Animal Healthcare Market

Animal Healthcare Market Size

The global animal healthcare market size was valued at USD 186.1 billion in 2023 and is expected to witness growth at CAGR of 6% from 2024 and 2032. The market is experiencing considerable growth driven by increasing animal population globally, high adoption of pet animals for companionship, high demand for premium pet products, easy access to veterinary services, and rising expenditure on veterinary care.

As per the World Animal Foundation estimates, the companion animal population reached approximately 967 million worldwide, of which 522 million were dogs and 445 million were cats.  According to Food and Agriculture Organization (FAO), the global ruminant livestock population is roughly 3.6 billion, of which approximately 2 billion represents the total number of livestock animals used for meat and dairy products.

Similarly, the global poultry population has reached an astounding 26 billion. Such high volume of animals increases the demand for various animal health products including pharmaceuticals, medical devices, and feed additives along with veterinary services, thereby boosting the market growth. Furthermore, availability of advanced medical facilities for pets, cutting-edge medical devices, drugs, and pet insurance are set to positively impact industry growth. Also, the rising prevalence of a number of chronic diseases in animals, such as obesity, diabetes, and cancer increase the demand for diagnostics and therapeutic modalities, further enhancing the market growth.

Several technological advancements in the field of veterinary medicine are set to positively influence the animal health industry. Recent developments such as enhanced imaging modalities for animals, point-of-care diagnostics, wearable medical devices along with ongoing research and development activities in veterinary field is set to bring rapid expansion in the veterinary healthcare market.

Animal healthcare market is inclusive of several sub-markets such as pharmaceuticals including drugs, medicated feed additives, and vaccines, medical devices for veterinary use, and several veterinary services (medical veterinary services, pet grooming/boarding, day care, and pet insurance, among others). The products and services serve to improve the quality of life of animals, protect them from diseases, and prevent spread of diseases.

Animal Healthcare Market Trends

• The majority of pet owners consider their pet as a family member, and they undertake numerous efforts to take proper care of their pets. According to recent data, published in 2019, nearly 68% of households in the U.S. at present own a pet. This has created a substantial demand for the pet care services and pet products that are set to proliferate the market growth.
  
• Rising incidence of chronic diseases in pets also aids in the market growth.  For instance, diabetes mellitus (DM) is a common endocrinopathy in both dogs and cats. Obesity is a significant risk factor, especially in cats. With nearly half of clinicians reporting an increase in pet obesity in the last two years, diabetes is expected to become more prevalent.
  
• This rise in chronic diseases increases the demand for effective treatment modalities, thereby fostering market growth.
  
• Moreover, high adoption of pet insurance is expected to be an instrumental factor in driving the market expansion. The increasing veterinary costs have propelled the demand for pet insurance.
  
• According to the North American Pet Health Insurance Association, there has been an increase of about 18% in the number of insured pets during 2017-2018, in the U.S. The number of insured pets in 2021 was 26% higher than in 2020 and 63% higher than in 2018. Thus, surging demand for pet insurance coupled with the growing number of insured animals will drive the market expansion.
  
• Further, several initiatives by government and non-government bodies towards better animal welfare and safety, propel the market growth. For instance, in May 2024, the U.S. Department of Agriculture’s (USDA) Animal and Plant Health Inspection Service (APHIS) announced awards of approximately USD 22.2 million to enhance prevention, preparedness, early detection, and rapid response to the most damaging diseases that threaten U.S. livestock. The initiative aimed at improving animal health benefits market growth.
  

Animal Healthcare Market Analysis

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Based on the product, the market is segmented into pharmaceuticals, medical devices, and veterinary services. In 2023, veterinary services segment accounted for highest market share of 75.9% with a value of USD 141.1 billion in the market and is expected to reach USD 248.7 billion by end of 2032.

• As more pet owners consider their pets as family members, the demand for veterinary services has surged. Factors such as rising pet adoption rates, growing disposable income, and increased awareness about animal health have contributed to this trend.
  
• Rising prevalence of zoonotic diseases and the need for preventive healthcare measures in livestock to ensure food safety contribute to the segment's growth. For instance, scientists estimate that over 60% of known infectious diseases in people can be transmitted from animals, with 3 out of 4 new or emerging infectious diseases originating from animals.
  
• Additionally, advancements in veterinary healthcare technologies and the availability of a wide range of veterinary services, including diagnostics, surgeries, and preventive care, further boost the market share of the veterinary services segment.
  
• Also, trend towards humanization of pets has led to an increase in spending on premium veterinary services along with focus on animal welfare and health continues to increase.
  

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Based on the animal type, the animal healthcare market is classified into companion animals and livestock animals. The companion animals segment held the highest revenue of USD 113.2 billion with market share of 60.8% in 2023. The companion animals’ segment is sub-segmented into dogs, cats, horses, and other companion animals.

• With a global increase in pet adoption for companionship, there is a corresponding rise in the need for veterinary care, spanning preventive measures, treatments, and diagnostics, particularly evident in the adoption rates of dogs, cats, and other small animals.
  
• According to the Pet Population Survey conducted by the Canadian Animal Health Institute (CAHI), more than half of Canadian households (around 60%) own at least one dog or cat. Also, the elderly population has been largely adopting small animals for companionship.
  
• The benefits that companion animals offer including the emotional support, companionship, and improvement in physical and mental health are significantly rising the adoption of companion animals and ultimately increasing the demand for animal healthcare.
  

Based on the distribution channel, the animal healthcare market is bifurcated into veterinary hospital pharmacy, E-commerce, and retail pharmacy. In 2023, the veterinary hospital pharmacies segment dominated the market and is expected to grow at CAGR of 5.9% from 2024 to 2032.

• These pharmacies play a crucial role in providing specialized medications and pharmaceutical products tailored to the needs of veterinary patients. They offer a wide range of medications, including antibiotics, vaccines, and prescription drugs, as well as veterinary-specific formulations that may not be readily available in other retail settings.
  
• Additionally, veterinary hospital pharmacies often provide personalized services, such as dosage adjustments and medication compounding, to meet the unique requirements of individual animals. Their close association with veterinary clinics and hospitals also contributes to their high market share, as they are often the primary source of medications for veterinary professionals managing the health and wellness of animals.
  

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In 2023, North America held the largest market share of 38.9% in the global animal healthcare market with a value of USD 72.3 billion and is expected to reach USD 119.1 billion by 2032. The U.S. market, valued at USD 67.2 billion in 2023, is expected to reach USD 108.9 billion by 2032, growing at a CAGR of 5.3%.

• The region's strong market share can be attributed to its well-established veterinary healthcare infrastructure, increasing pet adoption rates, high population of livestock, and a growing focus on animal health and wellness. For instance, as per the United States Department of Agriculture (USDA), as of July 2023, all cattle and calves in the U.S. totaled 95.9 million head, while in 2022, the total was 98.6 million head.
  
• Similarly, the poultry population in North America, particularly in the U.S., is significant. In 2022, the U.S. had a large chicken inventory, with Georgia leading at 30,938 thousand heads, followed by Arkansas and North Carolina. Management of such a large population of livestock requires effective healthcare technologies, which further boosts the regional market growth.
  
• Additionally, a rise in disposable income levels has led to increased spending on pet healthcare products and services, further driving market growth. The presence of key market players and ongoing technological advancements in veterinary diagnostics and therapeutics also contribute to North America's high market share in the animal healthcare industry.
  

Germany animal healthcare market is anticipated to witness significant growth in Europe market.

• The rising adoption of pet animals, high consumer preference for branded pet products, and surging expenditure on veterinary care is set to augment the animal health market size in Germany.
  
• As of 2023, 45% of German households have a pet and 14% of households have two pets or more. This totals to approximately 34.3 million pets. Cats and dogs are the most popular house pets, with 25% of German households owning cats and 21% of households owning dogs.
  
• Moreover, large livestock population in the country drives the demand for various veterinary services. In 2024, the cattle population in Germany was 10.63 million.
  
• Similarly, favorable laws and policies implemented in the region by regulatory authorities’ further aid in the growth of companies operating in the market.
  

India animal healthcare market is poised to witness high growth of 6.8% over the analysis period with the overall Asia Pacific market also poised for significant growth during the forecast period.

• India is among the one of the large pet populations with over 31 million pet dogs and 2.44 million pet cats. The increasing pet ownerships and rising disposable income in the country coupled with high expenditure on pet healthcare will offer lucrative market growth opportunity in the country.
• Also, rapidly expanding veterinary infrastructure in the country such as veterinary hospitals and clinics will further enhance market growth.
  
• Moreover, several government initiatives to support animal health and wellness also stimulate market growth. For instance, the National Animal Disease Control Programme is a flagship scheme launched in 2019 that aims to control foot & mouth disease and brucellosis by vaccinating the animals.
  
• This initiative aid in high adoption of animal pharmaceuticals and vaccines, thus fostering the market growth.
  

Brazil animal healthcare market is anticipated to witness rapid growth over the forecast years within the Latin American region.

• Brazil has the third-largest pet population in the world with 160 million pets, of which 60 million are dogs, 30 million cats, and 32 million pet-owning households.
  
• The country is also home to a large livestock population, with Brazil being the third-largest cattle producer and second-largest beef exporter in the world. The high animal volume coupled with strong growth in veterinary expenditure is anticipated to foster market growth. Ministry of Agriculture, Livestock and Food Supply (MAPA), a federal department in Brazil, formulates policies regarding the technological, organizational, and environmental care for the country’s consumers.
  
• The jurisdiction is responsible for formulating specific rules & requirements for importing domestic cats and dogs to the country. Pet owners are required to have the animal’s Certificate of Veterinary Inspection (CVI) and must fulfil the health requirements for the possession of pets in Brazil.
  
• Additionally, the presence of several international as well as local veterinary companies in the country further aid in the market growth.
  

Animal Healthcare Market Share

The market is highly competitive, with the key 10 companies accounting ~35% of the market. The market is fragmented in nature, with major organizations, local small players, and start-ups joining the industry competition. Top companies in the market such as Zoetis Inc., Elanco Animal Health, Merck & Co., Inc., IDEXX Laboratories Inc. and Boehringer Ingelheim International are striving to grow and capture the substantial share in the industry and competing for the market share in the industry. Leading companies have a diverse portfolio of effective and innovative veterinary pharmaceuticals, biologics, diagnostics, and other solutions that enable them to hold a notable market share by addressing a wider spectrum of animal health needs.

Zoetis is one of the leaders in animal health offers an extensive range of animal drugs, including antibiotics, vaccines and diagnostic tools for both livestock and companion animals. It serves clients in over 100 countries by providing a diverse product range. The company's dedication to R&D stimulates innovation in animal healthcare, allowing the launch of novel, effective, and safe treatments.

Animal Healthcare Market Companies

Prominent players operating in the animal healthcare industry include:

• B. Braun Vet Care (B Braun Melsungen AG)
• Boehringer Ingelheim International
• Ceva Sante Animale
• Dechra Pharmaceuticals
• Elanco Animal Health
• Endovac Animal Health
• HIPRA
• IDEXX Laboratories
• Medtronic
• Merck
• Neogen Corporation
• Sklar Surgical Instruments
• Symrise
• Vetoquinol
• Virbac
• Zoetis
  
• Geographic expansion of service offerings to cater to a larger customer base.
  
• Diversifying their product offerings to address animal health needs. In January 2023, IDEXX Laboratories, Inc. launched a cancer screening test for adult and senior dogs.
  
• Heavily invested in R&D to develop innovative and effective formulation. In November 2023, Merck Animal Health obtained approval from the European Commission for BOVILIS CRYPTIUM, marking the first EU-licensed vaccine designed to safeguard cattle against Cryptosporidium parvum (C. parvum) infection
  
• Forming strategic alliances to co-develop and promote novel animal healthcare products. In June 2022, Boehringer Ingelheim and CarthroniX, a company engaged in designing small molecule-based therapies for degenerative and aging-related diseases announced a research partnership to pursue small molecule therapeutics in canine oncology
  

Animal Healthcare Industry News:

• In July 2024, Merck Animal Health completed the acquisition of the aqua business of Elanco Animal Health Incorporated. The completion of this acquisition bolsters Merck Animal Health’s position in the aqua industry with a comprehensive approach to promote fish health, welfare and sustainability in aquaculture, conservation, and fisheries.
  
• In January 2023, IDEXX Laboratories, Inc. launched a cancer screening test for adult and senior dogs, adding to the portfolio of products and services available to veterinarians in the U.S. to promote preventative care.
  
• In May 2023, Zoetis received the U.S. Food and Drug Administration (FDA) approval for Librela (bedinvetmab injection) for the control of pain associated with osteoarthritis (OA) in dogs. Librela is the first and only once-monthly, anti-NGF monoclonal antibody treatment for canine OA pain and is approved as safe and effective in providing long-term control of OA pain symptoms in dogs.
  
• In February 2023, Zoetis launched the AlphaTrak 3 blood glucose monitoring device for diabetic cats and dogs. Building on AlphaTrak's reputation as the veterinarian-recommended brand for in-clinic glucose monitoring, AlphaTrak 3 includes a new mobile app that allows pet owners and veterinary healthcare teams to gather, save, and share data.
  

The animal healthcare market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD Million from 2021 – 2032 for the following segments:

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Market, By Product

• Pharmaceuticals
  • Drugs
    • Antiparasitic
    • Anti-inflammatory
    • Anti-infectives
    • Other drugs
  • Vaccines
    • Modified live vaccines (MLV)
    • Killed inactivated vaccines
    • Other vaccines
  • Medicated feed additives
    • Antibiotics
    • Vitamins
    • Amino acids
    • Enzymes
    • Antioxidants
    • Prebiotics and probiotics
    • Minerals
    • Other medicated feed additives
• Medical devices
  • Veterinary diagnostic equipment
  • Veterinary anesthesia equipment
  • Veterinary patient monitoring equipment
  • Veterinary surgical equipment
  • Veterinary consumables
  • Other medical devices
• Veterinary services

Market, By Animal Type

• Companion animals
  • Dogs
  • Cats
  • Horses
  • Other companion animals
• Livestock animals
  • Poultry
  • Swine
  • Cattle
  • Fish
  • Other livestock animals

Market, By Distribution Channel

• Veterinary hospital pharmacy
• E-commerce
• Retail pharmacy

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Spain
  • Italy
  • Poland
  • Netherlands
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Taiwan
• Latin America
  • Brazil
  • Mexico
  • Argentina
• Middle East and Africa
  • South Africa
  • GCC Countries
  • Israel