Animal Health Market Size, Share and Industry Analysis,Global Trend By Product (Drugs, Vaccines, Feed, and Diagnostics), By Animal (Livestock Animals and Companion Animals), By End User (Veterinary Hospitals & Clinics, Animal Care & Rehabilitation Centers, Diagnostic Centers, and Others) and Geography Forecast 2019-2032

The global animal health market size was valued at USD 41.50 billion in 2018 and is projected to reach USD 97.54 billion by 2032, exhibiting a CAGR of 6.3% during the forecast period. North America dominated the global market with a share of 34.02% in 2018.

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 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 preventing diseases that originated from animal epidemics are expected to increase the 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, increased 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 growth of the animal health market.

Animal Health Market Snapshot & Highlights

Market Size & Forecast:

• 2018 Market Size: USD 41.50 billion
• 2032 Forecast Market Size: USD 97.54 billion
• CAGR: 6.3% during the forecast period (2019–2032)

Market Share:

• North America held the largest share (34.02%) in 2018, driven by advanced R&D capabilities in veterinary therapeutics and diagnostics, high pet adoption rates, and growing incidences of zoonotic diseases.
• By product, the drugs segment led the market in 2018 due to the high prevalence of animal diseases and increased prescriptions for treatment and prevention. The diagnostics segment is expected to grow at a faster rate owing to product launches and adoption of molecular testing technologies like ELISA and PCR.

Key Country Highlights:

• Japan: Rising demand for advanced veterinary care, growing companion animal adoption, and investment in diagnostic innovation.
• United States: High pet ownership (67% of households), strong veterinary infrastructure, and active public–private partnerships for animal health.
• China: Expanding biopharma sector focusing on modernizing animal health R&D and increasing livestock healthcare needs.
• Europe: Strong regulatory framework for animal health, high consumption of animal-derived food products, and government emphasis on preventive care.

MARKET TRENDS

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• North America witnessed a growth from USD 13.34 Billion in 2017 to USD 14.12 Billion in 2018.

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 to increased awareness and availability. 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.

MARKET DRIVERS

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 test subjects for 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 for testing on humans. In the U.S. alone, thousands of mice and monkeys are used as test subjects in research laboratories each year. 

Animal studies are used in developing new surgical techniques (e.g., organ transplantations), testing 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.

MARKET RESTRAINT

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.

SEGMENTATION

By Product Analysis

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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 Drugs segment is expected to hold a 45.5% share in 2018.

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.

By Animal Analysis

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. 

By End-User Analysis

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.

REGIONAL ANALYSIS

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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.

KEY INDUSTRY PLAYERS

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

LIST OF KEY COMPANIES PROFILED:

• Zoetis
• Intervet International B.V.
• Elanco
• Ceva
• Virbac
• Merck & Co., Inc.
• Novartis AG
• Emergent BioSolutions, Inc.
• CSL Limited
• IDEXX Laboratories, Inc.
• Bayer AG
• Boehringer Ingelheim International GmbH
• Other Prominent Players

KEY INDUSTRY DEVELOPMENTS:

• Boehringer Ingelheim, an animal health leader, announced a partnership with PetMedix to develop companion animal antibody therapeutics using PetMedix’s proprietary Ky9 platform. As part of this partnership, Boehringer Ingelheim will bring these therapies to market, whereas PetMedix will begin discovering activities that are against several vital targets.
• INRAE AND CEVA SANTE ANIMALE (CEVA) announced an agreement to consolidate their collaboration in animal health. This agreement involved various collaborations, exchange of laboratory personnel, testing of anti-infective treatments and vaccines, and many joint research projects scheduled to be completed in 2021.
• Boehringer Ingelheim announced a strategic collaboration with Henke-Sass, Wolf to develop an advanced intramuscular needle-free vaccine injection tool for pigs around weaning until the end of nursery. This device will be available under two different brand names FreVAX and EPIG.
• Ceva Santé Animale announced that the company had augmented its production capacity threefold for bacterial autogenous vaccines at its French plant. This innovative project of USD 8 million investment is committed to improving preventative animal health and reducing the use of antibiotics.

FUTURE OUTLOOK

The field of animal health is shifting towards building smart health monitoring devices to monitor health remotely. Due to the trend of the Internet of Things (IoT), technology is upsurging in every sector, including animal health. Private and public partnerships could make this technology affordable and animal-friendly.

REPORT COVERAGE

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.

Report Scope & Segmentation