Aipet Bio: Breaking into the Billion-Dollar Blue Ocean – A Chinese Pet Pharma Company's Rise

The pet industry has reached a new turning point.

According to the newly released “2025 China Pet Industry White Paper (Consumer Report),” China’s urban pet (primarily dogs and cats) consumer market achieved a robust 7.5% growth in 2024, with its scale surpassing RMB 300.2 billion. Amid economic fluctuations, the pet industry has demonstrated “counter-cyclical growth,” entering a golden era characterized by strong demand and immense potential.

Among the numerous niche segments, pet pharmaceuticals have become key to pushing the boundaries of the pet industry, driven by high technical barriers, urgent market demand, and consumer-oriented characteristics. Today, the potential of this market continues to unfold. According to Frost & Sullivan forecasts, the size of China’s pet drug market is expected to reach RMB 35.41 billion by 2029. Notably, between 2025 and 2028, its compound annual growth rate (CAGR) is projected to be as high as 10.4%, making it the fastest-growing segment within the pet industry—far outpacing sectors such as pet food and pet supplies.

In this booming market, a wave of new players has emerged, dedicated to enhancing the quality of life for pets and extending their lifespans. Yiyao Biotechnology is one such participant. AndThis innovative pet pharmaceutical company is fighting a battle for breakthrough with domestically produced products, laying out more than 40 production lines in the three major areas of "prevention-treatment-healthcare," covering the entire life cycle of pets and injecting new vitality into the pet industry.

Positioning itself in the high-end pet pharmaceutical sector, Aichong Biotechnology has focused on the research and development of pet pharmaceutical products since its inception, leveraging its expertise in human pharmaceuticals. At that time, the pet economy was burgeoning. Relevant data showed that China's pet market size expanded continuously from 2015 to 2020, growing from RMB 97.8 billion in 2015 to RMB 295.3 billion in 2020. The scaled development of the pet market has led to the continuous improvement of extended services, expanding from traditional sectors such as pet food and supplies to peripheral industries including pet photography, veterinary care, pet insurance, and pet experience centers.

It is against this backdrop that the team at Guangxi Yiyao Biotechnology Co., Ltd. has keenly recognized the immense potential in the field of veterinary pharmaceuticals for pets. Compared with the human pharmaceutical market, the pet drug market is not constrained by medical insurance cost-containment policies and features relatively shorter R&D cycles, thereby providing a more favorable environment for the development of innovative drugs. However, the diversity of pet species, differences in therapeutic targets and metabolism between pets and humans, and the evolving spectrum of pet diseases all pose significant challenges to the research and development of pet medications.

To secure a foothold in this blue-ocean market, it is essential to accurately grasp the demand trends for pet medications. Liu Yang, Vice President of Guangxi Yiyao Biotechnology Co., Ltd., told VCBeat thatUnlike other companies that have recently jumped on the bandwagon into the pet pharmaceutical industry, Ai Chong Biotechnology embarked on its journey in pet medicine nearly a decade ago, using rabies vaccines as its breakthrough point.

On one hand, driven by market factors, the domestic rabies vaccine market in China has long been monopolized by international brands (such as Zoetis and Merial). The launch of cost-effective, domestically produced vaccines can rapidly capture market share and break reliance on imports. On the other hand, due to technological advancements, Guangxi Yiyao Biotechnology Co., Ltd. is able to reduce the heterologous protein content in rabies vaccines by leveraging advanced manufacturing processes from human vaccines, thereby enhancing both the safety and efficacy of the vaccines.

“Chongpai Chun” Rabies Vaccine, image sourced from the official website of Aichong Biotechnology

At the end of 2023, the “Chongpai Chun” rabies vaccine was approved for market launch. With a potency as high as 8.3 IU per dose, it far exceeds the national standard of 2.0 IU per dose. The product demonstrates significant competitive advantages in uniformity, stability, safety, and efficacy, rapidly gaining widespread market recognition after its launch. Liu Yang revealed that,“Chongpai Chun” has ranked first in revenue among domestically produced high-end rabies vaccines since its market launch, and is expected to maintain rapid growth in 2025, firmly securing its leading position in the domestic high-end pet rabies vaccine market.

Moreover, Guangxi Yiyao Biotechnology Co., Ltd. has achieved breakthrough progress in the development of a feline triple vaccine. This vaccine utilizes virus strains highly homologous to those prevalent in China and incorporates advanced genetic engineering techniques, significantly enhancing both safety and efficacy. By April 2023, the vaccine had completed all clinical trials, yielding substantial evidence supporting its safety and effectiveness.In January 2024, the feline triple vaccine developed by Guangxi Yiyao Biotechnology Co., Ltd. received emergency evaluation approval from the Ministry of Agriculture and Rural Affairs, breaking the decades-long monopoly held by foreign products in this field and filling the gap for domestic enterprises.

In addition to vaccine products, Guangxi Yiyao Biotechnology Co., Ltd. has actively expanded into the fields of therapeutic drugs and health supplements for pets. Taking its OTC drug series as an example, the product lineup includes eye drops, ear cleaners, anthelmintics (for internal and external parasites), ear ointments, and skin sprays, providing comprehensive and effective solutions for common issues affecting pets’ sensory organs, skin, and parasite control.

While focusing on product R&D and optimization, Yiyao Biotechnology also places great emphasis on the production process.Currently, Yiyao Biotechnology has successfully established a production line with an annual capacity of 30 million doses of rabies vaccine for pets, becoming the largest pet vaccine production base in China. In response to the domestic shortage of feline triple vaccines and canine double vaccines, Yiyao Biotechnology is actively planning the construction of a production base in Hefei to meet the growing market demand.

Notably, the Hefei base covers an area of 130 mu and boasts a broad business scope encompassing three core sectors: pet vaccines, pharmaceuticals, and health supplements. It stands as the largest pet pharmaceutical industrial base in China in terms of land area and the most comprehensive in production capacity.

Product sales are inseparable from the promotion of marketing networks. To this end,Guangxi Yiyao Biotechnology Co., Ltd. has adopted a comprehensive online and offline sales strategy to maximize market coverage.。

Online, Guangxi Yiyao Biotechnology Co., Ltd. has not only established a presence on traditional e-commerce platforms such as JD.com and Taobao but also actively embraced new media platforms including Douyin, Xiaohongshu (Little Red Book), and Meituan. By leveraging these diverse online channels, the company showcases its brand image and boosts product sales. Offline, Guangxi Yiyao Biotechnology focuses on distribution through professional channels such as veterinary hospitals, having forged close partnerships with numerous distributors and large chain veterinary hospital groups, thereby achieving coverage of nearly 10,000 veterinary clinics.

In overseas markets,Guangxi Yiyao Biotechnology Co., Ltd. has formulated a phased strategy for overseas market expansionStarting from the Southeast Asian market, it is gradually expanding into Brazil and the Middle East, with the ultimate goal of entering the European Union and North American markets. Yiyao Biotechnology is steadily and firmly advancing toward global presence, committed to becoming a leader in the field of pet health worldwide.

In the face of numerous challenges in China’s pet healthcare industry, Yiyao Biotechnology is actively seeking pathways to breakthrough. Liu Yang stated,The main challenges currently facing China’s pet healthcare industry include weak R&D capabilities, lagging policies, and insufficient brand influence.

In terms of R&D, many companies have transitioned from the economic animal sector and possess relatively insufficient technical accumulation, whereas the threshold for pet drug development is comparatively high. This necessitates that enterprises possess robust R&D capabilities and profound technical expertise to develop high-quality pet medications that meet market demands. To this end, Yiyao Biotechnology has continuously increased its R&D investment, actively recruited high-caliber talent, and strengthened its R&D system. It is reported that Yiyao Biotechnology’s R&D team comprises over 20 members, 80% of whom hold master’s degrees or higher. Many team members have prior experience at leading domestic and international pharmaceutical and animal health companies, making it one of the most capable R&D teams in China’s pet pharmaceutical industry.

In terms of policy, existing regulations primarily target economic animals, while the regulatory framework for pet pharmaceuticals remains underdeveloped. The government is gradually optimizing and adjusting relevant policies to accommodate the rapid growth of the pet healthcare industry. However, the lag in policy implementation continues to introduce a degree of uncertainty for enterprise development. Guangxi Yiyao Biotechnology Co., Ltd. actively engages with regulatory authorities and participates in the formulation of policies, regulations, and industry standards, aiming to promote the improvement and optimization of pet pharmaceutical policies.

In terms of brand influence, as domestically produced vaccines have just entered the market, confidence among consumers and veterinarians in these products remains insufficient. This necessitates that companies strengthen brand education and marketing efforts to enhance consumer awareness and trust in domestically produced vaccines. Guangxi Yiyao Biotechnology Co., Ltd. promotes its brand through various online and offline channels while deepening collaborations with veterinary clinics to improve product reputation and influence among veterinarians.

In the new stage of development,Aichong Biotechnology has formulated a new development plan to further expand its market penetration. It is reported that Aichong Biotechnology is actively preparing to establish an international operational headquarters, plans to file for an overseas initial public offering (IPO), and aims to develop more high-quality products.。

Furthermore,Yiyao Biotechnology is also actively developing innovative products such as pet sterilization vaccines and feline infectious peritonitis (FIP) vaccines.Sterilization vaccines suppress sex hormones through genetic engineering, thereby avoiding the pain and risks associated with surgical sterilization for pets and effectively reducing costs for pet owners. Meanwhile, the feline infectious peritonitis (FIP) vaccine is designed to prevent FIP, a disease for which there is currently no effective treatment, thus providing robust health protection for pet cats. According to Liu Yang, both the FIP vaccine and the sterilization vaccine are in the preclinical research stage; preclinical studies are expected to be completed in the near future, followed by applications for clinical trial approval. The research, development, and market launch of these innovative products will further enrich the product portfolio of Guangxi Yiyao Biotechnology Co., Ltd. and enhance its competitiveness in the pet healthcare industry.