Following this psychological demand, keeping pets has increasingly evolve into a mainstream life choice in cities. According to the 2018 China Pet Industry Report, from 2013 to 2018, the number of pet households increased from 69 million to 99 million, in five year-on-year growth of 43.9%. And because of the popularity of pet videos on short video platforms e.g. Douyin (also known as Tiktok), potential pet users are also expanding.
At the same time, due to the rapid development of the national economy and urbanization, the income of urban residents has thereby increased rapidly, so, pet owners are willing and is possible to spend more and more on their pets.
1. Petcare Market Preview
1.1 Petcare Market Development History in China
From the beginning of 1990s, the thought of keeping a pet has been introduced into many people’s life, and followed by this trend, the first batch of offline pet product stores began to appear and drove the growth of pet-related economy. In this decade, China’s pet economy has therefore entered a period of burgeoning, while the pet product market has begun its development.
Coming into the next decade, the 2000s, pet market has entered its incubation period. Pets has turned into “emotional companionship” and have begun to be regarded as members of the family for the pet owners. The increase in consumption of pet products caused by this mental shift has promoted the expansion of domestic pet commodity production in large-scale factories in China as well.
With the advent of the 2010s, China’s pet industry has entered an explosive period, with the pet-related product market also entered a period of rapid development. People who choose to keep pets are no longer a minority in the city, and the consumption scale of the pet-related product market has also grown tremendously along with the number of pet-keeping households.
1.2 Online Pet Products Consumer Market in China
1.3 Portraits of Major Patcare Product Chinese Consumers
From the perspective of online shopping consumers by region, because the amount of online consumption of pet-raising people living in rural areas is too small, almost all online consumption is from urban pet-raising people. Among them, first-tier cities have the strongest consumption amount.
For consumers buying pet products online in gender differences, female costumers contribute up to 60% consumption amount, while male costumers contribute the rest 40%. At the same time, in terms of age, young consumers (post-90s/95s) have the largest consumption share of all age groups, which also exceeds 40%. This proportional distribution synchronizes with the distribution of online shopping consumers, in which female consumers and the younger 90/95 generation is also the majority. It is worth noting that the population of pet owners who shop online can also represent the gender and age ratio of the pet population. This may be related to the rapid development of online e-commerce, while offline stores have yet to mature and improve themselves.
2. Food-related Petcare Product Consumption in China
2.1 Refined Demand for Pet Staple Food in China
2.2 The Consumption Overview of Pet Nutrition Products
Varied by the type of pets, the efficacy of the top products that account for a relatively high consumption of cat and dog nutritional products is not consistent. Regarding cat nutrition, the product with the highest consumption ratio is the hairball relieving products, which is related to the licking habit of cats. In addition, because most cat pets have a weaker gastrointestinal condition, gastrointestinal conditioning nutrients account for the second place in the consumption of cat functional nutrients.
From the perspective of dog nutrition, pet owners prefer basic immunity and calcium supplements in product selection. In addition, hair care nutrition is used in the consumption of both cats and dogs. Their proportions are relatively high, also indicating that pet owners are very concerned about the appearance of their pets.
Stimulated by new e-commerce promotions, such as live streaming, short videos, and the attitude change of pet owners to see pets as companionship, new demands and new consumption methods are constantly generated.
The customization and categorization of the staple food market; the refinement and functionalization of the nutritional product market have brought many challenges to various brands in the market. Brands need to seize the new market trends, capture to the new preferences of consumers, and mature its own product operations, scientific products, etc., in order to obtain the expansion of its own sales performance and earn brand benefits.
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