在中国打造十亿美元宠物食品品牌的机会——2023年中国进口宠物食品市场白皮书

China Import Pet Food Market white Paper 2023 天猫国际C2 CAPITAL PARTNERS Authors 天猫国际 C2 CAPITAL PARTNERS Tmall Global ('TMGr C2 Capital Partners ('c2") C2 wa5 established in 2016 n Hong Kong, withAlbata as the anchor investor, to invest incompanies capita.ising on the consumcticrgrcwth and consumption Jpgrace of the growingChinese mid dlc c.ass. Adopting a long-termpart e'ship moclel with the mana gement ofinvestee comoanies, it provides value-adclecrowch capital, c2 intencls to support companiesthrouigh unique ch na market insights and kncw-how inclueir g, bu: rot lim ted to, logistics,branding, narketing. omri-chaine. 5als andcistributicn, and last mil= cclivery. C2 hasinvested in leading premium get food orancls fromNo th Amcrica. Given its uniquc value p'opcsitio?,C2 has helped its parners achieve importantmilestcnes in China. As thc cross-aordcr c-co mmerce clatform cfAlibaoa Groul, Imall clobal (IMis) always intendsto provicle the crigjina. cruire overseas productsfor our consuimers n China, anc help overseasbrar dl have a direct connection w'ta in-borcler/clomestic consumcrs to cstablish crancawarene5s Lver sincc -eb 214 when 1mall Globalestablished, more than 26,oou orancs across5,Jcu categories from over 95 countries ar clrecions have joinecl th² platform. As No.1 cross-border platform, 1mall Global has witnessed thechar gj= of consuimer insigh5-from pul'elypurch ase tc self-fulfillment. Ir Ju.y 2u 20. Imal.new discovery, At the same time, I mall Glcbalacceleratas brarcl intrccl Jction to nina market byprovicdl ngi full-solticr for globa! merchants, nstonly through lagsrip-stcre m ocle., but a.so sirec:import ancl ove*sea fulfillment mcclel. More details, please visit:https://c2capitalpartners.com Steerlng Committee 洋咩ChaoYang(洋鲜)Gpnpral ManagFrTmall Glnba! Ppt Sam HuangDirertor Authors Qidan ZhaoSenior AssociateC2 Cap'tal Fiona ChenA550ciateC2 apital 辰筠ChenTan(辰药)OperaticnsImall Globa! ret Far arny gues ians or camineris regarding Lhis reporl, please conlacl the followinig by ermai.: Chen Tan Sam Huang Mirertar at C2 Caical 2arnersLmai.: sam.huangc2cepitalpaitners.com Operations at Tmall s.ooal Pa:Fmail:chenyun.tcoalitaha-iic.com Acknowledgement insights, especially Timothy Su and sikki Yan. Introduction China's pet food market has experienced rapid growth over thepast five years, and 2o22 is estimated to be another strong year ofdata from Double 11 that showed the total pet food rmarket grew-25% YoY,withpremium import brands1 growing even faster atover ~40% YoY (Double 11 is China's largest annual onlineshopping festivaland can accountforupto one-quarterofbrandsannualsalesj. with many global brands seeing growth slow down in homemarkets-2022 YoY growth is estimated at ~6% in the United Statesand ~5% in the European Union markets2-China is becoming a keyfocus for future qrowth. As the industry looks toward 2o23, brandsare curious about how China's pet industry will continue to evolve. we believe the core demand drivers for pet ownership and petfood premiumization continue tobe strong.Even after thesignificant growth observed in China over the past 5 years, China'sCombined with a potential post-coviD rebound in consumptionand international travel, there may be even stronger demand forglobal pet food brands inthe years ahead. The Chinese pet food industry continues toshinein 2022 from 2016 to 2021. This rapid growth highlight: pet food as a hright spot among theChinese consumer producis inclustry and places China as one of the fastest-grcwringrmlarkets in the global pet fooc lanclscdpe. [See Fig 1] Data on the pet food market's performance in 2022 is still being compiled, but it iscstimatcd to bc anothcr strong ycar of growth judging from Double l1 =alcs. Bascdon data from Tmall, pet food sales grew ~25%: YcY during 2022 Double 11, which iseven faster than the ~20ss YoY grrnwth seen in 2021 Double 11. At the core of china's pet food market's rapid growth is the expansion of pet ownership inChina. An incrcase in new pet owncrs-and by extension, an increase in the number ot pets-accounts for about half of the market's growth, while increascs in spending pcer pet make up theother half This expansion in pel twnership may be linked lo china's uriderlying demographic lrends. ABain & Cormpany 5urvey from 2oz1 showed that -45s, of new pet owners were born in the 1990=and ~355s were born in the 1980s. [5ce Fig 2] This group ot people born in thc 19B0s and 1990swas thc first gcncration born under China's ane-child policy, and they view pets in afundamentally different way than their preceding generations. For this group of corisuners, pels are playinig an inporlant emotional rcle as exlencled [amilynembers, which is very different from earlier generations who view pets more as functionalanimals (such as guard dogs). This shift in attitudes has tueled camand tor premiumcommercial pet food that promotcs pet health and wellbeing: and has driven the avcragc pcr-pet spending on pet