China’s ‘fur babies’ offer opportunities for connection 

China’s pet industry is growing fast as millennials and Gen Z-ers eschew marriage and children and opt instead for pets – “fur babies”.

Context 

The growth of the pet industry is symptomatic of wider trends in society. China has an ageing population, fewer young people are in any hurry to marry (even if they can find a partner), while child-rearing costs are seen as prohibitive for many. And a generation of “little emperors” may not welcome the responsibilities and expectations that come with parenting. 

Why pet ownership matters

Mao Zedong once described pets as a bourgeois luxury, but Chinese pet owners are now doting on their furry friends in the way that Chinese parents have doted on their children, notes China Skinny. And, interestingly, trends that evolved in the mother and baby space are now happening for pets – including concerns about food ingredients and health.

What it means 

Brands and retailers are increasingly cognisant of the strong emotional connection people have with their pets (which, incidentally, stands in strong contrast to a lack of concern about welfare when it comes to farmed animals) and are realising there are opportunities to differentiate and connect with many consumers, whether that’s through pet-friendly retail strategies or via communications such as pet KOLs (key opinion leaders).

Takeaways

• There are around 70 million pet owners and 220 million pets in China; on one estimate, the pet total could soon rise to 400 million.
• China’s pet industry grew by 25% last year to reach 494 billion yuan, according to figures from iiMedia Research; it forecasts a figure of 811 billion yuan by 2025.
• China has more than 2.47 million pet-related enterprises, with nearly one million new related start-ups in 2022, Xinhua has reported.
• Acuity Knowledge Partners notes that as the current generation of pets ages, there is likely to be a surge in spending on veterinary care in the next few years. 

Sourced from China Skinny, Xinhua, The Economist, Acuity Knowledge Partners