01 Pet healthcare has become the second largest market Individual hospitals account for 80%
In recent years, there has been a growing trend of pet ownership in society, with more and more people keeping pets. According to data, the number of dogs and cats kept as pets in China exceeded 100 million in 2020, and as of October 2022, the economic market size of the pet industry has reached 300 billion yuan. With the change in pet ownership philosophy, pet owners are paying more attention to pet health, and the demand for pet medical services is growing rapidly, gradually developing into the second largest rigid demand market after pet food, with a scale of 67.5 billion yuan, accounting for 23%. The pet medical industry has also become a new hotspot in the pet economy.
02 Leading medical device companies enter the pet industry Focusing on imaging, in vitro diagnostics, surgical instruments, and ICU
With the surge in the number of pets in the past few years, a large number of pets in China have entered their geriatric stage, leading to an increase in diagnostic and treatment needs, which has driven the development of pet medical devices.
Currently, pet medical devices mainly focus on medical imaging, in vitro diagnostics, surgical instruments, and ICU, and most of them are adapted from human devices and then extended to the pet industry. Among them, imaging devices mainly include B-ultrasound, DR, MRI, CT, etc.; in vitro diagnostic devices include detection reagents, blood analyzers, biochemical analyzers, endocrine analyzers, ophthalmic microscopes, endoscopes, etc.; surgical instruments and ICU mainly include ultrasonic scalpels and anesthesia machines.
However, the production of pet medical equipment in China started relatively late, and nearly half of the equipment needs to be imported. It is worth noting that in recent years, many leading companies have begun to invest in the pet medical device industry.
03 High medical costs hinder the release of imaging demand High-end equipment becomes a competitive benchmark
Most pets undergo instrumental diagnosis when seeking medical treatment. Due to the high cost of equipment, hospitals also tend to set relatively high prices for testing fees, which in turn hinders the release of some imaging market demand.
Although the price affects the allocation of hospital equipment, pet hospitals belong to the consumer market, and the advancement of equipment often influences customers’ choices. Therefore, unlike standalone clinics, chain clinics tend to equip themselves with high-end equipment as much as possible to increase their competitiveness.
Taking New Ruipeng, a benchmark enterprise in the domestic pet medical chain, as an example, its pet hospitals are equipped with nuclear magnetic resonance (MRI), 16-slice spiral CT, X-ray machines, animal-specific hemodialysis machines, fluorescent quantitative PCR machines, endoscopes, ultrasonic emulsifiers, surgical microscopes and high-definition teaching systems, digital direct imaging systems (DR), color ultrasound diagnostic equipment, respiratory anesthesia machines, and other equipment. Among them, CT, X-ray machines, and microscopes are imported from abroad. Major pet hospitals such as Ruipai and Chong’ai International also basically configure these high-end devices.
Overall, chain clinics are more complete and advanced in their allocation of high-end equipment compared to standalone clinics, which has become a competitive benchmark in the pet medical industry. China’s pet medical industry is entering a new stage of innovation and development. In the future, with the increasing demand for pet health, pet medical devices will rapid development opportunities and become the next trend.
Source: Zhongcheng Medical Equipment
