Unpacking China’s Growing Pet Market

As mentioned in last month’s newsletter, my interest in the pet economy continues to grow, fueled by both personal experiences, my visit to Pet Fair Asia in Shanghai this summer and recent market shifts. When I first arrived in Asia in 2023, I was struck by how people, especially in Hong Kong and China, treated their animals like their own children. This stands apart from European norms, where pets are beloved but not always considered as “babies”. The sight of pet carriages for cats and dogs in city parks exemplifies this cultural difference, forming the foundation for my curiosity about the broader pet industry.

A local friend summed up a key reality: “I don’t want kids, it costs too much money, millions of HK dollars.” This observation led me to wonder if changing attitudes toward family are reflected in rising investment and innovation within the pet sector.

General Information On The Pet Industry

The scale and momentum of China’s pet industry are staggering. In 2025, the market is projected to reach $114 billion, maintaining 6% annual growth and representing about 10% of global industry share. This is a dramatic leap from just a few years ago. China’s pet market was valued at roughly $44 billion in 2020 and has expanded threefold in under a decade. The key engine here is pet food, making up more than half the total industry (about $8.8 billion by 2030), which includes dry food, wet food, raw and specialty diets, accounting for over half of the market’s value. Next comes veterinary services, covering pet hospitals, diagnostics, treatments, and medicines, a rapidly growing and essential part of the ecosystem. Pet products and accessories follow, spanning daily necessities, hygiene essentials, toys, clothing, and travel items, served mostly by a highly fragmented network of manufacturers and brand operators. Emerging high-growth areas include pet tech inventions such as smart feeders and trackers, luxury services like pet hotels and spas, and premium health supplements and nutrition products. E-commerce and both online and offline retail channels support distribution, with livestreaming and influencer-led sales playing an increasing role in connecting consumers to the wide range of pet care solutions today.

Chinese’ Pet Ecosystem

More than 400 pet food companies now operate in China, a threefold increase in five years, and annual production is up 50%. Nanhe District in Hebei has become a production powerhouse, responsible for 60% of China’s pet food output, and is rapidly diversifying into related segments like cat litter, bedding, and pet apparel. Wet food, especially cat food in single-serve and canned portions, is surging: affordability and urban practicality are major drivers, and China’s share of global wet food is expected to increase from 7.6% to 11% by 2028. At the same time, China’s pet food import market (driven by consumer preference for premium and international products) ballooned from $100 million in 2016 to $1 billion in 2022.
Competition within this high-growth landscape is fierce and fragmented. Domestic brands are gaining on multinational names, and most offerings are functionally similar, making branding, price positioning, and especially influencer marketing decisive factors for consumer choice. At major industry fairs like Pet Fair Asia, the busiest pavilions feature not only core pet meals and supplements, but also specialty categories like raw diets, premium supplements, and natural/European-certified foods. The raw dog food sector, for example, now represents 10% of all dog foods, up from 1.5% a decade ago, a $350 million segment on its own.
Margins, however, are under significant pressure, as post-COVID inflation raises costs while consumer budgets tighten, requiring companies to innovate in both value and presentation just to keep shelf presence. This context explains why investment continues to pour into everything from direct-to-consumer food platforms to next-generation supply chain solutions.

Preferred Pets in China

Cats are now the dominant pet in China, a remarkable shift rooted in regulatory frameworks and evolving lifestyles. Stricter controls on dog ownership (licenses, breed bans, mandatory vaccinations) have increased the appeal of cats, particularly among younger and urban consumers. Cats require less space, are more independent, and fit smaller apartments, all crucial factors when urbanization rates keep accelerating.

This cat-centric market is reflected in raw animal numbers. In 2023, China counted nearly 70 million urban cats, outnumbering the 51.7 million urban dogs, and the tipping point in favor of cats arrived in 2021. Personality factors also play a role: studies indicate that cat owners skew more independent, imaginative, and emotionally sensitive, while dog owners are often viewed as outgoing, pragmatic, and expressive. These trends are evident in purchase preferences. Cat owners are more likely to prioritize food quality and health, often outspending dog owners per purchase, while dog owners focus more on toys and play. Brands increasingly tailor messaging, products, and formats (wet, functional, or raw food) to these nuanced lifestyle differences.

Beyond cats and dogs, other animals are marginal but growing. About 17 million Chinese own exotic pets (reptiles, rodents, birds, and fish), creating pockets of high-margin opportunity in specialty supplies and accessories. However, about 90% of all industry revenue still targets cats and dogs, underscoring the market dominance of these two species.

Consumption patterns also vary by region: in more affluent Tier-1 and Tier-2 cities, there’s a premium on imported and functional foods; in Southeast Asia, price-sensitive buyers lean toward economic, mass-market options.

Generational shifts alter traditional family models

The pet boom in China can be seen as both a reflection and driver of evolving family culture. Millennials and Gen Z (those born after 1990) now represent roughly two-thirds of all pet owners. Rising education and income levels, along with relentless urbanization and a rapidly aging population, have weakened traditional models centered on marriage and children. Many younger Chinese now choose “fur babies” over starting families or having children, viewing pets as emotional anchors in a fast-changing world.

This demographic is highly brand- and health-conscious, with a strong preference for newer, smaller, science-forward companies. Their favorite products feature freshness, transparency, unique ingredients (raw, freeze-dried), and a clear focus on health or natural living. At industry events, the presence of influencers, livestreamers, and digital communities is overwhelming: brands with the most streamer buzz and shareable experiences garner the bulk of attention and engagement. The shift from legacy trust to peer-validated discovery is unmistakable.

Industry data highlights the scale of the transformation: by 2024, China’s urban pet population surpassed the number of children under four years old, and projections suggest the urban pet population will exceed 70 million by 2030, with the number of young children dropping to under 40 million.

Brands and investors are responding by tailoring everything (from product development to marketing deployment and influencer partnerships) to this digital-native, health-driven consumer base.it’s often too late to be useful, perhaps by design.

Resilience Amid Economic Challenges

China’s pet industry has shown remarkable resilience in the face of economic and inflationary challenges. Surveys and market data consistently find that consumers are willing to cut back in other life areas to prioritize high-quality pet food, essential supplements, and health spending. The 2024 Xiaohongshu report revealed that 56% of young (under-29) pet owners change lifestyles or spending habits to accommodate their pets, and 88% either maintained or grew their annual pet expenditures, even as economic conditions softened.

On the ground, food, supplements, and health products continue to command loyalty, with cat owners demonstrating particular willingness to pay premium prices for nutrition and medical advances. Discretionary categories like toys, fashion, or nonessential accessories show some tightening, but overall market spending remains robust. This crisis-proof status has made the sector increasingly attractive to both private equity funds and strategic acquirers, especially for high-growth segments like raw foods, veterinary supplements, and telehealth services.

The structure of spending is evolving: urban consumers are more selective, opting for essentials, while the overall frequency and volume of “nice-to-have” pet purchases may dip during downturns. Still, for many urban and especially single-person households, spending on a pet is not negotiable, it’s part of maintaining quality of life.

Competitive landscape and types of players

The competitive landscape features both global titans and nimble domestic innovators. Firms like Cargill and Purina are expanding production capacity near Shanghai and shifting toward premium, e-commerce-based portfolios, while German supplier Symrise partners with Sunner to develop sustainable egg protein for functional pet foods.

However, multinationals face fierce competition from local brands that have mastered influencer relationships, local tastes, and digital retail. Emerging names like Pet Ever, Heal Island, and Seeds In specialize in fresh, raw, or European-standard certified foods, sometimes leapfrogging big brands in consumer popularity through clever deployment of digital communities and social commerce. Supplement providers like Hs Viko and biotech-focused players leverage Amazon, drop-shipping, and niche e-commerce to connect with discerning buyers.

Original equipment and design manufacturers (OEMs/ODMs) such as Famsun have become supply-chain linchpins. They control everything from product conceptualization to final distribution, with flexible factory footprints stretching from Asia to Eastern Europe. Well-known brands, both domestic and international, often outsource formula creation, production, packaging, and logistics to these third parties. Their presence enables quick scaling and product customization but also leads to questions about vertical integration: Should brands bring production in-house for better quality control, or continue relying on OEM efficiency? Packaging suppliers and manufacturers investing in green and recyclable packaging are now especially prominent among companies serving the European export market.

China’s pet sector is also spawning a vibrant ecosystem of startups, tech players (pet wearables, health apps), logistics providers, and veterinary service platforms, all seeking to ride the continuing surge in pet spending. Capital flows increasingly target these up-and-coming segments.

The Role of E-Commerce

E-commerce is the infrastructure underpinning the industry’s digital-first growth. In 2025, online channels account for a dominant share of pet product sales: Tmall leads with a 35% share, followed by Taobao (15%), JD.com (7%), and Douyin/TikTok (8%); Pinduoduo (10%) and specialized pet stores (13%) are also significant. Offline stores and veterinary clinics retain some market (about one in five purchases), suggesting the omnichannel model is here to stay.

Digital brand-building, livestream selling, and social-based discovery are central. Livestreamers and key opinion leaders (KOLs) showcase everything from new food launches to lifestyle accessories in marathon sessions, while drop shipping and direct-to-consumer inventory models speed up innovation and reaction times. For supplements, fast distribution channels and social proof (reviews, influencer posts) are especially vital for building trust as regulatory oversight remains less mature than for human food.

Offline retail remains relevant, providing resilience during market downturns and opportunities for experience-driven differentiation, such as grooming services, training, and pet cafés.

Brand authority online now demands constant investment in visibility, social relevance, and packaging optimized for quick mobile scanning and competitive shelf appeal. Influencer activity at major trade shows routinely drives both spike sales and longer retention through repeat content.

Final thoughts

Standing back from the numbers, charts, and the lively bustle of pet fairs, what struck me most about China’s pet industry was the business behind it. This theme resonates deeply with how new generations (Gen Z and Millennials) are reshaping family life and lifestyle choices. Yet, alongside these social shifts, I was equally struck by the overwhelming similarity of products on display and the pivotal role