Core Insights - The pet economy in China is becoming a representative field of "emotional consumption" due to changes in family structure and consumption concepts [1] - The pet market is expected to exceed 300 billion yuan in 2024 and 400 billion yuan by 2027, driven by the transformation of pets from "functional companions" to "family members" [1][2] - The pet market is projected to surpass 811.4 billion yuan by 2025, with pet food being the largest segment and a core driver of the industry [2] Market Trends - The pet economy is experiencing robust growth, with a significant increase in the number of new registered enterprises and local pet food companies enhancing R&D to develop competitive brands [2] - Consumers, particularly those born in the 80s and 90s, prefer online channels for purchasing pet products, with a notable rise in live e-commerce [2] - The report identifies eight core trends driving the industry, including supply chain restructuring, consumption upgrades, and the integration of the "silver economy" with the pet economy [2]

Core Insights - The Chinese pet market is expected to show strong growth, with a projected market size exceeding 811.4 billion RMB by 2025, driven by changing family structures and consumer attitudes towards pets [1][2] - The pet economy is becoming a significant growth area in consumer spending, with a focus on pet food, eco-friendly cat litter, health care, and shared products for pets and owners [1] - The market for urban pet dogs and cats has already surpassed 300 billion RMB in 2024, with expectations to exceed 400 billion RMB by 2027 [1] Industry Trends - The role of pets is shifting from "functional companions" to "family members," leading to growth in pet food, medical services, and technology sectors [1] - The primary pet owners are increasingly younger and more educated, with over 60% being born in the 1990s and 2000s, seeking high cost-performance and functional products [1] - Government policies aimed at boosting consumption and industry regulations are providing strong support for the pet economy's growth [1] Market Dynamics - Pet food remains the largest market segment, serving as a core driver of the pet economy, while pet medical services, supplies, and other services are also experiencing rapid growth [2] - The market is characterized by intense competition, with a continuous rise in the number of newly registered enterprises, fostering the development of competitive domestic brands [2] - Eight key trends are identified, including accelerated supply chain restructuring and domestic substitution, with companies leveraging smart technology and precise marketing to gain recognition [2]

Core Insights - The Chinese pet market is expected to show strong growth, with a projected market size exceeding 811.4 billion RMB by 2025, driven by changing family structures and consumer attitudes towards pets [1][2] Market Overview - The urban pet market in China surpassed 300 billion RMB in 2024 and is expected to exceed 400 billion RMB by 2027, indicating a shift in the role of pets from "functional companions" to "family members" [1] - Pet food is identified as a core driver of the pet economy, holding the largest market share, while segments like pet medical care, supplies, and services are also experiencing rapid growth [2] Consumer Trends - The primary demographic of pet owners is becoming younger and more educated, with over 60% of pet owners being from the "90s" and "00s" generations, who prioritize cost-effectiveness and product functionality [1] - The market is transitioning from quantity expansion to quality upgrades, reflecting a shift in consumer preferences [1] Industry Dynamics - The report highlights eight key trends shaping the industry, including accelerated supply chain restructuring, the rise of domestic brands, and the dual empowerment of consumption upgrades and technological innovation [2] - The concept of "human-pet synergy" is driving the pet food market towards refinement and high-quality offerings [2]

Core Insights - The 8th China International Import Expo (CIIE) has opened in Shanghai, showcasing the growing demand for high-quality and diversified lifestyles in the Chinese market, particularly through the newly established pet-themed exhibition area [1] - The pet economy is emerging as a significant growth area in consumer spending, reflecting the modern lifestyle concept of pets as important family members [1][4] - KPMG has released two in-depth industry reports focusing on the pet and hotel sectors, providing insights into market evolution and development opportunities [1][3] Pet Economy - The pet economy is closely linked to residents' consumption levels, with rising material needs leading to increased spiritual demands [3] - The urban pet market in China is projected to exceed 300 billion yuan in 2024 and is expected to surpass 400 billion yuan by 2027, driven by the shift of pets from "functional companions" to "family members" [4][5] - The pet market is characterized by a younger, more educated consumer base, with over 60% of pet owners being born in the 1990s and 2000s, who prioritize cost-effectiveness and product functionality [4][5] Market Trends - The Chinese pet market is expected to exceed 811.4 billion yuan by 2025, with pet food being the largest segment [5] - The competition in the pet industry is intensifying, with a rise in new registrations of companies and local brands increasing R&D investments to build competitive products [5][6] - Key trends include supply chain restructuring, domestic brand recognition through technology and marketing, and a shift towards high-quality, refined pet products [6] Hotel Industry - The hotel industry is transitioning from scale expansion to value reconstruction, focusing on quality improvement rather than just quantity [7][8] - The market is experiencing a structural adjustment, with a notable increase in the chain hotel rate to 40.1%, indicating potential for light asset transformation [7][8] - The industry is responding to the rise of the Z generation, leading to more personalized and youthful product designs and service experiences [8] Strategic Insights - KPMG's reports provide a clear path for the hotel industry's transformation, emphasizing the integration of consumption policies and the promotion of green, low-carbon transitions [8] - The hotel sector is encouraged to adopt a systematic upgrade in brand building, operational models, and capital operations to create a data-driven, efficient, and sustainable development framework [8][9] - The core focus for both the pet economy and hotel industry is on emotional satisfaction and experience enhancement, which are crucial for capturing opportunities in the evolving consumer landscape [9]