BEIJING, Dec. 8 (Xinhua) -- The scale of China's pet industry is projected to hit 295.3 billion yuan by the end of this year, according to a report on China's pet economy recently released by iiMedia Research.
China's pet market was valued at 221.2 billion yuan in 2019, with a compound growth rate of 20 percent from 2015 to 2019, said the report.
One of the reasons behind the rapid development of the Chinese pet industry is the rising per capita GDP of the country, which exceeded 10,000 U.S. dollars in 2019, showed data from China Agricultural University.
Besides, pets are now regarded as important family members, rather than merely house guards, stated Guosheng Securities. In breakdown, pet food segment has also maintained rapid growth in recent years. The size of pet food market increased at an annual compound rate of 24.16 percent during the 2010-2019 period and arrived at 70.1 billion yuan in 2019, according to a research report by Sealand Securities.
However, the penetration rate of pets and pet food is relatively low. In 2018, pet ownership in China's urban areas was only 23 percent, far lower than that in other countries, stated Sealand Securities, adding that the pet food sector has not yet reach the growth peak and the prospect remains promising.
Also, pet healthcare sector has experienced remarkable development. In 2019, the Chinese pet healthcare market generated a value of 40.5 billion yuan, including 20.2 billion yuan from pet hospitals, according to an analysis report on China's pet industry for 2020 to 2025 compiled by Forward industrial research institute.
The problem is that China's pet hospital market is relatively decentralized. Most of the pet hospitals are running at small scale, and the number of chain hospitals accounts for less than 15 percent of the total, according to Forward's report.
The booming pet food and pet healthcare segments are attracting listed companies such as Yantai China Pet Foods Co., Ltd. (002891.SZ), Petpal Pet Nutrition Technology Co., Ltd. (300673.SZ), Tianjin Ringpu Bio-Technology Co., Ltd. (300119.SZ), and Pulike Biological Engineering, Inc. (603566.SH) to accelerate investment and join competition. (Edited by Su Dan with Xinhua Silk Road, sudan@xinhua.org)
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