Guosheng: The scale of the pet industry is expected to grow by 4.1% in 2025. We are optimistic about the long-term growth space of top domestic brands.

Guosheng released a research report stating that the market size of the pet industry is expected to grow by 4.1% by 2025, with the food market remaining the main consumption market. The trend of younger pet owners may become a driving factor for the industry to enter into high-quality development. Domestic brands are continuously strengthening their foundation, developing systematic research, creating differentiated products, enhancing product competitiveness, and emphasizing long-term brand building. Top domestic brands continue to upgrade their product capabilities and brand expression, showing optimism for the brand's long-term growth space. Key points from Guosheng: The industry continues to show sustained growth, with the market size of the pet industry expected to grow by 4.1% by 2025. The number of dogs and cats and per capita spending continue to increase, with the number of dogs and cats growing by 1.8% year-on-year, per capita dog annual consumption growing by 1.5% year-on-year, per capita cat annual consumption growing by 3.2% year-on-year. At the same time, by 2025, the food market is still the main consumption market, and the trend of younger pet owners may become a driving factor for the industry to enter high-quality development. The strong continue to strengthen, continuously investing in new channels. Looking at the overall situation, domestic brands continue to strengthen, and the strong continue to strengthen. Looking at platforms such as JD Pet and Taotian Pet, the concentration of top pet food brands is increasing; Taotian data shows that by 2025, more than 70% of Chinese brands will have a share on Double Eleven, and by 2025, the top ten brands in pet food on Tmall June 18 will reach 44% (compared to 37% in 2024). In terms of channels, there is a continuous investment in new channels with a focus on offline foundations. According to data from Pet Industry Home, Taotian remains the largest online market, accounting for 29% of the market share. The Douyin channel is a growth area with certainty, and there is also a need to invest in new channels such as Xiaohongshu and O2O. The combined market share of offline channels such as pet stores and animal hospitals is 33%. Upgrading scientific feeding processes, accelerating the trend towards wet food. Looking at consumption trends on ecommerce platforms such as JD and Taotian in 2025, scientific feeding has become a new consensus. JD's "2025 Pet Consumption Report" research shows that 55.3% of pet owners are willing to actively learn about scientific feeding methods, with over 40% of pet owners already developing habits of combining main and wet food. On the Taotian platform, fresh food mainstays show high growth, with cat freeze-dried baked food growing by over 70%, cat full-price freeze-dried food growing by over 20%, cat wet food snacks growing by over 80%, and dog full-price freeze-dried/baked food growing by over 60%. The 2025 white paper also shows that the trend of wet food is becoming prominent, with dog owners showing a greater preference for fresh food and wet food, and cat owners showing a greater preference for baked food and fresh food. Specialized pet products becoming increasingly popular, with increased demand for senior dogs and small dogs. Pet owners' consumption decisions are extending from brand to age-appropriate, breed-appropriate, and size-appropriate categories, leading to growth in corresponding niche categories. Taotian Pet and JD Pet both show an increase in searches for specialized pet products, with searches for products aimed at young and senior pets increasing. Corresponding niche categories are growing, with dog dry food, for example, entering the top 5 key decision factors based on stage of use, breed, and size. In addition, the aging population of dogs is bringing sustained growth to the dog market, driving the high-endization of main food and the demand for pan-medical care. Apart from basic functions, there is a rising trend in senior dog food with specific ingredients to regulate gastrointestinal, oral health, and improve cognitive impairment. In 2024, sales of senior dog food grew by 67% year-on-year, transaction volume grew by 87% year-on-year, and searches increased by 62%. Risk warning: Risks of fluctuations in raw material prices, trade frictions, exchange rate fluctuations, and food safety risks, etc.