Summary of Key Points
China’s pet economy is on the verge of a boom: the market size is expected to exceed 312.6 billion yuan by 2025 and reach 400 billion yuan by 2028, attracting giants such as Wangwang, BYD, Haier, and Hisun Pharmaceutical to enter the industry. These companies are not starting from scratch but are applying their expertise in food, pharmaceuticals, and home appliances to the pet sector. The industry’s growth logic has shifted from simply increasing the number of pet owners to improving the consumption per pet. While domestic substitution and international expansion are new growth drivers, they also face challenges such as foreign regulations and brand recognition, marking a new phase of industrial capital restructuring.
Why are the giants all rushing into the pet market?
In short, the pet market is large, stable, and growing rapidly:
- Large scale: The pet consumption market will exceed 310 billion yuan by 2025, with food accounting for more than half of that amount, and it is expected to grow to 400 billion yuan by 2028, representing an annual increase of nearly 30 billion yuan.
- Stable growth: The pet food industry maintains double-digit annual growth, making it one of the few consumer sectors that are less affected by economic fluctuations. After all, pet owners will invest in their pets regardless of the economy.
- High user overlap: For example, Wangwang’s target audience is young women, who make up over 60% of pet owners, allowing the company to leverage existing customer trust when entering the pet market.
Giant companies are not entering the pet market casually; they are leveraging their existing strengths:
- Wangwang: Utilizes its standards for human food production and brand reputation to ensure the quality of pet food, as trust is crucial in this industry.
- Hisun Pharmaceutical: Applies strict pharmaceutical standards to pet medicines, such as sterile production and component testing, making its products more reliable than conventional veterinary drugs. Ten years ago, there was almost no domestic pet medicine production; now, the company offers a range of vaccines, chemical drugs, and prescription feeds, with 4-6 new products released annually.
- Haier/Honeywell: Adapts home appliance technology to pet needs, such as washing machines that remove pet hair and air purifiers for cats with automatic hair suction features.
The pet economy has changed: from “more pets” to “better care for pets”
In the past decade, the pet market grew due to an increase in the number of pet owners, but now the growth rate has slowed. The focus has shifted to spending more on each pet:
- Increased consumption per pet: Pet medical expenses will account for 27.6% of the total market by 2025 (about 86.3 billion yuan), with a significant increase in spending on vaccines, deworming, and geriatric care. Pets over 6 years old represent a growing segment, and their joint health and chronic disease management have become new priorities.
- Quality over quantity: Pet owners now demand higher-quality products, such as cat/dog-specific feeds and prescription feeds (e.g., for kidney disease). The growth of preventive products (deworming, vaccines) exceeds that of therapeutic drugs, indicating a greater emphasis on pet health management.
Domestic substitution and international expansion: dual strategies for growth
- Domestic substitution is accelerating: The share of domestic brands in the cat food market has risen from 18.3% in 2021 to 41.7% in 2026, but pet medicines are still in their infancy. There is significant room for improvement, especially in areas like cat triple vaccines and premium deworming drugs.
- International expansion is crucial: The global pet market will reach 287 billion US dollars (about 1.93 trillion yuan) by 2026, with Chinese brands playing a smaller role. Companies like Hisun Pharmaceutical are investing in international production lines, but they face challenges such as varying regulatory requirements and building brand recognition overseas.
The industry is entering a new phase of restructuring led by giants
Previously, the pet market was dominated by small brands. With the entry of giants, capital, technology, and brand strength, the industry is reaching new heights:
- Events like the Asia Pet Expo showcase the presence of non-pet companies like BYD and Honeywell, indicating that the pet market has evolved from a niche hobby to a mainstream consumer trend.
- The entry of giants will force smaller brands to either specialize in specific segments (e.g., senior pet food) or be eliminated.
In summary, the pet economy is no longer a niche market; it is becoming a new “blue ocean” driven by large capital and advanced technology. It is expected to become more regulated, professional, and may see the emergence of world-class brands in the future.