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A New Era of Strategic Expansion

China’s pet sector, once dominated by manufacturing and export, is entering a consolidation phase. Listed giants Yiyi Co. and Tianyuan Pet are executing high-profile acquisitions to strengthen their domestic brand presence and value chain control.

Yiyi Co. Acquires Gaoye Jia: A Shift from Care to Food

Yiyi Co. (001206.SZ), known as China’s “first pet-care stock,” announced plans to acquire premium cat-food brand Gaoye Jia through a combination of share issuance and cash.

Founded in 2020, Gaoye Jia positions itself as a “high-meat cat food innovator,” reporting sales of RMB 600 million in 2024 with rapid growth across its cat-litter sub-brand.

The deal marks Yiyi’s entry into the pet food segment — a higher-frequency, higher-margin category that accounts for over half of pet spending. By expanding beyond pet pads and hygiene products, Yiyi aims to build a diversified growth curve and tap into China’s booming domestic market.

Still, analysts note margin pressures and integration risks. Gaoye Jia’s profitability remains modest (~4% net margin), and Yiyi’s stock dipped after the announcement.

Tianyuan Pet Targets E-Commerce Power with Taotong Keji

Tianyuan Pet (301335.SZ), the “pet supplies first stock,” has historically focused on manufacturing and export. To boost domestic brand operations, it announced a RMB 688 million deal to acquire Taotong Keji — an e-commerce solutions provider serving top brands across Tmall, JD.com, and Douyin.

Taotong is expected to deliver RMB 70–80 million in net profits over the next three years. For Tianyuan, the deal provides critical digital marketing and channel expertise to expand within China’s growing online pet economy.

However, execution challenges remain. Integrating a service-driven digital company into a manufacturing enterprise requires cultural alignment and operational adaptation.

Industry Implications: From Specialization to Full-Stack Ecosystems

The Chinese pet market is shifting from product specialization to ecosystem integration. Leading players are diversifying across food, supplies, care, and healthcare to capture more consumer touchpoints.

Key Trends:

• Brand premiumization: Control of consumer-facing brands drives higher margins and loyalty.
• Digital channels: E-commerce and direct-to-consumer operations define competitive advantage.
• Scenario-based consumption: Cross-category bundling (food + care + health services) builds sticky ecosystems.

For investors and industry professionals, these deals highlight how capital and brand strategy are redefining growth within China’s pet economy.

Outlook 2025: More Deals to Come

As the market matures, expect further acquisitions in pet healthcare, insurance, and premium food segments. The goal is clear — build end-to-end consumer ecosystems that mirror global leaders like Mars Petcare and Nestlé Purina.

For now, Yiyi’s and Tianyuan’s moves symbolize the next phase of China’s pet industry — a transition from OEM and export to brand, digital, and consumer value.

Conclusion

China’s pet industry has entered its M&A era. With companies like Yiyi Co. and Tianyuan Pet expanding into food and e-commerce, the battle for brand ownership and consumer connection has begun.

At PETIN.AI, For The PET Pros, we continue to provide strategic insights and global market intelligence for pet industry leaders navigating this new landscape.

Disclaimer

The information in this article is for informational purposes only and does not constitute investment or business advice. If any data discrepancies or copyright issues occur, please contact info@petin.ai for correction or removal.