The Chinese pet market has been growing rapidly, thanks to the fast-rising pet ownership driven by a younger generation of modernised and digitised pet owners. Going forward, this growth is projected to continue - if not accelerate - and will be driven by a continued rise in pet ownership, an evolution in pet owner profile as well as a trend towards ‘trading up’.
Pet food is the primary driver of this growth and is the most investment-ready segment. The competitive landscape in the pet food market is highly dynamic, with the coming years critical in shaping winners and losers. As a result, there has been increasing M&A and attention in the sector. There are still lots of gems to acquire but fast action is required to capitalise on this next phase of growth.