Millennials and Gen-Z Fuel China Pet Industry Boom

According to a recent report by data analysis platform Statista, China's pet economy is projected to reach CNY811.4 billion ($114B/€103B) by 2025.
 

This indicates that the industry is experiencing rapid growth, as the data shows a notable jump from CNY592.8 billion ($82.4B/€75.9B) in 2023. In the past 5 years, the urban pet population in China has grown by approximately 50%.
 

China's aging population and increasing number of single-person households have become major drivers of the pet economy. In 2023, single-person households accounted for 16.77% of all Chinese homes. An estimated 22% of households in China now own pets, with urban households alone home to 69.8 million cats and 51.75 million dogs.
 

Younger Pet Parents

Millennials and Gen-Z, many of whom were raised under China's One-Child Policy, are choosing to raise pets instead of children.
 

You could be interested

Agreement Between the European Union and Mercosur Could Influence the Pet Food Market

A report by Xiaohongshu, a Chinese alternative to the social media platform Instagram, found that around 56% of younger pet owners, particularly those under 29, adjust their lifestyles and spending habits to accommodate their pets.
 

The report stated that young people's concept of raising their pets has shifted to treating them like family members, even popularizing the idea of treating their pets as well as themselves.
 

According to the report's conclusions, around 88% said their spending on pets had significantly increased or remained the same as the previous year, as young people are willing to spend generously, hoping to provide new experiences for their pets.
 

Domestic Pet Food Market

The latest report from market research firm Goldman Sachs shows that pet food has emerged as one of China's fastest-growing consumer sectors, with a compound annual growth rate (CAGR) of 16% from 2017 to 2023 – outpacing the 5% growth in overall retail sales. In 2023, the pet food market reached CNY51 billion ($8.3B/€7.2B).
 

The market is projected to grow at an 8% CAGR through 2030, reaching CNY63 billion ($8.8B/€8B). This growth will be driven by a 5% increase in household pets, a 2% rise in consumption per pet and a 1% annual increase in average selling prices.
 

China's pet food market is also witnessing a shift toward local brands. Over 70% of pet food sales occur online, and domestic players have increasingly gained market share over global brands.
 

Shenzhen: A Pet Industry Hub

According to information from local authorities, Shenzhen, a southeastern Chinese city where the average age of residents is only 32.5, currently has over 84,000 pet-related enterprises, up sixfold from 12,000 in 2020.
 

Over the last few months, the local government has increased its efforts in this area, introducing pet-friendly bus lines, creating China's first pet lounge at Shenzhen Bao'an International Airport and encouraging the development of new pet-friendly parks and commercial centers.

Source: GlobalPets