The global pet economy is experiencing an unprecedented "two-way flow." On one hand, Chinese pet companies are leveraging their supply chain efficiency and manufacturing prowess to expand into overseas markets. On the other hand, international pet brands are targeting China's rapidly growing high-end consumer demand, entering this promising market. This dual penetration is reshaping global industry dynamics and reflecting strategic moves across different market development stages.
Chinese Pet Companies Going Global: From "World's Factory" to "Brand Awakening"
Chinese pet product exports have grown significantly in recent years. In 2023, China's pet industry export total reached $3.96 billion, dipping slightly in 2024 but remaining above $3.5 billion. This growth stems from the combination of China's cost-effectiveness and innovation in product categories. For example, Petkit's smart litter box generated sales of 200 million yuan in the US market from January 2023 to June 2024, capturing a 7.7% market share and ranking second.
The EU market shows a preference for eco-friendly products. Tiantong Pet uses organic cotton, Jiangsu Nangang Industrial and Trade Co., Ltd. develops biodegradable pet products, and Ningbo Kayer International Trade Co., Ltd.'s brand creates bamboo fiber cat litter boxes and biodegradable pet toys, all meeting European environmental standards and gaining consumer approval.
Changes in product categories reveal industry upgrades. In pet supplies, the export focus has shifted from basic processing items to higher-value products with R&D investment. Donic's GPS tracker, upgraded in collaboration with Telenor Group, ensures effective communication between devices and owners' smartphones. Baotian Pet's "triple protection system" for catnip toys addresses mold issues and increases product value. The company also established an organic catnip farm and a "modular R&D + customized production" model for overseas markets. Pingyang County, once known for leather processing, has transformed into a pet product manufacturing hub, with companies producing pet leads, clothing, and chew toys. Kairuisi offers customized nutrition plans based on pet breeds and life stages, while Mes introduces advanced equipment and global R&D teams for safe, healthy pet feeding solutions.
Branding has become a key focus. Previously reliant on contract manufacturing, companies are exploring multiple paths. Since 2021, Chongheng has enhanced its overseas brand influence through product line optimization, brand design, and user experience. Founded in 2006, Guaibao Pet initially focused on overseas pet snack manufacturing but launched the domestic brand "Maifudi" in 2013, capitalizing on China's pet market boom. Jihai Technology transitioned to the smart cleaning sector, launching the pet brand "Neakasa." Via crowdfunding and e-commerce, Neakasa successfully introduced smart litter boxes and pet dryers, achieving strong sales on Amazon. Its branding strategy centers on niche markets, differentiated products, and brand awareness through crowdfunding and independent sites. Zhongrong Co., Ltd., a pet food leader, has shifted from contract manufacturing to branded products like "Hosika" and "Shin". Petter Group entered the premium main food market by acquiring New Zealand's BOP brand, and Yiyi Co., Ltd. leads in disposable pet care products, exporting to nearly 40 countries and accounting for over 30% of China's customs export share in this category for multiple years.
International Brands Entering China: A High-End Narrative
International brands adopt differentiated strategies in China. Mars, a US pet food giant, demonstrates strong multi-channel penetration. By acquiring local pet hospital chains, Mars integrates its Royal brand prescription food into treatment settings, establishing Co-operation outlets in multiple Chinese cities. Royal Pet Food also expands online via e-commerce platforms and offline through pet stores and supermarkets, achieving omnichannel coverage. Mars further boosts brand influence through pet health lectures and vet collaborations.
Germany's Vitakraft focuses on niche markets. Targeting China's hamster-keeping trend, it offers 26 hamster food formulas, meeting diverse consumer needs. Vitakraft participates in pet expos, displays innovations, and partners with local firms to strengthen its premium pet food image.
The Competition-Cooperation Dialectic in Two-Way Flow
In pet food, Chinese and international companies show a significant technology gap. Mars invested 130 million RMB in a Beijing R&D center, developing dog probiotics that precisely regulate gut flora, a biotech edge hard for Chinese firms to match. Chinese innovations are mostly process improvements. For example, Fregate, a Guaibao Group brand, emphasizes "fresh meat precise nutrition," using a fresh meat standardization system to stabilize nutrients and increase purity. It also created 0-pressure milk series products for better pet food options, driving the industry toward higher quality. Blue's brand highlights pigeon as a key ingredient, claiming "two squabs per pack," stressing natural ingredients. Xianlang focuses on low-temperature baking to retain nutrients, avoiding protein denaturation from high heat. PETCO's chicken crisps use advanced production technologies, representing "micro-innovations" that gain market share but don't challenge international giants' pricing power.
Channel strategies differ, reflecting market development stages. International brands in China often use an "offline experience + online repurchase" model. Nestle Purina partnered with Meituan Flash Delivery and Paparazzi for the "Purina Mobility Season," combining offline pet activities with online sales guidance. Meituan Flash Delivery provided exposure and targeted ads, boosting sales. In contrast, Chinese exporters mostly rely on e-commerce traffic, highlighting the brand asset gap—Mars has built consumer trust over 30 years, while Chinese brands are still in market education.
The event site of Repuna and Meituan Flash Delivery| Pet Industry Home Weibo
Breaking the Deadlock: Seeking a New Balance in Industrial Leapfrogging
Supply chain upgrades are essential for value growth. In Zhejiang Pingyang's pet product park, digital transformation optimizes production. Yiyi Co., Ltd.'s automated Diaper Pad Production Line achieves full-process automation, improving quality control and capacity utilization to 90%. Zhongheng Pet uses automation and robots, with its subsidiary Jiangsu Tianquan Pet Products Co., Ltd. introducing 60 750-ton automatic injection molding machines, boosting efficiency by 30%. Such upgrades should extend to R&D for comprehensive optimization.
Cultural branding is key for differentiation. Chinese companies are incorporating storytelling into their global strategies. Effective cultural branding goes beyond meeting material needs, creating emotional connections. For imports, blending international identity with Chinese culture is crucial, requiring brands to maintain uniqueness while understanding and integrating into local culture for resonance and market success.
Yiyi Co., Ltd. intelligent factory | WeChat Official Account of Foreign Trade Development Bureau
Proactive policy risk management is vital. In 2022, the EU revised pet product safety regulations, and China implemented the "Companion Animal (Pet) Product Safety Technical Requirements" national standard (GB/T 43839-2024) on October 1, 2024. This standard strictly regulates product materials, performance, and labeling. Tiantong Pet established a quality management system with ISO 9001 certification and a product recall procedure. Chaoyun Group set up a regulations department to track standard changes, which, though costly, prevents potential losses, enhances consumer trust, and improves operational efficiency.
In essence, this global pet industry interaction is a reconfiguration of the value chain. Chinese companies are transitioning from cost advantage to technology and brand dual drivers, while international brands undergo localization. EqualOcean believes future competition hinges on manufacturers overcoming R&D barriers and brands establishing local roots. As two-way flow evolves into integration, the global pet economy may achieve transformative growth.
