《Deconstructing the Pet Economy 》Series 02：Cats Are "Winning" Against Dogs - A Consumer Shift Hiding in Plain Sight

From Japan to China, from Europe to Southeast Asia — why the feline economy is emerging as the primary growth engine for pet consumption.

《Deconstructing the Pet Economy》 is a research series authored by David Thomas, Director at FirstCapital Advisers, with research partner Wing Ho, Chief Administrative Officer at FirstCapital Advisers, applying a macro lens and data-driven analysis to systematically examine the structural transformation of the global pet industry.

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Ask someone in China whether they would choose a cat or a dog, and a decade ago the answer might have been evenly split. Today, the balance is tipping decisively.

According to the 2026 China Pet Industry White Paper (Consumption Report), China's urban pet cat population reached 72.89 million in 2025, significantly exceeding the 53.43 million pet dogs. Cat consumption totalled RMB 152 billion, growing 5.2% year-on-year — notably outpacing the 3.2% growth in dog consumption. Average annual spending per cat reached RMB 2,020, up 4.9%, again outpacing the 3.0% growth for dogs.

This trend is not unique to China. From Tokyo to Moscow, from London to Bangkok, a quiet structural shift — the rise of cats over dogs — is unfolding across the globe.

The Feline Economy in Global Context

Japan represents the most mature expression of this trend. According to the Japan Pet Food Association's 2025 National Survey on Dog and Cat Ownership, Japan's pet cat population has reached approximately 9.15 million, compared to 6.82 million pet dogs. Cats surpassed dogs as early as 2017, and the gap has continued to widen. Japanese media estimate the "feline economy" market at close to JPY 3 trillion. Data from WePet further indicates that Japan's pet cat population grew 2.3% year-on-year to 9.53 million in 2025, while the dog population contracted 4.7% to 8.92 million.

In Europe, cats are similarly the most popular pet type. According to the latest statistics from the European Pet Food Industry Federation (FEDIAF), Europe is home to approximately 129 million pet cats and 106 million pet dogs — a difference of roughly 23 million in favour of cats, out of a total pet population of approximately 352 million. Among individual countries, Russia has the highest proportion of cat-owning households globally, with approximately 59% of families keeping at least one cat, and a national cat population of around 23 million.

The trend is equally pronounced in emerging markets. Kasikorn Research Center projects that Thailand's cat population will grow at an annual rate of 20% to 25% in 2026, surpassing four million. The primary drivers are "pet humanisation" and "pet-centricity".

Globally, cat ownership rates rose from 23.6% in 2019 to 27.3% by end-2024, while dog ownership remained flat at 33.2% over the same period (World Population Review, 2026).

Why Are Cats "Winning"?

The rise of the feline economy is underpinned by a confluence of structural factors.

First, urbanisation and compressed living space. Whether in first-tier Chinese cities like Beijing and Shanghai, or high-density urban centres like Tokyo and Hong Kong, per capita living space is limited. Cats are small, do not require outdoor exercise areas, and do not need daily walks — they are naturally suited to apartment living. For young professionals in cities, the space and daily time commitments required for a cat are significantly lower than those for a medium-to-large dog.

Second, differences in care costs. Dogs require regular outdoor activity, more frequent grooming, and greater investment in socialisation and training. Cats are more independent, with relatively straightforward daily care needs. In Asian markets, increasingly stringent regulations on dog ownership — including restrictions on walking hours, breeds and registration fees — have further raised the overall cost of keeping a dog.

Third, lifestyle compatibility. Urban professionals today face increasingly demanding work schedules, with business trips and overtime becoming routine. Cats can be left alone for several days with sufficient food and water, whereas dogs require boarding or walking arrangements. This flexibility makes cats particularly attractive to Gen Z and Millennial professionals.

Fourth, the nature of emotional connection has evolved. The consumption of cat-related content on social media — "cat petting" and "cloud cat adoption" — is extraordinarily high. The feline personality — independent, occasionally aloof, occasionally affectionate — aligns neatly with contemporary young adults' desire for companionship without clinginess.

Fifth, feline characters in social media and anime have become a cross-generational social phenomenon. Partially or fully feline characters in anime and online content resonate strongly with younger generations, while the sharing of cat videos across platforms such as TikTok, Instagram and Facebook has become a cultural meme in its own right — transcending age groups. Grandparents, children and spouses alike share them with one another, further embedding cats into the fabric of daily social interaction.

What Categories Is the Feline Economy Driving?

The rise of the feline economy is not merely about pet numbers — it is reshaping the entire category landscape of pet consumption.

Cat food is growing markedly faster than dog food. Euromonitor International data shows that global cat food posted a compound annual growth rate of 6% between 2020 and 2025, well above the 3.8% recorded for dog food.

More notably, non-food categories linked to cats are surging. Cat trees, scratching boards, litter boxes and smart litter devices are evolving from functional accessories into considered home design pieces. On social media, "cat-friendly home makeovers" have become a trending topic, with the design appeal of cat furniture and its integration into living spaces increasingly driving purchase decisions among young cat owners. Tmall's 2025 Pet Economy Cross-Sector Observation Report notes that eight home furnishing brands crossed into the pet sector in 2025 — and cat-related products accounted for a far greater share than dog-related ones.

On the services side, the proliferation of cat-themed cafés, exhibitions and pop-up stores is further broadening the boundaries of the feline economy.

Investment Implications: The Feline Economy Is Not a Passing Fad

The rise of the feline economy is driven by multiple long-cycle structural forces — urbanisation, demographics, living space constraints. It is not a short-term trend.

For investors, this suggests sustained attention to brands building vertically integrated product ecosystems around cats — from feline furniture to smart litter solutions, from cat-specific health supplements to cat-friendly spatial design. These categories are positioned to outpace broader pet industry growth over the coming decade.

As the canine economy matures and approaches saturation, the feline economy may be emerging as the next structural growth engine for pet consumption.

Next up: The Pet Economy: A "Counter-Cyclical" Asset in the Consumer Sector

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Data Sources (in order of appearance):

• PetData, 2026 China Pet Industry White Paper (Consumption Report)

• Japan Pet Food Association, 2025 National Survey on Dog and Cat Ownership

• WePet, Latest Trends in Pet Ownership and Average Lifespan, January 2026

• European Pet Food Industry Federation (FEDIAF), Facts & Figures Annual Report

• World Population Review, Cat Population by Country 2026

• Kasikorn Research Center, Thailand Pet Market Analysis, March 2026

• Euromonitor International, World Market for Pet Care 2025

• Tmall, 2025 Pet Economy Cross-Sector Observation Report

 Data as at: May 2026

Disclaimer

This article has been prepared by FirstCapital Advisers based on publicly available information for industry research and discussion purposes only. It does not constitute investment advice, an offer, or a solicitation. References to third-party data and views do not constitute an endorsement of their accuracy, completeness or timeliness. Investors should conduct their own independent due diligence and thoroughly assess all relevant risks before making any investment decision. FirstCapital Advisers and its affiliates accept no liability for any loss arising from reliance on this content.