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Updated On 2 Nov 2023: The global animal health market size was valued at USD 41.50 billion in 2018 and is projected to reach USD 67.56 billion by 2026, exhibiting a CAGR of 6.3% during the forecast period. Animal healthcare involves taking care of animals with appropriate use of drugs, vaccines, medicated animal feeds, and diagnostic products to treat the medical conditions related to the them. Animals hold great importance in human life. They provide food, protection as well as companionship to humans.
Moreover, animals serve as models in biological research, such as genetics and drug testing. The growing awareness about animal diseases, increasingly stringent regulations and growing focus on prevention from diseases originated from animal epidemics are expected to increase demand for animal healthcare products. Owing to these factors the veterinary healthcare market is significantly growing across all the regions. The market is mainly driven by a substantial rise in pet adoption, an increase in the incidence of zoonotic diseases, food-borne diseases, and growing demand for protein-rich food globally. Moreover, technological expansions in the market and the advent of information systems are boosting the animal health market growth.
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Increasing Adoption of Pets by People for Companionship
The adoption of pets is a significant market trend. People largely adopt pets for companionship, and there has been a momentous swing in trend from pet holders to pet parentages. According to the American Pet Products Association (APPA) 2019, 67% of the U.S. households own a pet. Hence the increase in pet owner’s population is propelling the veterinary health market growth.
Public-Private Partnerships for Animal Health
Public-private partnerships continue to strengthen growth demand for animal care products due increased awareness and availability of the products. According to the OIE-World Organization of Animal Health survey 2017, Public-Private Partnership (PPP) in the veterinary health domain has the potential to improve the quality of veterinary services worldwide. This is likely due to restructuring of dynamic and sustainable systems contributing to the health and welfare of human inhabitants.
Increasing Incidence of Zoonotic Diseases to Drive Market
An increase in the incidence of zoonotic diseases is likely to drive the veterinary healthcare market. Increasing adoption of pets by for companionship is resulting in to growing contact with the disease spreading animal borne diseases across world. Rise in the awareness about preventive measures and growing availability of treatment options are likely to drive the demand for animal care products during the forecast period. According to the Centre for Disease Control (CDC), each year, thousands of Americans get ill from disease transmission from animals.
Increasing R&D Activities in Veterinary Medicine to Provide Lucrative Growth Opportunities
Animals play a vital role in the development of healthcare products by serving as a test subjects for testing of drugs and medical devices. The use of animals as a subject in drug discovery is important because research on many genetic and prolonged diseases of man cannot be approved to be tested on humans. In the U.S. alone, each year, thousands of mice and monkeys are used as test subjects in research laboratories.
Animal studies are used in the development of new surgical techniques (e.g., organ transplantations), testing of new drugs for safety, and nutritional research. Animals are mainly valuable in research involving long-lasting deteriorating diseases because such diseases can be persuaded in animals with comparative ease hence, promoting the overall expansion of the market size.
Stringent Government Regulations Over Approval for Animal Drugs to Restrict the Market Growth
Strict government regulations on approval of animal drugs are likely to hinder the market growth. All animal drugs require approval from the U.S. Food and Drug Administration for sale in the U.S. According to the Animal Health Institute, the development of a new animal drug can take up to 10 years and cost more than USD 100 million before approval.
A new vaccine takes three to five years to develop and costs around USD 80 million. Animal health product manufacturers support the FDA approval process through user fees authorized by the Animal Drug User Fees Act (ADUF) and the Animal Generic Drug User Fee Act.
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Drugs Segment to Hold Largest Share During Forecast Period
Based on product, the market segments include drugs, vaccines, feed, and diagnostics. Among the services, the drugs segment accounted for largest market share in the year 2018. The segment is projected to continue its dominance throughout the forecast period. This is attributable to growing prevalence of various diseases in animals and growing number of prescriptions to treat them. The drugs are required for the prevention, control, and eradication of animal diseases. Diseases of animals remain a concern primarily because of the economic losses they cause and the possible transmission of the causative agents present in their body to humans.
The diagnostics segment is projected to expand at significantly high growth rate during the forecast period owing to the launch of a large number of new products and techniques observed in the market.
Companion Animal Segment to Gain Momentum During Forecast Period
By animal, the market segments include livestock animals and companion Animals. Among them the companion animals segment held the largest veterinary healthcare market share in 2018 due to the increasing trend of keeping pet at home. Moreover, this segment is likely to grow rapidly by the end of 2026 attributed to the growing rate of pet adoption to aid the elderly & physically challenged people and shift in tendency from pet owners to pet nurturing.
Veterinary Hospitals & Clinics to Continue Dominating Market
Global animal health market segments based on end-user includes veterinary hospitals & clinics, animal care and rehabilitation centers, diagnostic centers, and others. Among them, veterinary hospitals & clinics segment accounted for the largest share in the market in 2018. An increasing number of pet hospitals and clinics, along with the awareness regarding the spread of zoonotic diseases, had supported the segment growth. The diagnostic centers segment is likely to grow rapidly during the forecast period owing to rise in awareness about the welfare and significance of precautionary care in pets among companion animal holders.
Moreover, the introduction of molecular diagnostic tests like ELISA and PCR now accounts for a major part of the animal healthcare center, are also driving the market.
North America Animal Health Market, 2018 (USD Billion)
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The outcomes based on our research methodology designate North America to hold the largest share in the global animal health market during the forecast period. North America, being technologically advanced in terms of research and development of therapeutics and diagnostics, shows indications of dominant geography. Moreover, the significant rise in pet adoption and an increase in incidences of zoonotic diseases are widespread in the region.
Europe region is expected to hold the second position in this market by witnessing consistent growth in the long-term period. Increased consumption of animal-based food, as well as strong animal health regulations, are responsible for market expansion.
As per our market research Analysts, Asia Pacific is expected to witness healthy growth in terms of animal health care products. Countries in Asia Pacific such as China, Japan, and India have diverse classes of economic development, which results in a growing number of biopharma companies focusing on animal health to modernize the drug discovery process. Latin America and the Middle East & Africa are expected to register a slightly higher growth owing to the increasing demand for technologies.
Zoetis Focusses on Acquisition of Innovative Laboratories to Strengthen Its Comprehensive Diagnostics Portfolio
Companies in the market includes top players engaged in the development of animal drugs, vaccines, medicated animal feed, and novel diagnostic tests. Several key strategies adopted by leading market players include introducing of new products in specialty disease areas and expansion of footprints across geographies with mergers, acquisitions, and partnerships.
November 2019 – Zoetis, a leading player in the veterinary space, announced the acquisition of ZNLab, a full service veterinary clinical reference laboratory company. This acquisition is projected to a strengthen Zoeti’s product portfolio in diagnostic segment
The field of animal health is shifting towards building smart health monitoring devices to keep a tab on health remotely. Due to the trend of the Internet of Things (IoT) technology is upsurging in every sector including animal health. This technology could be made affordable and animal-friendly by private and public partnerships.
An Infographic Representation of Animal Health Market
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The Animal Health Market report offers qualitative and quantitative insights on animal healthcare industries and the detailed analysis of market size & growth rate for all possible segments in the market.
Along with this, the report provides an elaborative analysis of the market dynamics, restraints, competitive landscape, regional analysis, and opportunities. It further offers, the pipeline analysis of veterinary drugs, the regulatory scenario for key countries, key industry developments such as mergers & acquisitions, an overview of animal diseases by key countries, snapshot on the novel & upcoming therapies, an overview of treatment plans for different animal diseases.
Value (USD Billion)
Fortune Business Insights says that the market was worth USD 41.50 Bn in 2018 and is projected to reach USD 67.56 Bn by 2026.
In 2018, the market value was USD 41.50 Bn.
Growing at a CAGR of 6.3%, the market will exhibit a steady growth during the forecast period (2019-2026)
The drugs segment is the leading segment in the global market.
Increase in incidences of zoonotic diseases and growing research & development activities in are driving the growth of the market
Zoetis, Boehringer Ingelheim, and Intervet are the top players in the animal health market.
North America is expected to hold the highest market veterinary healthcare market share.
Growing animal ownership and public-private partnerships for animal health are some of the animal health market trends.
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