Pet market recovery signals economic rebound

Exotic pets

Beyond the traditional dog and cat market, exotic pets are emerging as a fast-growing segment. Ownership of reptiles and aquatic pets has been on the rise, with the proportion of reptile owners increasing by 2.9 percentage points to 11.3 percent and aquatic pet owners by 0.6 percentage point to 13.4 percent, according to the report.

Birds, particularly high-value parrots like macaws and sun conures, are also gaining traction. Once rare in China, these birds have become a status symbol among affluent pet owners, with prices ranging from 20,000 yuan to 30,000 yuan for a juvenile macaw and exceeding 100,000 yuan for a breeding pair. This trend has sparked demand for specialized accessories, such as custom-built cages, high-end feed, and relevant toys, according to Wang of Pet Fair Beijing International Exhibition Ltd.

"The growth in the exotic pet sector reflects the evolving preferences of young, affluent consumers," said Wang. "They are not only looking for traditional companionship, but also for unique, high-status pets that align with their lifestyle."

As the industry matures, China's pet market is shifting from a phase of rapid growth to one focused on high-quality development. Pet owners are demanding better service standards, more refined operations and higher-quality products.

"Whether it's brand owners, channel partners or retailers, everyone is facing increasing pressure to raise their standards," Liu said. "The younger generation of pet owners know exactly what they want and expect businesses to deliver on those expectations."

This transformation is also fueling innovation within the industry. Younger entrepreneurs are entering the pet sector with fresh ideas, leading to the rise of new business models. Mars Supermarket, a pet supply chain founded by post-1990s entrepreneurs, and Petlift, a professional pet logistics platform that operates over 200 vehicles nationwide, are just two examples of how the industry is evolving to meet modern consumer demands.

According to Wang, the exhibition market is also playing a crucial role in shaping the industry. In 2024, over 80 pet expos were held across China, representing the thriving growth of the industry. Pet Fair Beijing, the first trade gathering of the year held by Pet Fair Beijing International Exhibition Ltd, provided a platform for brands to showcase new products, exchange insights and establish partnerships.

"Exhibitions are vital for setting industry trends and improving overall product quality," said Wang. "They help brands better understand consumer needs and refine their offerings accordingly."

This year, during Pet Fair Beijing, the first time it partnered with Pet Fair Asia, the improvements were attributed to more content that enhances harmony between humans and pets, deeper engagement between pet owners and service/product providers, and a focus on creating a better experience for all visitors, said Wang.

The show, held for four days in February, focused on generating trade opportunities for pet product producers, with events and seminars fostering better owner-and-pet relationships.

Despite ongoing challenges like market saturation and intensifying competition, industry experts maintain an optimistic outlook for the future of the pet economy.

"The future development of this sector will be driven by brands," said Wang Yunfei, director of the Pet Food Committee of China Association for Quality Inspection. "Quality, safety and innovation will be paramount."

Each year, the association introduces various group standards that focus on safety, quality and processes, while also addressing the most pressing pain points in industry development.

Recently, the association established a standard for probiotics, which are often incorporated into high-end pet food. However, several questions still need to be resolved, including definitions of effectiveness, the appropriate number of live bacteria and the overall state of the microbial ecosystem.

Leading companies are collaborating with the association to address these previously uncharted areas. "By doing so, we are not only elevating the quality of pet food, but also enhancing the welfare of pets through improved nutrition," Wang said.