Two decades ago in China, walking a pet in the evening would be sure to draw gasps of disbelief. At that time, pets were considered bourgeois affectations, and more to the point were a luxury which few could afford. But recent years have witnessed an ever-increasing demand in China for dogs, cats, fish, rabbits, miniature pigs and other pets. Now, it’s not uncommon to see people walking their dogs on the streets or holding cats in their arms – beautifully groomed, pampered pets that seem much doted upon by their owners.

In 2008, according to Euromonitor International, Chinese consumers spent 5.73 billion yuan on pet food and pet-care products, a 6.9 percent increase on the previous year. The global market research and consulting company predicted the market would rise 5.6 percent in 2009, to 6.05 billion yuan.

Although the 2009 growth rate declined slightly from that of 2008, China’s consumers remain extremely loyal to their pets and to the market.

Lifestyle vs. Trend

The pet boom in China is fueled by various factors, including improved living standards, the one-child family planning policy, more lonely elderly people and housewives, and the stress of working life. Perhaps the clearest of these factors is the growing wealth of China and the rise of the Chinese middle class. In the “one-child” era, many Chinese parents turn to the companionship of animals once their children leave home. Pet ownership counteracts the weakening of traditional social networks and helps owners combat loneliness.

Wang Qian, 29, has lived in Beijing with her pet rabbit, Lily, for a year. “I take care of her like a baby,” said Wang, who works for a financial consulting firm. “She is my anchor in my busy working life, and keeps me company while I don’t have a boyfriend.” Wang has become an expert at taking care of bunnies. “They have to be kept cool and dry,” she asserts. “Summers are too hot for them and winters are too cold. Humidity affects their paws and can generate health problems. They are also very sensitive to overheating, so be sure to keep them indoors rather than outside.”

Wang’s devotion to her pet is not uncommon in China’s big cities. It is estimated that there are about 100 million pets across the country, and that number is expected to rise, according to Nestle SA, a major manufacturer of pet food.

Fuelling a New Trade

This relatively new pet-keeping trend is helping the sellers of pet food and pet-care products, especially international corporations, continue their development in China and buck economic trends. While the economic downturn has put some pet owners in the doghouse, making them trade down to less-expensive goods to save money, the more passionate consumers refuse to pinch pennies, lavishing more and more attention on their pets.

Back in 2006, the Chinese were already breeding at least 100 million pets, including dogs, cats, fish and other animals. But the pet boom at that time was just the beginning of an emerging “pet economic sector” in the country, which has also boosted China’s media industry, as specialized publications and websites dealing with pets have snowballed.

Figures are sketchy on the total earnings of the pet industry. Beijing Daily estimates that there were 550,000 dogs registered with local authorities by 2006. If average owners spent 200 yuan per month on their dog, the market was worth some 110 million yuan. It must be well in excess of that now, especially factoring in statistics from Shanghai which show that the average monthly spending on dogs is about 300 yuan per family.

The latest statistics from the China Small Animal Protection Association show that annual spending per pet in China was about 3,000 yuan in 2008. Expenditure rose above 6,000 yuan per pet in the five key cities of Beijing, Shanghai, Guangzhou, Chongqing and Wuhan, which all have substantial populations of single-person and DINK (double-income, no-kids) households. This expenditure includes food and healthcare products, veterinary fees, grooming and recreation.

It comes as no surprise that the number of pet shops across the country has mushroomed. A vest for a dog or cat can cost about 200 yuan, while a bed with temperature adjustment is priced at 600 yuan. Both are very popular products during the winter months in Beijing.

Some pet beauty salons charge 400-500 yuan for a package that includes bathing, fur-trimming, hairdressing and nail-cutting for furry animals, including dogs, cats, rabbits, or even hamsters. Packages are more expensive for animals groomed for competition. Hospitals, schools, online shops, boarding facilities and photography studios for pets have appeared overnight. Some traditional pet shops offer a one-stop servicing center, with facilities including food, accessories, consultation, boarding and even matchmaking.