It received financing less than a year after its establishment. This track is crazy!

How crazy is the " pet economy " ? You can live without food or water, but cats and dogs must be well-fed!

Just as the news of the successful listing of Yuanfei Pet, the "first listed pet traction equipment company", came out, news came again that Furbulous, a Shanghai-based smart pet product overseas brand, had completed a multi-million dollar angel round of financing.

As the status of pets continues to improve, pet owners have an increasingly strong demand for pet-related products. This track has already produced many leading sellers, such as China Pet Foods, Petco, Luce, Yiyi, UOPAI Technology, Tianyuan Pet, PETKIT, Zhongheng Pet, Fubai Pet, Guaibao, and Ruipai Pet.

How attractive is the “enduring” pet economy?

Furbulous , a smart pet products brand, announced the completion of a multi-million dollar angel round of financing

Recently, Furbulous, a Shanghai-based smart pet products brand founded at the end of 2021, has completed a multi-million dollar angel round of financing.

It is understood that Furbulous' core product line is smart pet products. Its current R&D plan includes smart cat toilets, water dispensers, feeders, and locators. Its target markets are Europe, the United States, Japan, and other regions and countries with developed pet economies. Furbulous, which focuses on overseas markets, will cover online channels such as independent websites and Amazon, as well as offline cooperative channels in target markets in the future.

Judging from Furbulous’ product positioning, the company’s main focus is pet intelligence, which happens to be hailed as the next “golden track” in the pet market.

The application of smart pet products enables pet owners to realize functions such as automatic monitoring, dynamic monitoring, alarm, and out-of-control protection for pets. Industry insiders said that at present, downstream customers have a strong demand for smart pet products with stable quality. Smart pet products are still in the early stages of development and have a very broad market prospect. Therefore, in order to seize the development opportunities in the pet products industry, a sunrise industry, it is necessary to focus on the development of smart pet products.

Many companies are selling well! The pet market is booming

The pet track is a well-deserved popular track.

Pets generally refer to dogs, cats, freshwater fish, birds, reptiles, etc. that are kept as companion animals at home. The pet industry refers to all areas related to pets, mainly including pet food, pet medical care, pet training, pet breeding, pet supplies, pet grooming, pet insurance, etc. The specific breakdown is as follows:

There are many sub-industries in the pet consumption industry. Pet owners are the end consumers or "payers". As pet owners show increasingly rigid demands for their pets' "food, clothing, housing and transportation", many sub-segments have already produced many top-selling products.

The representative of pet hygiene and cleaning products and pet household leisure products is Zhongheng Pet , which was established in 2009 and is headquartered in Jiangsu. On December 31, 2021, Zhongheng Pet's IPO application was accepted, but unfortunately on January 13, 2022, it took the initiative to apply to withdraw the application documents for issuance and listing. Although the listing failed, Zhongheng Pet's overseas achievements cannot be underestimated.

Zhongheng Pet's main customer groups include comprehensive e-commerce platforms such as Amazon, comprehensive retailers such as Walmart, pet product retailers such as PETSMART and PETCO, pet product e-commerce platforms such as CHEWY, and pet product brands such as CENTRAL GARDEN.

The proportion of overseas sales revenue to main business revenue remained at around 95%, mainly in developed countries and regions such as North America, Europe and Asia. Among them, sales revenue in the US market accounted for 83.91%, 85.04%, 84.72% and 81.16% of the company's main business revenue respectively.

It can be seen from this that in the first half of 2021, Zhongheng Pet's sales of pet hygiene and cleaning products exceeded 220 million, and sales of pet household leisure products exceeded 260 million.

The main manufacturer of pet hygiene and cleaning products is Yiyi Shares. Yiyi Shares was established in 2005. Its main business is disposable hygiene care products, including pet hygiene care products and personal hygiene care products. It was listed on the Shenzhen Stock Exchange in 2021 and is known as the "first stock of pet hygiene products."

Foreign markets such as the United States, Japan, and Europe are important sales markets for Yiyi Holdings , and its products are mainly sold through large chain retailers, professional pet supply chain stores, and pet supply online sales platforms such as PetSmart, Walmart, Amazon, Target, Walgreens, Chewy, Japan's JAPELL and other channels.

High demand in overseas markets has driven the performance growth of Yiyi Shares. In the first half of 2022, Yiyi Shares' operating income reached 731 million yuan, a year-on-year increase of 27.58%; the net profit attributable to shareholders of the listed company was 65 million yuan, a year-on-year increase of 8.19%.

Representatives of pet home leisure products are Tianyuan Pet and Yuanfei Pet . Among them , Tianyuan Pet is mainly engaged in the design, development, production and sales of pet products. Its products include pet bed mats, cat climbing frames, pet toys, pet clothing, electronic smart pet products, pet food and other multi-series and full-category pet products . It can be seen that Tianyuan Pet's business products are very diverse. Just one pet toy includes simulated electric mice, cat scratching board game turntables, cat scratching nest toys, pet foraging IQ mats, plush stuffed leaky toys, bite-resistant cotton rope toys, pet IQ educational toys, multi-functional rubber toys, food ejection guns, pet frisbees, cat tunnels, pet play beds, etc.

Tianyuan Pet's main business income mainly comes from the sales of pet bed mats, cat climbing frames, pet toys and other products. In 2021, the revenue of cat climbing frames exceeded 400 million, and the revenue of pet toys was nearly 370 million.

Tianyuan Pet's performance is almost dependent on overseas markets. More than 97% of the company's sales come from exports. Although it mainly relies on OEM, it has also entered e-commerce platforms. In 2021, its sales on the Amazon platform were 14.28 million yuan, accounting for 25% of its online revenue.

Crazy overseas consumers are driving the pet economy to take off!

The pet industry has a history of more than a hundred years in developed countries, and pet-related industries are already very mature.

According to Euromonitor, the global pet products market (excluding services) will have a retail scale of US$142.1 billion in 2020, of which the global pet products retail scale will be US$40.1 billion, and the CAGR is expected to reach 7.2% in the next five years. As pet owners pay more attention to the emotional aspects of their pets, the pet products industry will continue to grow.

The United States is the world's largest and most mature pet consumption market. In the ten years from 2010 to 2020, the market size of the pet industry has grown from US$48.35 billion to US$103.6 billion, with a compound growth rate of 7.92%. According to data from the American Pet Products Association (APPA), about 67% of households in the United States own at least one pet. In 2019, the amount of pet consumption expenditure in the United States reached US$95.7 billion, a year-on-year increase of 5.70%. In terms of product segments, in 2019, the United States spent US$19.2 billion on pet supplies, including pet products, live animals, and over-the-counter drugs, a year-on-year increase of 3.23%, and is expected to reach US$19.8 billion in 2020, maintaining steady growth.

Europe is the world's second largest pet consumption market. According to data from the European Pet Food Industry Federation ( FEDIAF), total pet consumption in the European pet market reached 43 billion euros in 2020, an increase of 5.65% compared to 2019; the Japanese pet market, which is the largest in Asia, has also shown a steady growth trend in recent years, maintaining an annual growth rate of 1.5%-2%.

With the improvement of people's living standards and the increasing popularity of the concept of "humanization" of pets, consumers' requirements for pet products will continue to increase and their willingness to consume will continue to strengthen.