A recently released report by Goldman Sachs has disclosed that for the first time in 2024, the population of pets in China exceeded the number of children under the age of four.

The report forecasts that by 2030, the number of pets in the country could nearly double the number of infants and toddlers.

As a comparative reference, China was recorded to have 73.4 million children under four years old in 2021, a figure that has seen a steady decline due to decreasing birth rates.

In contrast, a 2025 China Pet Industry White Paper suggests that the urban pet population alone has reached approximately 120 million within major cities, and the consumption market related to urban pets, specifically dogs and cats, has surpassed 300 billion yuan (approximately 41.8 billion U.S. dollars).

Current data from China's Ministry of Housing and Urban-Rural Development indicates that the urban population in China was around 930 million in 2023, translating to an average of one out of every eight urban residents owning a pet.

The evolving perception of pets in China, from companions to integral family members, has significantly impacted spending behaviors.

Pet owners are increasingly inclined to invest in premium products and services for their pets.

For instance, Shen Jing, a 23-year-old pet owner, reported expenditures of around 1,500 yuan per month on high-quality pet food, snacks, toys, and healthcare costs for her Golden Retriever.

Market participants are witnessing escalating expenditures on advanced pet care products.

Gao Boxin, a 26-year-old owner, mentioned his willingness to spend on specialized equipment for his Corgi, encompassing a treadmill and a heart rate monitor, thus illustrating the growing trend of treating pets akin to children.

China’s pet economy has transitioned through distinct phases, from a practical-oriented era (1.0) in the 20th century, where pets served functional roles, to a companionship-focused era (2.0) in the 2000s, characterized by emotional engagement between humans and pets.

Since 2015, this has evolved into what is termed the pet economy 3.0, where pets are increasingly seen as valued family members, triggering innovative product developments and specialized services catering to their diverse needs.

The rise of pet-centric enterprises, such as the engagement by snack brand Three Squirrels in producing dog food, showcases a growing emphasis on high-quality pet nutrition.

Hu Zimeng, from Jiangsu Weihong Pet Products Co., Ltd., commented that their pet snack division has enjoyed an annual growth rate of over 10 percent in recent years, reflecting the escalating demand for premium pet products.

Moreover, the pet industry structure is currently segmented into three main areas:
1. The upstream segment focuses on breeding and trading;
2. The midstream encompasses products like food, toys, and apparel;
3. The downstream includes services such as grooming, medical care, and pet funerals, which have recently seen remarkable expansion.

As pet care becomes more sophisticated, notable services have emerged, offering specialized options including pet insurance, health check-ups, cremation, and memorialization.

A report by Tianyancha noted over 1,100 new pet funeral businesses have been established in the past six months alone.

Data from iiMedia Research projects that China's pet industry market size is anticipated to reach 811.4 billion yuan by 2025, indicating substantial growth within this sector.

Industry experts advocate for supportive measures that include enhanced legislation, improved regulatory oversight, and the promotion of pet-related projects to sustain this upward trajectory.