The pet industry in China has witnessed exponential growth in recent years, with cats and dogs becoming integral members of many families. However, alongside this surge in popularity comes a pressing question: can the pet economy achieve sustainable development?
Luo Li’an, founder of a pet club in Beijing established in late 2015, attests to the industry’s upward trajectory. He notes a significant uptick in individuals not only adopting pets but also investing in enhancing their furry companions’ quality of life.
Over nearly a decade of operation, Luo has observed a steady influx of young professionals seeking emotional solace from their pets amidst the challenges of early career phases, including navigating interpersonal dynamics and workplace stress.
“This explains why an increasing number of people are willing to allocate resources—both financial and temporal—towards their pets, thus propelling the rapid expansion of the pet economy,” Luo remarks.
Luo’s club, which frequently organizes group outings for pet owners during weekends and holidays, represents just one facet of the burgeoning pet-related enterprises in China. From specialized food and attire to healthcare and grooming services, a multitude of businesses cater to the needs of domestic animals, sustaining a demand for professions such as pet trainers and photographers.
According to China’s Pet Industry White Paper 2023-2024 (Consumption Report) released by Petdata.cn, the urban pet consumption market in China reached 279.3 billion yuan in 2023 and is projected to soar to 361.3 billion yuan by 2026.
This trend isn’t exclusive to China. Globally, the pet industry is forecasted to expand from $320 billion to nearly $500 billion by 2030, according to a report from Bloomberg Intelligence. The growth is propelled by a swelling global pet population and a surge in demand for premium-grade products and services.
However, amid the flourishing pet economy, concerns about sustainability emerge.
A study by the University of Edinburgh in 2022 revealed that the carbon footprint of global pet food production surpasses that of entire countries like Mozambique and the Philippines. Additionally, the proliferation of plastic and packaging associated with pet ownership exacerbates environmental concerns.
Recognizing these challenges, industry leaders are increasingly prioritizing sustainability initiatives. Jeff Hamilton, CEO of Nestle Purina Petcare Europe, emphasizes the importance of transitioning towards lower-carbon products and recyclable packaging to align with consumers’ evolving preferences.
In China, as the nation commits to its “dual carbon goals,” emphasizing carbon emissions reduction and neutrality, pet owners are gravitating towards environmentally friendly alternatives. Many pet-related enterprises are investing in innovative solutions, such as utilizing insect protein derived from black water flies in pet food production.
Furthermore, conscientious pet owners are proactively seeking out sustainable brands and scrutinizing packaging and production processes for eco-friendliness and recyclability.
In light of escalating environmental challenges, pet enthusiasts recognize the imperative of supporting sustainable practices within the industry to mitigate its ecological footprint.
