As the Xiaoman solar term meets May 21, a date associated in China with expressing love, pet parents are already driving a wave of spending on their companions. Global e-commerce penetration in the pet sector has exceeded 42%, well above the average for fast-moving consumer goods. This pet economy has become a trillion-scale consumer market.
In China, more pet brands are expanding overseas, and the industry's exports continue to grow. Leading Chinese brands such as PETKIT and CATLINK are using innovative products and promotional strategies to capture international markets.
North America, the world's largest pet market, accounts for more than 40% of the global market. In the United States, 59.8% of households own dogs and 42.1% own cats. As technology advances, demand for smart pet devices continues to rise in North America, creating substantial potential for intelligent pet products.
Direct-to-consumer or DTC marketing is central to the North American pet market. The top five brand websites receive more than five million visits per month combined, and many brands have succeeded by selling directly to consumers.
Emerging markets are growing alongside established ones. Indonesia's pet food market is worth nearly US$570 million and primarily serves cats, reflecting religious considerations. Its pet supplies market leads global growth at 30.9%. Thailand is Southeast Asia's largest pet market, with a compound annual growth rate of 9.8% from 2021 to 2023.
The commercial maturation of GPS, smart technologies, 5G, and AI, together with sustained demand for pet care, has driven the rise of smart pet supplies.
Smart devices now support feeding, drinking, toileting, and sleeping. Litter boxes with AI health monitoring, for example, can assess cats' health through urine and usage-frequency data. App-connected interactive toys let owners keep track of their pets around the clock. Intelligent care products reduce manual work and support pet parents across daily routines.
Examples of smart pet products.
The United States remains the largest consumer market and still ranks among the top five for growth. Consumers are highly receptive to technology products.
Among pet brands expanding overseas, PETKIT has emerged as a standout, sometimes described as the DJI of smart pet supplies.
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High-quality specialist pet KOLs integrate products naturally into promotional content, keeping the overall presentation smooth.
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A strong pool of lifestyle and pet-owning family creators presents authentic user experiences and supports brand reputation.
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Light-touch endorsement collaborations with local celebrities help new brands enter local markets.
Selected pet creators exclusively represented by Youdao Ads.
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A professional team of pet parents films and reviews content to ensure production quality.
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Local filming support for brand videos aligns content with local requirements and environments.
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Content operations for brands' overseas social accounts provide an ongoing supply of emotionally engaging brand content.
Selected pet-related collaborations by Youdao Ads.
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Creative collaborations in target markets: Partnerships with food, tea, coffee, and other brands, such as initiatives to protect stray cats and dogs, can quickly increase awareness and brand favorability.
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Reaching consumers across channels: Offline settings such as shopping districts, malls, and pop-ups are particularly important. Creative events such as pet matchmaking gatherings and playful pet festivals can help brands stand out.
As pet brands expand internationally, Youdao Ads combines end-to-end promotion with global creator marketing, overseas media advertising, and its overseas exclusive-creator MCN business to support regional growth in both branding and performance.