Animal Healthcare Market Analysis

Animal Healthcare Market Analysis

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Based on 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% in market.
 

• Veterinary services include various healthcare aspects including preventive care, diagnostics, treatments, surgeries, dental care, and emergency services. Apart from healthcare services, it also includes grooming and day-care services. Rising prevalence of zoonotic diseases and the need for preventive healthcare measures in livestock to ensure food safety contribute to the segment's growth.
   
• The 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.
   
• Moreover, as the focus on animal welfare and health continues to increase, the veterinary services segment is expected to maintain its high market share in the market.
   

Based on 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 in 2023 and is expected to witness a notable growth during the forecast time. The companion animals’ segment is sub-segmented into dogs, cats, horses, and other companion animals.
 

• This segment's prominence is driven by the growing trend of pet humanization, where pets are increasingly considered as family members, leading to higher spending on their healthcare needs.
   
• Additionally, factors such as increasing pet ownership, rising disposable incomes, and advancements in veterinary healthcare services are contributing to the segment's growth.
   
• The companion animal segment is characterized by a strong demand for preventive healthcare products, pharmaceuticals, and diagnostic services, making it a key focus area for companies operating in the market.
   

Based on 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.
   

North America held the largest market share of 38.9% in 2023, and it is anticipated to expand at a 5.5% CAGR over the forecast period.
 

• 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.
   
• 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.
   

The U.S. animal healthcare market in 2023 was valued at USD 67.2 billion and is anticipated to reach USD 108.9 billion by 2032 with 5.3% CAGR.

• High market share can be attributed to high pet ownership rates, with a substantial portion of households owning at least one pet. For instance, as per the American Veterinary Medical Association (AVMA), In the U.S., 44.6% of households own dogs, 26% own cats, 2.5% own birds, and 0.2% own horses.
   
• This large pet population necessitates regular veterinary care, including preventive treatments, diagnostics, and surgeries, boosting the demand for animal healthcare products and services.
   

China animal healthcare holds immense potential for growth in the animal healthcare market due to several key factors.
 

• One of the primary drivers is the country’s rapidly expanding population, leading to increased demand for animal protein products such as meat, milk, and eggs. This growth in demand for animal protein is driving the need for better animal health management practices, including the use of veterinary medicines and vaccines. Additionally, rising disposable incomes in China are enabling pet owners to spend more on their pets' healthcare, further boosting the market.
   

India is anticipated to grow in global animal healthcare market.
 

• Government initiatives and investments in the animal healthcare sector are also contributing to the India’s growth potential. The country is focusing on improving animal health to enhance food security and safety, as well as to comply with international standards and regulations. These efforts are expected to drive the adoption of advanced veterinary medicines and technologies, further fueling market growth.