In recent years, under the influence of social phenomena such as population aging and an increase in single-person young people, people have developed new demands for 'companionship'. Pets have gradually become an important means of relieving stress and connecting emotions. Driven by factors such as the gradual expansion of pet ownership scale, the continuous increase in pet owners, and the enhanced consumer willingness of pet owners, the 'pet economy' has developed vigorously. The pet industry has maintained a high growth trend, with new growth curves emerging in pet food, supplies, healthcare, and other sectors. With the upgrading of pet owners' concepts and understanding of pet ownership, various sub-sectors of the pet industry have also undergone leaps and bounds, presenting new trends, new movements, and new developments.
Data shows that the scale of China's pet economy continues to expand, with an expected value of 592.8 billion yuan in 2023. The number of pet-owning households in China has exceeded 98 million in 2022, and it is expected that the number of pet-owning households will exceed 100 million in 2023, with the number of pets approaching 220 million.
The increasingly booming pet economy has not only driven the rapid development of various pet-related industries but also allowed many brands to see the consumer demand and opportunities hidden behind pet owners. Under the prosperous 'pet economy', where should pet brands go? How can they more deeply explore the market? How can they achieve healthy growth in a complex development cycle?
Based on these considerations, Frost & Sullivan (hereinafter referred to as 'Frost & Sullivan') has joined hands with Bird Language Flower, a globally leading brand in pet smart products, to release the '2023-2024 Pet Industry Green Book' and the '2023-2024 China Pet Products Consumption Trend Report' (hereinafter referred to as the Green Book). The report takes into account the macro-environmental changes in the pet industry, the structural adjustment of pet owners, the current development status and trends of pet food, supplies, health, and retail industries, as well as the development trends of the global pet industry from a global perspective. It deeply analyzes the risks and opportunities in the development of the pet industry.
Pet consumption is growing at a high rate
The concept of 'Healthy Pet Care' promotes the refined development of the industry
According to the Green Book data, in 2022, the consumption market scale of urban pet dogs and cats in China continued to expand, showing a positive growth trend. The vast pet population and the solid purchasing power of pet owners have injected strong growth momentum into the development of the pet consumption market.
Data from the '2023-2024 Pet Industry Development Green Book' shows that the current pet ownership consumer group is mainly concentrated in cities with a population aged 25-34, characterized by high income, high consumption, and high education levels. Compared to other pet owners, this group tends to have more refined and diversified pet care concepts, placing greater emphasis on the physical and mental health as well as quality of life of their pets.
When the underlying basic needs are met, pet owners shift their pursuit to higher quality and demand. For the development of the pet market, the potential brought about by the expansion of pet ownership will gradually shift towards consumption upgrades driven by value enhancement. Higher-quality consumption, intelligence, and the penetration rate of niche categories collectively constitute the core driving factors for the current growth of China's pet market.
From the perspective of pet health, pet owners' demands for pet food, supplies, and other products are becoming increasingly diverse, driving relevant enterprises to continuously iterate and upgrade their brands in terms of raw materials, technology, and means of production. The nutritional composition, ingredient sources, scientific ratios, and functional efficacy of pet food have become the primary considerations for pet owners when choosing pet food.
In addition, pet owners' spending on supplies for pet home entertainment, travel, smart pets, and cleaning and health is also increasing. As one of the growth consumer categories, the market size of the pet smart supplies industry is constantly rising, with an estimated value of about 7 billion yuan by 2024, and it is expected to experience even greater explosive growth in the future.
Another manifestation of pet owners' increased attention to pet health is the increase in spending on pet medical care and pet insurance. In 2022, the market scale for pet health consumption in China reached 121.6 billion yuan, with an annual compound growth rate of 33%. Pet owners' emphasis on pet health is gradually increasing, leading to new demands for pet health protection and related services.
In terms of pet nutrition and health care, based on the cohabitation environment between humans and pets and pet owners' demand for fun and scientific feeding practices, pet owners are increasing their expenditure and frequency on comprehensive nutritional care for their pets. Parasite control, gastrointestinal health, and skin health are receiving more attention from pet owners.
Although online e-commerce platforms have become the primary consumption and decision-making scenario for most pet owners, as the enthusiasm for 'returning to offline' resurges, pet stores, pet hospitals, and exhibitions have also become important channels for pet owners to learn about new products and adopt new breeds. Offline pet stores are pursuing compound growth points, continuously developing new derivative service items, and diversifying their pet retail formats.
From a global perspective
New trends in the development of the pet industry
Relevant data shows that the global pet market size has always been in a state of growth and is expected to continue at double-digit rates for the next few years. Taking the US pet market as an example, the number of pets in the United States was about 402 million in 2022 and is expected to grow at a compound annual rate of 0.3% in the future, reaching 409 million by 2027.
With the growth in the number of pets and pet owners' increasing concern for pet health, the US pet market size increased from 479.6 billion yuan in 2017 to 675 billion yuan in 2022, with a compound annual growth rate of 7.1% during this period.
Looking at the development trend, the global pet market presents several distinct trends.
Firstly, pet products are becoming more user-friendly, such as customized pet food, pet blind boxes, and human-grade pet food, which are popular among consumers. Secondly, there is the development of technology- and intelligent products, with emerging technologies gradually being applied to the pet product market. Thirdly, there is a trend towards green environmental protection, such as the use of plant-based products in the pet food sector. Fourthly, pet services are diversifying, providing new development opportunities for the pet market.
From macro industries to niche areas, from population structure to consumption preferences, from marketing channels to service models, the '2023-2024 Pet Industry Development Green Book' analyzes the challenges and opportunities faced by the pet market and enterprises from multiple dimensions, aiming to provide a diverse perspective for the pet industry and brands.
As a part of China's vast pet market, Bird Language and Fragrant Flowers remain true to their original aspiration. They always hope to provide pet owners with more diverse life experiences, safeguard pet health through technological means, boost the happiness of people and pets in their lives, and at the same time, they aspire to participate in promoting the healthy development of the pet industry, fostering the healthy and resilient growth of the industry and brands.
About the Sounds of Birds and the Fragrance of Flowers
A globally leading pet smart life service provider, Bird Language and Flower Fragrance was established in Shanghai, China. With the dedicated support of its large R&D team, it continuously designs and launches pet-friendly products, creating trustworthy products and services for pet owners worldwide. It helps pet owners keep track of their pets' health status in a timely manner and achieve scientific pet care.
Adhering to independent innovation and self-developed products, Bird Language and Flower Fragrance has launched over 600 product SKUs since its establishment. Currently, it offers six major product lines: feeding, cleaning, care, outdoor, toys, and home goods. It continuously creates popular products that rank among the top in multiple categories, fully covering the needs of modern pet families. The company has also established the PET MARVEL brand, set up multiple overseas distribution headquarters, including Amazon, and an independent brand website, covering more than 30 countries around the world for diversified overseas sales.
