China pet industry trends in 2021

Growth rates

Chinese pet industry sales reached almost ¥300 billion ($46.3 billion / €38.5 billion) in 2020 – a compound growth rate of 32.8% between 2015 and 2020. The pandemic was certainly responsible for part of this rapid growth.

Based on an increase in average income and the number of Chinese pet owners, iResearch has predicted a 14.2% compound growth rate for the next 3 years, making the market worth ¥445.6 billion ($68.8 billion / €57.2 billion) by 2023.

Millennial pet parents

Young, highly educated, a high income and married: that is the current profile of many pet parents in China. Millennials account for 27% (born since 1985) and 33% (born since 1990) of pet ownership. The proportion of women is higher than that of men. 70% of pet owners have a Bachelor’s degree. Pet owners value health, happiness and hygiene.

Effect of the pandemic

The shift to online has accelerated since the pandemic started. More time spent with pets has driven growth of overall pet supply consumption, with pet parents paying extra attention to the health of their pets.

Visits to physical stores may have decreased, but the premiumization trend continues.

Product sales have been affected by the pandemic because of problems with shipments, customs clearance, distribution and contact with manufacturers and agents. Fewer exhibitions and trade shows have also reduced exposure opportunities for new brands and products.

Focus on functional food

Natural and organic foods are popular, and Chinese pet parents are keen on food with multiple benefits: immunity strengthening, gastrointestinal conditioning, calcium supplementation and skin care.

Pet product consumers also value brands, whether imported or domestically produced, and generally focus on the quality and safety of food. They are increasingly price aware, and this has provided opportunities for cost-effective domestic brands.

Picky about snacks

Snacks are purchased more frequently than food. Pet parents appreciate quality but still look at cost when shopping for snacks. They care about nutrients, packaging specifications and freshness. In terms of ingredients, their prime consideration is the type of meat, with preferences for chicken, beef, duck and fish. For snacks, the function is vital. Is it gentle on the pet’s stomach? Good for picky eaters? Stops teeth grinding? There is less of a focus on brands in this pet food category.

Smart and convenient care

Grooming and sanitary products have a high repurchase rate. Most pet travel supplies are consumer durables, and the purchase frequency is relatively low.

Compared with general pet products, pet care consumers are attracted to innovation, safety and design. Although convenience is also highly valued, it is smart products that are preferred by pet parents – meeting their needs to save time and effort.