Pets are a new symbol of financial success in China, which is increasing demand for pet food.
San Francisco, CA (PRWEB) April 14, 2013
Over the past 30 years, China has become the world's second-largest manufacturer of animal feed and pet food. In the five years through 2013, revenue for the Animal Food Manufacturing industry in China has been growing 23.8% per year on average to reach $187.33 billion, says IBISWorld.
In China, it has become a symbol of financial success to keep pets, particularly cats and dogs, which has increased domestic demand for pet food, says IBISWorld. The growing population, which leads to huge demand for livestock and poultry, has been another strong driver for the industry over the past five years.
Reforms for the Animal Food Manufacturing industry in China came after the 2007 food recalls in the United States, Europe and South Africa of animal feed and pet food from China that contained melamine. As China has had some difficulties in meeting the new, stricter requirements of developed countries, the industry's focus is currently on the domestic market. The next stage of growth in this industry is the development of safe, healthy and "green" animal feed. To achieve this, prices will increase and standards will need to be backed up by stricter laws. Small firms may not be able to survive the new requirements and may exit the market or merge with larger players.
The Animal Food Manufacturing industry in China has a low concentration level, due to a large number of small enterprises and the late development of the industry. The top four players – Wellhope Agri-Tech, new Hope, Chia Tai, and Yi-hai (Guangzou) Grain and Oil Industrial – account for less than 10.0% of industry revenue. Most top manufacturers have a history of less than 20 years, with many established after 2000 as the barriers to entry in this industry were low. Small firms were able to survive, or even prosper, by providing low quality products to the domestic market, although these companies struggled to build brand names.
For more information, visit IBISWorld’s Animal Food Manufacturing in China industry report page.
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IBISWorld Industry Report Key Topics
Businesses in the Animal Food Manufacturing industry in China manufacture pet food as well as feed for livestock and poultry raised on farms. The manufacturing of aquaculture and seafood feed is not included in this industry.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.