Analysis on the market size and development prospect of China’s pet industry in 2021; Compared with developed countries, there is huge domestic development space.

The growth rate of China market is higher than that of the whole world.

From 2010 to 2020, the market size of China’s pet industry increased from 13.44 billion yuan to 72.73 billion yuan, with a compound annual growth rate of nearly 20%, which is higher than that of the whole world. In 2020, the US pet consumption market accounts for 41.1% of the world, ranking first, and China accounts for 8.1%. The pet raising rate and the annual consumption of a single pet in China are far below the level of developed countries, and there is much room for growth in the future.

Judging from the proportion of pet expenditure in household consumption, in 2014, the difference in the proportion of pet expenditure in household consumption between China and the United States was 3.1 times, and in 2019, the difference dropped to 1.8 times.

1. The average annual compound growth rate of China’s pet industry is nearly 20%, accounting for less than 10% of the global market.

With the development and prosperity of China society, the role of pets is gradually changing — — Cats and dogs are increasingly regarded as indispensable members of the family, rather than simply companion pets. Social media has also promoted pets to become an important part of young people’s lives, and the trend of "raising cats in the cloud" has made owning pets more desirable. Therefore, the pet market has grown rapidly in the past 10 years. In 2020, the pet consumption market in China will be 72.73 billion yuan, up 21.1% year-on-year, and the CAGR will be 18.4% in 10 years.

With the development of economy, the consumption of pets is also increasing. Families in most developed countries regard pets as family members, and the spending on pets is increasing. According to Euromonitor data, in 2020, the global pet market industry scale will be about US$ 138.2 billion, up by 4.4% year-on-year, and the CAGR will be 3.6% in 10 years. Among them, the pet consumption market in China, Japan and the United States accounted for 8.1%, 4.2% and 41.1% of the global market respectively.

2. There is a big gap between China’s pet raising rate and single pet consumption amount and developed countries, and there is huge room for improvement.

In the past decade, the changing population and social structure, as well as the improvement of income and adoption rate, have become the main factors to promote the growth of pet keeping rate in China. Compared with other parts of the world, in 2019, the family pet raising rate in China was only about 17%, far lower than 67% in the United States, 62% in Australia and 44% in the United Kingdom. The pet raising rate in China is far lower than that in developed countries, and there may be several times room for improvement in the future.

Since 2016, the growth rate of China’s single pet consumption has increased year by year, mainly driven by the increase of per capita disposable income and the enhancement of pets’ kinship attributes; In 2020, the annual consumption of a single pet in China will be $59. Compared with other countries, in 2020, the consumption of single pet in Japan and the United States will be $317 and $343, respectively, and the consumption of single pet in China is still lower than that in developed countries.

3. The proportion of pet expenditure in household consumption in China has increased, and the gap with the United States has narrowed.

From 2014 to 2019, the proportion of pet expenditure in household consumption in China increased from 0.16% to 0.29%, and the proportion of pet expenditure in household consumption in the United States in 2019 was 0.52%. In 2014, the difference in the proportion of pet expenditure in household consumption between China and the United States was 3.1 times. In 2019, the difference dropped to 1.8 times.

It can be seen that there is an obvious trend of consumption upgrading in the pet market in China, which accelerates the expansion of the pet market. With the stronger willingness of consumers in China to invest in pets in the future, the pet industry has great development potential.

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