---
title: "The first \"It\" exclusive exhibition area at the Import Expo: KPMG interprets the pet economy and the \"resilient transformation\" of the hotel industry"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/264778015.md"
description: "The 8th China International Import Expo opened in Shanghai, establishing a pet-themed exhibition area for the first time, showcasing the growth potential of the pet economy. KPMG released two industry reports analyzing the transformation of the pet economy and the hotel industry, emphasizing the relationship between the pet economy and residents' consumption levels. The reports pointed out that the emergence of new consumption scenarios, such as pet-friendly hotels, has driven the enhancement of macro consumption, laying the foundation for the high-quality development of the Chinese economy"
datetime: "2025-11-07T03:48:45.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/264778015.md)
  - [en](https://longbridge.com/en/news/264778015.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/264778015.md)
---

# The first "It" exclusive exhibition area at the Import Expo: KPMG interprets the pet economy and the "resilient transformation" of the hotel industry

The 8th China International Import Expo (hereinafter referred to as the "CIIE") was grandly opened in Shanghai. As an important showcase for global consumption trends, this year's CIIE has set up a pet-themed exhibition area called "Pet Expo Paw Terminal" for the first time, demonstrating the Chinese market's continuous pursuit of high-quality and diversified lifestyles.

As an important growth pole in the consumption sector, the pet economy made its debut at the CIIE in the form of a concentrated "Pet Expo Paw Terminal" themed exhibition area, conveying the modern lifestyle concept of "pets as important family members." At the same time, the hotel industry, adapting to the new consumption economy, is also at a critical stage of transforming from scale expansion to quality service. During the CIIE, KPMG launched two in-depth industry reports: "2025 China Pet Industry Market Report" and "Breaking the Deadlock and Rebirth: The Resilience Path of China's Hotel Industry in 2025," which precisely focus on the two new consumption tracks of pets and hotels, interpreting the industry's evolution logic and development opportunities with data and insights, providing solid industrial annotations and trend guidance for understanding the current changes and consumption upgrades in the Chinese market.

Jiang Liqin, Partner and Head of Client and Business Development at KPMG China, stated that the development of the pet economy is closely related to residents' consumption levels. As residents' material living needs are met, their spiritual needs increase. At the same time, changes in consumption demand and scenarios will drive deeper adaptation on the supply side. For example, from the cultural tourism perspective, pet-friendly hotels represent an ecological extension and reconstruction of hotels adapting to new consumption, and public transportation tools that accommodate pet travel are also undergoing high-density connections. This leads to a continuous leap in overall macro consumption, providing a solid foundation for the high-quality operation of the Chinese economy. This time at the CIIE, KPMG jointly launched the pet economy report and the hotel industry report, capturing new consumption trends and providing forward-looking insights and thoughts for the industry, helping enterprises move forward steadily.

**CIIE "Cute Pets": Emotional Consumption Drives Industrial Upgrades**

With changes in Chinese family structures and shifts in consumption concepts, the pet economy is becoming a representative field of "emotional consumption." In the "Pet Expo Paw Terminal" exhibition area of the CIIE, pet food, eco-friendly cat litter, health care products, and shared living goods for pets and their owners are highly regarded, forming a microcosm of the booming development of the Chinese pet market.

KPMG's "2025 China Pet Industry Market Report" (hereinafter referred to as the "Report") points out that by 2024, the market size of urban pet dogs and cats in China will exceed 300 billion yuan, and it is expected to surpass 400 billion yuan by 2027. The role of pets is shifting from "functional companions" to "family members," driving the vigorous development of sub-sectors such as food, medical care, services, and technology. At the same time, the main force of pet owners is showing significant characteristics of being younger and more educated, with those born in the 1990s and 2000s accounting for over 60% of the market share. They pursue high cost-performance and product functionality, pushing the market from "quantity" expansion to "quality" upgrades. On the policy level, consumption-boosting policies and industry regulatory measures from various levels of government provide strong support for the prosperity of the pet economy The report believes that China's pet market shows strong growth momentum, with the scale expected to exceed 811.4 billion yuan by 2025. Among them, pet food, as a necessity category, occupies the largest market share in the industry and is the core driving force of the pet economy. Segmented tracks such as pet medical care, supplies, and services are also growing rapidly. Market competition is fierce, with the number of newly registered enterprises continuing to rise. After accumulating experience through OEM services, domestic pet food companies are continuously increasing R&D investment and gradually cultivating competitive proprietary brands. From the consumer side, pet owners born in the 1980s and 1990s tend to purchase pet products through online channels, especially obtaining information and making purchases through short videos and social platforms, with live e-commerce performing particularly well. Their consumption decisions are becoming increasingly rational and refined, focusing not only on cost-effectiveness but also on brand reputation, product effectiveness, and transparency, reflecting the popularization of the "scientific pet-raising" concept and the trend of consumption upgrading.

The report reveals eight core trends leading the industry development, such as the accelerated advancement of supply chain restructuring and domestic substitution, enterprises actively exploring emerging markets, and domestic brands gaining recognition through smart technology empowerment and precise marketing. Consumption upgrading and technological innovation empower each other, while the concept of "human-animal shared origin" promotes the pet food market's upgrade towards refinement and high quality.

Lin Qihua, the partner in charge of KPMG China's retail and consumer goods industry, pointed out that the overall consumption market is in a "recovery period," but structural highlights are evident. Although the pet industry is small, it is resilient and represents a field of emotional value consumption. In the face of these trends and intensifying competition, KPMG has launched a "four-dimensional integrated" consulting service framework for the pet industry, focusing on the four core dimensions of "empowerment, breakthrough, development, and innovation," helping enterprises build a systematic strategic path and sustainable transformation capabilities through precise market positioning, business model upgrading, and "pet +" cross-border collaboration.

**The Resilient Path of the Hotel Industry from Scale Expansion to Value Reconstruction**

High-quality emotional consumption associated with the "pet economy" is also changing the development ecology of many industries. The hotel industry focuses on finding new growth points amid structural adjustments, and China's hotel industry is undergoing a test from "quantity increase" to achieving "quality change." KPMG's report "Breaking the Deadlock and Rebirth: The Resilient Path of China's Hotel Industry by 2025" (hereinafter referred to as "the report") points out that the industry has shifted from "extensive expansion" to "meticulous cultivation," with the competitive landscape transitioning from incremental development to stock optimization, and the strategic focus of enterprises shifting from scale expansion to quality improvement. Currently, China's hotel market presents a clear "pyramid" structure, with economy hotels dominating, and the chain rate rising to 40.1%, but there is still a gap compared to international levels, hiding the potential for light asset transformation. Driven by both business travel and cultural tourism, the industry is gradually recovering, with significant trends in consumption stratification, promoting a multi-level development pattern of "high-end experiential, mid-range personalized, and economical intelligent," while new formats such as health travel and long-term rental apartments inject new vitality into the industry.

Shao Feng, a partner in charge of auditing at KPMG China, pointed out that in the face of market changes, the report systematically outlines the core trends for the future development of China's hotel industry, providing a clear path for enterprise transformation and upgrading: at the top policy level, national consumption promotion policies continue to exert force, promoting the deep integration of the hotel industry with cultural and tourism consumption, forming a collaborative growth engine At the same time, under the national "dual carbon" strategy, the hotel industry is actively responding and comprehensively promoting a green and low-carbon transformation. In terms of brand building, the industry will accelerate brand integration and light asset transformation, promoting a steady increase in market concentration. With the rise of the Z generation consumer group, the product design and service experience in the hotel industry will accelerate in terms of youthfulness and personalization. Meanwhile, leading enterprises have the capability to shift from single brand output to platform-based output, creating internationally competitive brands. In terms of asset operation, companies are diversifying their regional and business layouts by optimizing their investment and financing structures and promoting mergers and acquisitions. In terms of operational models, digital technology is deepening its application in scenarios, helping the hotel industry optimize the entire customer journey experience. At the same time, the continuous extension of the "accommodation + X" integration model will effectively expand non-room revenue sources and reshape the profit structure.

In summary, hotel enterprises need to take advantage of policy guidance and act accordingly, accelerating the construction of a data-driven, collaborative, efficient, and sustainable new operational system through systematic upgrades in brand building, operational models, and capital operations, in order to seize opportunities and win the future in the new stage of high-quality development.

From spending lavishly on "fur babies" to paying for pet-friendly travel experiences, Chinese consumers' pursuit of quality living is significantly changing the market landscape. KPMG's joint release of two reports at this year's Import Expo is not only a deep scan of the industry's current status but also a strategic prediction of future industry development paths. Whether it is the booming "pet economy" or the actively changing hotel industry, the core of both points to emotional satisfaction and experience upgrades. Standing at the new starting point of the "14th Five-Year Plan," those who can better grasp this core will be able to seize opportunities in the new consumer era filled with challenges and opportunities

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