The growth of the middle class, rapid urbanization and shifting demographics have transformed the China pet industry into one of the fastest-growing pet markets in the world.
Elderly people and the young generation are the groups especially driving growth.
Shen Jing is a perfect example of the modern pet industry’s target customer. At 23, the human resources worker devotes nearly a fifth of her monthly salary to pampering her golden retriever.
“I spend around 1,500 yuan each month on my dog,” Shen said. “He’s like a child to me.”
According to an industry report, the urban pet consumption market in China grew to 279.3 billion yuan in 2023, up 3.2 percent from 2022. Furthermore, it is projected to jump to 361.3 billion yuan by 2026.
During the “618” Shopping Festival this year, online pet consumption experienced significant growth. The sales of niche products such as “cat and dog baked goods” and “cat and dog raincoats” have increasd by over 100 percent and 166 percent year-on-year, respectively.
This surge in Chinese demand bodes well for pet food and product companies, and for businesses ranging from grooming salons to luxury hotels.
Jiangsu Weihong Pet Products Co., Ltd. in Huai’an City is a pet production workshop. “Our pet snacks have consistently achieved over 10 percent annual growth,” said Hu Zimeng, the company’s general manager. “We’re more confident than ever about expanding into new markets.”
The pet market in China has enormous potential, and consumer demand is becoming increasingly diverse. “This requires us, as industry professionals, to continually innovate,” said He Yang, a manager of a pet chain brand in Chengdu.
Beyond pet food and services, pet health and wellness are gaining attention.
According to media’s report, China’s pet care market’s size totaled 279.3 billion yuan in urban areas in 2023. It is expected to jump to 361.3 billion yuan by 2026.
JD Health data show a growing focus on pet healthcare. Products for joint, dental, liver, and immune support experiencing rapid sales growth.
Liu Rui, manager of JD Health’s pet health division, said that pet owners are willing to invest more to improve their pets’ quality of life, particularly for aging pets.
As scientific feeding concepts gain traction, the demand for refined pet feeding solutions is on the rise. The pet dairy market holds significant potential, though competition is fierce.
The pet food sector has also attracted attention from dairy companies. For example, Yili Group’s “Yibao” focusing on lactose-free and gut-health-enhancing dairy products for pets. Since the launch of its “Yibao “series in October 2023, Yili Group has rapidly ascended to the top of the pet milk category.
Zhang Sining, a researcher at the Liaoning Academy of Social Sciences who noted that as modern society becomes more fast-paced and work-related pressures intensify, many people are turning to pets to fulfill their emotional needs. “This trend is opening up a blue ocean of opportunities across various sectors of the pet industry,” Zhang said.
Written by Gu Yetao, additional reporting by China Daily and Xinhua.
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