China's Pet Economy Hits CN¥ 593B as Cats Overtake Dogs

Executive Summary

China's pet economy reached CN¥ 592.8 billion in 2023 and is projected to exceed CN¥ 800 billion by 2025, driven by rising pet humanization and a decisive structural shift toward cat ownership^[1]. The online pet market hit CN¥ 80.28 billion over the past rolling year, but a stark divergence between +1.5% revenue growth and +23.3% volume growth signals aggressive price competition across all segments. This analysis examines the market's decade-long expansion, the cat-versus-dog ownership shift reshaping brand strategy, and the competitive dynamics defining China's online pet market.

A Decade of Sustained Growth

China's pet economy expanded from CN¥ 122 billion in 2016 to CN¥ 592.8 billion in 2023, representing a compound annual growth rate of approximately 25%^[1]. Growth peaked at +33.5% in both 2020 and 2021, coinciding with pandemic-era pet adoption surges as homebound consumers sought companionship.

The market trajectory reveals a maturing pattern: growth rates have gradually moderated from the +33.5% peak to +20.1% in 2023, and are projected to further normalize to +18.3% in 2024 and +15.7% in 2025. Despite this deceleration, the absolute market expansion remains substantial -- the projected CN¥ 108.5 billion increase from 2023 to 2024 alone exceeds the total market size in 2016.

Three converging factors underpin the sustained growth:

• Rising pet humanization, with owners treating pets as family members
• Increasing disposable income among urban Millennials and Gen Z
• Premiumization of pet products as owners demand higher-quality nutrition and healthcare

China's pet economy sustained decade-long expansion, reaching CN¥ 592.8 billion in 2023 with +20.1% YoY growth

Cats Overtake Dogs in Ownership and Spending

Cat ownership reached 60.7% in 2022, up from 46.0% in 2020 -- a +14.7 percentage point increase in just two years^[1]. Dogs maintained a relatively stable share near 51% across the same period, indicating that cat adoption represents net new pet ownership rather than substitution.

Several factors drive the cat preference: cats require less living space (critical in China's apartment-dominant urban housing), lower daily maintenance effort, and appeal strongly to the single-person and young professional demographics that represent the fastest-growing household segment. The apartment-friendly nature of cat ownership also explains why the cat-to-dog ratio widened most dramatically during 2020-2022, when urban residents spent extended periods at home during the pandemic era.

Cats surpassed dogs in ownership share by 2020, reaching 60.7% versus 51.3% in 2022

Cat consumer market projected to overtake dog market by 2025E, reaching CN¥ 164.5 billion versus CN¥ 166.8 billion

Online Market: Volume Surges but Prices Fall

The online pet consumer market reached CN¥ 80.28 billion over the past rolling year (June 2023-May 2024), posting a modest +1.5% year-on-year increase^[1]. However, sales volume surged +23.3% YoY to 1.38 billion units, revealing a significant divergence between revenue and volume growth that points to intensifying price competition.

The volume-price divergence is the most strategically significant finding: a +23.3% volume increase alongside just +1.5% revenue growth implies an average price decline of approximately 18%. This level of price erosion signals a market where brands are competing primarily on price rather than differentiation, creating margin pressure across the value chain.

Online pet market reached CN¥ 80.28 billion with +1.5% revenue growth but +23.3% volume growth, indicating aggressive price competition

Key Takeaways

• China's pet economy reached CN¥ 592.8 billion in 2023, growing +20.1% YoY with a projected CN¥ 811.4 billion by 2025
• Cat ownership reached 60.7% in 2022, decisively overtaking dogs (51.3%) and driving a cat-first market reorientation
• Cat consumer spending grew CN¥ 7.4 billion in 2023 -- nearly 6x the dog market's CN¥ 1.3 billion increment
• The online pet market hit CN¥ 80.28 billion, but +23.3% volume growth versus +1.5% revenue growth signals ~18% average price erosion
• Pet food (50.7%) and healthcare (29.1%) account for 79.8% of total spending, confirming non-discretionary categories dominate

## About the Data

This analysis draws on Moojing Market Intelligence (魔镜洞察) data covering Q3 2024.

Moojing tracks 400,000+ brands across 30+ e-commerce platforms,

representing 58-65% of China's online retail GMV. For full methodology

and additional insights, see the complete Pet Consumer Market whitepaper.