China’s pet economy is booming as demographic shifts, including declining marriage and fertility rates, reshape lifestyles. With over 120 million pets in 2023, the sector is thriving, driven by emotional comfort needs and economic opportunities. Valued at 811.4 billion yuan by 2025, it offers robust career prospects despite a veterinary shortage. Shenzhen leads with supportive policies for young professionals. Aging pets’ medical needs boost profitability, making the pet healthcare industry a bright spot in China’s economy and a hub for innovation and growth.
China is witnessing transformative shifts in societal and economic patterns, with the pet economy emerging as a promising sector amidst broader demographic challenges. Latest data suggests that only 6 million marriages are expected to be registered in 2025—the lowest figure since 1980. Concurrently, the country’s fertility rate, now estimated to be below one, is among the lowest globally, far from the 2.1 children per woman needed to maintain a stable population. These trends are influencing lifestyle choices, including a growing preference for pet ownership.
According to a Goldman Sachs report, pets may now outnumber infants and toddlers in China. In 2023, the country was home to over 120 million pet dogs and cats, with pet cats growing by 1.1% and pet dogs by 6.8% year-on-year. This shift reflects a desire for emotional comfort amid economic uncertainties and demographic changes. The pet economy, along with other emerging sectors like “blind box” retailing, has become a rare bright spot in China's economy, offering new career opportunities.
A report by the Beike Research Institute forecasts that the number of people living alone in China will reach between 150 million and 200 million by 2030, with single adults aged 20 to 39 increasing from 18 million in 2010 to as many as 70 million. Notably, a survey by Zhenai revealed that 70% of single individuals born in the 1990s own pets, underscoring the growing importance of pets in modern lifestyles.
The pet economy continues to expand despite a slowdown in growth. The 2023-24 China Pet Industry Operation Status and Consumer Market Monitoring Report by iiMedia Research estimates the sector will be worth 811.4 billion yuan (US$111.5 billion) in 2025, up from 592.8 billion yuan in 2023. While job prospects for university graduates remain challenging, social media platforms abound with optimistic discussions about careers in the pet industry, particularly in pet healthcare.
China currently has tens of thousands of pet clinics and hospitals, but a significant shortage of veterinary professionals persists. Young people entering the field as interns, assistants, or veterinarians can easily find employment. Interns typically earn 2,500 yuan per month, while recent graduates start at 6,000 yuan, often with free food and accommodation. Experienced veterinarians with five years of practice can earn 20,000 to 30,000 yuan or more monthly. In 2023, there were over 27,000 pet hospitals and clinics in China, serving an average of 6,862 pets per facility—significantly higher than in the United States and Japan.
The growing medical needs of aging pets are expected to boost the profitability of pet hospitals, even as other sectors face weak demand. Although over 80% of Chinese pet hospitals reported annual revenues below 2.4 million yuan in 2023, nearly 75% were profitable. The average investment per hospital was 1.57 million yuan, with an average facility size of 290 square meters.
Despite the sector's promise, the shortage of veterinary professionals remains a key challenge. In 2023, China had only 165,000 practicing veterinarians, leaving a shortfall of 300,000. Each veterinarian currently serves an average of 3,577 pets, far higher than the ratios in the US and Japan.
To address this gap, Shenzhen, known for its youthful population with an average age of 32.5 years, introduced supportive policies in 2023. These include establishing university internship programs and offering monthly subsidies of 1,500 yuan for undergraduates, 2,500 yuan for master’s students, and 4,500 yuan for doctoral students. Shenzhen, which housed 500,000 pet dogs and cats in 2023, has become a hub for pet-related businesses. More than 88,000 enterprises in the city generated annual revenues exceeding 10 billion yuan, with 1,525 new pet businesses registered in the first 10 months of 2023—a 15% year-on-year increase.
As Chinese society places greater emphasis on pets, the pet healthcare market is poised for significant growth. This transformation not only reflects evolving consumer behavior but also highlights the sector’s potential to offer lucrative career opportunities and drive economic progress.
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