STA Pet Food In China 2022 E

MARKET ACCESS SECRETARIAT Global Analysis Report Sector Trend Analysis Pet Food in China June 2022 Executive summary  In 2021, Canada ranked the eighth largest exporter of dog and cat food in the world, and the largest exporter of dog and cat food to China. Meanwhile, China was the second largest importer from Canada.  In 2021, the global pet food market had a retail value of US$114.9 billion. China was ranked the second largest market in the world, reaching US$7.5 billion in 2021. That represents a 23.2% increase in the compound annual growth rate (CAGR) over the 2017–2021 period. Retail pet food sales in China are expected to grow to US$14.3 billion in 2026 at a CAGR of 15.3%.  Current value sales of cat food grew by 30.8% (CAGR, 2017 to 2021) to US$4.1 billion. Cat treats and mixers was the most dynamic category in 2021 with a CAGR of 62.4% during that period.  Retail sales of dog food reached US$3.4 billion in 2021, a CAGR of 16.6% from 2017 to 2021. Economy wet dog food had the best performance in 2021 with a CAGR of 23.4% from 2017 to 2021.  The top three players in the cat food sector (Mars Inc, Nestlé SA and Champion Petfoods LP) accounted for 14.4% of the market share in 2021, ahead of other competitors. The top three players in the dog food sector (Mars Inc, Huaxing Pet Food Co Ltd and Yantai China Pet Foods Co Ltd) had a market share of 15.1% in 2021.  The share of e-commerce in pet food is the highest among all distribution channels because many pet owners are young people who are familiar with online shopping. It is likely to continue to see share expansion.  From 2017 to 2021, 1,673 pet food products were launched in China. The number of yearly product launches declined by a CAGR of 9.1% from the larger launch of 386 pet products in 2017 to the lower and most recent launch of 263 pet products in 2021. Contents Executive summary ........................ 1 Trade overview ............................... 2 Pet food market overview ............... 3 Pet population and ownership ........ 4 Retail sales by category in China ... 4 Company shares ............................ 6 Brand shares .................................. 7 Distribution channels ...................... 8 Product launch analysis .................. 8 Product examples ......................... 10 For more information .................... 13 Resources ..................................... 13 Related reports  Sector Trend Analysis – Packaged food trends in China  Sector Trend Analysis – E-commerce Trends in China Page | 2 Trade overview The world’s top 10 dog and cat food importers in 2021 are all located in Western Europe and North America, with the exception of Japan. Canada was the fifth largest importer of dog and cat food, reaching US$1.1 billion in 2021. China was the 11th largest importer of dog and cat food, with sales of US$581.7 million in 2021. World’s top 15 dog and cat food importers in 2021 (US$ million) 2017 2018 2019 2020 2021 *CAGR % 2017–2021 Share % in 2021 World 12,834.5 14,122.5 15,007.4 17,586.1 20,440.5 12.3 100.0 Germany 1,348.3 1,465.2 1,514.7 1,684.4 1,969.9 9.9 9.6 US 842.9 982.3 1,027.9 1,231.7 1,535.0 16.2 7.5 Poland 440.1 570.1 695.5 988.3 1,149.2 27.1 5.6 UK 845.1 878.8 927.3 1,006.1 1,122.7 7.4 5.5 Canada 668.1 683.1 799.9 898.2 1,064.1 12.3 5.2 France 683.3 701.4 719.9 902.0 1,053.1 11.4 5.2 Italy 612.1 630.5 677.4 705.0 847.8 8.5 4.1 Netherlands 536.5 637.9 610.7 699.2 776.8 9.7 3.8 Belgium 587.8 504.9 513.2 657.1 731.9 5.6 3.6 Japan 618.9 643.5 646.1 673.7 701.7 3.2 3.4 China 89.2 206.4 307.9 621.4 581.7 59.8 2.8 Austria 391.3 438.1 454.0 548.3 580.1 10.3 2.8 Spain 311.6 335.4 366.9 435.0 511.6 13.2 2.5 Australia 245.5 281.7 309.5 333.9 421.7 14.5 2.1 Russia 289.2 315.0 351.0 387.9 406.4 8.9 2.0 Source: Global Trade Tracker, 2022. *CAGR = compound annual growth rate HS Code: 230910 In 2021, Canada ranked the eighth largest exporter of dog and cat food in the world, exporting US$840.2 million worth of dog and cat food, representing a 4.0% share of the total global exports of dog and cat food. Canada was also the largest exporter of dog and cat food to China in 2021, with a 38.5% market share. Meanwhile, China ranked the second largest importer from Canada, received 21.7% (US$182.0 million) of Canadian dog and cat food exports in 2021 with a 21.7% CAGR from 2017 to 2021. Top five dog and cat food exporters to China in 2021 (US$ million) 2017 2018 2019 2020 2021 *CAGR % 2017-2021 Share % in 2021 World 102.1 168.2 257.0 459.5 472.2 46.6 100.0 Canada 8.2 33.3 84.5 172.5 182.0 116.8 38.5 US 6.5 5.9 11.2 32.7 73.0 82.7 15.5 New Zealand 7.2 15.2 29.1 60.5 71.2 77.1 15.1 Thailand 24.7 49.3 49.7 55.9 56.5 23.0 12.0 Hong Kong 34.7 42.8 52.2 94.9 31.6 -2.3 6.7 Others 20.7 21.8 30.3 43.1 58.0 -2.3 12.3 Source: Global Trade Tracker, 2022. *CAGR = compound annual growth rate HS Code: 230910 Page | 3 Top-10 destinations for Canadian dog and cat food exports in 2021 (US$ million) 2017 2018 2019 2020 2021 *CAGR % 2017-2021 Share % in 2021 World 525.2 531.1 598.7 754.2 840.2 12.5 100.0 US 228.1 244.8 248.5 293.4 333.7 10.0 39.7 China 8.2 33.3 84.5 172.5 182.0 116.8 21.7 South Korea 16.2 13.3 16.5 17.9 29.2 15.7 3.5 Hong Kong 22.7 14.4 12.4 29.2 21.8 -0.9 2.6 Japan 23.5 23.7 17.2 16.7 21.5 -2.3 2.6 Russia 40.4 35.0 40.1 32.3 20.3 -15.8 2.4 Spain 12.0 10.2 13.8 14.2 19.3 12.6 2.3 Netherlands 9.2 8.2 12.6 12.6 18.9 19.5 2.2 New Zealand 14.9 15.6 15.9 16.1 16.3 2.1 1.9 Taiwan 10.6 13.4 14.6 14.5 14.8 8.7 1.8 Source: Global Trade Tracker, 2022. *CAGR = compound annual growth rate HS Code: 230910 Pet food market overview Immunity and digestion The outbreak of the COVID-19 pandemic intensified consumer interest in products that promise to support immunity and enlightened many people about the link between gut flora and overall health. This heightened level of understanding about immunity and gut health influenced the way pet owners feel about the products they choose for their pets. According to Mintel’s survey in 2020, 73% of pet owners in China look for pet foods that improve immunity, 59% for digestive support (Mintel, 2022). Pet humanization The continuing trend in Asia towards pet humanization, where pets are adored and regarded as companions, friends and members of the family, is driving interest in foods that can help to prevent lifestyle illnesses and diseases. (Mintel, 2021). The developing pet humanization trend is also leading to Chinese consumer health awareness starting to influence pet food too. Pet owners are showing a growing willingness to pay more for pet food if they perceive it will make their pet companion’s life happier and more comfortable (Euromonitor International, 2021). In 2021, the global pet food market had a retail value of US$114.9 billion. China was ranked the second largest market in the world, reaching US$7.5 billion in 2021, for an increase by a CAGR of 23.3% (2017–2021). Pet food retail sales in China are expected to grow to US$14.3 billion in 2026 at a CAGR of 15.3%. Top 10 markets in the world for pet food – retail sales (US$ million) historical and forecast Geography 2017 2021 *CAGR % 2017–2021 2022 2026 *CAGR % 2022–2026 World 87,761.0 114,942.0 7.0 123,637.8 165,424.7 7.6 US 31,741.4 42,731.4 7.7 45,438.9 56,761.1 5.7 China 3,235.0 7,472.2 23.3 8,081.6 14,303.1 15.3 Brazil 5,161.7 5,645.8 2.3 6,890.9 12,154.3 15.2 UK 4,605.3 5,322.6 3.7 5,515.2 6,664.6 4.8 Japan 4,048.9 4,688.8 3.7 5,119.8 5,651.1 2.5 Germany 3,856.8 4,655.1 4.8 4,815.9 6,054.5 5.9 Page | 4 France 3,855.4 4,395.7 3.3 4,486.0 5,552.5 5.5 Canada 2,736.4 3,560.2 6.8 3,744.0 5,269.4 8.9 Italy 2,805.9 3,239.3 3.7 3,322.2 4,195.0 6.0 Australia 2,565.0 2,982.6 3.8 3,141.3 3,715.7 4.3 Source: Euromonitor International, 2022 *CAGR = Compound Annual Growth Rate Pet population and ownership In China, the cat and dog populations increased by CAGRs of 8.9% and 2.9% respectively, from 2017 to 2021. There were 4.5% more cats than dogs in 2021. Dogs have been losing popularity in recent years and COVID-19 merely reinforced this, leading to negative growth of the dog population in 2020 and 2021 (Euromonitor International, 2021). The cat and dog populations will grow to 114.9 million and 95.9 million respectively in 2026. Pet population in China: historical and forecast numbers of animals in '000s Category 2017 2021 *CAGR % 2017–2021 2022 2026 *CAGR % 2022–2026 Cats 68,525.9 96,306.0 8.9 100,273.8 114,917.5 3.5 Dogs 82,204.2 92,162.5 2.9 92,651.9 95,883.2 0.9 Source: Euromonitor International, 2022 *CAGR = Compound Annual Growth Rate Retail sales by category in China Cat food Current value sales of cat food grew by 30.8% (CAGR, 2017 to 2021) to US$4.1 billion. Cat treats and mixers was the most dynamic category in 2021 with a CAGR of 62.4% from 2017 to 2021. Chinese customers spent US$2.7 billion on dry cat food and US$1.2 billion on wet cat food in 2021. They spent more money buying mid-priced dry cat food (US$1.7 billion in 2021) than premium dry cat food (US$839.9 million) and economy dry food (US$118.2 million). They also spent more money buying mid-priced wet cat food (US$878.6 million in 2021) than premium (US$290.4 million) and economy wet food (US$41.4 million). High protein and genuine meat have become the main theme for cat food in China. The preference for high protein in human food has been transmitted to pet food, under the prevailing humanization trend. International brands like Orijen and Go have increased Chinese cat owners’ awareness that cats need animal protein, genuine meat to sustain health. Therefore, products with a high animal protein content, either adopting genuine meat or mixed with meat powder for the sake of cost control, have been popular in China’s cat food market (Euromonitor International, 2021). Wet cat food and treats are expected to continue registering robust growth in the next five years (2022–2026) as cat owners want their cats to take in enough moisture to stay healthy and they also enjoy interacting with their cats by feeding them treats. In the future, wet cat food is likely to witness continuous upgrading, which means it is nutritious enough to replace dried cat food. Treats with specific functions that are closely linked to the well-being of cats, such as oral care and fur digestion, are also likely to gain popularity (Euromonitor International, 2021). Page | 5 Historical and forecast retail sales of cat food in China, in US$ million, 2017–2026 Category 2017 2021 *CAGR % 2017–2021 2022 2026 *CAGR % 2017–2021 Cat food 1,393.2 4,076.4 30.8 4,688.3 9,663.7 19.8 Cat treats and mixers 30.6 213.0 62.4 239.3 387.3 12.8 Dry cat food 963.3 2,653.1 28.8 3,117.4 6,888.3 21.9 Economy dry cat food 43.1 118.2 28.7 134.3 261.1 18.1 Mid-priced dry cat food 650.5 1,695.0 27.1 1,936.0 4,199.9 21.4 Premium dry cat food 269.8 839.9 32.8 1,047.1 2,427.3 23.4 Wet cat food 399.2 1,210.4 32.0 1,331.6 2,388.1 15.7 Economy wet cat food 14.6 41.4 29.8 43.4 69.6 12.5 Mid-priced wet cat food 294.2 878.6 31.5 960.3 1,675.1 14.9 Premium wet cat food 90.5 290.4 33.8 327.9 643.4 18.4 Source: Euromonitor International, 2022 *CAGR = Compound Annual Growth Rate Dog food Retail sales of dog food reached US$3.4 billion in 2021, with a CAGR of 16.6% from 2017 to 2021. Economy wet dog food had the best performance in 2021 with a CAGR of 23.4% from 2017 to 2021. Mid-priced food led sales in dry dog food (US$1.6 billion in 2021) with a 15.3% CAGR from 2017 to 2021. Mid-priced wet food led sales in wet dog food (US$86.4 million in 2021) with a 21.5% CAGR from 2017 to 2021. Freeze-dried and air-dried kibble are likely to remain popular because they maintain rich nutrition and taste. In 2020, freeze-dried products demonstrated strong resilience against the epidemic and continued expanding digital shelf space, based on Euromonitor’s Via tracking tool. Another technology that is also gaining popularity is air-drying, which is similar to freeze-drying in terms of maintaining flavour and nutrition. In future, the demand for these two technologies is likely to remain dynamic (Euromonitor International, 2021). Historical and forecast retail sales of dog food in China, in US$ million, 2017–2026 Category 2017 2021 *CAGR % 2017–2021 2022 2026 *CAGR % 2022–2026 Dog food 1,830.4 3,381.9 16.6 3,379.8 4,623.1 8.1 Dog treats and mixers 175.5 405.1 23.3 398.3 572.5 9.5 Dry dog food 1,604.1 2,864.6 15.6 2,870.9 3,911.0 8.0 Economy dry dog food 120.3 208.9 14.8 210.0 285.5 8.0 Mid-priced dry dog food 905.5 1,602.6 15.3 1,589.2 2,068.8 6.8 Premium dry dog food 578.4 1,053.1 16.2 1,071.7 1,556.7 9.8 Wet dog food 50.7 112.1 21.9 110.6 139.5 6.0 Economy wet dog food 4.1 9.5 23.4 9.5 12.3 6.7 Mid-priced wet dog food 39.6 86.4 21.5 85.0 106.4 5.8 Premium wet dog food 7.0 16.2 23.3 16.2 20.9 6.6 Source: Euromonitor International, 2022 *CAGR = Compound Annual Growth Rate Page | 6 Company shares The top three players in the cat food sector (Mars Inc, Nestlé SA and Champion Petfoods LP) captured 14.4% market share in 2021, ahead of other competitors. However, Mars Inc had a negative CAGR of -4.5% from 2017 to 2021. Petcurean Pet Foods Ltd had the highest CAGR at 39.2% over the past five years. Domestic cat food was considered low quality five years ago, but is now catching up, providing quality products. They are benchmarking international brands such as Orijen and Go, which offer high animal protein content but at lower prices and therefore offer high value for money. For example, domestic brand NetEase has launched dry cat food that has a similar ingredient list to Go and provides detailed information about recipes and raw material suppliers to guarantee the utmost transparency to consumers, while its unit price is only around 70% of Go. It is therefore widely recognized by local consumers and has the potential to be an important player in the mid-priced dry cat food market (Euromonitor International, 2021). Top 10 players in the cat food sector and their market share (% breakdown), 2017–2021 Company Name 2017 2018 2019 2020 2021 *CAGR % 2017–2021 Mars Inc 10.6 9.4 8.3 8.1 8.8 -4.5 Nestlé SA 2.7 2.7 2.8 3.1 3.1 3.5 Champion Petfoods LP 0.8 2.1 2.3 2.3 2.5 33.0 Rongxi Pet Food Co Ltd 2.3 2.0 1.7 1.5 2.1 -2.2 Yantai China Pet Foods Co Ltd 1.3 1.3 1.3 1.6 1.7 6.9 Shanghai Bridge Petcare Co Ltd 3.0 2.7 1.8 1.8 1.7 -13.2 Shanghai Enova Pet Products Co Ltd 1.2 1.4 1.5 1.6 1.7 9.1 Petcurean Pet Foods Ltd 0.4 0.8 1.3 2.6 1.5 39.2 Inaba Pet Food Co Ltd 0.5 0.9 1.1 1.1 1.1 21.8 Gambol Pet Group Co Ltd 0.4 0.5 0.6 1.2 1.0 25.7 Others 76.8 76.2 77.3 75.1 74.8 -0.7 Source: Euromonitor International, 2022 *CAGR = Compound Annual Growth Rate The top three players in the dog food sector (Mars Inc, Huaxing Pet Food Co Ltd and Yantai China Pet Foods Co Ltd) had 15.1% market share in 2021, ahead of other competitors. However, Mars Inc had a negative CAGR of -11.2% from 2017 to 2021. Yantai China Pet Foods Co Ltd and Gambol Pet Group Co Ltd had the highest CAGR at 23.6% over the past five years. Domestic players, such as Gambol Pet Food Group and Yantai China Pet Foods Co, transformed from original equipment manufacturers (OEMs) to dog food brand owners. Instead of being OEMs in China, the two companies dedicated themselves to becoming brand owners by promoting their own brands, Myfoodie and Wanpy, respectively. From 2017 to 2020, the two companies’ sales almost tripled and they are aiming to become China’s “pride in pet food” (Euromonitor International, 2021). Top 10 players in the dog food sector and their market share (% breakdown), 2017–2021 Company Name 2017 2018 2019 2020 2021 *CAGR % 2017–2021 Mars Inc 11.1 9.5 8.4 7.2 6.9 -11.2 Huaxing Pet Food Co Ltd 2.5 2.9 3.0 3.8 5.4 21.2 Yantai China Pet Foods Co Ltd 1.2 1.4 1.7 2.2 2.8 23.6 Page | 7 Shanghai Bridge Petcare Co Ltd 8.3 6.1 3.3 2.8 2.6 -25.2 Nestlé SA 3.2 2.9 2.4 2.3 2.5 -6.0 Shanghai Enova Pet Products Co Ltd 1.1 1.4 1.7 2.0 2.5 22.8 Navarch Pet’s Material Co Ltd 2.6 2.2 2.0 2.0 2.0 -6.3 Tianjin Canpo Hi Tech Development Co Ltd 1.2 1.2 1.0 1.0 1.0 -4.5 Xuzhou Suchong Pet Product Co Ltd 1.1 1.7 2.2 1.4 0.8 -7.7 Gambol Pet Group Co Ltd 0.3 0.4 0.5 1.1 0.7 23.6 Others 67.4 70.3 73.8 74.2 72.8 1.9 Source: Euromonitor International, 2022 *CAGR = Compound Annual Growth Rate Brand shares Royal Canin by Mars Inc is the top brand in cat food (5.9% share in 2021), followed by Orijen by Champion Petfoods LP (2.5% share) and Whiskas by Mars Inc (2.2% share). Orijen saw the biggest CAGR of 33.0% from 2016 to 2020. Top 10 brands in cat food and their market share (% breakdown), 2017–2021 Brand Company 2017 2018 2019 2020 2021 *CAGR % 2017–2021 Royal Canin Mars Inc 5.5 5.5 5.1 5.3 5.9 1.8 Orijen Champion Petfoods LP 0.8 2.1 2.3 2.3 2.5 33.0 Whiskas Mars Inc 4.2 3.1 2.5 2.3 2.2 -14.9 Wanpy Yantai China Pet Foods Co Ltd 1.3 1.3 1.3 1.6 1.7 6.9 Fa Pure & Natural Shanghai Enova Pet Products Co Ltd 1.2 1.4 1.5 1.6 1.7 9.1 Bridge Shanghai Bridge Petcare Co Ltd 2.8 2.5 1.7 1.7 1.6 -13.1 Petcurean Go! Petcurean Pet Foods Ltd 0.4 0.8 1.3 2.6 1.5 39.2 Pro Plan Nestlé SA 0.5 0.7 0.9 1.2 1.3 27.0 Ciao Inaba Pet Food Co Ltd 0.5 0.9 1.1 1.1 1.1 21.8 Fancy Feast/Gourmet Nestlé SA 0.6 0.8 0.9 1.1 1.0 13.6 Others Others 82.2 80.9 81.4 79.2 79.5 -0.8 Source: Euromonitor International, 2022 *CAGR = Compound Annual Growth Rate Royal Canin by Mars Inc is also the leading brand in dog food (4.1% share in 2021), followed by Lilang by Huaxing Pet Food Co Ltd (2.9% share) and Wanpy by Yantai China Pet Foods Co Ltd (2.8% share). Leading domestic players occupy over half of the top 10 places in dog food and their shares increased in 2021. Their constant innovation, multi-brand strategies and constant public exposure are likely to foster their further expansion in the future (Euromonitor International, 2021). Top 10 brands in dog food and their market share (% breakdown), 2017-2021 Brand name Company name 2017 2018 2019 2020 2021 *CAGR % 2017–2021 Royal Canin Mars Inc 5.8 5.3 4.8 4.2 4.1 -8.3 Lilang Huaxing Pet Food Co Ltd 1.4 1.5 1.6 2.0 2.9 20.0 Page | 8 Wanpy Yantai China Pet Foods Co Ltd 1.2 1.4 1.7 2.2 2.8 23.6 Odin Huaxing Pet Food Co Ltd 1.1 1.3 1.4 1.8 2.5 22.8 Fa Pure & Natural Shanghai Enova Pet Products Co Ltd 1.1 1.4 1.7 2.0 2.5 22.8 Pedigree Mars Inc 3.2 2.6 2.3 2.1 2.2 -8.9 Navarch Navarch Pet’s Material Co Ltd 2.6 2.2 2.0 2.0 2.0 -6.3 Bridge Shanghai Bridge Petcare Co Ltd 5.7 4.4 2.4 2.1 1.9 -24.0 Pro Plan Nestlé SA 1.6 1.5 1.4 1.6 1.9 4.4 Crazydog Xuzhou Suchong Pet Product Co Ltd 1.1 1.7 2.2 1.4 0.8 -7.7 Others Others 75.2 76.7 78.5 78.6 76.4 0.4 Source: Euromonitor International, 2022 *CAGR = Compound Annual Growth Rate Distribution channels E-commerce accounted for the majority of pet food retail sales in China (60.9% market share), while store-based retailing and non-retail channels accounted for the remainder in 2021. The market share of most distribution channels, whether categorized as store-based or non-store based retailing, increased at varying CAGRs between 2017 to 2021. And e-commerce increased by the largest CAGR (34.9%) in all channels, from a 42.5% market share recorded in 2017. The share of e-commerce in pet food is the highest among all distribution channels because many pet owners are young people who are familiar with purchasing online. It is likely to continue to see share expansion. Pet food in China: distribution channels in market % share, historic Outlet type 2017 2018 2019 2020 2021 *CAGR % 2017–2021 Store-based retailing 1,573.2 1,874.5 2,001.8 2,083.1 2,212.0 8.9 Grocery retailers 355.4 408.8 420.1 364.3 354.9 0.0 Modern grocery retailers 352.9 406.3 417.6 362.1 352.8 0.0 Hypermarkets 258.9 302.7 313.5 276.2 271.4 1.2 Supermarkets 94.0 103.6 104.1 85.9 81.4 -3.5 Traditional grocery retailers 2.5 2.5 2.5 2.3 2.1 -4.3 Non-grocery specialists 1,217.8 1,465.7 1,581.7 1,718.7 1,857.1 11.1 Pet shops 1,171.4 1,408.0 1,530.4 1,689.2 1,835.0 11.9 Other non-grocery specialists 46.5 57.7 51.3 29.5 22.1 -17.0 Non-store retailing 1,374.7 1,959.8 2,611.3 3,536.7 4,550.3 34.9 E-commerce 1,374.7 1,959.8 2,611.3 3,536.7 4,550.3 34.9 Non-retail channels 287.1 436.1 538.1 563.5 709.9 25.4 Veterinary clinics 287.1 436.1 538.1 563.5 709.9 25.4 Total 3,235.0 4,270.4 5,151.3 6,183.3 7,472.2 23.3 Source: Euromonitor International, 2022 *CAGR = Compound Annual Growth Rate Product launch analysis From 2017 to 2021, a total of 1,673 pet food products were launched in China. The number of yearly product launches declined in growth by a CAGR of 9.1% from the larger launch of 386 pet products in 2017 to the lower and most recent launch of 263 pet products in 2021. Dog snacks & treats, cat snacks & treats, and cat food dry were the top categories of newly released pet food product launches while no additives/preservatives, other Page | 9 (functional pet) and functional pet – digestion were top claims associated with new pet food products released during the prescribed period. New product launches of pet food in China, January 2017 to December 2021 Product attributes Yearly launch count 2017 2018 2019 2020 2021 Yearly product launches 386 321 329 338 263 Top five categories Dog snacks & treats 128 99 101 112 97 Cat snacks & treats 42 42 89 107 58 Cat food dry 46 66 58 58 63 Dog food dry 79 51 27 39 35 Cat food wet 63 34 37 14 7 Top five claims No additives/preservatives 157 117 113 120 111 Other (functional pet) 184 135 84 76 43 Functional pet – digestion 136 109 87 93 71 Skin & coat (functional pet) 178 116 70 76 44 Vitamin/mineral fortified 100 111 83 100 65 Top five price groups (USD) 0.43–4.42 226 168 160 92 47 4.43–8.42 82 69 95 129 65 8.43–12.42 27 19 38 46 54 12.43–16.42 28 25 21 38 25 16.43–23.00 18 25 12 19 36 Top five launch types New variety/range extension 146 125 162 140 112 New product 155 131 122 137 127 New packaging 66 50 37 48 20 Relaunch 11 9 8 10 0 New formulation 8 6 0 3 4 Top five flavours (incl. blend) Chicken 54 47 50 42 46 Unflavoured/plain 70 54 40 31 17 Beef 44 31 34 22 17 Tuna 14 15 18 17 8 Salmon 8 7 21 15 11 Top five ingredient preparations Powdered 167 140 121 159 134 Meal 53 32 41 53 51 Pulp 41 39 50 47 39 Frozen 18 19 23 38 85 Hydrolyzed 29 34 43 29 26 Source: Mintel, 2022 Page | 10 Product examples Blueberry, Salmon and Chicken Functional Dog Snack Company: Chong Ai Information Technology Brand: Dear Deal Super Pet Food Category: Pet Food Sub-Category: Dog Snacks & Treats Store Name: Tmall Store Type: Internet / Mail Order Date Published: May 2022 Launch Type: New Product Price in local currency: CNY69.80 Price in US Dollars: $10.56 Product description Dear Deal Super Pet Food Lan Mei San Wen Yu Ji Rou Gong Neng Xing Chong Wu Ling Shi (Blueberry, Salmon and Chicken Functional Dog Snack) features anthocyanins, which are said to provide deep nourishment and gently remove tear stains. The product is suitable for dogs at all stages, and retails in a pack containing 14 x 15 g units, bearing a WeChat QR code. Source: Mintel, 2022 Duck Strips Company: Lian Yi Biotechnology Brand: Feng Kuang De Xiao Gou / Crazy Puppy / Crazy Dog Category: Pet Food Sub-Category: Dog Snacks & Treats Market: China Store Name: Vanguard Store Type: Mass Merchandise / Hypermarket Date Published: July 2021 Launch Type: New Packaging Price in local currency: CNY15.90 Price in US Dollars: $2.45 Product description Feng Kuang De Xiao Gou / Crazy Puppy / Crazy Dog Ya Rou Tiao (Duck Strips) have been repackaged. These pet treats are said to be specially designed to help with digestion and absorption, and are suitable for dogs at all stages of life. It is claimed that this product helps replenish nutrients and retails in a newly designed 100-g pack bearing a Weibo QR code and a WeChat QR code. Source: Mintel, 2022 Page | 11 Roasted Chicken Recipe Mini Treats for Dogs Company: CanAm Pet Treats Distributor: Guang Rao Trading Brand: Darford Zero/G Category: Pet Food Sub-Category: Dog Snacks & Treats Market: China Location of Manufacture: Canada Import Status: Imported product Store Name: Tmall Store Type: Internet / Mail Order Date Published: May 2018 Launch Type: New Variety / Range Extension Price in local currency: CNY70.80 Price in US Dollars: $11.18 Product description Darford Zero / G Zhi Chun Kao Ji Rou Mi Ni Hong Bei Ling Shi (Roasted Chicken Recipe Mini Treats for Dogs) are all-natural treats made in a government-inspected certified organic bakery with limited ingredients, chicken as the number 1 ingredient and quality protein. They are free from grains, gluten, potato, corn, soy, meals, by-products, artificial colours and flavours, preservatives, GMOs, added salt and chemicals. These oven-baked treats for any size dog are rich in protein, low glycemic and power packed with super foods including blueberries, cranberries, quinoa seeds, chia seeds and dried kelp. This product is available in a 170-g recyclable pack. Source: Mintel, 2022 Spongy Freeze-Dried Rabbit Recipe Complete Cat Food Company: Wu Wei Technology Brand: Furrytail Category: Pet Food Sub-Category: Cat Food Dry Store Name: Tmall Store Type: Internet / Mail Order Date Published: May 2022 Launch Type: New Variety / Range Extension Price in local currency: CNY99.00 Price in US Dollars: $15.23 Product description Furrytail Quan Jia Mao Liang Hai Mian Dong Gan Tu Tu Pei Fang (Spongy Freeze-Dried Rabbit Recipe Complete Cat Food) features big meat chunks made using freeze-dried raw bone and meat according to a patented 8:1:1 ratio, which includes 80% muscle tissues, 10% bone and meat, and 10% liver and organs. It also contains patented FTP-21 saccharomyces polypeptides, 3% fresh rabbit blood, and complete trace elements and vitamins. It is processed according to a freeze-drying technique at low temperature for 38 hours to make a sponge pore structure. The product is said to rehydrate in five seconds, contains zero gum, starch, appetizing stimulants and meat meal. It is described as crunchy and rich in meat aroma, and retails in a 138-g pack. The cat food is claimed to be certified and recommended by the GB/T, fediaf, AAFCO, WSAVA, PennVet, Cornell Page | 12 University, habri, Cornell Feline Health Center, TICA, American Dairy Science Association, International Cat Care, American Society of Animal Science and ASPCA. Source: Mintel, 2022 Daily Freeze-Dried Treats Company: Chong Ai Information Technology Brand: Dear Deal Category: Pet Food Sub-Category: Cat Snacks & Treats Store Name: Tmall Store Type: Internet / Mail Order Date Published: September 2021 Launch Type: New Product Price in local currency: CNY118.00 Price in US Dollars: $18.31 Product description Dear Deal Mei Ri Dong Gan Chong Wu Ling Shi (Daily Freeze-Dried Treats) are said to be made using human food–grade, high-quality ingredients and processed according to an aviation freeze-drying technology at -45°C to lock in 99% of nutrients. The product comprises the following ingredients: Luhe chicken, New Zealand beef, New Zealand venison, Russian salmon, South American white shrimp and Rushan oyster. The pet snack provides low-allergic protein and has less than 2% moisture. It is said to be highly absorbable, and regulate and relieve skin conditions. The product is suitable for dogs and cats, and retails in an 84-g pack containing seven 12-g sachets bearing a WeChat QR code and a QR code. The sachet is processed according to a separation packaging technique to divide freeze-dried powder and freeze-dried diced meat to retain freshness. Source: Mintel, 2022 Grain-Free Food for Kittens Company: Elmira Pet Products Distributor: Petcurean Pet Nutrition Brand: Petcurean Now Fresh Category: Pet Food Sub-Category: Cat Food Dry Market: China Location of Manufacture: Canada Import Status: Imported product Store Name: JD Store Type: Internet / Mail Order Date Published: Jun 2019 Launch Type: New Product Price in local currency: CNY12.00 Price in US Dollars: $1.74 Product description Petcurean Now Fresh Wu Gu You Mao Liang (Grain-Free Food for Kittens) is made with coconut oil, and 100% fresh turkey, salmon and duck. It is formulated to meet the nutritional levels established by the AAFCO Cat Food Nutrient Profiles for Growth. It contains 0% rendered meats, by-product meals, gluten, wheat, corn and soy. The product is suitable for cats aged under 12 months old, and retails in a 100-g pack featuring Facebook, Twitter and Instagram logos. Source: Mintel, 2022 Page | 13 For more information Canadian Trade Commissioner Service International Trade Commissioners can provide Canadian industry with on-the-ground expertise regarding market potential, current conditions and local business contacts, and are an excellent point of contact for export advice.  Find a Trade Commissioner More agri-food market intelligence International agri-food market intelligence Discover global agriculture and food opportunities, the complete library of Global Analysis reports, market trends and forecasts, and information on Canada’s free trade agreements. Agri-food market intelligence service Canadian agri-food and seafood businesses can take advantage of a customized service of reports and analysis, and join our email subscription service to have the latest reports delivered directly to their inbox. For additional information on Pet Fair Asia 2022, please contact:  Ben Berry, Deputy Director Trade Show Strategy and Delivery Agriculture and agri-food Canada ben.berry@agr.gc.ca Resources Euromonitor International, 2022. Euromonitor International, 2021. Cat Food in China. Euromonitor International, 2021. Dog Food in China. Global Trade Tracker, 2022. Mintel: A year of innovation in pet food and products, 2022. Mintel Global New Products Database, 2022. Page | 14 Sector Trend Analysis – Pet Food in China Global Analysis Report Prepared by: Zhiduo Wang, Market Analyst © Her Majesty the Queen in Right of Canada, represented by the Minister of Agriculture and Agri-Food (2022). 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