Unleashing Possibilities for Premium Pet Food in China

Published on: April 17, 2024

China’s burgeoning affection for pets is driving an extraordinary demand for premium pet food, marking a 2,000% increase over the last decade. At the forefront are young, enthusiastic pet owners, primarily women under 30, from the nation’s thriving tier 1 and 2 cities. This demographic evolution is transforming pet ownership and shopping behaviours, particularly leaning towards online purchases of pet products. International brands currently dominate, capturing 70% of the market share, with premium pet food leading the pack.

The spotlight is now on New Zealand, a country celebrated for its unspoiled natural beauty and stringent food safety regulations. New Zealand’s pet food producers are uniquely positioned to meet China’s growing appetite for high-quality, nutritious pet food. With projections indicating the pet food and care industry in China could reach an astonishing 811.4 billion yuan (about US$122.6 billion) by 2025, the opportunity for New Zealand brands is ripe for the taking.

But the question looms: how can New Zealand seize this golden chance, ensuring its premium pet food brands become the preferred choice for Chinese consumers who value quality and safety above all?

Overview:

Key Factors Fuelling China's Premium Pet Food Market

China’s ascent to the second-largest pet food market globally, boasting over US$26.4 billion in revenue in 2023 and capturing 55% of the market share, is a testament to its remarkable growth, especially considering only 23% of Chinese households own pets.

Several key drivers are fuelling this remarkable growth:

1. The Rise of Pet Humanisation

The concept of pet humanisation is revolutionising how pets are perceived and treated in China. Chinese pet owners are no longer just feeding their pets. They’re curating experiences, emphasising care, and investing significantly in their pets’ well-being.

This shift towards treating pets as family members drives the demand for premium pet food, as owners seek the highest quality of life for their beloved companions.

2. Millennials' Preferences Shape the Market

The preferences of Chinese millennials are also a defining force, driving a demand for pet food that aligns with human dietary trends. This includes natural ingredients, appealing flavours, and tailored nutrition plans for their “fur babies.” This discerning demographic is championing quality and customisation, setting new standards in the pet food market.

3. Focus on Quality & Nutrition

There is a growing recognition of the importance of quality and nutrition in pet food among Chinese consumers. Urban pet owners, in particular, are becoming more knowledgeable about their pets’ dietary needs. They’re on the lookout for specialised diets and high-quality ingredients that not only cater to taste but also promise enhanced health and longevity for their pets.

4. Health & Science Awareness

The spotlight on pet health has never been brighter, thanks to scientific research highlighting the critical role of nutrition in preventing health issues like obesity and kidney problems. This heightened awareness is encouraging pet owners to opt for premium food options backed by veterinary science, ensuring their pets receive the best possible care based on informed decisions.

Bright Prospects for NZ Premium Pet Food

As the premium pet food market in China continues to expand at an astonishing rate, it opens up a lucrative gateway for New Zealand’s pet food manufacturers. Known globally for their unwavering dedication to quality, safety, and nutritional excellence, Kiwi brands are perfectly poised to not just break into but also thrive within this vibrant market.

New Zealand's Edge in Quality & Safety

New Zealand is world-famous not only for its breathtaking landscapes but also for its environmentally-friendly, secure, and safe agricultural practices. These practices are a badge of honour, distinguishing Kiwi pet food products in the eyes of discerning Chinese consumers. In a market where consumers set the bar high, expecting only the best for their pets, New Zealand’s unmatched quality standards are a perfect match.

The commitment of New Zealand to “clean and green” principles, along with stringent safety standards, strikes a chord with Chinese pet owners. They are in the market not just for pet food but for an investment in their pets’ overall well-being. By emphasising these values, New Zealand producers can differentiate themselves, offering products that not only meet but exceed Chinese consumers’ expectations in quality, safety, and ethical production.

Overcoming Market Entry Barriers

Entering China’s pet food market, with its tightened quality and safety regulations, poses significant challenges. To export pet food to China, international manufacturers typically need to register with the General Administration of Customs China (GACC). However, in a pivotal development in September 2021, New Zealand pet food companies were granted a waiver from this registration requirement. This exemption not only lowers the barrier to entry but also highlights New Zealand’s esteemed status as a disease-free nation. Coupled with its focus on high-quality, protein-rich diets, New Zealand stands out in a crowded market.

Furthermore, the free-trade agreement between China and New Zealand enhances Kiwi brands’ competitive edge, making the prospect of exporting premium pet food to China even more attractive.

Seizing Opportunities in China

For New Zealand’s premium pet food brands aiming to capture a share of China’s lucrative market, the journey ahead is promising yet requires strategic navigation.

Here are 5 actionable strategies that can set global pet food brands on a path to success in China:

1. Embrace the Digital Landscape

With e-commerce driving over 60% of pet food sales in China in 2023, tapping into the Chinese digital ecosystem is non-negotiable. Engaging the young, tech-savvy demographic requires a robust presence on social media, e-commerce platforms, and the strategic use of KOL (key opinion leader) partnerships. This digital dive can significantly boost brand visibility, fostering awareness and loyalty among potential customers.

2. Craft a Compelling Brand Narrative

For New Zealand brands, the stories behind their products — emphasising quality, safety, and eco-consciousness — are their strongest suit. Effective storytelling that brings these values to the forefront can resonate deeply with Chinese consumers, cultivating a foundation of trust and a loyal customer base.

3. Tailor for the Chinese Palate

Success in China’s pet food market hinges on understanding and catering to local tastes and needs. Tailoring product lines to suit the unique preferences of Chinese pets and their owners can distinguish New Zealand brands, offering them a competitive edge.

4. Prioritise Quality & Showcase Certifications

Continually ensuring and highlighting the superior safety and nutritional standards of their offerings will help New Zealand brands reinforce their premium positioning. Transparency about quality and certifications can further cement their reputation as top-tier choices in the eyes of Chinese consumers.

5. Build Strategic Partnerships

Collaborating with local partners and pet-focused key opinion leaders (KOLs) can unlock invaluable insights into consumer behaviours and preferences. These partnerships can ensure that New Zealand brands’ offerings are finely tuned to meet the market’s demands, enhancing their appeal and effectiveness.

At WPIC, we have over 16 years of on-the-ground experience in helping global brands penetrate and thrive in Asia’s dynamic markets. From devising entry strategies to optimising e-commerce presence and executing digital marketing campaigns, our tailored solutions are designed to empower New Zealand’s premium pet food brands.

Contact WPIC today to unlock the full potential of your brand in this rapidly growing sector.

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