Industry Overview - The pet industry in China is experiencing a golden development period driven by the continuous release of emotional consumption demand and industrial upgrades, with overall annual transaction scale exceeding 50 billion yuan on platforms like Taobao and Tmall, indicating strong growth momentum [1] - The pet economy has become a highly dynamic segment in China's consumer market, with the urban pet consumption market projected to reach 300 billion yuan in 2024, reflecting a year-on-year growth of 7.5% [1] Market Segmentation - Pet food remains the core category, with the market expected to surpass 150 billion yuan by 2025, maintaining a compound annual growth rate (CAGR) of over 18% for the next five years [1] - There is a noticeable trend of consumption upgrading across various segments of the pet industry, particularly in food, health products, and smart pet supplies, with significant growth in specialized pet food and health products [1] Consumer Trends - The demand for pet health products, such as deworming medications, is robust, and the rise of smart pet products and fashionable consumption is enriching the industry ecosystem [1] - Notable increases in specific product categories include a tenfold increase in pet stroller transactions, a 58% growth in pet accessories, and a 202% surge in searches for pet air purifiers [1] Emotional Value Shift - Brands like Nike, Adidas, and Jordan are launching trendy pet products, intensifying competition while shifting consumer focus from "practical value" to "emotional value" [2] - As pets become important emotional carriers, the industry is evolving beyond mere commercial value, contributing significantly to economic growth in what is termed the "it economy," a trillion-level consumption market [2]

Core Insights - The pet industry is evolving towards a more intelligent, anthropomorphic, and segmented consumption model, with pets increasingly viewed as family members and emotional companions [1][2][5] Group 1: Human-Pet Relationship Evolution - Nearly 60% of pet owners incorporate pets into long-term life plans, with 58.5% creating dedicated spaces for them [7] - 66% of pet owners consider pets as close family members, and 65.5% create dietary plans for them [2][11] - Emotional resonance is significant, with 80% of users actively responding to their pets' emotions, and 61.5% willing to pay for their pets' emotional health [5][4] Group 2: Pet Food Trends - There is a noticeable trend towards specialized pet food, with senior dog food searches increasing by 62% and sales up by 87% [13] - Wet food sales for both cats and dogs have surged, with sales growth exceeding 260% year-on-year [11] - Over 80% of pet owners have adopted a mixed feeding approach of dry and wet food, with 41% making it a daily habit [11] Group 3: Smart and Personalized Pet Products - The demand for smart pet products is rising, with searches for pet air purifiers increasing by 202% [15] - Users express a desire for better integration and functionality in smart pet products, with 40% hesitant to try due to lack of understanding [15] - Anthropomorphic products are gaining popularity, with sales of pet strollers increasing tenfold and pet clothing sales up by 58% [17] Group 4: Expansion of Exotic Pets - The market for exotic pets is expanding, particularly among younger generations, with 00s showing a preference for unique pets as a form of self-expression [19][21] - 73.9% of users choose multi-pet households to experience diverse interactions and enhance social media content [10] Group 5: Overall Market Trends - The pet industry is shifting from basic care to a more nuanced, emotional, and personalized approach, reflecting a broader change in consumer mindset [23] - The integration of pets into daily life decisions is becoming more pronounced, influencing everything from living arrangements to travel plans [7]