Pet humanisation is fueling the demand for premiumisation of food, healthcare and services with especially the Asian pet market showing staggering growth – by Christian Zilian


Key takeaways


  • Pet humanisation created a need for premiumisation for food, care, services and healthcare.
  • Premiumisation brands in Asia offer interesting opportunities to participate in growth prospects that are likely to be seen independent by the economic situation.
  • New markets such as premium healthcare and supplements are expected to grow and consolidate in the upcoming years.


Evolution of pet adoption


In the past decade, increasing loneliness levels across the population and lower birth rates have given rise to a surge in pet demand. Animal companions bridge the gap between the need for belongingness and companionship across all age groups. While for millennials – which in major pet care markets like the US, UK and China constitute a significant or even the largest proportion of pet owners1 pets serve to practice parenthood or even substitute it, older generations find solace in pets, coping with the empty nest syndrome left by their grown children2.

While initially more common in Western countries, the pet adoption phenomenon has gained significant traction in Asian countries as well, especially since the beginning of the Covid-19 pandemic.

Pet adoption has skyrocketed during the last decade in Asia, with a 60% of citizens having a pet at home, and 32% of the population declaring their cats and dogs as their best friends3.


From pet humanisation …


Pet humanisation, the trend of treating pets as family members or even children and applying human dietary and lifestyle trends to our furry companions, is rising in Asia-Pacific, especially in China, where over half of “pet parents” (55%) consider their feline and canine companions as their children, while a third views them as family members (28%) and 7.5% consider them friends4.

This shift from pet ownership to pet parenthood creates a high demand for premium products and services for pets, such as organic and locally sourced food, desserts, and supplements. The Asian demand for human-like accessories and services for pet is growing faster than the western one, as shown by the sales of pet strollers surpassing baby strollers in South Korea in 20235.

Following Japan´s example, an ageing population and an economic boom, combined with a falling birth rate, it is likely that the demand for premium products has still room for improvement, with possible developments in areas such as pet wellness, insurances and even pet funerals.


… to premiumisation


The Asian pet market also has a faster growth rate than its western peers. For instance, the US demand for premium products increased by 27% in 20235. In contrast, China’s demand is expected to grow by 38%6.

Research data show that in 2021, China produced 1.13 million tons of pet food, with a staggering growth of 17% compared to 20207.

With premium brands adopting human-like dietary labels such as “organic” or “locally sourced” products like pet desserts or protein supplements are becoming more popular in various markets.

Some of this demand comes from a more intriguing phenomenon: pet influencers, counting a million-fan base and hundreds of thousands of followers on popular social media platforms, resulting in numerous partnerships with brands8.


Millennials and Gen Z fuelling growth potential of pet health care market


The pet health care market in Asia is projected to witness a double-digit growth, expanding by 10% and reaching a value of over USD 132 bn by 2027.



This growth potential is, amongst others, fuelled by:

  • China’s Millennials and Gen Z that constitute 50% of China’s pet owners7, have higher educational degrees, dispose of higher incomes, spend between 50 and 100 USD per month for their pet(s)8. In addition, over 60% of this generation born after 1990 wants to keep pets in the future while less than 10% already have one. These growth figures are in line with a rising number of pets in China, estimated to reach between 170-200 million in 2024, up from less than 100 million in 20199.
  • India’s growing middle-class driving a growing pet market that has seen a rise in pet dogs from 19.4m in 2018 to 31m in 2023 and a value-growth to USD 890 million in 2021, with estimates projecting its size to nearly triple over the next ten years10.
  • Niche segments like the nutraceuticals (nutrition” and “pharmaceutical”) market with a projected growth rate of 6.4% from 2017 to 202311. Here, China has the biggest market share (30%), but Vietnam is expected to expand the fastest, with an estimated growth rate of 16.7% until 202912.


Investment Implications


Our conviction is that the pet economy will continue to flourish, fueled by the deepening bond between pet owners and their animals. As the market expands into various areas, it presents enticing investment opportunities in premium pet products.

As people consider their pets as family members, this industry is expected to be fairly resilient even during times of economic downturns, as owners will keep seeking the best quality products and will be hardly compromising on their animal´s wellbeing.


1 HealthforAnimals: Global State of Pet Care, July 2022
2 Pet ownership, loneliness, and social isolation: a systematic review | Social Psychiatry and Psychiatric Epidemiology ( As of July 2022
3 UBS: China 360: Tracking the themes that matter. As of February 2023
4 Petfood China pet statistics report. As of 2020
5 Koreatimes: Sales of pet strollers surpass baby strollers for 1st time. As of February 2024
6 Investing in China’s Multi-Billion-Dollar Pet Industry. As of 2023
7 PwC: Finding opportunities in China’s fast growing pet industry, September 2020
8 Jefferies Thematic Research Gen Z: Global Purchasing Power and Influence, August 2022
9 PwC: Finding opportunities in China’s fast growing pet industry, September 2020
10 The Indians are going gooey over dogs. As of December 2023
11 Asia-Pacific Pet Nutraceuticals Market Size & Share Analysis – Industry Research Report – Growth Trends. As of August 2023
12 Ibid.




Investing involves risk. The value of an investment and the income from it will fluctuate and investors may not get back the principal invested. Past performance is not indicative of future performance. This is a marketing communication. It is for informational purposes only. This document does not constitute investment advice or a recommendation to buy, sell or hold any security and shall not be deemed an offer to sell or a solicitation of an offer to buy any security.

The views and opinions expressed herein, which are subject to change without notice, are those of the issuer or its affiliated companies at the time of publication. Certain data used are derived from various sources believed to be reliable, but the accuracy or completeness of the data is not guaranteed and no liability is assumed for any direct or consequential losses arising from their use. The duplication, publication, extraction or transmission of the contents, irrespective of the form, is not permitted.
This material has not been reviewed by any regulatory authorities. In mainland China, it is for Qualified Domestic Institutional Investors scheme pursuant to applicable rules and regulations and is for information purpose only. This document does not constitute a public offer by virtue of Act Number 26.831 of the Argentine Republic and General Resolution No. 622/2013 of the NSC. This communication’s sole purpose is to inform and does not under any circumstance constitute promotion or publicity of Allianz Global Investors products and/or services in Colombia or to Colombian residents pursuant to part 4 of Decree 2555 of 2010. This communication does not in any way aim to directly or indirectly initiate the purchase of a product or the provision of a service offered by Allianz Global Investors. Via reception of this document, each resident in Colombia acknowledges and accepts to have contacted Allianz Global Investors via their own initiative and that the communication under no circumstances does not arise from any promotional or marketing activities carried out by Allianz Global Investors. Colombian residents accept that accessing any type of social network page of Allianz Global Investors is done under their own responsibility and initiative and are aware that they may access specific information on the products and services of Allianz Global Investors. This communication is strictly private and confidential and may not be reproduced, except for the case of explicit permission by Allianz Global Investors. This communication does not constitute a public offer of securities in Colombia pursuant to the public offer regulation set forth in Decree 2555 of 2010. This communication and the information provided herein should not be considered a solicitation or an offer by Allianz Global Investors or its affiliates to provide any financial products in Brazil, Panama, Peru, and Uruguay. In Australia, this material is presented by Allianz Global Investors Asia Pacific Limited (“AllianzGI AP”) and is intended for the use of investment consultants and other institutional /professional investors only, and is not directed to the public or individual retail investors. AllianzGI AP is not licensed to provide financial services to retail clients in Australia. AllianzGI AP is exempt from the requirement to hold an Australian Foreign Financial Service License under the Corporations Act 2001 (Cth) pursuant to ASIC Class Order (CO 03/1103) with respect to the provision of financial services to wholesale clients only. AllianzGI AP is licensed and regulated by Hong Kong Securities and Futures Commission under Hong Kong laws, which differ from Australian laws.

This document is being distributed by the following Allianz Global Investors companies: Allianz Global Investors GmbH, an investment company in Germany, authorized by the German Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin); Allianz Global Investors (Schweiz) AG; Allianz Global Investors UK Limited, authorized and regulated by the Financial Conduct Authority; in HK, by Allianz Global Investors Asia Pacific Ltd., licensed by the Hong Kong Securities and Futures Commission; in Singapore, by Allianz Global Investors Singapore Ltd., regulated by the Monetary Authority of Singapore [Company Registration No. 199907169Z]; in Japan, by Allianz Global Investors Japan Co., Ltd., registered in Japan as a Financial Instruments Business Operator [Registered No. The Director of Kanto Local Finance Bureau (Financial Instruments Business Operator), No. 424], Member of Japan Investment Advisers Association, the Investment Trust Association, Japan and Type II Financial Instruments Firms Association; in Taiwan, by Allianz Global Investors Taiwan Ltd., licensed by Financial Supervisory Commission in Taiwan; and in Indonesia, by PT. Allianz Global Investors Asset Management Indonesia licensed by Indonesia Financial Services Authority (OJK).

Leave a Reply