China was the world's great demographic power

The investment firm Goldman Sachs forecasts that by the year 2030, the nation will have nearly twice as many urban dogs as there are young children.

It is anticipated that the food and care industry would experience tremendous expansion.
The country of China is becoming increasingly pet-friendly. And the situation is diminishing for infants. In the middle of a population that is decreasing, with two years of demographic “burst” already, and after witnessing how India knocked it off the top spot in the ranking of the most populous countries on the planet, the Asian powerhouse is having to deal with a new social reality. a household in which there are more dogs and cats than children living there. A recent analysis published by Goldman Sachs makes a clear demonstration of this fact. The report forecasts that by the end of this decade, the United States will have more than 70 million urban pets, which is significantly higher than the number of children under the age of 40.

A number of individuals have recognized a lucrative economic opportunity in these data.

There are cities that have more pets than babies. According to Goldman Sachs, this is the situation that China is currently facing. In its most recent study, the company exposes how the urban pet population in China and the population of young children in China are pursuing trends that are diametrically opposed to one another. While the former is expanding. There is a decrease in the latter.

The statistics are compelling: in 2017, China had around 90 million children between the ages of zero and four years old, and the urban pet population, which includes both dogs and cats, was almost 40 million. This year, the two will converge at approximately 58 million, according to the projections provided by the American analysis firm. Furthermore, by the end of this decade, in the year 2030, China will have fewer than 40 million children up to the age of four, in contrast to the more than 70 million dogs that are found in metropolitan areas.

With Japan as the destination. The imbalance between children and pets in China is even more pronounced than the one that the Asian giant would attain at the end of this decade. China is currently following in the footsteps of Japan or the United States, where the imbalance is even more evident. At a time when Japan is experiencing a severe birth crisis, the number of pets in the country is already four times higher than the number of children under the age of five, as the Financial Times explains. According to data provided by the United States Government and the Veterinary Medical Association, the United States of America, which is the largest pet market in the world, is expected to have between 84 and 89 million dogs and 60-62 million cats in the year 2020. This is in contrast to the 73 million children, regardless of their age.

An enormously large business. When there are more pets, the industry that cares for them will have greater opportunities and better prospects. In addition, the research from Goldman Sachs emphasizes the significance of this particular principle. Once again, its numbers are really impressive. The market for food for domestic dogs and cats is expected to expand to become a booming business worth 12 billion dollars by the end of this same decade, according to the projection that is handled by an American analyst. This is because the population of domestic dogs and cats is growing and even surpassing that of newborns that are currently in existence.

After reaching 51 billion yuan ($7.1 billion) in revenue in the previous year, the pet food sector in China is projected to reach 63 billion yuan ($8.8 billion) by the year 2030, according to the report. This represents a compound annual growth rate of 8 percent. In a more optimistic scenario, the market could possibly double to $15 billion, with demand rising particularly quickly among cat owners. This would be a significant upward trend.

That is close to $83.2 billion. There are other estimates that the industry is working on in addition to the ones that Goldman Sachs has. It was in the fall that the company iiMedia Research released its very own analysis on the lucrative market that is developing around dogs in China. The report comes to the conclusion that by the year 2023, the total will have reached 592.8 billion yuan, which is equivalent to 83.19 billion USD, after registering a compound growth rate of 20.2% between the years 2015 and 2020. And with opportunities for advancement.

In the year 2025, it is anticipated that the value of this product would reach 811.4 billion yuan, which is equivalent to 113.6 billion dollars. Supplements, veterinary care, and toys are some of the other categories that the authors of the study highlight as being relevant in addition to food.

There is a good chance. “In a context of relatively weaker birth rates and greater penetration of pets in households by younger generations,” says analyst Valerie Zhou in the Goldman Sachs study. “We expect further momentum in pet ownership due to the fact that younger generations are more likely to own pets.”

There is, however, a complicated reality that extends beyond the crisis of the birth rate that lies behind the expansion of the pet industry in China. The atomization of society was brought up by Laura Luo, who works in education in Chengdu, which is located in the province of Sichuan. She made this statement in an interview with the Financial Times. “Maintaining a relationship with a pet is much cheaper and less difficult than maintaining one between people,” she stated in addition.

China was the world’s great demographic power

The investment firm Goldman Sachs forecasts that by the year 2030, the nation will have nearly twice as many urban dogs as there are young children.

By ki0nk

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