China’s pet industry remained one of the country’s strongest consumer sectors in 2025, reaching an estimated US$43.4 billion and demonstrating resilience despite broader economic uncertainty, according to a report from USDA’s Agricultural Trade Office in Shanghai.
The market grew 4.1% year over year, fueled by higher spending per animal. The trend reflects a transition from volume-driven growth to a value-focused market where consumers increasingly seek premium products and specialized services.
Pet food accounted for 53.7% of total pet-related expenditures in 2025, or approximately US$23.3 billion, maintaining its position as the largest segment of the industry.
Cat ownership continues to outpace dogs
China’s urban pet population reached 126 million in 2025, with cats continuing to outgrow dogs in both numbers and spending. Urban households owned 72.9 million cats and 53.4 million dogs.
Average annual spending reached US$418 per dog and US$290 per cat, with cat-related expenditures rising at a faster pace. The report noted that changing urban lifestyles and shifting consumer preferences are helping fuel the expansion of the country’s “cat economy.”
Functional and fresh foods gain momentum
Consumers born in the 1990s remain the largest group of pet owners, while those born in the 2000s are entering the market rapidly. These younger buyers tend to place greater emphasis on functionality, nutrition and brand identity and rely heavily on digital platforms for both information and purchases. Cities in Southwest China, including Chengdu and Chongqing, are seeing especially strong demand.
Consumer preferences are shifting toward premium formats, including fresh, freeze-dried, baked, air-dried and wet foods. Younger urban consumers increasingly associate these products with improved digestibility, higher nutritional value and better palatability.
Functional nutrition also continues to gain traction. Pet owners are showing stronger interest in ingredient transparency, clearly identified protein sources and scientifically formulated diets.
Poultry-based proteins are becoming more popular than red meat and seafood, while high-protein and functional ingredients are increasingly viewed as essential rather than optional.
Exotic pets create new opportunities
Beyond cats and dogs, exotic pets are becoming increasingly mainstream among younger consumers.
Aquatic pets represented 17.3% of pet owners in 2025, followed by reptiles at 13.5%, birds at 8.7% and rodents at 7.6%. Demand for specialized nutrition and healthcare products is creating opportunities for manufacturers serving niche categories.
South China, particularly Guangzhou and Shenzhen, has emerged as a center for exotic and aquatic pet development.
