The agribusiness giant intends to expand its footprint in the Chinese pet market with the introduction of its Ganador, Minino, and Protexin brands alongside its current Equilibrio and Sanpo product lines.
According to a representative of the company, ADM is positioned as the second player, based on annual revenue, in the pet food category in Mexico, in which Ganador and Minino are the key product lines. Ganador has gained a 15% market share and Minino has a 20% market share.
“Protexin’s Pro Kolin+ product is the top probiotic paste available and the market leader in digestive health in the UK. Furthermore, Equilibrio is a respected global brand with a strong presence in South America, Europe, and Southeast Asia,” the representative added.
According to Hongfeng Chen, ADM’s general manager, of pet nutrition – China, the pet food category in China is estimated to reach roughly US$15bn by 2026 with a 17% compound annual growth rate (CAGR). There are 65 million cats (+12.6% compared to 2021) and 52 million dogs in China.
“In the past decade, the number of registered pet-related businesses in China has increased year by year. There were 2,020 million existing pet-related businesses in China in 2022, with 455,000 newly registered pet-related companies in the first half of 2022, an increase of 39.0% year-over-year,” Chen remarked.
A top-of-mind concern for Chinese pet owners is the health of their animals, according to Chen.
“Specifically, 53% of pet owners are concerned about pets’ hygiene, and 52% of pet owners are concerned about health and wellness issues. Interest in support for digestive health is expanding as more consumers become aware of the influential role the gut microbiome plays in human and animal well-being.”
Additionally, a Euromonitor survey found top concerns addressed by pet supplements included anxiety and calming, mobility and joints, immune function, skin and coat, liver and kidney function, and digestion.
Moreover, brands that emphasize scientific research, safety standards, and ingredient quality on product labels can support pet parents’ peace of mind.
Premiumization informs strategic move
When it comes to pet food and supplements, premiumization is a trend that is informing growth globally, and China is not exempt.
“While mid-price products contribute about 60% of sales in China, premiumization is a growing trend, with more consumers willing to increase spending on pet food products. In fact, Mintel finds that 45% of Chinese pet owners say they are likely to repurchase pet food made with a formula that has been specifically designed for their pets,” Chen commented.
Chen added that while the top deciding factors of pet product purchases include nutritional content, ingredients, and palatability, there is growing consumer interest in more sustainable options, such as responsibly sourced ingredients or recycled packaging materials.
According to FMCG Gurus, 42% of global pet owners say they want to purchase pet food with sustainably sourced ingredients, and this is something that ADM is working on to ensure these pet owners are satisfied.