Smart tech turns pet industry into gold mine

Looking ahead, Guo said combined with data on food and water intake, the system can generate detailed health reports, sometimes even predicting pregnancy in female cats.

This integration of AI, diagnostics, and IoT (internet of things) is Petkit's answer to what Guo sees as the next frontier: AI + Health for pet care.

"Ultimately, we want our system to not just detect problems but also offer solutions," Guo said. "Step one: smart hardware detects abnormalities. Step two: our AI-driven diagnostic chatbot provides guidance. Step three: users can purchase targeted medicine or supplements — all within our ecosystem."

Petkit is currently developing its own AI health assistant, with small-scale testing expected to begin by year-end. The company also operates a health product brand that is forecast to reach 200 million yuan in sales this year.

"We're not chasing short-term sales through marketing gimmicks," Guo said. "Around half of our employees are R&D staff, and we prefer to invest in long-term innovation. We aim for steady growth of 25 percent to 30 percent annually."

Although the broader economy is now facing headwinds, Guo believes pet tech is relatively recession-proof — akin to the so-called "lipstick economy".

"It's small-ticket, high-frequency spending. You may tighten your belt, but your pet won't stop asking for food, water, or comfort," he said. "In that way, pet consumption has its own internal demand engine."

Indeed, China's pet industry is becoming more emotionally and socially relevant. As younger generations delay marriage or live alone, pets offer companionship and emotional relief in an increasingly fast-paced and stressful world.

"Pet ownership is good for society," Guo added. "It nurtures empathy, soothes loneliness, and reduces anxiety. It's more than consumption — it's connection."

As China's per capita GDP has surpassed the $10,000 threshold, the country's pet economy has seen rapid growth, driven by emotional demand, consumer upgrades and a shift toward higher-quality lifestyles, analysts said.