Donghai Securities: Pet consumption continues to grow during 618, with domestic leaders performing brilliantly

According to the Zhitong Finance APP, Donghai Securities released a research report stating that based on the "China Pet Industry White Paper," the consumption market size for urban dogs and cats is expected to reach 300.2 billion yuan in 2024, a year-on-year increase of 7.5%, with a CAGR of 13.3% from 2015 to 2024. It is projected that the market size will reach 331.1 billion yuan in 2025, a year-on-year increase of 10.3%. The prosperity of China's pet industry continues, with accelerated domestic brand replacement. Companies with product, brand, and channel advantages are continuously increasing their market share. During this year's 618 shopping festival, leading domestic brands showed strong momentum, with outstanding performance across various brand matrices. The trend of product premiumization and differentiation is evident in China's pet industry, and companies with first-mover advantages and scale effects are expected to benefit first. The main points of Donghai Securities are as follows: Pet food GMV continues to grow, sales heat remains strong According to data from Star Map, during the "618" period in 2025 (from May 13 to June 18, 2025), the total sales on comprehensive e-commerce platforms reached 855.6 billion yuan, a year-on-year increase of 15.2% (compared to May 20 to June 18, 2024). Among them, the total online sales of pet food reached 7.5 billion yuan, a year-on-year increase of 36%, continuing to grow. During Tmall's 618, domestic brands dominate, with clear advantages in the high-end segment GAMBOL PET: In the Tmall 618 full-cycle brand ranking, Maifudi ranked 2nd among Tmall pet brands, down 1 place year-on-year; 2nd in cat and dog food, maintaining the position; 8th in cat staple food, up 1 place year-on-year; 1st in dog staple food, maintaining the position; 1st in cat/dog snacks, maintaining the position. Fregat ranked 5th among Tmall pet brands, up 3 places year-on-year; 5th in cat and dog food, up 3 places; 2nd in cat staple food, up 3 places; 1st in cat complete wet food/main food cans, up 1 place; and up 1 place in cat complete freeze-dried/baked food. In the high-end segment of cat complete wet food/freeze-dried/baked food, Fregat ranked first. CHINA PET FOODS: In the Tmall 618 full-cycle brand ranking, Wanpi ranked 4th in cat snacks, up 2 places year-on-year; 4th in dog snacks, up 1 place. Leading in cat complete freeze-dried/baked food at 3rd, up 1 place; 3rd in dog complete freeze-dried/baked food, a new entry. Zeal ranked 5th in dog snacks, down 1 place. Petpal Tech: In the Tmall 618 full-cycle brand ranking, Jueyan ranked 2nd in dog snacks, maintaining the position. 4th in dog complete freeze-dried/baked food, a new entry. Jueyan's total GMV across all channels exceeded 38 million yuan, a 52% increase compared to last year's 618. Maifudi ranks first in both JD's pet snacks lists, Fregat's ranking significantly improves During JD's pet 618 full-cycle, the transactions of 400 merchants doubled, with a year-on-year increase of 32% in transaction users. GAMBOL PET: During JD's pet 618 full-cycle, Maifudi ranked 2nd in the cat dry food brand list, up 2 places year-on-year; 2nd in dog dry food, maintaining the position; 1st in cat snacks/wet food, up 1 place; 1st in dog snacks/wet food, maintaining the position. Fregat ranked 8th in cat dry food, a new entry; 4th in cat snacks/wet food, a new entry. CHINA PET FOODS: During JD's pet 618 full-cycle, ZEAL ranked 4th in dog snacks/wet food brand list, maintaining the position; Wanpi ranked 5th, maintaining the position. Petpal Tech: Jueyan ranked 2nd in dog snacks/wet food brand list, maintaining the position Pet Food Import and Export Fluctuations in May Due to Tariff Policy Disturbances In May 2025, the export volume of pet food decreased year-on-year due to tariff disturbances, with a slight decline in export value. According to the General Administration of Customs, the export volume of pet food in China in May 2025 was 28,900 tons, down 5.5% year-on-year, with a cumulative export volume of 139,100 tons from January to May, up 10.9% year-on-year; the export value in May was USD 127 million, down 0.4% year-on-year, with a cumulative export value of USD 581 million from January to May, up 4.6% year-on-year. On the import side, the import value of pet food in May was USD 55 million, up 5.5% year-on-year, with a cumulative import value of USD 193 million from January to May, up 9.5% year-on-year. The growth rate of imports in May has slowed down, and with the easing of the China-U.S. trade war, it is expected that the fluctuations in import value will gradually stabilize. Risk Warning: Raw material price fluctuation risk; pet food safety risk; ineffective promotion of private brands risk; tariff policy fluctuation risk