Starve yourself, spoil your pet: Understanding China’s consumer ‘slowdown’

In China, Double 11 marks the peak of annual consumer spending and a golden window for pet-related sales. Even when budgets are tight, many pet parents choose to cut back on their own spending in order to splurge on their pets. From staple food, canned food, and freeze-dried products to cat litter, snacks, supplements, and even smart litter boxes, nearly every category saw strong sales during this year’s shopping festival. In recent years, China’s pet consumption sector has shown a clear trend of upgrading. By the end of 2024, the number of pets in urban China exceeded 120 million, with the urban dog-and-cat market surpassing 300 billion RMB ($42 billion), according to the 2025 China Pet Industry White Paper. That year, smart pet products generated about 10.2 billion RMB ($1.5 billion), accounting for one-fifth of the total pet products market. iiMedia Research estimates that China’s overall pet industry will reach 811.4 billion yuan ($114.7 billion) in 2025. This isn’t a story about people buying more dog food. It’s a story about a fundamental shift in consumer psychology, where emotional returns on investment are prioritized over all else. It’s a story that reveals more about the future of the Chinese market than any GDP forecast. For global brands, the question shouldn’t be “Will Chinese consumers buy?” but rather, “Does this product address what consumers truly value?” The Double 11 data that fooled economists On the surface, the story of frugal Chinese consumers seems plausible, but recent Double 11 data tells a more nuanced story. In the first hour of sales, 587 pet brands saw their revenue double year-over-year. The real insight, however, lies in what they were buying. According to Tmall, sales of smart pet trackers surged 1,560%, AI-integrated pet toys jumped 1,470%, smart water dispensers grew 250%, and smart bowls rose 160%. These purchases were not about stocking up on essentials — they were about upgrading lifestyles. The most telling statistic is the “pet Engel coefficient,” the proportion of total pet spending allocated to food. Over the past three years on Tmall, this coefficient has fallen by 2.93%, signaling that pet consumption is becoming more diversified, shifting from survival-oriented to quality-oriented spending. In human economics, a falling Engel coefficient is a classic sign of rising prosperity: as income grows, the share spent on basic necessities declines, freeing capital for lifestyle goods. The same logic applies to Chinese pet owners: spending on basic kibble is relatively decreasing, while investment in technology, wellness, and experiences is rising. When survival spending falls and lifestyle spending rises, it’s not belt-tightening — it’s confidence in high-value propositions. This trend is not limited to online shopping. In major cities, a new pet service ecosystem is flourishing. Search volumes for “pet-friendly” accommodations on Chinese travel platform Fliggy (飞猪) rose 60% in Q1 2025 compared with Q4 2024, while bookings for pet-friendly hotels on the rental and homestay platform Tujia (途家) increased 40% since the beginning of the year. During this year’s May Day holiday, searches on Qunar (去哪儿) for “pet-friendly” hotels grew 1.5 times, with bookings up 30% year-over-year. High-end malls now feature dedicated pet grooming salons and pet-friendly cafes. At the same time, legal professionals specializing in pet-related disputes — so-called “pet lawyers” — are emerging, reflecting a new level of social integration for companion animals. The psychology of surgical spending: Emotional ROI Young professionals are willing to spend thousands on pet subscriptions and services for the emotional return on investment. In the context of economic pressure and social isolation, pets have become a reliable source of emotional support and unconditional companionship. Research shows that over 66% of pet owners in China are under 35 years old, and they regard their pets as family members. These animals serve different emotional roles throughout life: a companion when single, a “child substitute” after marriage, a playmate for a newborn, and a source of comfort during the empty-nest phase. Terms like “fur child” (毛孩), “cat slave” (猫奴), and “dog slave” (狗奴) have become common, reflecting a deeper cultural change that elevates the human-animal bond to a new level of emotional significance. As such, spending on pets’ well-being is seen as a non-negotiable emotional investment, offering clear psychological returns. This bond has driven rapid growth in previously niche high-end services and personalized products: pet photography studios are booming, luxury fashion brands are launching pet apparel, streetwear labels are designing matching owner-and-pet outfits, and even China’s high-speed rail network has added pet transport services. All cater to young people’s desire for quality, personalized care for their pets. The bottom line: A market of priorities, not panic The narrative of a widespread consumption collapse is a dangerous oversimplification. What is actually happening is a great reallocation, a mass migration of capital away from categories perceived as low-value and toward those that offer tangible improvements in quality of life and emotional well-being. The pet economy is just one of five key sectors experiencing explosive growth while others contract. Green products, fitness technology, smart home devices, and personal finance tools are all benefiting from this same trend. They are all categories that solve a specific, deeply felt need for a generation navigating a complex world. For global brands, the lesson is stark. The era of easy growth, driven by brand logos and aspirational marketing, is over. The Chinese consumer of 2025 is a surgical spender. They will invest, and invest heavily, but only in categories that deliver genuine value. The challenge is no longer convincing consumers to spend but proving that your product deserves their ruthlessly prioritized budget. This demands a deep understanding of the cultural and emotional drivers behind their decisions, a willingness to innovate beyond product features, and recognition that in today’s Chinese market, value is measured not in dollars, but in emotional returns.

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Starve yourself, spoil your pet: Understanding China’s consumer ‘slowdown’