Pet Food Capacity Expansion Wave 2026

# Pet Food Capacity Expansion Wave

Jiangsu Shuofang's 61,000-ton pet food project broke ground in Suqian. New pet food plants are launching across China.

Recent expansion cases

• Oct 25: Jiangsu Shuofang, 61,000 tons/year
• Oct 29: Betagro (Thailand), global expansion
• Hill's: Prime100 acquisition in Australia

Why everyone is expanding

1. Domestic substitution

Imported food share declining, domestic quality improving.

2. Export growth

Southeast Asia and Middle East markets opening. Chinese manufacturing has cost advantage.

3. Premium and fresh

Traditional extrusion capacity is overbuilt, but fresh, baked and freeze-dried lines are still tight.

4. Capitalization

Public companies like Gobel and Chow Chow have money to expand.

What it means for brands

Good: more choices, newer equipment, willingness to take small orders.

Bad: new factories lack experience, QC systems may be immature, delivery may slip.

New vs established factories

| | Established | New |

|---|-------------|-----|

| Equipment | Average | New |

| Experience | Rich | Limited |

| QC | Mature | Building |

| Price | Normal | May be cheaper |

| Delivery | Stable | May delay |

| Small orders | Selective | Welcome |

Recommendations

1. Sampling: try new factories for better pricing

2. Production: use established factories for QC

3. Key products: dual-source

4. Always audit in person

Takeaway

New capacity is good, but don't be swayed by "new factory cheap." Sample first, test small batches, audit the facility, then scale. If you're looking for a co-packer with fresh/freeze-dried/baked lines that accepts small batches, Mixiaoqi pet food OEM/ODM starts at 300kg sampling.

FAQ

Is new factory quality reliable?

New equipment but inexperienced staff — sample first.

Will overcapacity lower OEM prices?

Low-end extrusion already declining; premium lines still tight.

Do all factories have export registration?

No — export requires separate registration.