The rapidly developing pet industry in China is attracting attention from around the world.
The world's largest enterprise growth consulting firm, Frost & Sullivan (Chinese name: Frost & Sullivan. Hereinafter referred to as 'Frost & Sullivan Company'), has released the '2018 China Pet Industry Report'. This is the first time that Frost & Sullivan has published a report on the Chinese pet industry. Previously, authoritative market research data cited by listed companies such as PetSmart, a US pet industry chain giant, also came from Frost & Sullivan Company.
The entire report is divided into four parts: an overview of the pet industry in China, a consumer portrait of the pet industry in China, consumption patterns of pet products in China, and consumption patterns of pet services and live pets. It comprehensively presents the latest developments in the pet industry in China in 2018.
The proportion of pet-owning families in China has climbed to 22%.
The report indicates that the number of pet-owning families in China increased from 69.34 million households in 2013 to 99.78 million households in 2018, a year-on-year increase of 43.9%. The proportion of pet-owning families per 10,000 households in China also rose from 16% in 2013 to 22%.
By the end of 2018, there were 67 million pet cats and 74 million pet dogs owned by Chinese pet owners, with an annual live sales volume of more than 5 million cats and dogs not including adoption or gifts. In addition to cats and dogs, Chinese pet owners also kept 110 million other animals, including 84 million aquatic species, 9 million birds, 7 million reptiles, and 7 million rodents, indicating a diverse range of interests among pet owners.
In 2018, the market scale reached 172 billion yuan
In 2018, the market scale of China's pet industry reached 172.2 billion yuan, more than three times the market scale of 49.4 billion yuan in 2013.
Among them, the market scale of pet dogs reached 985 billion yuan at the end of 2018. Food products, including staple foods, snacks, and health supplements, accounted for the highest proportion, reaching 383 billion yuan. The market scale of pet dog medical services reached 198 billion yuan, supplies were 151 billion yuan, and the market scale of services such as beauty and boarding also amounted to 156 billion yuan, with live pets accounting for 97 billion yuan.
The market scale of pet cats reached 602 billion yuan at the end of 2018, with food accounting for 223 billion yuan, medical products 124 billion yuan, supplies and services 87 billion yuan each, and live animals 83 billion yuan.
The industry generally believes that with the increase in the number of pets and the improvement in pet owners' purchasing power, the Chinese pet market will further develop. It is estimated that by 2023, the scale of the Chinese pet market will reach 472.3 billion yuan.
In 2018, the average annual consumption per pet cat or dog was RMB 3,969
In recent years, the living standard of pet life in China has gradually improved. The report indicates that Chinese pet owners spent an average annual amount of 3,969 yuan on their pets in 2018.
Specifically for pet dogs, the average annual cost per dog in 2018 was 4,723 yuan. This included 2,040 yuan on food, 800 yuan on supplies, 1,055 yuan on medical care, and 828 yuan on other services.
In 2018, the average annual cost per pet cat was 3,117 yuan, of which food costs amounted to 1,340 yuan, supplies 525 yuan, medical expenses 742 yuan, and other services 510 yuan. Compared with the costs of pet dogs, the cost of raising a cat is lower.
Chinese pet owners exhibit the 'three highs and one low' characteristics
The report shows that pet owners in China generally exhibit social characteristics such as being middle- to high-income earners, highly educated, belonging to the middle to upper class, and being young.
Specifically in terms of gender, the ratio of male to female pet owners in China is about 4:6. Regarding age distribution, pet owners born after 2000 account for 2%, those born after 1990 make up 48.1%, those born after 1980 account for 35%, those born after 1970 account for 10%, and those born before 1970 account for 4.9%. This indicates that the younger pet-owning demographic has become mainstream, and it also reveals the driving factors behind the booming development of the pet market in recent years.
Contrary to the 'common perception' that 'single people prefer pets', the report indicates that among pet owners in China, 61% are married individuals and 39% are single people. The proportion of married individuals who do not live with their parents is 43.8%. This shows that although owning a pet can accompany a 'single person', it also requires a stable financial foundation.
Specifically regarding the income of pet owners living in towns, those with an average monthly income of over 10,000 yuan accounted for more than one-third overall. Among them, those with a monthly income of 15,000 yuan or more made up 12.8%, those with 10,000 to 14,999 yuan accounted for 21.5%, those with 5,000 to 9,999 yuan accounted for 39.5%, and those with a monthly income of less than 5,000 yuan accounted for 26.2%. This indicates that there is a gradual increase in pet owners who have economic strength to ensure a certain standard of living for their pets.
Additionally, the report indicates that pet owners with a bachelor's degree or above account for 65.5%, while those with a postgraduate degree or higher make up 5.8%. Among them, employees in general corporate positions, management roles, and public institution jobs account for 29.1%, 23.1%, and 14.2%, respectively. A good educational and career foundation will enable pet owners to more readily accept new, healthy, and scientific pet care concepts and habits.
89% of people choose online to purchase pet products
Unlike Europe and America, which tend to focus on offline purchases of pet products, online shopping has become the main consumption method for Chinese pet owners.
The report shows that 89% of pet owners have purchased pet products online, with the main considerations being guaranteed online quality, a wide variety of supply sources, significant discounts, numerous promotional activities, and convenience.
In online consumer goods, pet food is a necessity. 88.5% of pet owners choose to purchase their pet food online. In addition, pet snacks, daily necessities, travel gear, pet medical supplies, pet toys, pet grooming products, pet pharmaceuticals and health supplements, as well as pet live animals, rank among the top priorities.
When purchasing pet food, 71.7% and 61.6% of pet owners prioritize whether the raw materials and ingredients meet nutritional needs and are easy to digest, indicating that pet owners attach particular importance to the nutritional health of their pets' food.
In terms of the frequency of purchasing staple grains, 61.5% of pet owners purchase pet food 6 to 12 times a year. Obtaining protein and other nutrients through professional pet food has become the main lifestyle for Chinese pets.
In addition to online consumption, a portion of people choose to shop offline at pet stores. 55.4%, 50.8%, and 47.4% of respondents respectively choose community pet stores, chain pet stores, and pet hospitals. The main considerations for pet owners choosing offline stores are the ability to pick up physical items and the richness of service content, such as boarding, grooming, and spaying/neutering.
Additionally, live transactions have become an advantage for offline stores due to the ability to see 'real objects'. 46.4% of people choose to purchase pets from pet stores, while 34.3% obtain them as gifts from friends.
In offline pet consumption, 78.4% of people would purchase pet medical services, 76.1% would buy pet grooming services, 42.2% would buy pet boarding services, and 27.3% would buy pet training services. With the city's dog restrictions and frequent conflicts between humans and pets, pet owners are making it a 'compulsory course' to train their pets formally, reducing potential conflicts in public places.
