2026 "Cyber Gravity" Emotion Consumption Insight Report | Observing the "Emotion Economy" in a Trillion-Dollar Market: Why They Don't Speak, Yet Understand You Best?

Everyday Economic News Reporter: Bi Yuanyuan Editor: Huang Sheng

On the evening of March 12th at 8 p.m., LABUBU and Sanrio’s family jointly launched the “Dream Adventure” soft vinyl plush blind box and figurines. The reporter from “Daily Economic News” found that LABUBU still… On the platform of DeWu, the collaboration between LABUBU and Hello Kitty saw prices from 159 yuan per item soaring to 261 yuan, with hidden models reaching nearly a thousand yuan in premium.

Image source: DeWu screenshot

Meanwhile, on the other end, Lin Ran (pseudonym) was still working overtime on a PPT. Her phone vibrated with a notification from her home camera: her cat “Pudding” was crouched on the armrest of her usual sofa, tilting its head towards the door, as if waiting for her to come home. She opened a voice message and said, “Mom will be back soon.”

In the fast-paced, high-pressure, low-connection urban life, more and more young people are placing their emotional reliance on silent “companions”: a cat, a doll, or even a virtual IP. They are willing to spend big on these “non-human partners”: subscribing to fresh food, buying smart collars, renting pet-friendly accommodations; and they repeatedly order blind boxes just to complete a set of “emotional buddies.”

Against the backdrop of consumption upgrade and demographic changes, the “emotional economy” has gradually become a frequently mentioned concept. According to iiMedia Research, the market size of China’s emotional economy is on the rise, reaching 23.077 trillion yuan in 2024, and is expected to surpass 45 trillion yuan by 2029.

Jiang Han, senior researcher at Pangu Think Tank, told “Daily Economic News” that the sustainability of the “emotional economy” depends on whether a stable “emotional contract” can be formed. Relying solely on short-term curiosity and hype can lead to quick decline, but building a long-term emotional companionship system can withstand cycles.

“Pet economy” market size is expected to reach 930 billion yuan this year, with refined pet care becoming one of the most certain consumption growth drivers in the next decade.

The products in pet, trendy toys, IP consumption, and cultural entertainment sectors have not fundamentally changed, but their roles are evolving—they are beginning to respond to emotions.

Ten years ago, dogs were kept for guarding, cats for catching mice. Now, pets have “moved into the house,” becoming members with high status on household registration, even if their names are not on the household register. Some first ask landlords if pets are allowed when renting, some order fresh food for their pets after their salary arrives, and others take pets out on weekends.

This shift in mindset has driven rapid expansion in the pet industry. According to iiMedia, China’s pet economy market was 97.8 billion yuan in 2015 and has grown to 701.3 billion yuan in 2024, with an expected reach of 930 billion yuan by 2026. Over ten years, this market has nearly expanded tenfold.

Image source: iiMedia report screenshot

Along with overall growth, consumption structures are also changing. The “2026 Global Pet Industry White Paper (Consumption Report)” shows that in 2025, China’s urban pet consumption reached 312.6 billion yuan, a year-on-year increase of 4.1%.

As pets become part of the family, consumption patterns shift accordingly. Early pet spending focused mainly on food, but now medical care, grooming, smart devices, insurance, and travel services are rapidly growing. Pet consumption is shifting from “feeding expenses” to “refined care expenses,” with the industry chain becoming more detailed.

Jiang Han believes that “refined pet care” is not just a short-term trend but a long-term result of family structure miniaturization and emotional transfer. Pets have shifted from functional roles like “guarding” to emotional roles as “family members.” This change in identity definition has increased rigid demand.

Traditional consumer companies are also entering the pet industry. New Hope, Zhongchong Co., and Guai Bao Pets are expanding their pet food businesses, while dairy giants like Yili and Mengniu have launched pet nutrition products. As demand grows, a complete industry chain for pet food, medical care, and services is gradually forming.

“The popularity of high-ticket products like fresh food and smart devices marks an upgrade from ‘survival’ to ‘development’ in pet consumption, which closely mirrors human consumption upgrade paths and has strong inertia,” Jiang Han said.

This shift has also attracted more large companies into the field. Major internet platforms like JD.com, Alibaba, and Meituan have established comprehensive pet consumption segments. JD.com continues to expand its pet food, medical, and insurance businesses; Meituan has added pet boarding and home care services.

“JD, Meituan, and Alibaba’s layout in pet business is mainly about capturing traffic, but more importantly, they see pets as a high-net-worth, highly sticky user entry point,” Jiang Han analyzed. Pet owners generally have higher spending capacity and willingness, making them a valuable traffic pool. The giants are more focused on pets as a “long-term emotional consumption” channel. “Pet food and medical care are high-frequency needs that can effectively improve platform user retention and lifetime value, helping to counteract the peak of e-commerce traffic.”

Meanwhile, the internal structure of pet consumption is also changing. In recent years, cat consumption has grown significantly faster than dogs. Industry data shows that in 2025, China’s urban pet consumption will be about 312.6 billion yuan, with cat consumption growing at 5.2%, higher than the 3.2% for dogs.

Compared to dogs that require frequent outings, cats are more suitable for small apartments and are more easily accepted by single residents. In response to this demand, a series of new products have emerged, such as automatic feeders, smart litter boxes, pet monitoring devices, and emotional comfort toys.

Jiang Han believes that although the full lifecycle cost of pet ownership is high, user stickiness is extremely strong, and repurchase rates are high. “As long as the trends of declining birthrate and increasing singlehood continue, pets as ‘emotional substitutes’ will remain unshakable. Refined pet care will be one of the most certain consumption growth drivers in the next decade.”

Trendy toy consumption grows over 13% annually, with young people willing to keep paying for “emotional buddies.”

If pet consumption provides real companionship, trendy toy consumption is more about emotional projection.

A toy figurine itself has almost no functional value, but it can carry emotional recognition. When consumers see a certain IP character, they may resonate, recall memories, or respond emotionally.

According to iResearch, the Chinese IP trendy toy market reached 67.8 billion yuan in 2024, with a compound annual growth rate of 13.8% from 2020 to 2024; it is expected to approach 130 billion yuan by 2029.

Image source: iiMedia report screenshot

Main consumers are concentrated in first- and new-first-tier cities, aged 21–35, with monthly incomes of 6,000–10,000 yuan (37%), and over 80% of single purchases exceeding 200 yuan. The annual purchase frequency is mostly between 3 and 10 times, showing strong and stable consumption power.

In recent years, the trendy toy industry has also evolved. Brands no longer rely solely on blind boxes but try to “bring IP to life”: creating stories, doing collaborations, hosting exhibitions, and even becoming social topics among youth. LABUBU is a typical example—this small monster with jagged teeth sold over 100 million units in 2025, transforming from a niche design into a “mood buddy” on many desks.

On March 12th, Pop Mart again brought LABUBU and Sanrio’s family together for a collaboration, which sold out immediately. This “divine partnership” is popular because it hits both childhood memories and current emotions simultaneously.

LABUBU and Sanrio’s collaboration is now displayed prominently in stores, but both online and offline, stock is sold out. Image source: “Daily Economic News” reporter Bi Yuanyuan

Jiang Han believes that “IP stacking” can indeed generate explosive traffic in the short term through dual-fan effects and reduce customer acquisition costs—it’s a rational choice in a saturated market. However, he warns that this approach is hard to sustain long-term; excessive collaborations can dilute and generalize IP symbols, leading to consumer “aesthetic fatigue,” where the original emotional value of the IP is eroded by commercial noise, even provoking core fans’ resentment.

Regarding purchasing power, Jiang Han said that although the main consumer group for trendy toys has modest income, their consumption logic follows a “small amount, high frequency” comfort effect. During economic pressure periods, spending a few hundred yuan on trendy toys is psychologically more cost-effective than large expenditures like RVs, providing a countercyclical resilience.

International brands are also reaching young consumers through similar methods. Recently, Disney announced a partnership with F1, combining racing culture with Disney characters to launch new collaborations and merchandise. The integration of sports events and entertainment IPs is essentially an extension of emotional consumption scenarios.

Among domestic companies, CAYOU uses card products to connect with young people. The company has launched card sets based on Ultraman, “Nezha 2,” and other IPs, and enhances user engagement through competitions and offline communities, gradually forming an interest-based culture around card collecting.

Some internet platforms are also entering the trendy toy field. Recently, Alibaba opened its first offline trendy toy store, integrating platform IP resources and extending online IP consumption into offline experience spaces. The store sells trendy toys and attracts young consumers through displays, photo spots, and interactive activities.

In the cultural consumption sector, a mature IP often has a long lifecycle. Industry experts generally believe that MOLLY took nearly twenty years from creation to becoming a classic image, and LABUBU took ten years from initial designer concept to global hit. Once an IP gains stable recognition, it can continuously generate consumption scenarios—from toys to apparel, from exhibitions to content.

Jiang Han states that the “resilience” of the trendy toy industry shows a “K-shaped” divergence: leading companies with strong IP matrices and community operations can withstand cycles, while those relying solely on imitation and lacking emotional depth will be eliminated.

This consumption logic is somewhat similar to the pet economy. Pets provide genuine companionship, while trendy toys carry emotional symbols—both respond to people’s need for stable emotional relationships.

“The essence of the ‘emotional economy’ is a reconstruction of utility functions. Consumers no longer buy for physical utility but for psychological comfort, identity, or social currency attributes. Its core feature is ‘non-functional premium,’” Jiang Han explained. “It fundamentally differs from traditional self-indulgence consumption, which aims to enhance self-experience. Emotional consumption focuses on solving psychological pain points or venting emotions, with stronger immediacy and compensatory effects.”

Daily Economic News