Among various pet categories, dogs are the most popular pet. About 60 percent of families that keep pets have a dog, according to a report by consultancy Frost & Sullivan China. Cats ranked second. About 41 percent of families that keep pets have a cat. However, the report pointed out the number of cat lovers is increasing in recent years. Aquarium-borne animals ranked third.

The huge market has certainly attracted investor attention. In recent years, internet companies have started business sectors in the pet industry. JD's self-owned online business store has covered pet product categories including food, toys, medicines and bathing products. JD also signed strategic partnership agreements with many renowned pet brands such as Mars Inc.

Meituan, an on-demand service provider, has pet product delivery services and an online healthcare section to tap into the fast-growing pet industry. Zeng Wei, a director at the company, said sales of pet products surged 350 percent year-on-year in the first six months on Meituan's Fast Buy platform－an online grocery store that said to deliver products door-to-door within 30 minutes.

"Internet giants are becoming more dominant in the pet market as they can leverage strengths from capital and channels for much lower product prices for the same brands and a larger number of consumers, which is challenging for traditional pet product retailers," Kong said.

"But there are also sections in the pet industry where internet companies find it difficult to step in, which are personalized services such as bathing, grooming, beauty care and medical care. For pet business operators, such services have a stronger effectiveness in enhancing customer stickiness compared with products because products under same brands can be easily found from other retailers who might offer lower prices. Providing better customized services for targeted consumers might be an opportunity for traditional pet business operators," Kong said.

Lu Kun, general manager for e-commerce at wecarepet.com, an online healthcare service provider for pets, said developing self-innovative products, especially in the food sector, is also an area of potential for local pet business owners. Currently the market is still dominated by overseas brands, but local brands have emerged to challenge their positions.

"There are still many opportunities for small and medium-sized companies in the pet industry, and the government also offers them supportive policies. The key is to find niche markets that allows them to fully utilize their strengths," Kong said.

A report by Taobao last year said there is a surge in sales of pet beds, traditional Chinese clothing for cats and ancient Chinese style quilts, indicating a growing demand from pet owners to make their furry friends' lives fancier.

There are also a growing number of pet product businesses on Taobao selling body care products for pets such as ear-cleaning solutions, pedicure products and paw creams.

"It's really nothing new to pet parents like me. Whenever I get a bonus from work I buy pet cakes and new clothes for my dog and cats, take photos and post them on WeChat moments (a sharing platform for users)," Beijing-based Liu Yang said.

"The increasing number of pet owners who have good education backgrounds, decent incomes and are single are willing to spend more on pets, which has spurred growing demand for high-end and more diversified pet products," said Neil Wang, president of consultancy Frost& Sullivan China.

"In addition, there is an increasing number of pet owners who keep aquatic animals, birds and reptiles, which will drive business owners to develop products suitable for those pets," Wang said.