Veterinary API Market Size, Share & Industry Analysis, By API Type (Small-molecule APIs Biologic APIs, and Others), By Therapeutic Class (Parasiticides, Anti-infectives, Anti-inflammatory & Analgesic, Hormones, Vaccines, and Others), By Synthesis (Biologically derived APIs, Synthetic / Chemical APIs, and Others) By Animal Type (Companion and Livestock), By End User (Animal Health Product Manufacturer, Academic Research and Development Institutes, and Others), and Regional Forecast, 2026-2034

The global veterinary API market size was valued at USD 5.48 billion in 2025. The market is projected to grow from USD 5.79 billion in 2026 to USD 9.76 billion by 2034, exhibiting a CAGR of 6.74% during the forecast period.

The global market is experiencing steady and substantial growth, driven by the rising outbreaks of animal diseases and an increasing demand for effective treatment and disease prevention. Additionally, the presence of key players offering various APIs for manufacturing is also expected to boost market growth.

• For instance, in September 2022, Vetoquinol launched Simplera (florfenicol, terbinafine, mometasone furoate) otic solution for dogs, addressing canine otitis externa linked to susceptible strains of yeast and bacteria.

Moreover, numerous top industry participants, including Alivira Animal Health and Suanfarma operating in the market, are concentrating on crafting different advanced candidates to assist the increasing demand for effective APIs for finished good production.

VETERINARY API MARKET TRENDS

Shift from Small-Molecule Drugs to Biologic Drugs is a Prominent Trend Observed in Market

The veterinary API market is experiencing a significant shift from a traditional reliance on small-molecule drugs to a biologics-heavy product portfolio. This is driven by the increasing demand for targeted, effective, and safer therapies for animal health, as biologics offer higher specificity and fewer side effects compared to conventional small molecules. Moreover, advancements in biotechnology and genetic engineering have facilitated the development of innovative biologic products, such as monoclonal antibodies, vaccines, and recombinant proteins, for veterinary use, thereby boosting market growth.

• For instance, in December 2025, Zoetis Inc. announced the approval from Health Canada for Portela (relfovetmab injection). It is a monoclonal antibody injection to manage pain associated with osteoarthritis (OA) in cats.

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MARKET DYNAMICS

MARKET DRIVERS

Increasing Animal Disease Incidences are Accelerating Market Growth

The increasing prevalence of animal diseases globally is a major factor driving the growth of the market. The increasing number of animal diseases, such as bovine respiratory disease, infectious diseases, skin infections, parasite infections, mastitis, foot-and-mouth disease, and others, is propelling the demand for adequate medication and thus boosting the global veterinary API market growth.

• For instance, in October 2024, Veterinary World published an article titled “Spatial and temporal distribution of foot-and-mouth disease outbreaks in Algeria from 2014 to 2022”. The article reported that around 22,690 foot-and-mouth disease (FMD) cases and 1,141 outbreaks occurred in Algeria between 2014 and 2022.

MARKET RESTRAINTS

High Regulatory and Compliance Burden with Veterinary API Manufacturing to Restrict Market Growth

The evolving regulations and compliance norms are expected to impact market dynamics, leading to increased compliance costs and operational expenses. These restrictions can hinder market entry and expansion, ultimately limiting overall growth in the sector.

• For example, in July 2024, the implementation of the European Veterinary Medicinal Products Regulation (Regulation (EU) 2019/6) and the German Veterinary Medicinal Products Act (TAMG) resulted in significant regulatory changes. These changes aimed to harmonize the European market and strengthen efforts against antimicrobial resistance, while introducing stricter compliance requirements.

MARKET OPPORTUNITIES

Increasing Strategic Initiatives by Industry Players to Offer Market Growth Opportunities

Increasing strategic initiatives, such as mergers and acquisitions by key players, are bolstering market growth as they expand market presence and enhance product offerings. Such activities enable companies to access new customer bases, offer a diversified product portfolio, and strengthen their competitive position in the rapidly growing veterinary API segment.

• For instance, in November 2025, the National Company Law Tribunal (NCLT) approved the proposed merger between Sequent Scientific and Viyash Life Sciences. This merger aimed to offer organic growth in the animal health market.

MARKET CHALLENGES

Antimicrobial Resistance to Hamper Market Growth

Antimicrobial resistance poses a significant challenge to the market by reducing the effectiveness of antibiotics used to treat animal infections. This uncontrolled use of antimicrobials leads to an increase in resistance in bacteria, also raising concerns about the safety and efficacy of existing veterinary medications, potentially restricting their use. Thus, the overall rising threat of antimicrobial resistance is a major factor that slows down innovation and expansion in the veterinary API industry.

Segmentation Analysis

By API Type

Small-Molecule APIs to Lead Market Due to Presence of Established Drugs

Based on the API type, the market is divided into small-molecule APIs, biologic APIs, and others.

The small-molecule APIs segment is expected to account for the largest veterinary API market share. The small-molecule APIs segment held 63.3% share of the market in 2025. The dominant share of the segment is driven by the presence of established drugs, such as parasiticides, antibiotics, and NSAIDs, which are still based on conventional chemistry and are prescribed in high volumes for animals. Additionally, increasing the number of product launches for generic drugs is expected to boost the segment’s growth in the market.

• In September 2025, ZyVet Animal Health launched FDA-approved generic drugs, including phenylpropanolamine hydrochloride for urinary incontinence and furosemide for heart failure management in pets.

The biologic APIs segment is expected to grow at a CAGR of 9.37% over the forecast period. 

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By Therapeutic Class (H3)

Increasing Parasitic Infections Boosted Parasiticides Segment Growth

Based on therapeutic class, the market is segmented into parasiticides, anti-infectives, anti-inflammatory & analgesic, hormones, vaccines, and others.

In 2025, the parasiticides segment dominated the global market, accounting for a 29.3% market share. The increasing parasitic infections, such as fleas, ticks, and worms, in animals, and the rising demand for parasiticides to boost the segment's growth.

• For instance, in June 2021, Elanco Animal Health developed a parasiticide portfolio and received marketing authorization for the new Credelio Plus in the U.K., providing all-around parasite protection for dogs. 

The anti-infectives segment is projected to grow at a CAGR of 4.07% over the forecast period. 

By Synthesis

Synthetic / Chemical API Segment to Lead Market Due to Increased Demand for Conventional Drugs for Companion and Livestock

Based on the synthesis, the market is segmented into biologically derived APIs, synthetic/chemical APIs, and others.

The synthetic/chemical APIs segment is anticipated to witness a dominant market share over the forecast period. The segment held a 66.3% share of the market in 2025. The increasing adoption of small molecule APIs and demand for conventional drugs for companion and livestock will propel the synthetic/chemical API synthesis segment's growth.

The biologically derived APIs segment is projected to grow at a CAGR of 9.37% over the forecast period. 

By Animal Type (H3)

Rising Pet Ownership to Boost Companion Segment Expansion

Based on the animal type, the market is segmented into companion and livestock.

The companion segment is expected to hold a dominant market share over the forecast period. The companion segment held a 53.4% market share in 2025. The rising pet ownership and humanization of pets are key factors driving the segment’s growth in the market.

• For instance, as of September 2022, according to data published by the Global Animal Health Association, approximately 85.0 million pet dogs are present in U.S. households.

The livestock segment is projected to grow at a CAGR of 4.58% over the forecast period. 

By End User

Strong Product Demand from Animal Health Product Manufacturers Led to Its Segmental Dominance  

Based on end user, the market is segmented into animal health product manufacturers, academic research and development institutes, and others.

In 2025, the animal health product manufacturer held a dominant share of the market. The segment held an 86.9% share in 2025. The rising number of research and development and the manufacturing of finished products in these settings boosts the adoption of APIS. Thus, contributing to the segment’s growth.

• For instance, in January 2024, Boehringer Ingelheim introduced Vaxxilive Cocci 3, a poultry coccidiosis vaccine to prevent coccidiosis in birds.

In addition, academic research and development institutes are projected to grow at a CAGR of 9.36% during the study period.

Veterinary API Market Regional Outlook 

By geography, the market is categorized into Europe, North America, Asia Pacific, Latin America, and the Middle East & Africa.

North America

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North America held the dominant share in 2024, valued at USD 1.96 billion, and maintained its leading position in 2025, with a value of USD 2.11 billion. The market in North America is expected to increase due to rising pet ownership, stringent regulations for the health of food animals, and the presence of key animal drug manufacturers in the region. These factors, coupled with robust animal healthcare and substantial investment in research and development, are enabling market growth.

U.S Veterinary API Market

Based on North America’s strong contribution and the U.S. dominance within the region, the U.S. market can be analytically approximated at around USD 2.01 billion in 2025, accounting for roughly 36.7% of global Veterinary API sales.

Europe

Europe is projected to record a growth rate of 6.03% in the coming years, the second-highest among all regions, and reached a valuation of USD 1.39 billion in 2025. The region is estimated to have an increase in pet ownership and an increase in zoonotic diseases, which will boost the adoption of APIs for finished product production.

U.K Veterinary API Market

The U.K. Veterinary API market reached USD 0.30 billion in 2025, representing roughly 5.5% of global Veterinary API revenues.

Germany Veterinary API Market

Germany’s Veterinary API market reached USD 0.28 million in 2025, equivalent to around 5.1% of global Veterinary API sales.

Asia Pacific

Asia Pacific emerged as the third-largest regional market, generating USD 1.02 billion in 2025. Within the region, India accounted for USD 0.37 billion, while China contributed USD 0.15 billion in 2025.

Japan Veterinary API Market

The Japan Veterinary API market in 2025 reached USD 0.19 million, accounting for roughly 3.49% of global Veterinary API revenues.

China Veterinary API Market

China’s Veterinary API market is projected to be one of the largest globally, with 2025 revenue valued at USD 0.37 billion, representing roughly 6.79% of global Veterinary API sales.

India Veterinary API Market

The India Veterinary API market is valued at USD 0.15 billion in 2025, accounting for roughly 2.70% of global Veterinary API revenues.

Latin America and Middle East & Africa

Latin America and the Middle East & Africa are projected to experience moderate growth in the coming years. Latin America recorded a market size of USD 0.60 billion in 2025, driven by the increasing incidence of diseases among companion and livestock animals and the surging need for advanced drugs and vaccines. In the Middle East & Africa, the GCC market reached USD 0.17 billion in 2025.

Saudi Arabia Veterinary API Market

The Saudi Arabia Veterinary API market reached USD 0.07 billion in 2025, representing roughly 1.20% of global Veterinary API revenues.

COMPETITIVE LANDSCAPE

Key Industry Players

Top Companies Focus on New Product Launches to Propel Market Progress

The global veterinary API market has a semi-consolidated market structure, comprising prominent players such as Alivira, Suanfarma, and others. The significant market share of these companies is due to numerous strategic activities, including collaboration among operating entities to advance research activities.

• For instance, in April 2024, VETOS EUROPE SAGL collaborated with Alivira Animal Health Limited and signed a distribution agreement for the product Anavrin for the Spanish territory.

Other notable players in the global market include Huvepharma and NGL Fine-Chem, among others. These companies are expected to prioritize new product launches and collaborations to increase their global market share during the forecast period.

LIST OF KEY VETERINARY API COMPANIES PROFILED

• Alivira Animal Health (India)
• Huvepharma (Bulgaria)
• Suanfarma (Bulgaria)
• Ofichem Group (Netherlands)
• NGL Fine-Chem (India)
• Axplora (Germany)
• BMP Pharma Trading AG (Germany)
• Sai Life Sciences Limited (India)

KEY INDUSTRY DEVELOPMENTS

• September 2025: Sai Life Sciences, a Contract Research, Development, and Manufacturing Organization (CRDMO), announced the opening of Unit VI for veterinary API production in Bidar, India.
• January 2025: Ceva announced the grant of rights to develop and manufacture products using Touchlight’s dbDNA technology across the animal health field.
• January 2024: Huateng Pharma launched a comprehensive range of veterinary solutions. These innovative offerings, including Fluralaner and Sarolaner.
• December 2023: Stallen launched a new veterinary API facility for Halquinol in Vatva, Ahmedabad.
• January 2021: SeQuent Scientific has been awarded a Certificate of Suitability (CEP) from the European Directorate for the Quality of Medicines for its generic active pharmaceutical ingredient (API), Diclazuril, for treating coccidiosis in livestock.

REPORT COVERAGE

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Report Scope & Segmentation    (H2)