Smart tech turns pet industry into gold mine

On a typical morning in Beijing, Jiang Nan, a 35-year-old tech-savvy cat owner, doesn't worry about feeding or cleaning up after his three feline companions. A smart feeder dispenses measured meals on a schedule. A pet water fountain filters drinking water 24/7. An automatic cat litter box not only detects when the cats relieve themselves and then cleans the waste, but also logs subtle weight changes.

"For me, raising cats is not just joyful — it's easy," Jiang said. "Even when I'm on a business trip, everything is taken care of. My cats live a happy life, and so do I."

Jiang's lifestyle is a snapshot of a wider revolution sweeping across China's burgeoning pet economy, where smart hardware, AI-powered solutions, and digital pet care services are transforming how people care for their pets. What began as a hobby for retirees in flower-and-bird markets has evolved into a tech-driven, emotionally connected, and data-rich industry dominated by younger urbanites.

According to the 2025 Chinese Pet Industry White Paper by Petdata.cn, a platform specializing in China's pet industry, the market size of China's urban pet (dog and cat) consumption rose by 7.5 percent to 300.2 billion yuan ($2.09 billion) in 2024.

The total pet population climbed to 124.11 million, up 2.1 percent from 2023, with cats growing faster than dogs — a 2.5 percent rise versus 1.6 percent growth.

Behind the boom is a generational shift. While post-1990s pet owners still make up the majority at 41.2 percent, their share has declined, giving way to a sharp rise among post-2000s, who now account for 25.6 percent of pet owners, up 15.5 percentage points year-on-year. Those young generations, often busy professionals, increasingly turn to smart pet devices for convenience, emotional reassurance, and health insights.

"Pet ownership naturally evolves in two phases," said Guo Weixue, cofounder and CEO of Petkit Network Technology Co Ltd, a Shanghai-based designer and producer of smart pet products. "First, you see your pet as a cute baby. But soon enough, health becomes the core concern, especially as your pets face illness and aging."

Petkit's rise mirrors the wave of pet tech. Last year, the company reported revenue of around 1.1 billion yuan, with over 90 percent coming from three main categories: smart litter boxes, feeders, and water fountains — the essential trio for daily care.

Notably, nearly half of the company's sales are exports, with products now sold in more than 40 countries and regions, including Europe, the United States, Japan, South Korea, and Southeast Asia. Globally, Petkit's connected app has over 5 million users, many of whom are paid subscribers to additional services such as high-definition video playback for pets.

The company's vision goes beyond automation. Petkit is working to turn every pet's home into a fully integrated health system, where devices not only feed and clean but also monitor vital signs in real time.

"Our latest AI-powered cat litter boxes detect abnormalities in the frequency and composition of urine and feces," Guo said. "For example, if a cat that normally urinates six times a day suddenly jumps to 12, that's a red flag for urinary tract issues. Early intervention with inexpensive supplements — costing just 20 to 50 yuan — can prevent serious, painful complications down the line."

To pinpoint which cat among several is unwell, the system employs facial recognition. Petkit urine monitor cat litter can change color to pinpoint potential illness early. For instance, it reacts to urine acidity, hidden blood, or sugar levels, indicating conditions such as kidney stones, infections, or even diabetes.

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.

"In developed countries, we see a similar trend — when GDP per capita reaches around $10,000, consumers begin to prioritize spiritual and emotional needs over basic necessities," said Zhang Yi, CEO and chief analyst at iiMedia Research. "In China, pets have become a reflection of this shift, serving as emotional companions and fulfilling people's growing desire for quality of life."

According to iiMedia's report, the market size of China's pet economy is expected to reach 1.15 trillion yuan by 2028.

"China used to be an OEM (original equipment manufacturer) hub for foreign pet brands," Zhang noted. "That manufacturing capacity has laid the groundwork for the industry's rapid rise."

From premium food and smart accessories to pet photography and memorial services, the market has expanded well beyond basic care. "We are seeing a clear shift from just feeding and housing pets to providing services that mirror human lifestyles — medical care, socialization, even entertainment," Zhang said.

Wang Peng, an associate researcher at the Beijing Academy of Social Sciences, echoed this view. "Today's pet owners are more concerned about quality, personalization, and emotional fulfillment," he said. "High-end food, intelligent devices, and personalized services are in high demand, and the market is expected to grow further, especially in lower-tier cities."

He also pointed to emerging trends such as aging pet care, AI-based advisory services, and the booming demand for diversified services. "The pet economy is not just about commodities anymore — it's evolving into a more sophisticated and emotional ecosystem."