Weekend Long Read: How China’s Pampered Pets Fuel a $40 Billion Market

China's pet economy has rapidly grown into a multibillion-dollar market driven by the emotional needs of the nation as it undergoes significant economic and demographic shifts. In 2024, urban Chinese pet owners spent over 300 billion yuan ($41 billion) on their furry companions, highlighting a 7.5% increase from the previous year. This expenditure exceeded the size of China’s comprehensive health supplement market in 2023, indicating the growing importance of pets in Chinese households.[para. 1][para. 2][para. 3]

A major contributor to this growth is the increasing number of pet owners, surpassing 100 million nationwide. Notably, the urban pet population in China exceeded the number of children under four years old in 2024, and is projected to be double that of young children by 2030. This demographic change is significantly marked by the choices of those aged 23-33, who made up nearly half of the pet-owning population in 2023. For many young people, opting for pets over children has led to increased spending on pet-related products.[para. 3][para. 4]

As pets transition from being simply animals to feed to cherished family members, emotional ties between pets and their owners have fostered rapid market growth and innovation. On average, each pet owner spends about 6,000 yuan annually on their pet, while specific segments like the feline market experienced a remarkable 10.7% growth rate in 2024. This results in owners willing to spend more on a diverse range of products and services, treating their pets with the same care and affection as they would for family members.[para. 4][para. 5][para. 6]

Reflecting changes in lifestyle induced by pet ownership, Abby, a woman in her 30s, epitomizes this trend. After attending the 2025 Beijing International Pet Supplies Exhibition, which attracted 230,000 visitors, Abby loaded her car with supplies for her own pets. She then left a career in the automotive industry to manage a pet boarding house in Beijing’s Tongzhou district. Her business model, which offers free-range boarding services, underscores the innovative transformations within the industry and people’s increasing willingness to integrate pets into all aspects of their daily lives.[para. 7][para. 8][para. 9]

The growing pet economy extends beyond mere spending on essentials. The demand for pet-related services and products now also hinges on ensuring the emotional well-being of pets. Increased awareness has led to more businesses offering pet services, which have surged from 8,200 in 2015 to 259,100 by early 2025. This growth has been further accelerated by a greater focus on the psychological health of pets, spurring a range of services from behavior correction to end-of-life care.[para. 9][para. 10][para. 11]

However, the industry faces challenges, such as notable gaps in the pet training industry in China. Compared to Germany's pet-to-trainer ratio of 8,000 to 1, China severely lags behind, emphasizing the potential for development and increased investment in this sector. As Chinese society continues to adapt to a more pet-centric lifestyle, professional pet education and positive training approaches are expected to gain prominence, contributing toward a well-rounded and vibrant pet economy.[para. 12][para. 13][para. 14]

The pet economy is increasingly tied with the emotional economy. Young people derive immediate emotional satisfaction from pets, often choosing them over traditional relationships. This trend demonstrates the dual role of pets as both sources of emotional support and investments in personal well-being, despite ongoing challenges in the industry related to segmentation, refinement, and technological advancements.[para. 15][para. 16][para. 17]