The development of Chinese pet food enterprises in 2022

1. Distribution of pet food enterprises in China

According to the statistics of the China Enterprise Database, the pet food enterprises in China are mainly located in Shandong, Hebei and Liaoning. By the end of August 2022, there were 850 pet food companies in Shandong Province and 415 in Hebei.

Pet food companies in Shanghai have a higher average registered capital?

According to the data of Qizha Cat, among the average registered capital of China's pet food enterprises, the average registered capital of Shanghai related enterprises is the highest, which is 57.02 million yuan. In addition, the average registered capital of Hainan, Shaanxi and Qinghai pet food enterprises is more than 20 million yuan.

Jiangsu and Shandong have the highest degree of capitalization

At present, the capitalized pet food enterprises (enterprises with financing information and listing information) in China are mainly distributed in Jiangsu, Shandong, Fujian and Guangdong. Up to now, there are 7 existing and operating capitalized enterprises in Jiangsu, 6 in Shandong, 4 in Fujian and 3 in Guangdong.

Companies in Shandong and Hebei had the most patent applications

At present, Chinese pet food enterprises with relevant patent information are mainly distributed in Shandong and Hebei. Up to now, 71 companies in Shandong province have patent-related information, while 17 companies in Hebei have patent-related information

2. Competitive echelon of Chinese pet food enterprises

Listed companies in China's pet food industry include: CHINA?PET?FOODS?(002891.SZ); Peidi?(300673.SZ); Luscious?(832419.BJ); Hua Heng Shares (837995.OC). In addition, there are a group of competitive strong unlisted enterprises, such as Huaxing?Pet, Gambolpet, Shanghai Bridge, Shanghai Enova, Ronsy?pet food and so on. Among them, Gambolpet has applied for its IPO on GEM on July 27, 2022.

The pet food industry can be divided into three competitive echelons according to the market share of enterprises. Among them, Mars, Nestle and Huaxing Pets ranked first; The second tier of enterprises are: CHINA PET FOODS, Shanghai Bridge, Shanghai Enova, Champion, etc.; Navarch, Gambolpet, etc. are in the third tier.

3. Market share of Chinese pet food enterprises

In terms of market share of each company in China's pet food industry, Mars and Nestle have always occupied the top two, but their market shares have declined. Correspondingly, the market share of domestic brands has gradually increased, and Huaxing, Zhongpet, Biregis, Yiyun, Rongxi, Naiweik, Guaibao pet and other enterprises have attracted the attention of domestic consumers.

4. Market concentration of Chinese pet food enterprises

Overall, the market concentration of China's pet food industry is not high. The market share of TOP5 enterprises in China's pet food industry decreased from 26.5 percent in 2016 to 17.4 percent in 2021.

In terms of the market share of the TOP10 enterprises in the pet food industry, the market share of foreign brands decreased from 25.9% in 2012 to 12.1% in 2021. Domestic brands saw their market share rise slightly, from 11.1%?in 2012 to 11.9%?in 2021. Domestic brands and foreign brands market share gap narrowed.

5. Layout and competitiveness evaluation of Chinese pet food enterprises

In 2021, among the companies in the pet food industry, the pet food business revenue of CHINA PET FOODS?and Gambolpet was higher; In terms of market share, Mars and Nestle occupy the top two positions, and Huaxing Pet is the Chinese enterprise with the highest market share. In terms of business competitiveness, Huaxing Pets and CHINA PET FOODS?have strong competitiveness; The second is Gambolpet, a leading pet food producer, which is expected to be listed on chinext in the near future.

6. A summary of the competition status of Chinese pet food enterprises

At present, China's pet food industry is still in the development stage, and the threat of substitutes is small. The number of existing competitors is relatively small, local enterprises have just started, the intensity of competition is not high; Suppliers of cereals, meat, fish, dairy products and fruits and vegetables in upstream raw materials have strong bargaining power, but the bargaining power of vitamins with excess production is weak. The bargaining power of the downstream professional market is strong, while the bargaining power of the commercial and super channels is relatively weak. At the same time, because the barriers and capital requirements to enter the industry are relatively low, productive resources are easy to obtain, so the threat of potential entrants is greater.

(Source: Forward-the Economist, this is for reference only)