SHANGHAI, April 11 (Xinhua) -- A latte topped with cat-shaped foam, a guest room designed for boarding dogs and a pet-themed obstacle race are among the scenes drawing attention in Shuxin Town in Shanghai, where local authorities are betting on the fast-growing pet economy to revitalize rural areas.

In Yuejin Village, a former village committee office has been transformed into a pet-friendly cafe. Outside, a courtyard features designated dog parking spots equipped with leashes, water dispensers and cleaning supplies.

"Many cafes in urban areas now allow pets, but we offer larger spaces and more comprehensive services," said Chen Yinghao, a barista.

Nearby, a boarding facility has filled more than 30 percent of its 70 dog kennels within two months of opening, with an average stay of around 20 days.

The scenes reflect a broader shift taking shape in the town.

China's pet economy has surged in recent years, fueled by urban lifestyles and rising spending on companion animals. According to a 2026 industry report, the number of pet dogs and cats in China's urban areas reached 126 million in 2025, driving the pet consumption market to 312.6 billion yuan (about 45.5 billion U.S. dollars). The market is expected to expand further to 405 billion yuan by 2028.

Experts say rural areas, with lower costs, more space and better ecological conditions, are increasingly attractive for pet-related businesses seeking new growth opportunities.

For decades, Shuxin's economy relied heavily on agriculture, with limited income streams for local residents. The pet industry, officials say, offers higher added value and stronger consumer appeal.

The town has become one of the first in Shanghai to roll out targeted policies supporting the pet industry. As companies across the pet supply chain move in, it aims to capitalize on both rising consumer demand and expanding industrial opportunities.

A recently released policy package sets out 15 measures across five areas, including infrastructure, industry chain development, technological innovation, branding and talent support, and providing full-cycle financial support and services for incoming businesses.

More than 30 pet-related companies and industry associations approached the town in 2025, and projects will be selected based on alignment with its development priorities and industry needs, a local official said.

Sun Ruowang, who has spent more than a decade working in the pet industry, recently launched a rural pet club in Huimin Village, integrating pet food production, grooming services, events and talent training.

"The rice fields will be leased to nearby farmers, with the grain used as an ingredient for fresh pet food, while the straw will be used to create play areas for pets," Sun said.

Sun's pet club is in talks with a local agricultural base to develop a new line of fresh pet food, aiming to achieve coordinated innovation across the supply chain and mutual benefits.

As incomes rise and the economy shifts toward quality growth, consumption is expanding from goods to experiences and from function to emotion, fueling the rise of new spending patterns such as the pet economy.

Across China, rural areas are tapping the pet economy as a new driver of growth, helping promote rural revitalization.

In Caoxian County in Shandong Province, 459 pet-related businesses were operating as of late October last year, spanning pet home furnishings, food, clothing and services.

Despite rapid expansion, challenges remain, particularly a shortage of skilled workers, which is more pronounced in rural areas.

Wu Zesunwen, a third-year student majoring in pet care and training at a vocational college in Jiangsu Province, is interning in Shuxin Town. He said most graduates in his field tend to work in urban pet shops and animal hospitals.

"There are few people in the village, mostly elderly, and almost no nightlife," he added. "After a while, it can feel dull."

To address these challenges, Shuxin Town is working with educational institutions to develop training programs in pet grooming, pet training, nutrition and veterinary care, while improving infrastructure and public services to attract and retain talent.

He Ting, an official in Huimin Village, said rural development should not simply replicate urban pet-friendly models, but should prioritize ecology, make use of local resources and keep costs under control.