The 26th Pet Fair Asia was in full swing at the Shanghai New International Expo Center from August 21 to 25. A major global event in the pet industry, this year's exhibition broke records with a whopping 300,000 square meters of exhibition space, over 2,500 exhibitors from around the world and more than 100,000 participating industry professionals and 350,000 pet enthusiasts.
This year's edition gathered participants from 91 countries, with a 41.8-percent increase in international visitors and a notable growth in global brand participation. The fair offers a platform for international businesses to access China's growing pet market.
Pet enthusiasts take pictures with a dog at the 26th Pet Fair Asia in Shanghai on August 21 (Wang Ruohan)
A thriving market
The success of the fair, launched in 1997, reflects the rise of China's pet economy as a new growth driver. According to the 2023-24 China's Pet Industry white paper, there were 121.55 million dogs and cats in urban areas in 2023, a 4.3-percent increase from the previous year. Urban pet ownership reached 75.1 million, up by 6.6 percent. The urban pet market (for dogs and cats) grew by 3.2 percent to 279.3 billion yuan ($39.6 billion). Annual spending on each dog averaged 2,875 yuan ($408), while that on each cat was 1,870 yuan ($265).
This booming market mirrors rising incomes and an increasing demand for emotional fulfillment, showcasing China's considerable consumption potential.
Data from the National Bureau of Statistics show that in 2023, the national per-capita disposable income reached 39,218 yuan ($5,500), an increase of 6.3 percent from 2022. As incomes go up, so does consumption. Per-capita consumer spending increased by 9.2 percent to 26,796 yuan ($3,800).
In addition, the rise of the pet economy echoes a broader shift in societal values. Younger generations and older adults are increasingly turning to pets for companionship. As China's single-person households are mushrooming and the aging population grows rapidly, pets are becoming a major source of comfort and emotional support. Young people and seniors, in particular, find relief from stress and a sense of connection through caring for furry friends. According to the white paper, pet ownership not only fulfills people's emotional needs but also provides a sense of purpose and responsibility, especially through caregiving.
The pet industry has also undergone substantial transformations. According to Liu Xiaoxia, founder of Petdata.cn, a news portal focusing on China's pet industry, rising demand for premium and niche products is driving upgrades across sub-sectors such as pet food and accessories, culminating in the advent of smart, more specialized, and more diverse products.
Moreover, new and quirky pet-related services have emerged in China, unveiling the growing trend of pet humanization. Such services include pet matchmaking events, weddings and even detective services to help locate lost animals—underscoring Chinese pet owners' increasing devotion to their fluffy companions.
An FDI magnet
China's immense consumer market is also drawing in foreign investors, with many international companies expanding their presence in the country to tap into the growing demand. Foreign firms have carved out a strong foothold, particularly in pet food and veterinary care, where they leverage their early-mover advantages and expertise.
As Chinese pet owners today place more emphasis on their animals' health and wellbeing, demand for high-quality international products is on the up. This trend has helped foreign companies scale rapidly and build brand influence in China.
One notable example is Royal Canin, one of the first international pet food brands to enter the Chinese market in 1995. Roughly two decades later, in 2010, the company opened a factory in Shanghai.
The Shanghai factory of French pet food producer Royal Canin (COURTESY PHOTO)
“I think China's pet market, including pet food, is big and also has huge potential. Pet food plays a major role in the overall pet industry and the pet population is booming. Also, we can see that young people tend to have more pets. So I think they're going to allocate more money to pets, hence China's blossoming pet industry,” Alexis Chao, Brand and Pet Owner Director at Royal Canin China, told Beijing Review.
The decision to build a factory in Shanghai was also motivated by the region's business-friendly environment and strong government backing. “The factory now boasts an annual production capacity of 86,000 tons,” said Jonny Wu, Factory Director at Royal Canin China.
While China's pet market presents big opportunities, foreign brands must also navigate challenges to thrive in this highly competitive landscape.
The rapid growth of domestic pet-related companies has intensified competition between local and international players. Initially, foreign enterprises benefited from their early entry, building brand recognition and capturing market share. However, this advantage has diminished as domestic companies are catching up, offering high-quality products that appeal to progressively discerning consumers.
Moreover, shifting consumer preferences pose another challenge. As Chinese customers become more cost-conscious, many are opting for domestic brands that provide better value for money. This shift forces foreign companies, known for their premium pricing strategies, to rethink their positioning in the market.
Staying competitive is no easy feat. Foreign firms must adopt localized strategies to meet the specific preferences of Chinese consumers. This involves adjusting product formulations, developing culturally relevant packaging designs and utilizing local marketing channels. Compliance with Chinese regulations is also critical for building trust and credibility among consumers, Liu suggested.
“Localization enables foreign brands to better understand market needs and offer products that align with local expectations. Only through innovation and adaptation can they succeed in this developing field,” Liu noted.
Copyedited by Elsbeth van Paridon
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