In a rapidly changing world, China’s pet population is set to surpass the number of children under the age of four this year, creating a booming $12 billion market for pet food by 2030. As Goldman Sachs forecasts this shift, it sheds light on a fascinating trend where pets are becoming more prevalent than ever in Chinese households.
Here are some key takeaways from Goldman Sachs’ analysis and predictions:
- By 2030, China is projected to have over 70 million urban pets, outnumbering children under four by a ratio of two to one.
- This surge in pet ownership is attributed to younger Chinese individuals choosing cats and dogs over starting families due to shifting societal norms.
- Valerie Zhou, the Goldman Sachs consumer staples analyst, emphasizes a growing momentum in pet ownership amidst a declining birth rate and increased penetration of pets in younger households.
Moreover, the report hints at the following trends in China’s pet industry:
- The pet food sector is expected to grow at an annual rate of 8% by 2030.
- In a bullish scenario, China’s pet food market could more than double to $15 billion, with cat food consumption outpacing dog food.
- A wave of consolidation is anticipated within China’s pet food industry, mirroring similar trends observed in developed markets like the US and Japan.
When compared to countries like Japan and the US, China’s pet ownership landscape reveals intriguing findings:
- In Japan, the pet population significantly outweighs the number of young children, shedding light on the potential future trajectory of China’s pet market.
- The US, known for having the world’s largest pet market, boasts more pets than children of all ages, underlining the growing significance of pet ownership worldwide.
Amidst the challenges posed by the pandemic, Chinese pet owners have displayed remarkable resilience in maintaining or even increasing spending on their pets. This resilience highlights the important role that pets play in households and their ability to provide comfort and companionship during trying times.
As China’s urban pet population continues to flourish, it’s evident that the bond between humans and their furry companions is not only strengthening but also reshaping societal dynamics. Embracing the rise of pets in Chinese households can lead to a deeper understanding of changing consumer behaviors and preferences, marking a new era where pets are truly family.
