Soochow: Consumer demand continues to expand, the prospects for pet food are wide.

Soochow released a research report stating that the continuous expansion of consumer demand in China's pet industry has led to a surge in the number of cats being raised, increasing rapidly from 46.62 million in 2020 to 72.89 million in 2025. Pet owners have a stronger emotional dependence on their pets, and their willingness and ability to spend on consumption is more prominent. The main consumption is on pet food, with pet supplies, medical care, and services as supplementary factors in the diversified pet market ecology, showing a trend of rapid growth. The functional food track is becoming a new growth point in the industry, and pet snack consumption is transitioning from traditional feeding to functional and interactive. Main points of Soochow's study: Continuous expansion of consumer demand in China's pet industry, rise of the cat economy According to the data of the "2026 China Pet Industry White Paper", the market size of China's pet industry has shown a continuous growth trend from 2020 to 2025. At the same time, influenced by various factors such as urban lifestyle and emotional needs, the proportion of pet cats in the urban pet-raising structure is continuously increasing. Since 2020, the number of cats being raised has surged, increasing rapidly from 46.62 million in 2020 to 72.89 million in 2025. Stable basic market for pet food, gradually shifting towards refined nurturing 1) Pet owners: Primarily highly educated, middle-aged and young women in first-tier cities. The current pet owners are mainly highly educated middle-aged and young women, mainly concentrated in first-tier and new first-tier cities. This group has a stronger emotional dependence on pets, and their consumption willingness and ability are more prominent. 2) Pet food: The demand for food accounts for nearly half, gradually shifting towards a value-driven refined nurturing stage. The food market base is stable, with pet food accounting for 46%, while the demand for health supplements and other products is increasing. Currently, China's pet consumption is mainly focused on pet food, with pet supplies, medical care, and services as a supplementary factors in the diversified pet market ecology, showing a trend of rapid growth. Continuous upgrading of pet food technology, gradual increase in demand for functional nutrition 1) Baked food, freeze-dried food, prescription food, etc. maintain high growth. Pet owners are paying increasing attention to the fresh technology and nutritional quality of staple food, with a trend towards fine health management and prevention. The functional food track is becoming a new growth point in the industry. 2) Significant trend towards functional pet snacks. Interactive snacks are still mainstream, but there is clear growth potential for functional snacks. Pet snack consumption is transitioning from traditional feeding to functional and interactive. Investment recommendation: It is recommended to pay attention to the only pet food target listed on the Northern Exchange: LUSCIOUS. Risk warning: Risks such as intensified market competition and product homogenization competition.