Veterinary Healthcare Market

Veterinary healthcare Market Size (2023 to 2028)

The veterinary healthcare market size was valued at USD 36.65 Billion in 2023 and is expected to reach USD 53.71 Billion by 2028. The market size is projected to grow at a CAGR of 7.94% during the forecast period 2023-2028.

Veterinary healthcare Market Share Insights:

• Based on Product type, the Therapeutic segment had the major share of the global market in 2022.
• Based on Animal type, the livestock animal segment led the market in 2022.
• Based on region, North America dominated the Veterinary healthcare market in 2022.

Impact of covid-19 on the Veterinary Healthcare Market:

Veterinary healthcare means a part of a science that deals with the diagnosis, treatment, and prevention of various diseases in animals to expand their lifespan. The veterinary healthcare market consists of sales of veterinary healthcare goods and services. It involves several services, including regular monitoring of animal health and deployment of medicated animal feeds, diagnostic products, drugs, and vaccines for limiting the spread of diseases among animals and people. These amenities are extensively provided by sole traders, pharmacies, veterinary hospitals, clinics, and laboratory testing services. The increase in the importance of the production of livestock animals is generating growth in the Veterinary healthcare market.

Covid-19 has negatively impacted the first half of 2020. This was due to supply chain disruptions and shortages of veterinary medicines observed in several countries, due to the temporary lockdowns of manufacturing sites, and export bans. Governments are taking measures to mitigate the supply of medicines. For instance, in 2020, the European Medicines Agency issued guidance for companies responsible for veterinary medicines concerning adaptations to the regulatory framework, primarily to address the challenges faced during this pandemic. Also, the Centers for Disease Control and Prevention, in July 2020, recommended specific guidelines to veterinary professionals for treating companion animals during the COVID-19 pandemic. Hence, it is observed that the pandemic had a significant impact on the market studied. Additionally, there is an increase in demand for vaccines to prevent chronic diseases from pet owners. Hence protecting livestock animals from these infectious diseases is essential, which positively impacts the veterinary healthcare market.

Market Drivers:

The increase in the prevalence of zoonosis diseases across the globe is expected to boost the growth of the global veterinary healthcare market over the forecast period.

According to World Health Organization, Zoonosis diseases are diseases that are naturally transmissible from vertebrate animals to humans. For instance, the outbreak of covid-19 is an example of the impact of zoonotic disease, in which viruses jump from animals to infect humans. Also, growing animal health disorders bolsters the market's growth rate.

Many government organizations are taking the initiative to provide excellent veterinary healthcare services. These organizations also monitor the launch of various vaccines to avoid infectious diseases like foot and mouth diseases among animals. In addition, to raising funds to develop new vaccines, the government is expanding the growth rate of the veterinary healthcare market to an extent. Additionally, increasing investments in veterinary hospitals to ensure quality services is a driving factor. The rise in the concern towards animal healthcare is lavishing the demand in the veterinary healthcare market. Pet lovers seek the best treatment procedure at any cost, positively impacting the market's growth. Increasing the livestock population is another attribute focused on expanding the market's demand. Furthermore, people's need for quality poultry products for a healthy lifestyle will likely outshine the market's growth extensively.

The penetration of new policies for pet owners is leading to an increase in demand in this market. In the developed market, the penetration rate of pet insurance policies is very high. For example, in the United States, the need for pet insurance policies is growing at a high CAGR during the forecast period. Similarly, in the U.K., the penetration rate of pet insurance is 20%. Introducing various pet insurance policies increases visits to veterinary healthcare centers or clinics. The market is also driven by the approval of new products related to treating animal disorders. The rising meat production is also a driving factor in this market. The increasing meat production is especially prominent in developing countries such as China, India, and Brazil, where increasing populations and rising income levels are stimulating the demand for meat products. By 2027, the production of meat and poultry in emerging markets is expected to increase by 76%.

Market Restraints:

There is a decreasing number of veterinarians due to fewer training programs.

Reluctance to adopt new technologies in undeveloped countries is a significant attribute of the veterinarians shortage in these places. Strict rules and regulations are a significant challenge. Government authorities are imposing strict rules and regulations to approve a vaccine. It remains a major restraining factor for the key players. Some vaccines are unavailable against livestock vector-borne pathogens, hampering the market's growth rate. Fluctuations in the availability of raw materials and the unavailability of vaccines for some diseases restrict the market's growth rate. Additionally, increasing regulation on antibiotics is expected to remain a major restraint for the market. Apart from that, growing cost regulation related to animal testing is also a significant hurdle for the growth of the Veterinary healthcare market.

Report Coverage:

This research report on the Veterinary healthcare market has been segmented and sub-segmented based on the product, Animal type, and region.

By Product:

• Therapeutics

-Vaccines

- Anti-infective

- Medical Feed Additives

- Parasiticides

- Other Therapeutics

• Diagnostic

- Immunodiagnostic Test

- Molecular Diagnostic

- Diagnostic Imaging

- Clinical Chemistry

- Others

Among these, the therapeutic segment is expected to show its dominance over the forecasting period. This is due to the increase in the prevalence of zoonosis diseases across the globe. Vaccine Segment Expected to Hold the Significant Share Over the Forecast Period. New advanced vaccines have been manufactured containing genetically engineered components derived from those disease agents. Additionally, market players are developing and launching new vaccines globally to enhance their market presence. For instance, in March 2021, the world's first animal vaccine against the novel coronavirus was registered in Russia, named Carnivac-Cov, developed by a unit of Rosselkhoznadzor (Federal Service for Veterinary and Phytosanitary Surveillance. The clinical trials of Carnivac-Cov were started in October 2021 and involved dogs, cats, and other animals. Additionally, in June 2022, in India, the Union Minister of Agriculture & Farmers, farmers Shri Narendra Singh Tomar, launched animal vaccines and other diagnostic kits developed by the ICAR-National Research Centre on Equines.

By Animal Type:

• Livestock Animals
• Cattles
• Swine
• Sheep
• Poultry
• Aquatic
• Others
• Companion Animals
• Cats
• Dogs

Among these, Livestock animals are expected to show their dominance over the forecasting period. According to Food and Agriculture Organization, in emerging economies, animal-based food products hold for one-third of human protein consumption, leading to an increase in livestock productivity, which is critical to meet the dietary needs of the growing human population. These factors cumulatively are responsible for the significant share captured by production animals in this segment. While Companion animals are known to lower blood pressure, provide psychological stability, and reduce the frequency of cardiac arrhythmias and anxiety attacks, which enhance the overall well-being of humans. Consequentially, animal-assisted therapy is increasingly preferred as a result of these companion animal products. The companion animal segment is expected to have the fastest CAGR in the coming years.

By Region:

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa (MEA)

Regionally, North America veterinary healthcare market  dominates the global veterinary healthcare market. It currently holds the major share of the veterinary healthcare market, and it is expected to show its dominance over the forecasting period. With the increasing initiatives by various organizations in North American countries coupled with the high adoption of pets, the market studied is expected to show strong growth. For instance, in September 2022, Best Friends Animal Society, an animal welfare organization working to end the killing of cats and dogs in America’s shelters by 2025, announced that it is teaming up with more than 600 shelter and rescue partners across the United States for its third nationwide adoption campaign in six months to encourage people to choose to adopt, not buy, their next pet. Thus, increasing pet adoption in the United States. Additionally, technological advancement, the prevalence of zoonotic diseases, and an increase in the number of pet owners are expected to drive market growth.

Europe veterinary healthcare market holds the second-largest regional growth in this segment. Launching generic drugs due to the increase in demand from pet owners propels the demand for market growth in this region.

Asia Pacific veterinary healthcare market region is expected to have the highest CAGR during the forecasting period. This is due to the rise in support from government organizations through funds and focuses on manufacturing new drugs and vaccines. Latin America and the Middle East and Africa region are expected to register slightly higher growth in the forecasting period. This is due to the increasing demand for the technologies.

Key Market Players:

Some market players in the veterinary healthcare market include Merck & Co. Inc., Bayer AG, Boehringer Ingelheim International GmbH, Eli Lilly and Company, Ceva Animal Health Inc, Novasep, Novartis AG, Nutreco N.V., Sanofi S.A., Sequent Scientific Ltd., Virbac S.A., Zoetic S.A.

Recent Market Happenings:

• On 9th Sept 2022, Merck Animal Health announced the new label indication for both fluralaner topical solution (Bravecto) and fluralaner and moxidectin topical solution (Bravecto Plus) for the treatment and control of Asian long-horned tick infestations in cats. Both products are the first US products labeled for both the treatment and control of Asian long-horned tick infestations.

• On 26th June 2023, FDA Approves Apoquel in Chewable Option, the new formulation is indicated for the treatment of canine pruritus associated with allergic dermatitis and atopy.
• On 12th June 2023, the U.S. Food and Drug Administration and the European Union are expanding their Mutual Recognition Agreement’s (MRA) Sectoral Annex for Pharmaceuticals Good Manufacturing Practices to include veterinary pharmaceuticals.
• On 7th April 2023, FDA Approves Modulis to Treat Feline Allergic Dermatitis Provetica’s generic product has the same active ingredient as Atopica for Cats.