Animal Genetics Market Size, Share & COVID-19 Impact Analysis, By Product & Services (Animal Type, Genetic Material, and Service Type), By End-user (Veterinary Hospitals & Clinics, Research Centers & Institutes, and Others), and Regional Forecast, 2022-2029

The global animal genetics market size was valued at USD 6.80 billion in 2021 and is projected to reach USD 11.82 billion by 2029, at a CAGR of 7.2% during the forecast period. Based on our analysis, the global market exhibited a decline of 7.5% in 2020 as compared to 2019. The global COVID-19 pandemic has been unprecedented and staggering, with animal genetics experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. 

Animal genetics deals with the development of animals by genetic modification in animals to produce superior breeds, which means producing animals with desirable traits. Animal genetics uses various methods for breeding, such as natural breeding, artificial insemination and cryopreservation, and embryo transfer. Animal genetics is also used for various types of testing, including genetic trait testing, DNA typing, and genetic disease testing.

The increasing population of livestock animals is one of the major factors responsible for market growth. Moreover, factors such as the rising burden of genetic disorders requiring genetic testing and the increasing demand for animal derived protein are driving the growth of the market. Furthermore, the emergence of new advanced genetic technologies by the market players with the potential to eliminate current challenges is expected to fuel the animal genetics market growth during the forecast timeframe.

COVID-19 IMPACT

Increased Demand for Genetic Diagnosis amid Pandemic to Positively Impact Market Growth 

The COVID-19 pandemic has significantly changed the landscape of animal healthcare practices across the world. During the pandemic, the animals were also at a high risk of transmission of COVID-19, which increased the demand for genetic testing to understand the impact of coronavirus transmission.

• For instance, according to this genetic study by the National Academy of Science in August 2020, 12 cetacean species, including giant anteaters, numerous rodent species, the Angolan colobus monkey, three types of deer, and dolphins, are also suspected to be vulnerable to coronavirus. Such studies supported the increasing need for genetic testing on animals, thereby driving the market's growth during the pandemic.

Key players operating in the market experienced a significant increase in their revenues in the year 2020 due to increased pet adoption and higher consumer spending on pets during the COVID-19 pandemic. For instance, Neogen Corporation registered a growth of 13.6% in 2020 from 2019 due to increased demand for animal genetic tests for companion animals.

LATEST TRENDS

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Shift from Natural Breeding to Assisted Reproduction Technology for Genetic Upgrades in Animals

The development of techniques, such as artificial insemination, cryopreservation, and embryo transfer, has shown better outcomes than traditional natural breeding among animals, resulting in the shift from natural breeding to assisted reproduction technology.

• According to the National Institute of Food and Agriculture (NIFA), more than 60% of dairy cows in the U.S. are bred by artificial insemination and beef producers account for less than 5% of artificial inseminations.

Furthermore, the advancement in animal genetics, including the development of the CRISPR/Cas9-based genome editing tool has revolutionized the field and led to the modification of livestock genomes.

Various benefits of these gene-editing tools have encouraged market players to develop and introduce gene-edited beef. For instance, in March 2022, the U.S. Food and Drug Administration paved the way for gene-edited beef to hit the U.S. market. The agency declared that there are no safety concerns about two gene-edited beef cattle produced by Acceligen.

DRIVING FACTORS

Increasing Introduction of Products and Government Initiatives to Drive Market Growth 

The growing demand for animal-derived proteins, genetic testing, and genetic material has stimulated many countries to launch government programs for the genetic improvement of bovine and other animals. The increase in government initiatives is expected to boost market growth during the forecast period.

• For instance, In December 2021, India launched the Rashtriya Gokul Mission with an aim to improve productivity and enhance milk production through genetic upgrades of the bovine population. The government of India allotted USD 324.6 million for this Rashtriya Gokul Mission.

Additionally, the government also provided several new technologies to the farmers under this Mission, including sex-sorted semen, IVF technology, and genomic selection.

Furthermore, various companies focusing on launching many new genetic tests with more well-calibrated, safe, and efficiency have revolutionized the portfolio of genetic testing, another critical factor attributable to the global market growth.

In May 2022, Neogen Corporation and Gencove launched InfiniSEEK, a cost-effective solution for genome sequencing and targeted Single Nucleotide Polymorphism (SNP) analysis. The InfiniSEEK can manage more than 400 bovine genetic traits and conditions.

Such an increase in government initiatives in animal genetics and growing innovative product launches are expected to meet the unmet demands for animal derived proteins during the forecast period.

Growing Adoption of Animal-derived Protein to Boost the Market Growth

The increasing human population and rapid global urbanization increase the adoption of animal-derived protein. Livestock is one of the major sources of protein and calcium for humans. This rising demand for animal-derived food products is expected to increase poultry and dairy production, thereby driving the market.

• According to statistics by the Food and Agriculture Organization Corporate Statistical Database (FAOSTAT), India’s milk production increased to 209.96 million tons (MT) during 2020-21 against 198.44 MT in 2019-20, and India accounted for 21% of the global milk production output.

The increasing demand for animal-derived protein has led to an increase in awareness regarding animal welfare. This results in the greater adoption of animal health insurance, which has ultimately increased the demand for genetic testing by pet owners and breeders to produce modified animals to deliver animal-derived protein.

Such increasing demand for animal derived protein is expected to boost the demand for animal genetic upgrades, thereby propelling the growth of the market.

RESTRAINING FACTORS

Shortage of Skilled Professionals in Veterinary Research and Limited Veterinary Infrastructure to Restrict Market Growth

Certain clinical drawbacks, including inadequately skilled professionals and lack of veterinary infrastructure are limiting the adoption of advanced animal genetics despite the increasing number of research and development studies in the veterinary healthcare industry, specifically for animal gene upgrades and evaluation.

• According to the report published by the Federation of Veterinarians of Europe (FVE) in July 2020, the FVE surveyed the veterinarians in rural and remote areas of 28 countries in Europe, around 78.5% are already experiencing a shortage of veterinarians while the rest of 21.5% veterinarian's shortage is not reported to be significant.

Furthermore, emerging regions' lack of veterinary infrastructure is expected to hinder market growth. This is leading to minimum awareness about the genetic upgrades of animals, such as cattle, for maximizing milk production.

• According to the report published by DownToEarth, in August 2021, treatment facilities for animal care were lacking in India, and many villages in India lack the basics of testing facilities and required infrastructure.

Thus, certain clinical limitations and shortage of veterinary professionals hinder the market growth.

SEGMENTATION

By Product & Service Analysis

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Animal Type Segment to Dominate market owing to Increasing Population of Livestock Animals

Based on product & service, the market includes animal type, genetic material, and service type.

The animal type segment accounted for the largest share of the market in 2021. The increasing shift toward animal-protein consumption, government efforts to reduce environmental effects, and awareness across the world are expected to boost segmental growth during the forecast period.

The genetic material segment is anticipated to register the highest growth rate due to growing research studies for developing genetic material to enhance animal products and productivity.

The service type segment is expected to grow at a substantial CAGR during the forecast period due to the growing prevalence of several genetic disorders in livestock and companion animals, rising awareness of genetic disorder testing, and increasing introduction of advanced tests for companion animals in the market. For instance,

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  • In June 2020, Wisdom Health Genetics announced the launch of two new and improved dog DNA tests, including the Wisdom Panel Essential test and the Wisdom Panel Premium test.
  
  
  
  

By End-user Analysis

Research Centers & Institutes Segment Expected to Dominate the Market due to Growing Research on Advancement of Animal Breeding

Based on end-user, the market is segmented into veterinary hospitals & clinics, research centers & institutes, and others.

The research centers & institutes segment is anticipated to account for a higher share of the global market due to the growing research on advancement of genetic material coupled with the growing adoption of animal breeding practices for the production of modified breeds. Furthermore, the increasing focus of market players to establish new research centers for R&D of new products, which helped them to introduce new technology in animal genetics, is expected to propel the growth of the segment. For instance,

• In June 2018, Topigs Norsvin opened the Delta Canada research center. The research center increased the genetic progress of Z-line and TN Tempo, thereby boosting the segmental growth during the forecast period.

The veterinary hospitals & clinics segment is estimated to grow at a moderate CAGR during the forthcoming years due to increase in the number of livestock and companion animals and increased investment by governments and other organizations to improve veterinary hospitals & clinics.

REGIONAL INSIGHTS

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The North America market stood at USD 3.58 billion in 2021. The region is anticipated to be dominant during the forecast period due to the substantial number of animals in the U.S. suffering from genetic disorders and the presence of prominent players in the region. Factors such as research & development of better breeding practices that result in strong, healthy animals utilizing nutrients for adequate growth and reproduction are expected to drive the market growth in this region.

Europe is projected to hold the second position in the market. This is attributable to the increasing prevalence of disease resistance among animals, particularly poultry and pigs, which is expected to increase the demand for high-quality breeds by requiring sophisticated biotechnology methods.

The Asia Pacific market is projected to register the strongest CAGR during the forecast period due to increasing awareness amongst the general population regarding animal health. Additionally, the substantial animal population base and the increasing animal healthcare spending in the region are expected to favor the growth of the market in the region.

The rest of the world consists of regions such as Latin America and the Middle East & Africa, which accounted for a lower market share in the past. However, the animal healthcare ecosystem has been steadily improving in this region, creating chances for market participants to develop efficient animal testing protocols.

KEY INDUSTRY PLAYERS

Presence of Genetic Material in Product Portfolios of Genus, Hendrix Genetics BV, and Urus Group LP Push Product Demand

In terms of the competition scenario, the market is highly fragmented. The key players in the global market include Genus, Hendrix Genetics BV, and Urus Group LP.

These companies have a moderate animal genetics market share which is attributed to diverse product & service portfolios, strong R&D initiatives, and robust geographical reach. Furthermore, these companies emphasize business expansion through strategic acquisition and collaborations of market players to upscale their R&D activities.

For instance, in August 2022, URUS Group LP acquired Trans Ova Genetics, a leading provider of bovine reproductive technologies, to create sustainable, productive, and profitable cow herds.

Other companies with new products and service launches include Mars, Incorporated, Genomia s.r.o., and TOPIGS NORSVIN. These companies adopting various strategies, such as geographical expansions and the development of genetic test kits and advanced genetic material, are expected to contribute to their efforts to expand their market share during the forecast period.

LIST OF KEY COMPANIES PROFILED:

• Genomia s.r.o. (Czechia)


• Neogen Corporation (U.S.)


• Mars, Incorporated (U.S.)


• Zoetis (U.S.)


• Genetic Technologies Limited (Australia)


• TOPIGS NORSVIN (Netherlands)


• URUS Group LP (U.S.)


• Genus (U.K.)

KEY INDUSTRY DEVELOPMENTS:

• June 2022 - Zoetis acquired Basepaws, a petcare genetics company. This acquisition enhances the company's portfolio in genetic testing and data analytics in advancing animal care.


• December 2021 - Neogen Corporation acquired Genetic Veterinary Sciences, Inc., an animal genetic testing company.


• October 2020 -  Veterinary Genetics Laboratory launched a coat color dilution test, a DNA test, for Charolais, Highland, Simmental, Galloway, and Hereford cattle.


• May 2020 -  Zoetis launched INHERIT Select, the new genomic test, which offers Genomic Expected Progeny Differences (GEPDs).


• May 2020 - Wisdom Health Genetics, a part of Mars, Incorporated launched the Wisdom Panel Essential test and the Wisdom Panel Premium test for dog DNA tests.

REPORT COVERAGE

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The global animal genetics market research report provides a detailed analysis of the market. It focuses on key industry developments such as mergers, acquisitions, partnerships, and new product launches. Besides this, the report offers insights into the overview of the animal population by key countries and advancements in R&D for animal genetics. In addition, it also encompasses the impact of COVID-19 on the market.

Report Scope & Segmentation