Market Dynamic
Medicines play an important role for pet owners, veterinarians, farmers, & ranchers, ensuring animal welfare and reducing disease transmission between animals &* humans, thereby driving market revenue growth. Vaccination stands out as an affordable technique for preventing animal diseases. By stimulating the immune system without causing the disease, vaccines provide early exposure to pathogens, enabling the immune system to recall and respond effectively. Also, essential for diseases like rabies, vaccines contribute to preventing illnesses that still claim more than 60,000 human lives annually. Animals like sheep and goats, serving diverse purposes for income, food, and clothing, are susceptible to various infections, making monitoring and disease prevention vital.
However, challenges come from remote areas, as high costs of animal healthcare products restrict animal owners from proper care. Limited awareness leads to undiagnosed diseases & improper medication, impacting animal health. In addition, animal diseases have various implications on trade, food supply, livelihoods, & human health, posing potential obstacles to market revenue growth.
Research Scope and Analysis
By Animal Type
The global animal health market is categorized into production animal and companion animal segments. In 2023, the production animal segment claimed the largest revenue share, which includes poultry, swine, cattle, sheep & goats, and fish. Medicines play an essential role for pet owners, veterinarians, farmers, & ranchers, making sure of animal welfare, preventing disease transmission, & preserving the food supply. Further, the growing global population of livestock animals & the increase in demand for animal-derived
food products like milk, meat, & fish are major factors driving the revenue growth in this segment.
Moreover, the companion animal segment is poised for high growth, driven by a growing demand for effective animal care & the strengthening bond between pets & humans. Companion animals, known for their positive impact on human health, like lowering blood pressure and providing psychological stability, are contributing to the growing popularity of animal-assisted therapy, boosting the growth of this segment in the coming future.
By Product
The global animal health market, segmented by product, includes vaccines,
pharmaceuticals, feed additives, diagnostics, equipment & disposables, critical care consumables, & others. In 2023, the pharmaceuticals segment leads with the largest revenue share, a trend expected to persist throughout the forecast period. Pharmaceuticals play an important role in extending & enhancing the lives of animals, addressing conditions like diabetes, infections, obesity, pain, cancer, & age-related disorders, which includes a diverse range of solutions, from anti-inflammatory drugs to antibiotics, providing veterinarians and owners multiple administration options like pills, liquids, injections, powders, feed additives, and boluses.
Also, the veterinary diagnostics segment anticipates significant growth in the coming years, as factors contributing to this growth include increased animal health expenditure, growth in zoonotic diseases, & a rising number of veterinary practitioners with higher incomes in developed economies. Companies are investing heavily in expanding manufacturing facilities, positively influencing the animal health market. Further, the demand for point-of-care diagnostics is on the rise, mainly among pet owners looking for tools like blood glucose monitors, pregnancy kits, & urinalysis strips. However, food animal diagnostics remain largely compact to labs due to strict requirements for disease testing in terms of sensitivity & efficacy.
By Distribution Channel
The hospital/clinic pharmacy segment secures the largest share of revenue in 2023, driven by the rising number of hospital pharmacies & a significant procedural volume, supporting strong segment growth. In addition, retail channels & e-commerce platforms play a significant role, collectively contributing to a substantial share of the total market, as the e-commerce segment is poised for high growth throughout the forecast period, fueled by advantages like growing convenience for patients resisting to purchase of medicines from traditional retail or hospital outlets.
Further, e-commerce platforms ensure a constant drug supply, allowing the convenient preordering of medications, and features anticipated to drive demand. Also, online pharmacies, facilitated by Supply Chain Management (SCM), simplify order procurement and tracking, reducing costs by eliminating intermediaries in the delivery channel, and ultimately improving customer preference. In parallel, retail pharmacies specializing in animal health products are expected to experience a moderate growth rate over the forecast period.
By End User
The veterinary hospitals & clinics segment takes the lead in the animal health market in 2023, securing a significant share of the revenue, which is attributed to its diverse applications, including clinical pathology, toxicological tests, & therapy. The provision of a large spectrum of therapeutic & diagnostic solutions within veterinary hospitals & clinics stands out as a high-impact factor driving the growth of this segment.
Further, the point-of-care testing or in-house testing segment is expected to experience the fastest growth in the coming years. The projections come from factors like climate change & globalization, which are expected to increase the prevalence of zoonotic diseases, which in turn, will surge the demand for diagnostic procedures, driving the rapid advancement of the point-of-care testing or in-house testing segment in the coming future.
The Animal Health Market Report is segmented on the basis of the following:
By Animal Type
- Production Animal
- Companion Animal
By Product
- Vaccines
- Pharmaceuticals
- Feed Additives
- Diagnostics
- Equipment and Disposables
- Critical Care Consumables
- Others
By Distribution Channel
- Retail Pharmacy
- E-commerce
- Hospital Pharmacy
By End User
- Reference Laboratories
- Point of care testing/ in-house testing
- Veterinary Hospitals & Clinics
- Others
Regional Analysis
North America holds a dominant position in the animal health market, commanding a substantial 30.9% revenue share in 2023, which is attributed to the proactive measures undertaken by governments & animal welfare organizations, dedicated to improving overall animal health. The region benefits from technological developments in animal diagnostics, growth in awareness among pet owners, & a rise in zoonotic diseases. Collaborative initiatives by major companies to support research & development capabilities, ensuring strict quality standards, are anticipated to drive demand.
In addition, the high occurrence of diseases in North America further solidifies its market dominance.
Also, the animal health market in the Asia Pacific is expected to have significant growth in the coming years, which is a direct result of consistent research & development investments by key industry players, focusing on introducing affordable branded & generic therapeutics. The region’s exponential growth is fueled by growing awareness of pet nutrition & supplies, along with a rise in earnings.
By Region
North America
Europe
- Germany
- The U.K.
- France
- Italy
- Russia
- Spain
- Benelux
- Nordic
- Rest of Europe
Asia-Pacific
- China
- Japan
- South Korea
- India
- ANZ
- ASEAN
- Rest of Asia-Pacific
Latin America
- Brazil
- Mexico
- Argentina
- Colombia
- Rest of Latin America
Middle East & Africa
- Saudi Arabia
- UAE
- South Africa
- Israel
- Egypt
- Rest of MEA
Competitive Landscape
In the animal health market, to stay ahead of the competition, major companies have used various business tactics, like expanding into new regions, merging with or acquiring other companies, & engaging in collaborative research projects. These strategies focus on enhancing their competitive position by reaching new markets, strengthening capabilities, & encouraging innovation through partnerships with other organizations.
In September 2022, Merck Animal Health reported an updated label indication for Bravecto & BravectoPlus, enabling their topical use in cats to address Asian long-horned tick infestations. These products are the only ones in the U.S. authorized for treating & controlling this tick species. The Asian long-horned tick, originating from China, Japan, Eastern Russia, and Korea, is effectively targeted by Bravecto & BravectoPlus for feline applications.
Some of the prominent players in the global Animal Health Market are:
- Elanco
- Bayer
- Dechra Pharmaceuticals
- Neogen
- Boehringer Ingelheim
- Merck & Co, Inc.
- Zoetis
- Nutreco N.V.
- Virbac
- Vetquinol S.A.
- Other Key Players
COVID-19 Pandemic & Recession: Impact on the Global Animal Health Market:
The COVID-19 pandemic and the following economic downturn have significantly influenced the global animal health market. The pandemic disturbed supply chains, impacting the availability & distribution of veterinary products. Lockdowns & restrictions led to fewer veterinary visits, impacting preventive care & vaccine administration for animals. In addition, economic uncertainties resulted in decreased disposable income, affecting pet ownership & spending on animal healthcare. However, the pandemic also highlighted the importance of the human-animal bond, leading to rising awareness about pet health. As economies recover, there is potential for the animal health market to rebound, driven by a renewed focus on pet well-being and an increased understanding of the link between animal health & human health.
Recent Developments
- In January 2023, Nutreco & BiomEdit unveiled a major, extended partnership focusing on research & commercial efforts, which focuses on providing livestock producers with revolutionary feed additives created through microbiome technology. These innovative additives mainly target health & sustainability concerns in aquaculture, poultry, swine, & cattle, addressing important needs within the animal production industry.
- In August 2022, the California Animal Welfare Funders Collaborative (CAWFC) allocated grants of about USD 300K to 19 organizations, focused on making a substantial impact on people & their pets statewide. The funds were directed toward providing necessities like proper food, medications, & diagnostics for pets, which highlights the growing emphasis on veterinary health, contributing significantly to the overall growth of the market
- In January 2022, Zoetis unveiled that the US Food & Drug Administration (FDA) approved a new label indication for SimparicaTrio (sarolaner, moxidectin, &pyrantel chewable tablets), which signifies its efficiency in preventing Borrelia burgdorferi infections by targeting Ixodes scapularis vector ticks (black-legged or deer ticks). The approval extends to the usage of SimparicaTrio for dogs eight weeks & older age.
Report Details
| Report Characteristics |
| Market Size (2023) |
USD 67.4 Bn |
| Forecast Value (2032) |
USD 148.0 Bn |
| CAGR (2023-2032) |
9.1% |
| Historical Data |
2017 - 2022 |
| Forecast Data |
2023 - 2032 |
| Base Year |
2022 |
| Estimate Year |
2023 |
| Report Coverage |
Market Revenue Estimation, Market Dynamics, Competitive Landscape, Growth Factors and etc. |
| Segments Covered |
By Animal Type (Production Animal and Companion
Animal), By Product (Vaccines, Pharmaceuticals, Feed
Additives, Diagnostics, Equipment and Disposables,
Critical Care Consumables, and Others), By
Distribution Channel (Retail Pharmacy, E-commerce,
and Hospital Pharmacy), By End User (Reference
Laboratories, Point of care testing/ in-house testing,
Veterinary Hospitals & Clinics, and Others) |
| Regional Coverage |
North America – The US and Canada; Europe – Germany, The UK, France, Russia, Spain, Italy, Benelux, Nordic, & Rest of Europe; Asia- Pacific– China, Japan, South Korea, India, ANZ, ASEAN, Rest of APAC; Latin America – Brazil, Mexico, Argentina, Colombia, Rest of Latin America; Middle East & Africa – Saudi Arabia, UAE, South Africa, Turkey, Egypt, Israel, & Rest of MEA
|
| Prominent Players |
Elanco, Bayer, Dechra Pharmaceuticals, Neogen,
Boehringer Ingelheim, Merck & Co, Inc., Zoetis,
Nutreco N.V., Virbac, Vetquinol S.A., and Other Key
Players |
| Purchase Options |
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