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Pet Food News / Pet Food Safety / Pet Food Regulations
On June 5, 2014

Foreign petfood brands likely to benefit from China jerky treat issue

Pet ownership is growing in China, but continuing troubles with China-made pet products are likely to open the door for foreign brands in the country

Chinese pet owners spent RMB7.84 billion (US$1.25 billion) on pet care in 2012, according to Euromonitor, and this number is predicted to rise 64% by 2017, to RMB12.9 billion (US$2.06 billion). The majority of these sales take place in independent pet shops, though chain stores and e-commerce sites have made significant market inroads. Beijing alone features two pet markets, about 20 boutique shops, over 30 agencies and nearly 400 retail shops. But recent issues regarding pet jerky treats made in China could mean trouble for domestic manufacturers and open the door for foreign companies.

The Chinese pet care market is already dominated by foreign brands, who benefit from well-developed distribution networks and strong brand recognition. Royal Canin Au Yu (Shanghai) Pet Food Co. Ltd. ranks first in dog food sales, and the China subsidiary of US company Mars Inc. ranks first in cat food. Foreign investors from France, Japan, Germany and the US have seized opportunities in the pet care industry in China, investing in markets such as petfood, veterinary clinics and specialized online retailers.

As demand grows in China alongside the continuing questions regarding domestic petfood manufacturing, foreign brands stand to be the greatest beneficiaries of the conflict, and related topics may be at the top of everyone's minds: The 17th meeting of Pet Fair Asia will be held in China in 2014, at the Shanghai World Expo Exhibition & Convention Center, over August 21–24, and the third annual Petfood Forum China, which will take place as part of the larger Pet Fair Asia conference, will focus on the theme of Nutrition, Ingredients and Formulation.

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June 2015

The June 2015 issue of Petfood Industry profiles the family owned company, CANIDAE, and how it has succeeded in carving a niche in the pet specialty market. The company believes educating retailers about its products and focusing on consumers' needs are keys to maintaining their spot in the market. Plus, learn how pet food manufacturers can use their product’s packaging as a way of branding to attract customers and why companies are eyeing Poland for market expansion opportunities.

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