In recent years, China’s pet industry has developed rapidly. With the improvement of people’s consumption level, the number of pets has soared in the past few years, and the demand for pet diagnosis and treatment has also increased. Coupled with the support of capital, pet medical devices have gradually entered the public view as a new blue ocean.
China's pet medical market is growing rapidly, and there is ample room for domestic substitution
The domestic pet consumption market is rapidly growing. According to statistics, the market size in 2022 was about 311.7 billion yuan. With the continuous improvement of pet household penetration rate and industry maturity, the pet consumption market will continue to maintain a growth trend in the future. It is estimated that the market size in 2023 will be about 392.4 billion yuan, and the compound growth rate from 2019 to 2023 can reach 33%.
Source: China’s Pet Health Consumer White Paper
According to incomplete statistics from “Love Pets”, there are more than 450 related enterprises in pet medical equipment and instruments. The number of instrument manufacturers entering the pet medical industry is increasing year by year, and the proportion of domestic equipment is also increasing year by year.
Strong demand has created a booming market. It is reported that the domestic animal medical device market is growing rapidly, with a growth rate that has exceeded that of human medical devices. Multiple leading companies in the human medical device and instrument industry, such as Mindray, Lepu Medical, and Neusoft Medical, have begun to lay out the pet medical track. This time, Mindray’s strengthening of the animal medical field has once again attracted industry attention to this field.
According to the data, the total land area of this project of Mindray Medical is about 58,700 square meters, and the planned floor area is about 243,500 square meters. The project plans to build a high-end animal medical instrument manufacturing base, and its products will cover three animal medical life science fields: life information and support, medical imaging, and in vitro diagnosis. It is expected to form an annual output value of over 12 billion yuan and a tax payment of over 600 million yuan after completion.
As early as October 2020, Mindray Medical established “Shenzhen Mindray Animal Healthcare Technology Co., Ltd.” and announced its full-scale entry into the pet medical field. Nowadays, Mindray’s monitoring instruments, anesthetic machines, bed towers, in vitro diagnostic products, and ultrasounds have all launched animal versions. Mindray Medical also stated in its 2022 annual report that it will continue to increase investment in research and development of seed businesses such as animal healthcare. The company is currently establishing platforms for in vitro diagnosis, life parameters, and medical imaging technology based on different animal species.
In addition, United Imaging has independently developed the ultra-high field animal magnetic resonance system uMR9.4T, providing magnetic resonance imaging services for small animals such as mice, rabbits, and monkeys.
Wondfo Biotech has established Wondfo Vetlab, focusing on rapid detection products and services for pets, economic animals, and food safety. They have also partnered with Lasoo Biotech to promote the application of point-of-care testing (POCT) and genetic testing in pet diagnosis.
Keppel Medical has already made early investments in the field of pet medical devices and has launched products such as pet-specific magnetic resonance and pet-specific digital X-ray.
In general, China’s pet medical industry is currently in a period of rapid consolidation. In the future, with the promotion of capital, the industry’s concentration will accelerate, and the market share of leading companies may continue to increase.
Price affects pet hospital equipment configuration, and high-end medical equipment has become a benchmark for competition
Currently, pet medical devices mainly focus on two directions: medical imaging and in vitro diagnosis. Most of these devices are extended to the pet field by modifying the principles of human devices. Among them, imaging devices mainly include B-mode ultrasound, digital radiography (DR), nuclear magnetic resonance (NMR), computed tomography (CT) and other equipment. In vitro diagnostic devices include detection reagents, blood analyzers, biochemical analyzers, endocrine analyzers, ophthalmic microscopes, endoscopes and other equipment.
Previously, due to the high prices of pet medical equipment, pet hospitals also charged relatively high prices for related testing, which hindered the release of some pet medical device market demand. However, although prices have affected the rapid expansion of the diagnostic instrument and equipment market, pet hospitals belong to the consumer market, and the advanced level of equipment often affects customer choices. Therefore, pet hospitals often try to equip themselves with high-end equipment to increase their competitiveness.
For example, the price of a single X-ray examination is around 150 yuan, the price of a single ultrasound examination ranges from 150-800 yuan, and the average price of a CT examination and a single magnetic resonance imaging (MRI) can reach 1500-3500 yuan. Additionally, some high-end equipment is imported and expensive. After comprehensive consideration, hospitals usually prioritize the installation of X-ray machines and ultrasound equipment, while the installation rate of CT and MRI is still relatively low. Therefore, in the high-end imaging equipment market, domestic companies still have significant room for growth.
At the same time, with the gradual trend of pet hospitals towards chain stores, small and scattered individual hospitals often exit the competition due to insufficient competitiveness. Behind this trend, chain pet hospitals usually bring higher growth rates to the pet medical equipment market due to their systematic equipment needs.
The main development direction of pet medical devices in the future
Enterprises mainly believe that the main development directions of pet medical devices and instruments in the future are in vitro detection equipment, imaging equipment, and minimally invasive surgical equipment. China’s pet medical industry is currently in a new stage of industry innovation, and with the growth of pet health needs, pet medical devices will usher in rapid development opportunities and become the next trend!
The source of this article is from the website of medical device innovation.
