Booming Chinese pet sector driving innovative health, nutrition solutions

As Chinese pet owners increasingly demand science-backed nutrition rather than traditional pet food, global biotechnology suppliers are moving to tap into a domestic pet economy projected to grow significantly by 2028.

Danish biosolutions company Novonesis has made China a priority market for its new pet business unit launched in 2025.

The company, formed in 2024 through the merger of enzyme producer Novozymes and probiotic specialist Chr. Hansen, positions itself not as a pet food brand, but as an upstream biotechnology supplier, providing enzymes and microbial solutions for pet nutrition and health.

Its entry reflects a broader shift in China's fast-growing pet economy, where global pet firms are increasingly targeting the country not only as a consumer market, but also as a base for research, production and partnerships with local brands.

"China is both a growth engine and an innovation testing ground for pet nutrition solutions," said Jack An, head of sales for animal biosolutions in the Asia-Pacific region at Novonesis.

China has become the world's second-largest pet market, fueled by rising urban incomes and shifting attitudes toward pet ownership among younger consumers who increasingly treat animals as family members.

The 2026 China Pet Industry White Paper (Consumer Report) stated that the number of pet dogs and cats in the country's urban areas exceeded 120 million in 2025. Spending on pet-related consumption reached approximately 312.6 billion yuan ($45.92 billion) in 2025 and is expected to grow to around 405 billion yuan by 2028.

The market is also evolving rapidly. "Consumers are moving away from marketing claims toward ingredients, scientific evidence and measurable benefits," An said. "That trend creates opportunities for upstream biotechnology."

Unlike multinational pet-food giants such as Mars Incorporated or Nestle Purina PetCare, Novonesis focuses on supplying functional ingredients, particularly enzymes and probiotics, that manufacturers incorporate into finished products.

Its first products launched in China target two common concerns among pet owners: digestive health and hairball management in cats.

One solution uses keratinase enzymes designed to break down ingested hair in cats' digestive systems, potentially reducing hairball formation. Another is a probiotic blend based on bacterial strains developed by Chr. Hansen, aimed at stabilizing gut microbiota and improving immunity in dogs and cats.

An said the dual "enzyme plus microbe" technology platform reflects the combined strengths of the merged companies. "The combination allows us to design more targeted functional solutions, from digestion to nutrient absorption," he said.

To stay competitive, foreign firms are increasingly localizing their supply chains, and Novonesis has expanded its manufacturing and innovation footprint in China.

Novonesis employs more than 1,000 people in the country and operates multiple facilities, including enzyme production sites in Tianjin and Suzhou, Jiangsu province, as well as a microbial manufacturing base in Shenyang, Liaoning province. Its regional headquarters and research center are located in Beijing.

Most products for the Chinese pet market are already produced locally, and the company is considering additional capacity expansion as demand grows.

Beyond production, An said collaboration with Chinese partners — from pet food brands to universities and research institutes — is increasingly central to its strategy.

"China's market moves very fast," he said. "Working with local partners allows us to translate laboratory science into scalable commercial solutions more quickly."

Industry analysts say China's pet sector is entering a more mature phase, characterized by stricter regulatory oversight and greater emphasis on scientific validation.

Research from Euromonitor International shows premiumization and functional nutrition are key drivers of growth in the global pet food market, a shift that is becoming increasingly evident in China as pet owners treat animals more like family members.

At the same time, competition is intensifying as domestic brands rapidly improve product development and marketing capabilities.

An acknowledged that the sector still faces challenges, including product homogeneity and the difficulty of translating laboratory research into stable, large-scale manufacturing.

"From the lab to mass production, maintaining consistent performance and compatibility with different formulations is one of the biggest technical hurdles," he said.

Still, he sees China's pet market as offering long-term structural growth rather than a short-term consumption trend.

"The shift toward more scientific and functional nutrition is only beginning," An said. "For biotechnology companies, China is one of the most dynamic places in the world to innovate in pet health."