Pet Industry Full Analysis: Behind the Boom of the “Pet Economy,” These Trends Are Reshaping the Market Landscape

As people’s attitudes toward pet ownership evolve, pets have gradually become indispensable “family members.” Consumers are willing to dedicate more resources to their pets—from food, housing, and daily care to healthcare and entertainment. The scope of pet consumption continues to expand, and consumers’ willingness to spend keeps rising.

Against this backdrop, China’s pet economy is entering a golden growth period. From 2020 to 2023, the compound annual growth rate (CAGR) of China’s pet market was 26.15%. The market size is projected to keep growing and reach RMB 1.15 trillion by 2028.

(Source: Chanmama)

1. Steady Expansion of the Pet Industry

Over the past five years, the pet market has grown steadily, with sales maintaining a ~10% CAGR. The cat industry leads with 13% annual growth, with sales catching up to dogs. In terms of numbers, cats are growing faster (CAGR 10%), while dogs show slower growth in population but higher per-pet annual spending—and that spending is rising faster.

(Source: JD.com)

Key Growth Drivers

Aging population & single economy: Growing demand for companionship is pushing pets to shift from livestock to companions, from “guarding the house” to “healing the soul.” Pets are now a driver of local economic development and a new track for industry innovation.

(Source: JD.com)

2. Sub-Sectors Brimming with Opportunity

Pet Food: The Cat Economy Leads, with Functional Upgrades

Food dominates pet spending: In the past year, cat & dog food accounted for nearly 60% of sales on JD.com, with cat food alone representing 71% of that share. Cat food buyers grew 48% year-on-year, surpassing dog food growth. Dog food, however, maintains a 1.3x higher average order value and stable user growth—highlighting its high-value consumer potential.

(Source: JD.com)

Specialized Nutrition: Targeted, Age-Specific Products

Consumers now factor in life stage, breed, and size when buying. Senior dog food sales in 2024 grew 67% year-on-year, with transaction volume up 87% and searches up 62%. Beyond basic nutrition, products with added ingredients for digestion, oral care, and cognitive health are rising sharply.

(Source: JD.com)

Pet Healthcare: Closed-Loop Consumption Model

Nutritional supplements for cats and dogs account for over 80% of the pet supplement market. Premium imports enjoy a 40% price premium. Veterinary pharmaceuticals such as deworming and respiratory care are in high demand. 

(Source: KuRunData)

Telemedicine and in-home pet check-ups have reached 22% penetration, forming a full “prevention–treatment–recovery” consumption loop.

(Source: KuRunData)

Pet Supplies: Smart and Emotional Products

Smart pet products reached RMB 30 billion in 2024. Smart litter boxes (18% penetration) and auto-feeders (25%) are expected to surpass 30% by 2025. Pet fashion & wearables grow 40% annually—Hanfu and holiday-themed outfits often go viral on social platforms. Interactive toys with AR and sound features boost pet activity and enhance bonding with owners.

(Source: JD.com)

3. Consumption Trends: Upgraded Needs, Emotion-Driven Spending

90% of consumers check ingredient labels first when buying food. Grain-free, fresh-meat-rich products command a 25% price premium. Customized feeding services are rising fast—tailoring diets by age, breed, and health condition. Precision nutrition is growing 50% annually.

(Source: KuRunData)

4. Competitive Landscape: Giants Compete, Models Innovate

• JD.com: “Billion-Yuan Subsidy” campaign + “Refund if Pets Don’t Eat” guarantee. Its 2024 smart pet products GMV rose 120%.
• Douyin: Pet supplements dominate livestream sales, accounting for 50%+. Plans to add 500+ new brands in 2025.
• Taobao/Tmall: Deep focus on niches like exotic pet products and travel gear, incubating several categories surpassing RMB 100 million.

(Source: Data Insider)

5. Development Outlook: Challenges and Opportunities

Opportunities

Smart health monitoring wearables (e.g., heart-rate trackers) have <5% penetration but are expected to reach 15% by 2025. In lower-tier cities (Tier 3 and below), pet household penetration is just 12%. As logistics costs fall, e-commerce channels are set to expand deeper. Chinese brands already hold 18% share in Southeast Asia’s pet food market. Exports may exceed RMB 5 billion by 2025.

(Source: EqualOcean)

Challenges

Homogenization in the low-to-mid pet product market has sparked price wars, cutting company margins by ~15%. Lack of FEDIAF (EU) certification blocks some Chinese brands from premium overseas markets, with certification costs taking up 30% of R&D budgets.

Future Outlook: Technology, Services, and Globalization

AI will drive industry breakthroughs—from pet health analytics to smart care services.The offline-online integration will extend consumer scenarios, with more immersive and service-oriented experiences. Chinese brands are expanding globally via overseas supply chain acquisitions, local teams, and marketing localization. Leading players could raise overseas revenue share to 40% within three years, making “Made in China” pet products a trusted choice worldwide.