Recently, more brands have begun to actively create and manufacture pet supplies for their customers. Branded pet goods such as McDonald's "Courier Cat Bed," Pizza Hut's "Pet Pizza Tunnel," and IKEA's "meatball pet collar" have swiftly become popular in the Chinese market.
In this edition of Good Insights, we will analyze the trend of the Chinese pet supplies consumer market in four areas, the development of the pet industry, the demographics of pet owners, change in demands, and lastly, some illustrations of the pet supplies in the current Chinese market based on categories.
Part 01: The Development of the Pet Industry
The pet industry has been one of the fastest-growing sectors in the Chinese fast-moving consumer goods market, both during and after the COVID-19 pandemic. It has remained a focal point for strategic and financial investors. Despite the backdrop of the COVID-19 pandemic and global economic slowdown, the Chinese pet market has maintained an annual growth rate of over 18% in the past few years.
Source: 2022 China Pet Industry Report by Huaxi Securities
In an increasingly unpredictable economic and market climate, the Chinese pet industry's ongoing strong development demonstrates its scarcity and corresponding investment value, which is truly exceptional.
However, the Chinese pet market's growth pace is undergoing a substantial transition. The market is shifting away from expanding pet ownership and toward value enhancement and consumption upgrade. While the pet food and pet services sectors have matured, the pet supplies industry remains the least mature sub-consumer market. Despite this, it continues to expand at a faster pace than previously.
Part 02: The Demographics of Pet Owners
Source: MAB Research Institute, Ku Run Data
The majority of pet owners are from the post-90s generation, with a high level of education and income. Almost 60% of them are white-collar professionals employed in businesses. Their fast-paced and high-pressure work environment creates a need for stress relief, which is fulfilled by owning pets.
Source: MAB Research Institute; Ku Run Data
Pet owners believe that their pets provide natural companionship and that their furry pals can help them heal and relax both physically and mentally.
With the rise of empty nesters whose children or parents are away for work, and DINK families who hold two incomes but choose not to have children, many married couples without children regard their pets as family members.
Part 03: Change in Demands
Source: iiMedia Research, Meritco Services, Western Securities R&D Center
Tech Innovations and Pet Supplies Trends
With the development of technology as well as the changing demands from pet owners, pet supplies are gradually transitioning from basic to smart products.
Among the current smart pet supplies, smart water dispensers, smart webcams, and smart feeders are the most recognized and preferred smart products.
Increased Demand For Emotional Value
Pet supplies' purpose has moved from supplying necessities to offering added emotional value to pet owners as pets play an increasingly important role in families.
The growing connection between humans and their pets has resulted in an increase in demand for both indoor and outdoor pet supplies.
Part 04: Five Pet Supply Categories (Non-Automatic)
Dinning
Non-Electronic Feeding Utensils, Portable Dinning Tools
Toys
Cat Toys, Dog Toys, Treat Dispensing Toys, Outdoor Toys
Bedding
Beds/Nests, Winter Blankets, Plush Mats, Stairs
Grooming
Brushes, Quick-Drying Towels, Styling Accessories, Clothing Accessories
Walking Accessories
Harnesses, Leashes, Pet Bags, Strollers, Camping Tents
Source: 2022 China Pet Industry Report by Huaxi Securities