferences.
2. Relevant policies
In April 2022, the Ministry of Agriculture and Rural Affairs issued the "Administrative Measures for the Registration of Imported Feed and Feed Additives", pointing out that the product formula and quality standards of "Ikkena Indoor Meal Cat Food" produced by Canadian Champion Pet Food Company were approved, and the import registration certificate was reissued, and the registration certificate of (2021) Wai Feed Zhun Zi No. 069 was invalid at the same time. In February 2024, the Ministry of Agriculture and Rural Affairs issued the "2024 Work Plan for Feed Quality and Safety Supervision", pointing out that it is necessary to strengthen the supervision of feed quality and safety, improve the quality and safety of livestock products, and promote the high-quality development of animal husbandry.
Third, the development process
In the past few decades, China's pet feed industry has experienced a development process from the initial stage to gradual maturity, the market scale has been expanding, the product quality and variety have gradually improved, and the industry has shown a trend of diversification and specialization.
Fourth, industry barriers
1. Technical barriers
Pet feed is rich in types and formulas, and in order to ensure that pet food maximizes its nutritional function, it is necessary to process different forms of different raw materials, and the various indicators involved in production are relatively complex and the technical barriers are relatively high. The main technical processes of pet feed include pet feed formula design, pet feed manufacturing process and pet feed quality control technology. The R&D and production of pet feed involve many technical fields, and the formula design of pet feed is highly professional, and various process parameters involved in production need to be accumulated for a long time. Enterprises in the industry need to go through many years of technical exploration and production experience accumulation before they can be recognized by the market, new entrants lack of technical precipitation in technology development and technology application, product development has technical and quality risks, it is difficult to form effective technical competitiveness in the short term, and there are high technical barriers to new entrants in the industry.
2. Product quality barriers
Stable and reliable product quality has become an important factor in determining the competitive position of pet feed manufacturers in the industry. With the increase in per capita income level, the rapid growth of the number of pets raised by residents, and the continuous upgrading of the concept of pet raising, pets have gradually changed to the role of family members, and pet owners pay more attention to the high quality and nutritional value of pet feed. The main factors affecting product quality include raw material quality, production equipment and production process, quality control level, product inspection level, etc. Improving product quality and maintaining high quality requires stable production and quality control capabilities, rich production management experience and excellent quality assurance system. It is difficult for new entrants in the industry to achieve a stable and reliable quality control level in a short period of time, forming a certain product quality barrier.
3. Sales channel barriers
Having mature and stable sales channels is one of the important means to increase market share and enhance brand influence, and it is also the key to the successful operation of enterprises in the pet feed industry. At present, the usual sales channels of pet feed in China include offline physical stores, online e-commerce platforms and other channels, and the establishment of perfect offline sales channels requires the construction of marketing networks and the cultivation of consumer brand awareness and other consumption habits. In terms of online channels, the growth of product sales on major domestic mainstream e-commerce platforms mainly depends on the increase in visitor traffic, merchants need to pay marketing and promotion expenses to e-commerce platforms, and brand awareness and product recognition need to be built on the basis of continuous marketing investment. Therefore, the continuous and perfect brand promotion strategy online and offline has formed sales channel barriers for new entrants in the industry.
4. Brand barriers
With the improvement of residents' consumption level and the popularization of the concept of scientific pet breeding, the emotional attribute positioning of pets for modern pet families is becoming more and more prominent, pet owners are paying more and more attention to the quality and nutritional value of pet feed, and the brand of pet feed means that the product safety and nutrition are comprehensive, so the trust brand, consumer brand has become a trend and inevitable pet feed consumption. With the rapid development of the domestic pet feed industry, some excellent local brands in China have been deeply engaged in the field of pet feed for many years, gradually accumulated a perfect production technology system, and fully laid out online and offline diversified sales channels, increased marketing investment, and gradually established a good customer reputation. Good brand influence and customer reputation is the result of long-term efforts of an enterprise in product quality, product design, brand positioning and marketing channels, and the long-term and complex brand positioning and brand management have formed a certain brand barrier for new entrants in the industry.
Fifth, the industrial chain
1. Analysis of the industry chain
The upstream of the pet feed industry is mainly an agricultural and sideline products industry that supplies agricultural products and meat, and there are a large number of suppliers in the upstream industry, and the market supply is sufficient, and there is no supply bottleneck. After the product processing is completed, through offline physical stores, online e-commerce platforms and other sales channels, and finally reach the hands of consumers, pet feed consumers are mainly pet breeders, and the steady growth of consumer demand is the basis for the survival and development of the pet feed industry, and is the guarantee for the long-term sustainable development of the industry.
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