(CRI-report) - Pet consumption in China is in the formation of scale afterwards and shows enormous potential. The domestic pet market enters a period of rapid development. The huge consumer demand for pet services continues to expand which also results in relatively increasingly strong demand for investment. In recent years, the number of China's urban and rural residents' cats and dogs is increasing. Pet hospitals, pet shops and pet beauty parlors and other pet-relevant industries also achieve rapid development. Pet food industry which ushers huge business opportunities in the alternative food industry in China accounts for 40% share of the field of pet economy.
The major global well-known food and forage enterprises which earn huge profits in pet food markets of developed countries in the world all are optimistic about the pet food industry and at the same time, they hold targets to invest in Chinese pet food market. Although China's "pet hot" rises in recent years, the economic development of relevant industries forms the scale and Chinese pet economy has considerable economic potential. Among them, the demand for pet food is the main aspect. For example, in 2008, the sales revenue of pet food in China reached more than CNY 10 billion while in 2004, it was just CNY 6 billion. In 2010, the total consumption amount of the pet economy reached more than CNY 40 billion and that of the pet food consumption reached nearly CNY 1.6 billion.
China's pet food market enters a period of vigorous development and becomes a crucial place where the domestic and foreign food manufacturers compete for. The growing Chinese pet food market is attached attention by the international giants which successively increase their investments in the market and promote the propaganda strength. Through several years of development, domestic pet food enterprises also begin to gain a firm foothold and possess the strength to compete with the international well-known foreign brands.
In addition, in recent years, pet food, the emerging industry becomes an important one to promote the development of foreign trade, the expansion of rural employment and the increase of farmers' income. Jiangsu Provence is a gig province of pet food exporting. Currently, there are 15 registered enterprises of pet food exporting, with an annual export amount of more than 8000 tons and an output value of USD 120 million which can yearly directly or indirectly provide nearly 10,000 jobs. In 2009, under the circumstance of the economic export downturn, pet food export condition in Nanjing areas maintains large increase. The number of pet food export in Nanjing port reached 715 batches, weighing 9184 tons; the value amounted to USD 66.9 million, with an increase of 32% YOY; the weight increased by 10% and the value increased by 34%, continuing to maintain the leading position of the export value nationwide, and there was no case detected unqualified by foreign official institutions.
China's pet consumption will present a very good development trend in the future and China's pet food industry has a huge market potential. There are large numbers of pets in China. It is expected that the growth of pet food market will continue at least two decade and the annual average economic growth rate of China's pet economy in the next few years will be more than 20 percent. By 2015, it will create hundreds of billions of economies of scale and pet food consumption amount will reach CNY 40 billion. China's pet industry should continue to introduce new varieties and enhance the research and development of pet food which plays a positive role in guiding pet production and consumption; meantime, government departments should strengthen the legal construction to create a good and orderly competitive environment for the development of the pet food industry.