The Rise of China’s Pet Economy: Domestic Brands Narrow the Gap with Global Giants

A growing emotional bond between people and their pets is fueling rapid expansion in China’s pet economy. Xiao Jin, a pet owner, spent over 10,000 yuan on surgery and several thousand yuan more on hospitalization and post-operative care for his cat suffering from corneal ulcers. He also paid daily fees for in-home care and purchased additional products such as high-priced canned food, treats, an e-collar, and specialized eye drops. These expenditures reflect a broader shift in consumer behavior, where pets are increasingly seen as family members, leading to growing willingness to spend on their well-being.

From 2017 to 2023, the size of China’s pet economy increased from 134 billion yuan to 592.8 billion yuan and is projected to reach 811.4 billion yuan by 2025. On a global scale, the market is expected to reach USD 160 billion by 2025, with China contributing over 25% of total market share. In addition to traditional segments like pet food, supplies, and veterinary care, emerging sectors such as pet funerals, insurance, tourism, and cloning have gained traction. Research highlights functional food, smart devices, and pet healthcare as areas offering structural opportunities, with emotional demand and technological advances continuing to drive growth.

The evolving industry has given rise to a number of representative domestic enterprises, with some local pet brands expanding into overseas markets. Valuations and market caps in China’s A-share listed pet economy companies have surged. Doggyman Pet Supplies (301498.SZ), for instance, saw its market value peak above 47.5 billion yuan before declining to around 38.4 billion yuan. Despite the momentum, leading Chinese companies remain smaller in scale compared to global competitors, indicating a phase of rapid catch-up.

The pet economy's growth is closely tied to trends in aging and single-person households. According to China Research Institute, core drivers include an aging population, rising numbers of singles and DINK households, and consumption upgrades. By the end of 2024, there were 310 million people aged 60 and above in China, accounting for 22% of the total population, with 220 million aged 65 or older. This is expected to exceed 400 million by 2035, representing over 30% of the population. Simultaneously, iiMedia Research noted that the proportion of single adults of marriageable age increased from 23% in 2010 to 35% in 2024. In 2025, China’s single population is projected to surpass 300 million, with over 50% of people aged 25–29 remaining unmarried.

This demographic shift has contributed to pets taking on roles as family members, with demand expanding from basic survival needs to full life-cycle care. In 2023, the pet consumption market reached 270 billion yuan, with pet food comprising 45% and more than 117 million pet-owning households spending an average of 6,300 yuan per year. The market exhibits polarization: the low-end segment is embroiled in price wars, while the high-end segment, including smart products and health services, maintains gross margins of 35%–40%.

Pet food remains the largest segment by share. According to China Business Research Institute, the pet food market reached 166.8 billion yuan in 2024, a 7.54% increase over the previous year, and is expected to hit 175.5 billion yuan in 2025. Staple food, snacks, and supplements account for 69.63%, 26.23%, and 4.14%, respectively. During the 2024 Double Eleven festival, staple food sales surged over 40%, with new products such as baked cat food and cold fresh complete meals growing by over 120% and 200%, respectively.

The pet healthcare sector is also expanding rapidly. China Research Institute estimates the market could reach 250 billion yuan by 2030. Leading veterinary chains are gaining market share through brand strength and standardized services. With digital tools like AI, big data, and online platforms, service delivery is becoming more efficient. However, China still relies heavily on imported clinical drugs—up to 70%—and lacks advanced equipment and treatments for cancer and chronic diseases.

Owners are increasingly interested in high-quality and smart pet products. Technologies like AI and gene testing are becoming growth drivers. AI-powered diagnostic tools now reduce test times to under an hour, and remote consultations account for 22% of services. Gene testing is becoming a new approach to pet health management.

The pet industry is also integrating with cultural tourism and biotech, giving rise to differentiated consumer products and pet-friendly business models. The supply chain is undergoing accelerated integration across breeding, raw materials, manufacturing, and services.

New sub-industries continue to emerge. Pet cremation, for example, costs over 800 yuan on average in major cities, with urn and keepsake services yielding over 70% gross margins. While no companies in this sector are publicly listed, regional firms like “Heavenly Pet” in Beijing have received institutional investment. In pet insurance, penetration remains below 1%. ZhongAn Online has introduced a “medical + designated hospital” model that uses chip technology to address reimbursement issues.

Investment is expanding beyond traditional pet food and supplies into areas like cloning, gene testing, and AI health monitoring. Sequoia Capital has led a Series C round in pet cloning company Sinogene and is building a portfolio across gene banks, cloning, and life insurance.

With premiumization in food and products, innovation in medical and health services, and deeper industry integration, the pet economy continues to broaden its scope. Between 2017 and 2023, the market grew from 134 billion yuan to 592.8 billion yuan, with a compound annual growth rate near 30%. It is projected to reach 701.3 billion yuan in 2024 and 811.4 billion yuan in 2025. As market size grows, A-share pet economy valuations and market caps are also rising. As of May 2025, the pet economy index had a total market cap of 341.8 billion yuan, accounting for 0.3% of all A-shares and matching the total value of the food processing industry.

Among individual stocks, Doggyman Pet Supplies remains the most valuable domestic pet company, with a peak market cap above 47.5 billion yuan and a recent value of around 38.4 billion yuan. Other actively traded firms include China Pet Foods (002819.SZ) and Tianyuan Pet (301335.SZ). China Pet Foods’ share price doubled this year, reaching a market cap of over 20 billion yuan before pulling back to 17.4 billion yuan. Tianyuan Pet briefly exceeded 5 billion yuan and recently stabilized at 4.3 billion yuan.

These leading enterprises generate 30%–70% of their revenue from overseas and compete directly with global players. Doggyman Pet Supplies reported 108% profit growth in 2024, with freeze-dried food achieving gross margins over 40%. Its enzymatic hydrolysis technology enhances digestibility, and its New Zealand facility serves the global premium market. In 2024, Doggyman Pet Supplies’ overseas revenue reached 1.693 billion yuan, accounting for 32.29% of total revenue. Its products are sold in over 30 countries, with the United States as its largest overseas market.

China Pet Foods derived 3.051 billion yuan (68.33%) of its 2024 revenue from overseas operations. It has established production capacity in the United States, Canada, New Zealand, and Cambodia to mitigate tariff risks and meet global demand. Tianyuan Pet earned 1.332 billion yuan from overseas in 2024, or 48.20% of its total revenue. The company has also expanded its domestic e-commerce presence by acquiring Taotong Technology.

Globally, the pet market was valued at USD 304.4 billion in 2023, with pet food accounting for 47%. The United States remains the largest market, with 2024 industry sales exceeding USD 147 billion. Pet food and treats contributed USD 64.41 billion.

The U.S. pet food market is dominated by multinationals owned by Nestlé and Mars, while Zoetis, formerly part of Pfizer’s animal health division, leads in pet healthcare. In China, the leading veterinary group is New Ruipeng. The firm established the nation’s first oncology specialty center for pets, with PET-CT machines seeing 12 cases per day and average ticket sizes exceeding 8,000 yuan. Its “3+X” model helped increase store revenue by 42%. Although New Ruipeng filed for a Nasdaq IPO, the application was withdrawn in June 2024 due to strategic considerations.

While U.S. pet industry giants have market caps in the tens of billions of dollars, only Doggyman Pet Supplies exceeds 10 billion yuan in China. Still, with growing capital interest, A-share pet sector valuations have surged, with median P/E ratios reaching 35x—comparable to U.S. counterparts.

Industry experts believe China’s pet industry is in a high-growth phase with expanding market scale and valuations. Although still catching up to mature global markets, further development and international expansion are expected to give rise to globally competitive enterprises and higher industry-wide valuations.