Investment Rating - The report does not explicitly state an investment rating for the industry Core Insights - The pet economy in China is experiencing a high-quality transformation driven by emotional consumption and the integration of emotional value with tangible industries [8][10] - The market for pet dogs and cats in urban areas is projected to reach CNY 300.2 billion in 2024, with a compound annual growth rate (CAGR) of approximately 13.3% from 2015 to 2024 [10][12] - The global pet economy is highly concentrated, with significant markets in the US, Europe, and Asia, and is expected to grow from USD 207 billion in 2024 to USD 270.8 billion by 2029, with a CAGR of 5.5% [9][11] Summary by Sections Introduction - The report outlines the growth of the pet economy driven by changing lifestyles and emotional consumption needs, highlighting the integration of emotional and tangible aspects in the industry [8] Global Pet Market Overview - The global pet industry is expected to grow from USD 207 billion in 2024 to USD 270.8 billion by 2029, with a CAGR of 5.5% [9] China Pet Dog and Cat Market Overview - The urban pet consumption market in China is projected to reach CNY 300.2 billion in 2024, with a 7.5% year-on-year growth [10] - The average annual consumption per pet dog is CNY 2,961, while for cats it is CNY 2,020, reflecting a steady increase in spending [10] Pet Economy Industry Chain Definition and Layout - The pet economy industry chain includes breeding and trading, food and supplies, and medical and service sectors, reflecting the transformation of emotional value into commercial value [23] Pet Economy Industry Chain Analysis - The overall consumption structure is stabilizing, with pet food leading the market, accounting for 52.8% of the total pet consumption market in 2024 [25] - The upstream sector is transitioning from a rough model to a more standardized approach, with new regulations being introduced [29] - The midstream sector is seeing the rise of domestic brands and the integration of smart products into pet care [31] - The downstream sector is characterized by professional development and the construction of a diversified ecosystem, with a focus on medical services and pet care [47] Policy Support for Industry Development - Local governments are increasingly supporting the pet economy through the establishment of industrial parks and public facilities, aiming for a market scale of over CNY 30 billion by 2027 [55][56] Industry Outlook - The pet industry in China is undergoing a structural transformation, shifting from extensive feeding to refined services, with a focus on quality improvement and standardization [57]

Core Insights - The Asia Pet Expo showcases the rapid growth and innovation in the pet industry, with PILTON emerging as a leader through its new products and market strategies [1][2][3] - The pet industry is becoming a "new necessity" during economic downturns, driven by changing demographics and evolving pet ownership attitudes, with PILTON's sales reaching 77 million units, a 35% increase year-over-year [1][13] Product Innovation - PILTON introduced the Smart Bird Cabin, the first of its kind, designed to enhance the experience of bird owners by addressing traditional pain points with innovative features [3][4] - The Smart Bird Cabin includes six core designs, such as a self-cleaning system and a 24-hour air circulation system, providing a comprehensive solution for bird care [3][4] Market Trends - The pet ownership landscape is shifting, with over 17 million people in China owning exotic pets, representing 25% of the overall pet ownership market, indicating a growing trend towards smaller pets [4][14] - The demand for smart pet products is increasing, with significant sales growth reported during major shopping events, such as a 230% increase for smart feeders [6][14] Strategic Partnerships - PILTON has established strategic collaborations with major industry players like JD.com and Royal Canin, enhancing its market presence and credibility [9][10] - The company is also expanding its B2B partnerships, providing customized smart pet cabin solutions to various pet-friendly venues [9][10] Software and AI Integration - The company is focusing on integrating AI and software solutions to enhance user experience, including a "three-screen collaboration" system for remote control of pet cabins [7][21] - PILTON is developing a comprehensive data collection system to analyze pet behavior and health, which will support both B2B and B2C applications [7][8] Sales and Market Expansion - PILTON has built a multi-channel sales network, leveraging both online platforms and physical stores, and has entered 116 cities in China while expanding internationally to 14 countries [25][26] - The company aims to enhance its product offerings and market reach through continuous innovation and strategic partnerships [10][11]