“It has nothing to do with permissiveness [pet] Parenthood is no longer the norm for pet owners,” said Emily Chow, OneDegree’s deputy CEO. “They highly value the daily care, diet and well-being and health of their pets. pet.”
Pet ownership has become increasingly popular in Hong Kong over the past five years, with the number of cats, dogs, birds and other pets jumping by 50,000 to 1.19 million between 2018 and 2023 , according to Statista. The industry has seen sales grow by 50 percent over these five years to US$1.2 billion last year, according to Euromonitor data.
An aging population, social isolation linked to Covid-19 and the high cost of raising children are among the main factors driving the growth of the city’s pet industry, according to separate reports by the German Chamber of Commerce in Hong Kong and OneDegree.
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OneDegree’s Chow says pet owners these days not only seek veterinary care when their pets get sick, but they also schedule regular check-ups and record the their pets in insurance plans. “They consider pets family and give their four-legged companions the same love and care,” he added.
However, despite the money and effort Hongkongers spend to care for their pets, the city’s pet insurance industry is still thriving, with an estimated take-up rate of around 5 percent .
The report shows that as many as 16 percent of the 526 owners surveyed by OneDegree have never heard of pet insurance, and of those who have heard of pet insurance, less than half have enrolled of their pets in an insurance plan.
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“We believe [that] by continuously educating pet owners, providing clear product information, as well as a seamless and efficient online purchase-and-claim experience, the market will grow and grow in Hong Kong,” he said.
Meanwhile, mainland China’s pet industry is also seeing positive growth, though growth momentum has slowed over the past few years due in part to Covid-19 and its impact on households’ disposable incomes.
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Last year, mainland pet owners spent an average of 2,875 yuan (US$400) per year on their dogs and 1,870 yuan on their cats, marking a decrease of 0.2 percent and 0.75 percent, respectively. respectively, compared to levels in 2022. However, the market recorded total sales of US$13.6 billion, a close to 100 percent increase from 2018, according to reports published separately by industry bodies such as the Chinese Veterinary Medical Association and Euromonitor.
Pet food dominates owner spending with a 52.3 percent share, while medical products and services, including drugs, physical exams and vaccines, account for 28.5 percent, according to the report by association.
Mainland pet sales are expected to reach 81.1 billion yuan next year, according to estimates by iiMedia Research.
