Surrounded by tripods, ring lights, spotlights, screens, and many mobile phones, a group of young streamers settle into small booths and, in front of the cameras, begin to sing and dance while promoting cat food. Then, they do the same, but presenting dog shampoos. These live broadcasts for Chinese e-commerce platforms are done from the eleventh floor of an office tower in Pingyang County, east China, which is the current epicenter of the Asian giant's pet product sales.
Pingyang, not long ago, was dubbed the leather capital in China. There were over 1,200 leather processing companies accounting for a quarter of the country's total production. But this industry faded due to the significant environmental cost it caused, especially in the leather tanning process, which polluted the rivers.
Authorities tightened regulations, and leather entrepreneurs began to see an opportunity in a booming market, that of pets. Last year, the total pet population in China exceeded 124 million (the number of domestic cats reached over 70 million and dogs over 50 million). According to a report by the authorities, this market surpassed 300 billion yuan (around 36 billion euros), a 7.5% year-on-year increase.
In Pingyang, those who used to produce leather now manufacture dog leashes, cat toys, various types of pet food, cookies, and even clothing for animals. Additionally, to promote all these products, entrepreneurs have hired an army of streamers and influencers who broadcast from the county to consumers nationwide.
The pet industry in China has grown at an annual rate exceeding 13% over the last decade. In 2024, a report by Goldman Sachs indicated that, for the first time in the world's second most populous country, the number of dogs and cats exceeded that of children under four years old. Furthermore, it is projected that by 2030, the number of pets will almost double that of children.
This is a visible reality in major cities amid the significant demographic crisis facing the Asian superpower: many young urbanites are increasingly delaying the decision to become parents. Many are opting to have cats and dogs instead. According to official studies, Chinese born in the 1990s represent 41.2% of pet owners. But those born after the 2000s, expected to help reverse the disastrous birth rates, are the fastest-growing group of pet owners.
Over 500,000 pet-related companies were registered in China in 2024. This sector is providing employment opportunities for thousands of Chinese. Favor Pets knows this well, a company that trains individuals who want to work with pets. In recent years, the company claims to have trained over 30,000 groomers, 4,000 trainers, and 500 caretakers.
In Beijing, the China Agricultural University, one of the country's leading academic institutions, launched the first undergraduate specialization focused on companion animals a few months ago. "The program will train students to meet the growing demand for talent in the pet industry", the center stated in its admission brochure. "Unlike traditional livestock careers, which focus on farming and broader agricultural applications, the companion animal specialization focuses on pets like dogs, cats, and horses. Courses will cover canine and feline behavior, equestrian culture, nutrition, breeding, and care".
The boom in companion animals in China has also boosted the cloning business. The pioneering company in this field was Sinogene Biotechnology, which began cloning domestic dogs and cats that had passed away in 2018. The Sinogene team has already cloned over 500 pets. The cost ranges from 20,000 to 60,000 euros.
For dogs, cloners maintain a breeding base on the outskirts of Beijing with around 1,000 beagles, the commonly chosen laboratory breed globally. Immature egg cells are collected from these animals and then combined with the cells of the progenitor dog to form embryos, which are ultimately implanted in the surrogate mother. A cloned puppy takes an average of six months to be born and, after a two-month observation period, is delivered to its owners.
Another business model exploited by pet stores is offering a free dog or cat in exchange for customers signing a contract committing to buying food and accessories for their new pets every month from that establishment for at least a year. This issue recently went viral on Chinese social media due to several lawsuits. One case involved a customer who had signed one of these contracts in exchange for an adorable cat. The problem was that the feline was sick and died within a few weeks, but the store forced the woman to continue buying products she no longer needed.