Subscription-based pet food business challenges in China: How they overcome it?

January 16, 2026
business strategy in China, pet food in China, supply chains in China

Why have no major national brands emerged in the market yet?

One of the subscription-based pet food business challenges in China is that the production and distribution of fresh pet food carry high costs. Utilizing premium ingredients, such as meat, vegetables, and requiring refrigeration throughout the supply chain, the associated cold chain logistics expenses can account for one-third of total costs. For example, relatively expensive dog food brands sell for around RMB 15-25 per 500 grams during promotions, while fresh food of the same weight would cost as much as RMB 83-100. To establish brick-and-mortar stores, each location requires investment in professional kitchen equipment and ultra-high-pressure sterilization production lines, with a single production line costing up to tens of millions of yuan. This makes the gross profit margin for fresh pet food significantly lower than that of traditional dry pet food, making profitability challenging despite substantial upfront investment.

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Cold chain constraints and the limits of geographic expansion

Due to the perishable nature of fresh pet food, companies typically operate within limited delivery ranges. This restricts their service areas to major cities or even specific regions. This is because transporting fresh food across provinces is extremely challenging. Even with overnight cold chain logistics, there remains a risk of food spoilage or temperature deviations. Moreover, costs for small-batch orders skyrocket, making profitability achievable only through large-scale sales. To date, few companies have managed to establish a robust nationwide cold chain distribution network comparable to Freshpet’s in the United States.

When pet food is not a high-frequency purchase

Compared to the United States, the concept of fresh pet food remains relatively unfamiliar in China. Consumers are generally reluctant to alter their feeding routines for unfamiliar products. Furthermore, some founders have observed that pet food is purchased less frequently than human groceries. Most households purchase pet food every 1-2 months, making it inherently unsuitable for the frequent delivery model of human meal subscriptions. To persuade customers to opt for weekly delivery plans, the product’s value proposition must be exceptionally compelling. This necessitates significant investment by fresh pet food subscription brands in customer education and support, including offering nutritional consultations and trial periods. This creates another challenge for subscription-based pet food businesses in China.

Regulatory and safety gaps of subscription-based pet food

Significant policy and regulatory gaps currently exist in the fresh pet food sector. In China, pet food is regulated by the Ministry of Agriculture and Rural Affairs under the umbrella term “pet feed,” with national standards (GB/T 31216 and 31217) and safety and hygiene regulations established for complete dog and cat foods. However, these standards were developed for traditional dry kibble and canned foods, while fresh chilled pet food lacks specific guidelines. Many manufacturers simply register an enterprise standard using their own product specification codes to technically legitimize their products. This regulatory gap allows small producers to flood the market through livestreaming or group buying sales. These brands lack production licenses, third-party testing, and sometimes even fail to clearly label expiration dates.

Will this niche market continue to grow and expand?

China’s fresh pet food subscription market remains in a classic early stage: fueled by enthusiastic consumer demand and entrepreneurial drive, yet facing structural barriers in costs and scale. It has yet to produce a breakthrough giant like the U.S.-based Freshpet or a profitable national model. Even Freshpet took over a decade to become profitable. However, various signs indicate that this niche market will grow and expand rather than gradually fade away. Consumer preference for fresh pet food, as mentioned earlier, continues to rise. The over 500,000 posts about fresh pet food on Xiaohongshu demonstrate the sheer volume of discussion. This indicates a strong interest in fresh pet food, even if the conversion to actual purchases is relatively slow.

Regulatory standardization as a turning point

Another piece of good news is that regulatory measures have already begun to take effect. In December 2025, a consortium led by pet food company Fubei Pet Food launched China’s first industry standard for fresh pet food. The guidelines explicitly define complete and balanced pet fresh food as a complete and balanced pet food primarily made from fresh/frozen animal-derived ingredients, processed through gentle cooking or non-thermal sterilization methods, and transported via cold chain (refrigerated at 0-4°C or frozen at ≤-18°C). The standard clarifies previously undefined key parameters, such as requirements for ingredient freshness, processing temperature limits, validated sterilization procedures, shelf-life testing, and cold chain transportation conditions.

As regulatory standards take effect, smaller informal enterprises may exit the market, while established brands will further specialize. We may see leading companies, such as those mentioned above, attract increased investment or form partnerships with major pet food corporations. This would enable them to build modern production facilities and enhance efficiency. Greater economies of scale would help reduce unit costs, making fresh pet food more affordable.

What comes next: Multi-channel models and strategic partnerships

In terms of business models, the future may lean more toward multi-channel approaches. Given the convenience of e-commerce platforms and the necessity for precise supply-demand matching, these platforms will remain dominant. In 2024, consumer preference for purchasing pet food through e-commerce platforms ranked highest, nearing 70%. Although recent news of Pet&Fresh (派特鲜生) closing stores seems to suggest that high-asset offline models are unsuitable for the fresh pet food market, offline channels remain crucial for marketing and building trust.

Consider the case of Freshpet in the U.S., whose success hinges on offline retail. Partnering with giants like Costco and Walmart to deploy dedicated refrigerated cabinets nationwide solved the pain point of fresh food transportation. This undoubtedly serves as an excellent model for Chinese fresh pet food brands. It is important to note that expanding offline channels does not necessarily mean building proprietary brick-and-mortar stores. Collaborating with large supermarkets’ established cold chains and occasionally launching pop-up stores in malls are equally viable ways to broaden offline distribution. We may also witness integration with veterinary clinics, where fresh meals are incorporated as part of health management plans for senior pets or those requiring dietary adjustments.