US remains top pet food supplier to China

According to the USDA, Market trends indicate that Chinese consumers continue to prefer premium U.S. pet food

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According to the latest USDA Pet Food Market Update 2024, China’s dog and cat food consumer market reached US$41.9 billion (302 billion yuan), an increase of 7.5% compared with 2023.

Despite the economic headwinds faced by Chinese consumers, the report noted China’s pet consumer market demonstrated resilience and steady growth following a 10-year period of rapid growth. Pet food remained the largest segment of the pet consumer market in 2024, with a share of 52.8% among all pet-related consumption.

Amid a rising domestic pet food manufacturing industry and competition from international markets, the U.S. remained the top pet food supplier to China, accounting for over 69% of market share the first 10 months of 2024. Market trends indicate that Chinese consumers continue to prefer premium U.S. pet food.

Chinese pet food market continues growth

From 2013 to 2024, the compound annual growth rate of China’s pet food market was 22.4%, significantly higher than the global average. Despite this growth, market penetration in China remains around 20%, compared to over 90% in developed regions like Europe and North America.

Cat food sees tremendous growth. China’s cat food market has seen remarkable growth. In 2023, the consumer market size for cat food reached $9.8 billion (71 billion yuan), growing 7.6% year-on-year, compared to dog food’s 3.9% growth at $10.3 billion (74.8 billion yuan). Cat food consumption first surpassed dog food in 2022, driven by evolving consumer preferences.

Baked and freeze-dried preference. In 2024, dog owners showed a growing preference for baked dry food, freeze-dried options and fresh food. Among these, baked dry food and wet staple food saw the largest increases. For cat owners, baked dry food and fresh food gained popularity, while demand for freeze-dried and extruded food declined.

E-commerce reigns supreme. Online platforms continue to dominate pet food sales. Comprehensive e-commerce sites like Taobao/Tmall and JD.com remain the most popular, though live broadcast platforms like TikTok saw a significant increase in use in 2023.

Import versus domestic. China’s pet food industry includes 200 certified manufacturers with an annual production capacity of 1.12 million tons. Hebei province leads production with over 429,000 tons annually, followed by Shandong province at 268,000 tons. Imported brands continue to dominate the staple dog food market, while domestic brands have made inroads in the staple cat food segment. Snacks and nutritional products are areas where Chinese brands are gaining ground.

Brand preferences among pet owners vary. Nearly half of dog and cat owners have no strong brand loyalty. For dog food, 47% of owners reported no brand preference, while 27% buy only Chinese brands and 18% buy only foreign brands. For cat food, 48% have no brand preference, 28% prefer Chinese brands, and 19% prefer foreign brands.

High-end versus low-price pet food. China’s pet food market is increasingly polarized between high-end and low-priced products. While high-end consumption remains stable, competition in the low-priced segment has intensified, driving prices down. Middle-market consumers are gradually shifting toward one of these two extremes, either upgrading to premium products due to increased awareness of pet nutrition or opting for improved low-priced options.

According to Chinese customs data, the U.S. ranked as the top source of imported pet food into China.Julius_Silver | Pixabay.comU.S. leads China’s import market

The U.S. remained the top exporter of pet food to China in 2024, with strong demand for U.S. premium products like baked and freeze-dried pet food. These trends align with Chinese consumers’ growing preference for high-quality imports, said the USDA.

1. China’s total pet food imports declined

According to Chinese Customs, imports of dog and cat food totaled $427.24 million in the first 10 months of 2024, a 17% drop compared to the same period in 2023. The decline is attributed to competition from China’s fast-growing domestic pet food industry and reduced consumption following the pandemic.

2. U.S. remains the top pet food exporter

Despite the overall decline in China’s imports, the U.S. exported $236.9 million in pet food during the first nine months of 2024, a 9% increase compared to 2023. U.S. products topped Chinese customs rankings as the leading source of imported pet food.

3. New U.S. registrations lead the market

By July 2024, 114 U.S. facilities were registered with China’s General Administration of Customs (GACC), including 19 newly added or renewed registrations since January 2023. Additionally, the Ministry of Agriculture and Rural Affairs (MARA) approved 186 U.S. pet food SKUs in the first 10 months of 2024, accounting for 49% of all approvals.

4. Tariff challenges

U.S. pet food exports to China face a total tariff of 29%, including a provisional 4% tariff and an additional 25%. However, importers can request a reduction in the additional tariff. U.S. exporters are advised to work with their importers to explore potential tariff exclusions.

While U.S. exports to China continue to grow, the challenges of domestic competition, tariffs and shifting consumer trends highlight the complexity of the market.