The recently popular "Rage" is too popular! Do you know that Zhang Yi, who plays police officer An Xin, is not only an excellent actor, but also one of the most popular cat owners in the entertainment industry. He has a total of 7 cats, while his friend actor Sun Li has 8 dogs at home!

With the improvement of people's living standards, the pet economy continues to heat up. The number of pets raised by families is constantly increasing, and in 2020, the number of dogs and cats raised in China exceeded 100 million. In the years following the outbreak, there has been a significant increase in global willingness to take care of pets.

At present, the scale of the national pet medical market is about 67.5 billion RMB, accounting for approximately 22.5% of the entire pet industry, and the proportion of pet medical services is showing an upward trend. With the significant expansion of the pet medical market, pet diagnosis has become one of the key focuses of the in vitro diagnostic industry. In the past few years, leading companies in vitro diagnosis have established animal diagnosis companies to enter the market, and various types of capital have also accelerated their entry into the pet medical market. Why is the pet diagnosis track favored by so many capital?

Driven by social and cultural factors

According to calculations, it is expected that during the 14th Five Year Plan period, the total number of elderly people aged 60 and above will exceed 300 million, accounting for over 20%, entering a stage of moderate aging. Around 2035, the elderly population aged 60 and above will exceed 400 million, accounting for over 30% of the total population, entering a stage of severe aging.

The pet economy is ultimately a "companion economy". Against the backdrop of aging and fewer children, the demand for pets as companionship among this group of people has increased. The penetration rate of family pet ownership and the number of pets in a single family have both grown rapidly, and the types of pets are gradually becoming more diverse. They devote most of their emotions and time to their companion animals, treating them like their closest family members. Finally, compared to the humanized treatment of pets abroad, we also see that the "pet friendly" soft environment in China has been improving year by year, which will lead pet owners to pay more attention and value the prevention, diagnosis, and treatment of pet health.

Upgraded consumption has brought about an increase in refined pet care willingness

Previously, pet cats and dogs raised at home were treated with human medicine when they fell ill, and it would be considered avant-garde to go to a private veterinary clinic for a vaccine at most every year. Now, in first tier cities and most second and third tier cities, well-equipped pet clinics have opened at the doorstep of the community. With new pets at home, they will first undergo physical examinations, vaccinations, and sterilization, and then undergo regular physical examinations and vaccinations every year. If cats, dogs, and cats are feeling unwell, they will be taken to a nearby pet hospital for examination. Pet owners hope that their precious "sons" and "daughters" can receive precise treatment and recover as soon as possible. So, pet owners' demand for precision medicine has significantly increased.

The country continuously introduces policies to encourage and support

In recent years, the country has repeatedly introduced favorable policies and regulations to promote innovation and development in the veterinary testing and diagnosis industry. For example, on October 13, 2020, the Ministry of Agriculture and Rural Affairs issued Announcement No. 342, which revised the "Classification and Registration Data Requirements for Veterinary Diagnostic Products" to relax the clinical registration threshold for veterinary diagnostic products, greatly relax the clinical registration threshold for veterinary diagnostic products, and have greater policy preferences for innovative and improved veterinary diagnostic products, Encourage the development of the domestic pet diagnostic product market.

The supply of diagnostic products is far less than market demand

From the perspective of disease coverage, there are a total of 157 types of animal diseases according to the revised "List of Class I, II, and III Animal Disease Species" in Announcement No. 1125 of the Ministry of Agriculture of the People's Republic of China. However, the new veterinary drug certificates approved by research and development units of veterinary diagnostic products in China include 42 types of animal diseases, while the approval numbers approved by veterinary diagnostic product production enterprises include 31 types of animal diseases, which are far from meeting the needs of disease prevention and control.

From the perspective of detection principles, the existing company's product pipelines mostly cover antigen antibody diagnostic products, mainly using immunochromatography and immunofluorescence platforms; The molecular diagnostic PCR class with more accurate diagnosis and higher technical difficulty accounts for a minority. Both detection methods have their own advantages and adapt to different scenarios.