(Yicai) Nov. 7 -- Small and medium-sized Japanese enterprises in the pet care industry are increasingly looking to the fast-growing Chinese market for new opportunities, with a large contingent attending this year’s China International Import Expo in Shanghai.

At the major trade show, the 400-square-meter Japan Mall booth organized by the Japan External Trade Organization has a special focus on pet health and wellness, their emotional needs, smart pet care, and other related areas. JETRO has marshaled the booth for seven consecutive years, bringing along 54 businesses and industry associations this year.

Many Japanese firms are interested in overseas markets, especially the Chinese market, due to the limited size of their own, said Xu Xiaolei, a senior manager in the market development department of JETRO's Shanghai office.

The Chinese pet market has burgeoned over the past decade as a result of increasing animal ownership and shifting cultural attitudes and is now the fastest-growing in the world. Through their participation at the CIIE, Japanese SMEs aim to explore the Chinese pet market and potentially establish a local presence to address specific consumer demands.

“Japanese SMEs want to come to China to get a better understanding of the different needs that may exist in the country,” Xu said.

He pointed out that China’s pet market has seen explosive growth since 2022, with more people regarding them as family members and spending heavily on pet food, accessories, and veterinary services.

With nearly 200 million pets in the country, the market was worth CNY250 billion (USD34.8 billion) last year, according to data released by Euromonitor International, the Institute of the Asia Pet Alliance, and some other bodies. Over the past five years, the market has expanded at a faster clip than in other parts of the world, with an annual compound growth rate of 13.1 percent.

Pet food accounts for half of the spending and a third goes on veterinary fees, Xu said. Although pet food made in Japan cannot be exported directly to China, Japanese companies such as Inaba Petfood are building factories in the country.

This year, 220 Japanese companies in fields ranging from automobiles, energy, chemicals, electrical machinery and cosmetics to finance, are attending the CIIE, the Japan Chamber of Commerce in China said at a press conference yesterday.

The CIIE is being held at the National Exhibition and Convention Center in Shanghai from Nov. 5 to 10.

Editor: Kim Taylor