As a start for this PET Supplies Blog, we want to share some useful insights about the pet industry first.
1.Current situation of pet products market all over the world: The United States and Japan are growing steadily, while China is in a period of rapid development.
In 2020, the U.S. pet economy accounted for 40% of the global pet economy, ranking first in the world, while Japan follows the U.S, accounting for 5.7%.
The U.S. leads the world in pet penetration, with 84.6 million households owning pets in 2018, up from 56% in 1988 to 67% today.
2.China’s pet industry is in a period of rapid development
China’s pet industry started late, and the concept of pets emerged quietly in the 1990s. At present, China’s pet economy has entered a period of rapid development, but the penetration rate is low and the popularity of the scientific pet raising concept is low. China’s pet market reached to RMB202.4 billion in 2019, up to 18.50% than 2018.
According to The White Paper on China’s pet industry, At present, the number of pets in China is growing steadily, and cats and dogs are the main types. The number of pet dogs and cats reach 52.22 million and 48.62 million in 2020, up 29.45% from 2017.
In 2019, China’s pet ownership rate (22.8%) was much lower than that of countries such as the United States (67%) and the United Kingdom (44%).
The average number of pets in Chinese households has been increasing steadily year by year.
2.1Demographic and social changes are driving up pet ownership
At present, the main factors affecting the pet penetration rate in China are the changes in population and social structure. As the population ages with the increase of the number of people living alone, emotional demand drives the rapid release of pet demand.
1) Keeping pets is indispensable spiritual sustenance for elderly people whose children are seldom around. As the elderly population expands further, the pet economy continues to grow. In 2019, the number of people over the age of 60 in China exceeded 253 million, accounting for 18% of the total population.
2) In 2018, 16% of China’s population lived alone, with 240 million single adults, more than 77 million of whom lived alone, which is expected to rise to 92 million by 2021.
2.2Rising incomes and changing attitudes have given a new generation of pet owners greater spending power and willingness to spend.
Economic growth leads to the increase of residents’ income, which is the premise for the development of pet consumption to enter the fast lane. The change of concept makes the new generation of urban young pet owners have stronger consumption intention. With 92% of owners now viewing their pets as family members, children, or friends, a new generation of pet owners is more likely to buy packaged food for their pets, pay for any medical expenses, and buy all kinds of pet products.
The annual per capita consumption of a single pet in China has increased from RMB4,348 in 2017 to RMB6,653 in 2020 and is expected to continue to grow. In 2019, pet expenditure in Chinese household consumption accounted for 0.29%, a significant increase compared with the past, but compared with 0.52% in American household consumption in 2019, there is a big gap.
2.3Online e-commerce has become the main purchasing channel, accelerating the rapid growth of the pet industry.
Online e-commerce has become one of the most important purchasing channels for pets, accelerating the growth of the industry.
With the rapid development of the Internet, pet owners have more diversified channels to obtain information. Different from the sales channels dominated by supermarkets in developed countries in Europe and the United States, Pet owners in China prefer to buy pet products through e-commerce channels.
2.4 ChinaPolicies from forbidden to standardized, China’s pet and industry management is constantly optimized.
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