China Pet Care market Drivers Opportunities Analysis 2022

Increasing Initiatives Taken by Governments and Animal Welfare Associations

The market for companion animal health is growing due to the various initiatives taken by the government in China, individually as well as collectively for promoting animal healthcare. Rising Chinese government initiatives to promote veterinary care products is anticipated to drive the market in the foreseeable future. For instance, initiatives such as ‘One Health Initiative’ aimed to improve animal healthcare standards, has boosted the market growth prospects in the country. Several collaborative initiatives unify clinical care, control, disease surveillance, and education and research for improving the management of epidemic diseases. 

For instance, in August 2018, Shandong University approved a proposal to create an Ecohealth/One Health Institute in China. This new institute will comprise Chinese and international professionals who work on varied disciplines of veterinary health and environmental health for tackling major and complex health concerns in China.

Various animal welfare associations like Animal Health institute are also taking initiatives for promoting the animal healthcare and some of these associations offer vaccines and medicines at subsidized prices or free of cost for the needy ones.

Pet Changing Perception of Consumer towards Pet Health

Pet parents are becoming a new breed of power purchasers in China. Over the years pet owners have shown a growing trend to imbue their pets with human characteristics and have become more concerned about their pet’s health and safety. China’s pet economy is in its early stages, given there is still significant potential for higher pet ownership in the country. In 2018, around 100 million families or 22% of total households in the country owned a pet.  Chinese pet owners typically spend 5,016 yuan on their pets each year, an amount that is more than double the average monthly disposable income of Chinese, indicating that pet owners are relatively well off.

This is due to the growing human-animal bond, which defines consumers’ willingness to spend for their pets. Demand for pet health care insurance in the country will also support the argument. Back then pet owners used to feed their pets with the left overs and scraps from family meals. However, this trend has been changing due to humanization of pets, with people becoming more concerned about what they feed their animal companions. Pet owners are increasingly concerned about the quality content of the food consumed by their pets. Buyers are looking for products which are locally grown or natural or have digestive benefits. The sale of premium pet food is greater than the sale of economy or mid-priced products. This trend defines consumer perception towards their pet health, which is driving the pet food industry. This is also allowing many pet food companies to introduce innovative products, such as raw and higher vitamin/calcium content food in the marketplace

Changing Demographics

The rapid pace with which economic and professional constructs are developing is causing an everlasting impact on the way we live; the adoption or buying rates of pets are a direct end result of these changes. The social comfort, company, security and the aesthetic sense offered by pets are the main reasons cited for owning a pet. In big cities like Shanghai, many people feel lonely and treat pets like family.

In China, from 2015 to 2019, the percentage of families owning dogs or cats increased by 40 percent and 131 percent, respectively. The major factor, which has an impact on pet care market, is urbanization. The increasing urban nature of the society, which is resulting in separation from farm animals and from nature, is stimulating the desire to bring pets home. The growth of one-person households and decline of families has also led to seek pet companionship. People belonging to these social segments are a major boost for the market, as they tend to humanize pets to a great extent, thereby taking extra care in their diets and wellness. The increase in elderly population is another aspect for the growth of this market. The decreasing mortality and declining fertility rates across are causing a significant rise in the elderly population. Reduced interaction with their families and financial stability are factors, which promote pet adoption and their proper care, in the elderly population.
 

Covid-19 Impact Analysis

Before the COVID-19 pandemic, a modest growth rate in the market was witnessed. But after the pandemic hit the market faced a worse impact. Many animals in Wuhan, the Chinese city that is the epicenter of the coronavirus outbreak, have died or are at risk of dying after residents evacuated their homes in the wake of the lockdown.

Vshine Animal Protection Association, a China-based animal welfare and environmental organization which partners with Humane Society International, estimated that the number of dogs and cats left behind in apartments in Hubei cities are in the tens of thousands. Members of the public are advised to differentiate that 'being infected' does not equal being infectious and capable of spreading the Covid-19 virus. Such fears have caused incidents of violence toward pet animals in China. In another county in Zhejiang, a province with the most infections after Hubei, authorities warned dogs that are found in public would be exterminated, according to Reuters.

 China's top expert for infectious diseases warned pets could be infected by Coronavirus sparking panic among pet owners. Another local authority in Shaanxi urged residents to “consider the overall situation” and to dispose of their pets, it has been reported. According to the Humane Society International, similar orders have been issued across China including in Beijing, Tianjin, Shandong, Heilongjiang, Shanxi and Shanghai.

Residential committees, village officials and companies in various provinces and municipalities across China were ordered by their superiors to issue strict instructions for locals to tackle the epidemic. Animal rights activists sent videos of pet dogs being beaten to death to the Daily Mail. The pet killing campaigns have been going on all over China, with reports of similar incidents coming from Chengdu and Wenzhou as well. People for the Ethical Treatment of Animals (PETA) claims that the Chinese government is using the COVID-19 virus as an excuse for animal abuse. With more than 2,000 dead and 75,000 infected people, they are choosing to take any "precaution" to prevent viral infection. Animal rights organisations have implored the government to step in and halt the atrocities against animals. While the World Health Organisation (WHO) has attempted to quash the false claims that animals can transmit the novel coronavirus, Chinese citizens in multiple cities have already begun to dispose of dogs and cats. A large population of pets are killed by their owners due to the misconception of the fear of spreading of COVI-19 virus.  Thus, the COVID-19 pandemic will have worse impact on the China pet care market as people are afraid to there pets and killing them in large amount.

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