Shang Hai Zheng Quan Bao·2025-08-22 23:21Industry Overview - The pet economy is rapidly growing, driven by social changes such as urbanization, smaller family structures, and an increase in single and elderly populations, leading to pets being viewed as family members and emotional companions [4][5] - The Chinese pet industry is entering a new development stage, with pets transitioning from "functional companions" to "family members," resulting in a rise in demand for specialized pet products and services [5][6] Market Size and Growth - According to the "2025 China Pet Industry White Paper," the number of pet dogs in China is projected to reach 52.58 million in 2024, a 1.6% increase from 2023, while the number of pet cats is expected to reach 71.53 million, a 2.5% increase [7] - The urban pet market in China is expected to exceed 300 billion yuan in 2024 and is projected to surpass 400 billion yuan by 2027, indicating significant growth potential compared to the U.S. pet market, which is expected to exceed 140 billion USD in 2024 [8][9] Consumer Spending Trends - Pet food constitutes a major portion of pet owners' expenses, with average monthly costs for pet care varying based on pet type and owner preferences; for example, one owner spends approximately 2,000 yuan monthly on their dog [7][8] - The rise of "self-indulgence economy" and "emotional consumption" is reshaping the pet consumption market in China, with a growing focus on high-quality pet food and services [8][9] Product and Service Innovations - Pet food brands are increasingly focusing on product quality, nutritional value, and specialized needs, with domestic brands gaining market share through insights into local consumer preferences [9][10] - The demand for diverse, intelligent, and one-stop pet services is growing, with over 30,000 businesses providing pet services on platforms like Meituan, reflecting a 24% year-on-year increase [11] Competitive Landscape - The pet industry is attracting significant investment from various sectors, with companies like Daqian Ecology and Three Squirrels entering the market to create comprehensive pet service brands [13] - The competition is intensifying, prompting companies to innovate and differentiate their offerings, such as unique pet cages and specialized pet food products [15][16]