(Yicai) Aug. 28 -- China's pet market is thriving, with many listed pet product companies reporting robust growth in the first six months, largely driven by staple pet food sales as consumers increasingly splurge on their furry companions, according to the firms’ semi-annual reports.

Guaibao Pet Food, for instance, logged a 22.6 percent surge in profit in the first half from the year before, while revenue soared 32.7 percent. And Tianyuan Pet Products posted a 20 percent jump in net profit and 14.6 percent leap in revenue over the period.

Expenditure on pets is becoming a regular part of household budgets, Hangzhou-based Tianyuan said in its report. People are becoming more willing to spend on their pets, and they are becoming less sensitive to the price of pet products.

Of all pet products, staple food sales are growing the fastest. For example, Liaocheng-based Guaibao's revenue in the first half from staple foods surged 57.1 percent from the year before, while that of Lusi jumped 40 percent and that of China Pet Products soared 85.8 percent.

Spending on China's urban dogs and cats is likely to have climbed 7.5 percent in 2024 from the year before to CNY300.2 billion (USD42 billion), according to an industry white paper compiled by institutions such as the Pet Industry Branch of the China Animal Agricultural Association. Pet food alone accounts for 52.8 percent of the market.

The popularity of pet food has also attracted H&H Group, a global health and nutrition company, to wade into the market. H&H logged a 5.2 percent increase in operating revenue in the first half, but earnings from the firm’s pet nutrition and care business surged 8.5 percent and China sales soared 17.5 percent. Pet products now account for 15.4 percent of the Hong Kong-based company’s revenue and are expected to surpass human health products as the firm’s largest business segment by 2027.

China’s pet food market is entering a new growth phase as businesses upgrade their research and development capabilities and production facilities amid the trend toward more functional and specialized products, said Zhu Danpeng, vice president of the Guangdong Food Safety Protection Promotion Association.

Editors: Tang Shihua, Kim Taylor