I. Industry Risk Analysis

(1) Policy Risk

Currently, the policy risks in the cat food industry are concentrated during the policy adjustment period. Some local governments are researching the upgrading of environmental protection standards for pet food production, which may mandate the renovation of sewage treatment facilities. The Ministry of Agriculture and Rural Affairs plans to revise the labeling regulations for pet feeds, which may refine the requirements for ingredient labeling, forcing up the costs of formula research and development. The General Administration of Customs dynamically adjusts the quarantine catalog for imported raw materials, posing a risk of blocked imports of core additives. Some cities are exploring pilot programs for pet food consumption tax, which may squeeze the profit margins of the mid – and low – end markets. Entrepreneurs need to be vigilant about the risks of a sharp increase in compliance costs and supply chain fluctuations during the window period of intensive policy introduction.

(2) Economic Risk

From the perspective of economic cycle fluctuations, the cat food industry currently faces the dual risks of a slowdown in demand growth and cost pressure. During an economic downturn, consumers’ income expectations weaken, which may hinder the high – end trend. Some pet owners may switch to low – cost alternatives or reduce additional consumption. Coupled with the impact of rising commodity prices on raw materials, enterprises’ gross profit margins are under pressure. Inventory backlogs during the industry’s capacity expansion period may accelerate price competition. Entrepreneurs need to be wary of the contradiction between the narrowing market growth and rigid costs. In the short to medium term, enterprises with weak cash reserves or unclear product positioning are prone to fall into a liquidity crisis.

(3) Social Risk

The cat food industry faces potential risks from generational consumption differences. The younger pet – owning population (Generation Z and post – millennials) prefers high – value – added products (such as customized and organic formulas). However, their consumption decisions are easily influenced by social media opinions and animal ethics disputes. A single negative event related to a popular product may lead to a collapse of trust in the entire industry. Middle – aged consumers are sensitive to price – to – performance ratios, but their population is shrinking. As the new generation’s pet – keeping concept evolves from “material satisfaction” to “emotional value”, if product research and development fails to keep up with the generational cognitive upgrade, it will lead to a brand value gap. Meanwhile, the elderly users’ reliance on traditional marketing channels conflicts with the digital – native consumption habits of the younger generation, exacerbating the risk of market segmentation.

(4) Legal Risk

Entrepreneurs in the cat food industry face multiple legal risks. Non – compliant product quality (such as adulterated raw materials and false nutrition labeling) directly violates the Food Safety Law, resulting in product recalls and high fines. Excessive advertising (such as exaggerating product functions and curative effects) easily crosses the red line of the Advertising Law. Frequent trademark and patent infringement disputes lead to litigation risks. Operating without production licenses and other necessary qualifications will result in forced business closures. Under the new environmental protection regulations, non – compliant treatment of production waste will be subject to liability and penalties. A complete compliance system needs to be established at each link of the supply chain to avoid legal pitfalls.

II. Entrepreneurship Guide

(1) Suggestions on Entrepreneurial Opportunities

Start from functional needs. Target pet owners’ health concerns by developing low – temperature baked cat food with high protein and added probiotics, and build trust through third – party test reports. Use new media content marketing to precisely reach the younger pet – owning population. Focus on scenario – based product promotion on Douyin and Xiaohongshu, and enhance professionalism with veterinary KOL science popularization. Seize the incremental dividends in the sinking market by launching small – sized trial packs and cooperate with community group – buying channels to quickly acquire customers. Develop large – package subscription services for multi – cat households, and bundle sales with smart pet feeders to increase repurchase rates. Pay attention to the niche scenario of pet end – of – life care, develop kidney – care prescription cat food, and establish a direct – sales system with pet hospitals.

(2) Suggestions on Entrepreneurial Resources

Entrepreneurs in the cat food industry should prioritize the integration of supply chain resources. Choose factories with pet food production qualifications that support small – batch contract manufacturing (such as those in the industrial belts of Hebei and Shandong). Reduce inventory pressure through a flexible supply chain. Focus on channel resources of interest – based e – commerce platforms like Douyin and Xiaohongshu. Combine KOC evaluations and a matrix of cute pet bloggers to quickly build brand awareness. Utilize the resources of university animal nutrition laboratories (such as the College of Animal Medicine of China Agricultural University and Huazhong Agricultural University) to optimize formula design, and jointly issue authoritative reports with third – party testing agencies. Connect with pet hospitals and chain stores for joint marketing, and obtain accurate user data through the distribution of trial packs. Explore cross – industry cooperation with related industries such as pet funerals and insurance to build a user value system throughout the life cycle.

(3) Suggestions on Entrepreneurial Teams

When forming a team, entrepreneurs in the cat food industry should prioritize integrating pet nutrition experts, supply chain management talents, and Internet marketing specialists. The founder should have in – depth knowledge of the pet industry or experience in consumer goods operations. The core members should cover three major areas: product research and development (formula scientificity), production quality control (SC certification system), and user operation (analysis of the pet – owning population profile). In the early stage, the team should have at least one co – founder with a background in pet nutrition to ensure product compliance. It should also be equipped with an operation manager capable of exploring new e – commerce channels and content planners familiar with KOC operations in pet communities. Avoid over – concentrating team members in the traditional fast – moving consumer goods field. The team structure should maintain a flat decision – making mechanism to adapt to the rapidly changing consumer demands in the pet food industry. Establish a data – based assessment system based on user repurchase rates, customer complaint response speeds, and new product development cycles. Core members should have the ability to integrate vertical channel resources such as pet hospitals and catteries.

(4) Suggestions on Entrepreneurial Risks

Entrepreneurs in the cat food industry should focus on controlling supply chain risks. Prioritize local raw material suppliers and establish alternative channels (for example, have at least three qualified suppliers for freeze – dried chicken and fish oil in reserve). Strictly monitor raw material batch test reports to avoid problems such as excessive aflatoxin levels. Product formulas need to obtain compliance certifications from third – party testing agencies. In particular, the taurine content in kitten food must meet the GB/T 31217 – 2014 standard. Avoid using illegal marketing terms such as “substitute for mother’s milk” and “cure diseases” in the marketing process. Online channels should comply with the platform’s content review mechanism and simultaneously establish an independent official website to build a private traffic pool. When jointly launching testing services with pet hospitals, clear data usage agreements must be signed to prevent the risk of user privacy leakage.