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"We will have a chartered flight in June, which will be the first time in China that pets have been allowed to travel abroad in the cabin," Xia Yuying, co-founder of Love Pet Travel, told China Securities News recently.

In recent years, the "pet economy" has continued to heat up, and travel service providers and airlines have also continuously enriched their products and services, providing more personalized solutions.

The reporter learned from within the industry that as the number of pet owners in China gradually increases, the demand for the pet market is becoming more diversified, personalized, and socialized. Not only pet travel, but also unprecedented development opportunities have emerged in various sub sectors of the pet industry. The 2024 Pet Raising Trend Report released by a third-party organization shows that by 2025, the scale of China's pet economy industry is expected to exceed 800 billion yuan, which will attract multiple funds to accelerate its layout.

Pet travel contains business opportunities

"Taking pets to travel by plane is one of our distinctive businesses." Xia Xuying said, "In the past few years, pets were not allowed to enter the cabin of airplanes. Even if they were checked in by air, they faced many conditions and restrictions. We have cooperated with Jixiang Airlines to meet customers' needs for bringing pets into the cabin through charter flights under legal and compliant conditions. Since 2021, there have been more than 30 flights, covering the whole country."

Xia Xuying said, opened her phone, and showed the reporter the activity records he posted on his social media: experiencing the white snow in Changbai Mountain, experiencing the sunny beach in Sanya, and experiencing the scenery of the ancient city in Lijiang... Customers have brought their own cute pets in many activities.

"Our company is headquartered in Shanghai and initially focused on short-term travel services in the surrounding areas of Jiangsu, Zhejiang, Anhui, and other regions. Nowadays, our destinations are becoming more and more diverse, and the distance is also getting farther. The average number of tourists in the surrounding areas is about 1000 yuan. If it is a charter flight for long-distance travel, it will be relatively expensive, with an average cost of 20000 to 30000 yuan per person." Xia Yingying said, "This event is very popular. We usually release our itinerary two months in advance, and it will be almost full by about a month before the event starts. Sometimes, there are too many registrations, and we even have to charter another flight."

"In June, taking pets to Thailand was our first attempt at exploring pet travel abroad. If everything goes smoothly, we plan to further explore projects such as visiting Bali and Finland," Xia Yuying added. He expects the company's sales to increase by about 30% this year.

Market "Money Scenery" is considerable

Not only for travel, but also for pet related consumption such as food, supplies, beauty, physical examinations, medical care, photography, etc., there has been a significant increase in demand, bringing a large number of business opportunities.

"I have been trying my best to provide my cats and dogs with high-quality food within my capabilities. The '618' shopping festival is coming soon, and I have put all the commonly bought puffed grains, canned goods, and snacks in my 'shopping cart'. I have also tried some freeze-dried foods that I haven't bought before," Zhang Jiao, who owns two dogs and one cat, told reporters.

In addition to basic expenses such as food and supplies, Zhang Jiao said that she also continues to purchase pet medical insurance, spending around 300 yuan per pet per year. "They don't speak, and once they get sick, they have to undergo all kinds of examinations from head to toe, each time it's a significant expense, so it's necessary to purchase pet insurance, which can cover about 60% of the expenses," she said.

The 2023 China Pet Health Consumption White Paper released by iResearch Intelligence shows that the average annual expenditure of young people on pets reaches 5200 yuan, mainly concentrated in the fields of pet food and health care. Among them, staple food and snacks are essential items for raising pets, accounting for 91.6% of food expenses. As the basic guarantee for pet health, deworming and vaccines are included in the consumption list by most pet owners.

Accelerated capital layout

The 2023-2024 China Pet Industry White Paper (Consumption Report) released by a third-party organization shows that the number of pet dogs in China in 2023 was 51.75 million, a year-on-year increase of 1.1%, and the number of pet cats was 69.8 million, a year-on-year increase of 6.8%, making it the second largest pet market in the world.

Under the trend, the number of enterprises related to the pet industry chain is growing rapidly, and related listed companies are showing strong development momentum. Capital from all walks of life is accelerating their entry into the "other economy" track.

According to Tianyancha data, the number of pet industry related enterprises in China has shown a rapid growth trend in the past decade. As of now, there are 4107000 enterprises related to the pet economy. From January to April this year, more than 543000 related enterprises were newly registered.

Recently, A-share listed companies specializing in pet business have successively disclosed their 2023 performance. For example, according to the annual report of Lusi Group, the company achieved a domestic revenue of 282 million yuan in 2023, a year-on-year increase of 51.27%. According to the annual report of Guaibao Pet, the company's domestic revenue reached 2.863 billion yuan in 2023, a year-on-year increase of 39.38%, accounting for 66.17% of the company's operating revenue. Tianyuan Pet's domestic sales revenue in 2023 reached 912 million yuan, a year-on-year increase of 30.37%.

"The pet market is still a blue ocean, but it has to be admitted that the entry threshold for this industry is currently low and there is an urgent need for clear rules to guide it," Xia Xuying said.