2022 Pet Industry Trend Insight White Paper: Baked Grain Grows 96 Times Year on Year

On October 31, JD Pet officially released the full version of the White Paper on Trend Insight of China's Pet Industry in 2022. In general, in 2022, the real pet market in China will reach 115.8 billion, with the share of pet food increasing to 46% and the proportion of staple food for pets accounting for 34%, making it the largest category. Among them, baked grain has the fastest growth rate. JD Pet Baked Grain GMV has increased 96 times year-on-year, making it a promising blue ocean market.

The fresh meat content of baked grains increases consumers' attention to the efficacy of pet grains

The white paper data shows that in the past year, the supply and demand of JD's pet baking grain has achieved two-way growth, with the number of goods increasing by 132%, the search volume increasing by 13.7 times, and the sales volume increasing by 113 times. Among them, baked cat food is the main force of baked food, accounting for more than 70% of baked food. The output value of single baked cat food commodity increased by 122%, the sales volume increased by 206 times, and GMV increased by 312 times year on year. It is the core driving category of baked food market growth.

For baked grain products, users are most concerned about whether the ingredients of raw materials are nutritious, natural, palatable and have additional effects. For dog food, users pay more attention to the efficacy. 76.5% of users expect baked dog food to have the effect of strengthening immunity, and 70.6% of users expect dog food to have the effect of recuperating intestines and stomach. In this regard, JD Pet said that baked grain products can use "small grains, meat wrapped in meat" to improve palatability, and add corresponding probiotics and prebiotics to improve the gastrointestinal and immune functions.

In terms of meat content, the trend of cat food is similar to that of dog food. In the past year, more than 88% of the high meat content baked cat food has increased significantly from 0, the medium high and low meat content baked cat food has declined, and the meat meal food is almost eliminated; Although some brands of low meat content dog food are still growing, the market of meat meal food has also shrunk sharply.

Therefore, the meat source of baked food has ushered in a comprehensive upgrading iteration, from meat powder to frozen meat to fresh meat, from the simple pursuit of high meat content to the application of scientific matching of muscles, bones and viscera, and more and more brands use a single meat source to reduce pet skin and gastrointestinal discomfort due to allergies.

In terms of protein content, the protein content of baked cat food and dog food has an increasing trend. The sales of cat food are mainly 42% - 45%, while dog food has a market in the range of 28% - 40%.

In terms of product specifications, most brands showed a trend of small and medium-sized standardization. The 2kg/bag of cat food GMV increased by 25%, the sales volume increased by 19%, and the 2.27kg/bag of dog food GMV increased by 25% and the sales volume increased by 18%. The reason for this phenomenon is that small and medium-sized specifications have better quality preservation and lower trial cost.

Low price and low price meat flour grain market shrinks, and the middle price becomes the main selling price band

In recent years, with the improvement of consumption level, the market of low price and low price baked grain using meat meal as meat source has declined significantly, and the middle price baked grain has become the main selling price belt. It can be seen that consumers pay more attention to the quality of pet food and are more willing to buy high-quality products.

Take the baked cat food market as an example. The GMV of products within 60 yuan/kg increased by only 2%, and the sales volume increased by 6%. The price band with the largest sales volume and sales volume was 80-100 yuan/kg, with the sales volume increasing by 43%, and the GMV increasing by 36%. The competition is becoming fiercer. However, the products with a price of more than 150 yuan per kilogram face price pressure, and the growth rate is slow. To solve this problem, some brands adjust the price of some products to 120-150 yuan/kg during the promotion period, in exchange for increased sales.

In the baking dog food market, the low price baking dog food market within 20 yuan/kg has almost no growth. And 60-80 yuan/kg became the main price band with the largest sales volume and the second largest sales volume, with sales volume increasing by 30% and GMV increasing by 25% year on year. The sales of 100-120 yuan/kg products are also very hot, with the sales volume increasing by 26% and GMV increasing by 30% year on year. However, the market growth in this price range mainly comes from the growth of imported brands, and domestic brands need to have sufficient product strength to compare their strengths.

JD Pets Continuously Promotes the Transparency of Pet Food Raw Materials

From the perspective of sales channels, the multi-channel consumption of users is becoming more and more common. On average, each pet owner will buy pet goods through 1.76 channels. In addition, in the channel distribution of pet physical commodity sales scale, the online scale continues to expand, and the share has reached 53%. In the online channels of JD, the year-on-year growth rate is nearly three times that of the industry, and it keeps growing.

As a leader in the pet industry, JD Pet, in order to achieve full link control over pet food safety, has joined forces with the Feed Research Institute of the Chinese Academy of Agricultural Sciences, the Feed Efficiency and Safety Supervision and Testing Center of the Ministry of Agriculture and Rural Affairs, the Pet Industry Branch of the China Animal Husbandry Association, Xinhua Credit, New Hope Liuhe, Cargill Animal Nutrition, Mars Pet, Nestle, Guaibao, Zhongchong, Suligao, Netease, New Hope Youlang, Hanou, Fubei More than 100 industry authorities, such as Continental Testing and Huasilian, and their upstream and downstream partners in the industry chain jointly launched the Integrity Alliance for Pet Food Raw Materials to promote the transparent development of pet food raw materials.

On October 25, in the live science popularization activity of JD Pet's "Transparent Factory", Liu Lu, General Manager of the Pet Business Department of JD Supermarket, officially released four core initiatives on behalf of the Alliance for Good Faith in Pet Food Raw Materials (hereinafter referred to as the Alliance): raw material traceability, Alliance quality certification, industry standards, and knowledge science popularization.

During the period of November 11 in JD, JD Pet granted 10 billion subsidies, and the amount of its explosive funds dropped. It really gave benefits to many big brands, such as Longing, Aikena, Guanneng, Zhenzhi, Bernard Tianchun, Royal, Maifudi, Ziyi Peak, K9 Natural, and pidan. JD's "30 day price protection" service has covered all self operated goods.