Analysis Report on China's Pet Food Going Global in 2025

This report mainly analyzes the current situation, challenges, and opportunities of Chinese pet food going overseas. The core content is as follows:

I. Market Overview and Growth Trends

- Global Market Size: In 2024, the global pet food market size reached USD 151.8 billion, a year-on-year increase of 7.56%, with cat food growing faster than dog food. The European and American markets are mature, while emerging markets such as Southeast Asia and South America are growing rapidly. The Southeast Asian market is expected to exceed USD 25 billion by 2030.

- Status of Chinese Pet Food Going Overseas: China's pet food exports have increased year by year. From January to July 2024, exports of retail-packaged pet food grew by 22.5% year-on-year, with the main export destinations being Europe, America, and Southeast Asia. However, the overall industry is still in the "nascent stage," dominated by leading companies such as China Pet Foods and Better Choice, mainly going overseas through OEM/ODM models, with relatively low influence of independent brands.

II. Competitive Landscape and Corporate Performance

- Domestic Market Competition: The value-for-money market is dominated by domestic brands (e.g., Myfoodie dog food market share 7.8%), while the high-end market is occupied by imported brands (e.g., Royal Canin, Orijen). The domestic brands' CR5 is only 17.4%, and market concentration is much lower than that of the US (64%), indicating fragmented competition.

- Trade Structure: From 2020 to 2024, China's overall pet food trade surplus was USD 8.29 billion, but there was a USD 310 million deficit in dog/cat canned food, indicating a reliance on imports for high-end canned food. Exports are mainly snacks and low-end staple food, while imports are concentrated in high-end staple food and canned food.

- Overseas Enterprise Cases:

- Petty Group: By relying on factories in Southeast Asia (Vietnam, Cambodia) and New Zealand to reduce costs, overseas revenue accounted for more than 80% in 2024, and the staple food business became a new growth point.

- Mars Group: Covers the entire market through a multi-brand strategy (such as Royal Canin, Pedigree), with pet food business accounting for 59% of global revenue, and builds a "product + medical" ecosystem through the acquisition of pet hospitals.

III. Core Challenges

1. Brand and Technology Shortcomings:

- Domestic high-end brands have low recognition, and consumers have a deep-rooted perception that "imported = high quality."

- Insufficient R&D capability for high-end staple food (such as grain-free formulas, functional foods), relying on European and American technology.

2. Supply Chain and Costs:

- Core raw materials (such as high-quality meat, deep-sea fish oil) rely on imports, with large cost fluctuations.

- Although Southeast Asian factories reduce tariffs, they face environmental policy and capacity ramp-up pressures.

3. Market Access and Localization:

- High certification thresholds in Europe and America (such as FDA, AAFCO), and Southeast Asia requires adaptation to local tastes (such as preference for fish) and religious requirements (such as Halal certification).

IV. Opportunities and Strategic Recommendations

- Market Selection:

- Southeast Asia: With relaxed policies and low costs, it is suitable for cost-effective products to quickly enter the market, such as reaching consumers through cross-border e-commerce (Shopee, Lazada).

- Europe and America: Requires long-term investment in brand building, focusing on "high-end" and "localization," such as launching organic food and customized formulas, and using the DTC model (independent website) to reach users directly.

- Product Upgrading:

- Develop functional products (such as gastrointestinal health food, senior pet food) and high-end fresh food (freeze-dried, low-temperature baked) to meet differentiated needs.

- Pay attention to environmentally friendly packaging and raw material traceability to cater to the sustainable consumption trend in Europe and America.

- Industry Chain Layout:

- Set up factories overseas (such as New Zealand, Southeast Asia), be close to raw material origins and avoid trade barriers, such as Petty Group's "China + Southeast Asia + New Zealand" supply chain network.

- Integrate online and offline channels, and enhance brand exposure through social media (such as Douyin, Instagram) and KOL marketing.

V. Future Trends

- High-end and Intelligent: Consumers' demand for natural food and customized food is rising. AI formula optimization and smart factories (such as Better Choice's Shandong base) will become technological breakthroughs.

- Regional Differentiation: Southeast Asia will continue to see high growth, while the European and American markets will see market share concentrated among leading brands. Chinese companies need to balance OEM and independent brands, gradually shifting from "manufacturing going overseas" to "branding going overseas."

Summary: Chinese pet food going overseas faces both opportunities and challenges. Enterprises need to make breakthroughs in technology R&D, brand building, and localized operations, leverage the dividends of emerging markets and global supply chain integration, and gradually enhance international competitiveness.