Pet industry evolving at unprecedented rate

BEIJING — According to a Goldman Sachs report, the number of pets in China surpassed the number of children under the age of four for the first time in 2024. It further projects that by 2030, the former will nearly double the latter in number.

As a reference, China was home to 73.4 million infants and toddlers under four years old in 2021, a number that has dwindled in recent years due to birth rate declines.

When compared with the 2025 China Pet Industry White Paper, however, Goldman Sachs' calculation was quite conservative.

The white paper noted that in 2024 the pet population in China's urban areas alone reached 120 million, with the urban pet (dog and cat) consumption market exceeding 300 billion yuan ($41.4 billion).

The latest data released by China's Ministry of Housing and Urban-Rural Development show that China had an urban population of around 930 million in 2023, which means, on average, one out of every eight urban residents, regardless of age or gender, owns a pet.

Along with that is an explosive pet consumption market in China, the world's second-largest economy and second most populous country.

Previously, people would call their pets "friends" as it was all about companionship. But today, the new generation of pet owners treat their pets like their own flesh and blood. It is not just a name change, but a whole new level of love and care.

Shen Jing pampers her fur baby in every aspect of life. From meticulously choosing high-quality dog food brands, ordering custom-made treats and toys, scheduling regular trips to the grooming parlor, to occasionally splurging on creative styling, the 23-year-old treats her Golden Retriever as if it were her own child.

"I spend around 1,500 yuan per month on my dog, mostly on food, snacks and toys, with some going toward healthcare expenses," she said.

Pet owners are generous parents, with some willing to pay a jaw-dropping 5,867 yuan just for a pet toilet, far exceeding average prices for a human version.

"My dog is way too chubby!" said Gao Boxin, 26, who purchased a pet treadmill for his Corgi Taotao. He even splurged on a heart rate monitor and cooling foot patches to soothe his dog's paws after a workout. Despite feeling a pang in his heart when he thinks about buying a sports watch for himself, when it comes to his pet, he throws money at it without a second thought.

China is embracing the era of pet economy 3.0.

In the 20th century, during the pet economy 1.0 era, pets were primarily kept for practical purposes such as dogs for guarding homes, cats for catching mice and chickens for producing eggs. By the 2000s, the pet economy 2.0 era had emerged, which was marked by a shift toward companionship, as people began to value pets for emotional interaction. Since 2015, the pet economy has evolved into the 3.0 era, where pets have achieved an elevated status, accompanied by a niche market serving diversified, pet-oriented consumption needs.

Around four years ago, Three Squirrels, a prominent Chinese snack brand, launched a subsidiary focused exclusively on dog food.

This move into pet food production is far from a downgrade. In fact, some pet food standards surpass even those for human food as the animals' digestive systems, metabolic processes and physiological structure are individually different.

Hu Zimeng, general manager of Jiangsu Weihong Pet Products Co Ltd in Jiangsu province, East China, told Xinhua that their sales of pet snacks have maintained an annual growth rate of over 10 percent in recent years.

Currently, the pet industry chain can be broadly categorized into three segments. The upstream segment primarily covers breeding and trading, while the midstream segment includes products such as pet food, supplies, toys and apparel. The downstream segment is service-driven, encompassing pet grooming, boarding, photography, medical care, insurance and funeral services, etc. The downstream services, in particular, are witnessing remarkable growth trends.

Xinhua