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From the Rise of the Pet Economy, Looking at the Changes in Household Consumption from the Edge to the Mainstream, Emotional Consumption Driven Pet Market: A Comprehensive Upgrade from Basic Needs to Exquisite Living. The Pet Industry and Urbanization Go Hand in Hand: New Opportunities for the Pet Economy in Urban Space Transformation

In today's society, pets have quietly become an indispensable member of many families. They are no longer just tools for guarding homes or lonely companions, but have truly become the new darlings of families.

This transformation is not only reflected in the sharp increase in the number of pets, but also in people's attitudes and behaviors towards pets. More and more families regard their pets as a part of the family, providing them with meticulous care and attention, even willing to spend a lot of money to meet their various needs.

At the same time, the prosperity and diversification of the pet consumption market further confirms this trend. The industry chain of pet consumption market continues to extend from pet food and pet supplies to pet medical care and pet beauty, and the market size continues to expand. People are not only willing to purchase various necessities for pets, but also increasingly pay attention to the personalized needs and emotional value of pets, promoting the diversified development of the pet consumption market.

The number has surged, and the "family status" of pets has significantly improved

In recent years, the number of pets has shown explosive growth worldwide. Taking South Korea as an example, data shows that on average, one in every four people in South Korea has a pet. According to sales data from e-commerce platform Gmarket, the proportion of pet strollers (57%) has surpassed baby strollers (43%) in 2023. This trend is also significant in China. According to a report released by international investment firm Goldman Sachs, the number of pets in China exceeded that of infants and young children under the age of 4 for the first time in 2023. It is expected that by 2030, the number of pets in China will be close to twice that of infants and young children.

According to Euromonitor data, the pet ownership rate among Chinese households increased from 11% to 32% between 2010 and 2023. The White Paper on China's Pet Industry in 2023 shows that the number of pet dogs in China will be 51.75 million, a year-on-year increase of 11%, and the number of pet cats will be 69.8 million, a year-on-year increase of 6.8%. This means that one in every 7.5 urban residents has a pet cat or dog, and pets have become an indispensable part of many families.

The reason why pets have become the new favorite of families is closely related to the changes in current society. On the one hand, with the acceleration of urbanization and changes in family structure, the generation of households composed of various forms such as single person families, childless families, and empty nest elderly have become the most mainstream family types. The function of the family is more focused on emotional communication rather than material production, and pets have gradually become the emotional support for family members.

On the other hand, loneliness is an important driving force for raising pets. In modern society, there are more and more non-traditional families, and long-term stable relationships have become more difficult to sustain, leading to a stronger sense of loneliness. The energy required for keeping pets is relatively low, but the emotional value and companionship that can be obtained are more immediate and certain. Therefore, pets have become emotional comfort and spiritual support for many people.

Segmenting the pet consumption market to meet personalized needs

With the increasing status of pet families, the pet consumption market has also experienced unprecedented prosperity. Pet products are constantly being subdivided to meet not only the physiological and health needs of pets, but also the personalized needs of pets and pet owners. Intelligent, multifunctional, and unique products are constantly emerging, becoming the new favorite of the market.

During the Double 11 period in 2024, the transaction volume of pet smart products at JD Supermarket increased by 105% year-on-year, and the transaction volume of smart fish tanks increased by 159% year-on-year. In the Tmall International Double 11 Pet High Growth Brand Category List, categories such as cat snacks wet food packs/meal boxes, cat/dog beauty and care tools, and cat/dog beauty and care products (facial cleansing) have all achieved significant growth. In addition, pet friendly travel has also become popular, with 80% of "poop scoopers" specifically searching for pet friendly hotels when traveling. The search volume and order volume of pet homestays and pet friendly hotels have also shown a rapid growth trend.

According to Tianyancha Professional Edition data, there are currently over 262000 pet product related enterprises in operation and in existence nationwide; In terms of regional distribution, Guangdong Province has the largest number of related enterprises and is significantly ahead of other provinces and cities in China, with approximately 67000; Jiangsu Province, Hebei Province, Shandong Province, and Zhejiang Province rank second.

From this, it can be seen that the pet supplies industry has formed a considerable market size, with numerous companies participating. The significant lead of Guangdong is closely related to its geographical location, economic development level, and industrial foundation. Guangdong is close to ports and has convenient transportation, which is conducive to the import of raw materials and the export of products. As one of the production bases for pet supplies in China, its pet market is developing rapidly, and the demand for pet supplies is also high, providing a good market environment and industrial support for the development of pet supply enterprises.

Enhanced pet consumption capacity and huge market potential

The rapid development of the pet industry has not only driven the prosperity of the consumer market, but also created a large number of employment opportunities.

In 2023, the number of employees in China's pet industry has exceeded one million, and there are more and more emerging career tracks, such as pet beauticians, pet designers, pet photographers, pet nutritionists, pet weight loss specialists, pet food tasters, pet behavior trainers, pet funeral directors, pet search detectives, pet party planners, etc. The emergence of these professions not only meets the diverse needs of pets and pet owners, but also promotes the further development of the pet economy.

According to Tianyancha Professional Edition data, as of now, there are nearly 4.465 million pet related enterprises, of which more than 1.284 million new registered enterprises were added from January to October 2024. From the annual registration volume of enterprises, it can be seen that the registration volume of pet related enterprises has shown an increasing trend in the past 10 years, and reached its peak in 2023, with more than 1.359 million registrations; The rapid growth rate in the past two years fully demonstrates the strong development trend of the pet industry, the great potential of the consumer market, and the fierce competition.

Moreover, from the perspective of consumer power, there is a positive relationship between the development of the pet industry and per capita GDP. When a country's per capita GDP reaches 3000-8000 US dollars, the pet industry will experience rapid development. In 2015, China's per capita GDP exceeded 8000 US dollars, and in 2019, its per capita GDP exceeded 10000 US dollars, which indicates that China's pet industry has the potential for rapid development.

Data shows that the size of China's pet market continues to expand, and after breaking through the 10 billion mark in 2010, it entered a period of rapid development. With the improvement of the status of pet families and the transformation of pet owners' consumption concepts, the pet consumption market is showing a trend of segmentation, refinement, and intelligence. Pet owners not only pay attention to their pets' dietary health and quality of life, but are also willing to purchase various non essential "luxury goods" for their pets, such as pet clothing, pet furniture, pet toys, etc.

Tianyancha Research Institute believes that pets have become the new favorite of modern families and are leading a new consumption trend. The rapid development of the pet industry not only reflects the changes in society and people's emotional needs, but also drives the prosperity of the consumer market and the creation of employment opportunities. In the future, with the changing consumption concepts of pet owners, the pet consumption market will continue to show a trend of segmentation, refinement, and intelligence. At the same time, the protection of pet rights and the improvement of regulations and policies will also provide strong guarantees for the healthy and orderly development of the pet industry.