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Chinese pet industry has greater market potential, but lacks leading enterprises.

China Agriculture Report By CnAgri2017-10-17 10:06:28China Agriculture Report Print Recently, Grass Green Group, an investment platform, subordinated to New Hope Group invests in pet industry, announcing New Hope Group’s official entering into pet field. How big is China’s pet industry development potential?
It’s reported that global pet industry has reached a market scale of 70 billion dollars and is increasing at an annual rate of 4%. China’s market scale of pet industry has reached 98 billion yuan in 2016, about 20% of global scale , including about 60 billion yuan for food and toys and about 38 billion yuan for beauty therapy. As for the number of pets in our country, it is increasing at an annual rate of 20%. On the whole, Chinese pet industry has greater market potential.
Domestic pet market lacks brand enterprises. Brand pet food was foreign-brand dominated in first-tier cities, and domestic enterprises mainly focus on exports. According to investigation and research, food, supplies, vaccines and other products for pet in first-tier cities mostly are imported from North America and Europe, and China hasn’t outstanding star brand yet in domestic. In teams of two pet food enterprises including China Pet Foods and PEIDI Brand Corporation listed on A-share market in the first half of 2017, 87% sales of China Pet Foods and 96% sales of  PEIDI Brand Corporation came from oversea market in 2016, and they both focused on exports.
China’s pet market is developing with characteristics of low scale and integration and greater potential. New Hope Group hopes to step into pet industry relying on stable cash flow and capital accumulation, which or will bring about new market changes. 
Main sales of China Pet Foods and PEIDI Brand Corporation and Proportions of Oversea revenues, 2014-2016
Unit: ¥100 Mil
  China Pet Foods PEIDI Brand Corporation
Main sales Proportion of oversea revenues Main sales Proportion of oversea revenues
2016 7.91 86.90% 5.5 96.34%
2015 6.48 87.69% 4.97 97.92%
2014 4.91 88.59% 3.96 98.55%
Data sources: public reports of corporations
 
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