Companion Animal Drugs Market

Companion Animal Drugs Market Size

The global companion animal drugs market size was valued at USD 25.6 billion in 2024. The market is expected to reach from USD 27.6 billion in 2025 to USD 49.8 billion in 2034, growing at a CAGR of 6.8% from 2025 to 2034. The market is experiencing considerable growth driven by the high adoption of pet animals for companionship, rising cases of chronic diseases in animals, willingness of pet owners to spend, and rising expenditure on veterinary care.

Pet owners are more inclined to spend on advanced treatments, vaccinations, and preventive medications to ensure their animals are taken care of. This shift in the perception that pets are not just animals, but members of the family, has greatly aided in expanding this market.

Another important factor is the rising chronic and infectious disease burden in pet animals. The prevalence of arthritis, diabetes, cardiovascular conditions, and even parasitic infections has made effective drug treatments crucial to market growth. For instance, in the U.S., about 14 million adult dogs are affected with osteoarthritis, making it a top health concern for owners. Similarly, studies suggest that about 90% of cats over the age of 10 years experience OA in at least one joint. Occurrence of such chronic diseases increases the demand for effective therapies, thereby driving market growth. Furthermore, the evolution of veterinary medicine such as advanced drug delivery systems and improved formulation of existing medicines has also boosted the growth of this market.

Additionally, growing pet population is a key factor driving market growth. According to the World Animal Foundation data, the companion animal population reached approximately 967 million worldwide, of which 522 million were dogs and 445 million were cats. This growing pet population increases the demand for various animal healthcare products including pharmaceuticals, vaccines, and feed additives, thereby boosting the market growth.

Companion animal drugs refer to the pharmaceutical and biological products formulated to treat, prevent, or manage diseases in pets. These drugs are categorized into broad range of products such as drugs, vaccines, and medicated feed additives. These drugs are increasingly used to cure medical conditions and further restrict the spread of infectious conditions among these animals.

Companion Animal Drugs Market Trends

• Growing trend of pet adoption and increased consumer spending on pet health, positively influences the market growth. According to recent data, nearly 68% of households in the U.S. at present own a pet. This has created a substantial demand for the pet products such as veterinary drugs.
  
• As owners increasingly consider pets as a part of their family, the average amount spent per household on pets is rising. As per the World Animal Foundation, pet spending in the U.S. increased 67% from USD 460 per year in 2013 to USD 770 per year in 2021. In 2022, spending on pets reverted to an average of USD 741. Thus, as households increase their spending on pets, there is a higher spending on animal pharmaceutical products.
  
• Also, rising incidence of chronic diseases in pets such as obesity, osteoarthritis, respiratory diseases, dental problems, diabetes, and cancer increases the demand for drugs.  As per the North American Veterinary Community (NAVC), diabetes is rising faster in pets than in humans, with more than half a million cats and dogs diagnosed with diabetes each year. Such rise in chronic diseases increases the demand for effective treatment modalities, thereby fostering market growth.
  
• High adoption of pet insurance is expected to be an instrumental factor in driving the market expansion. According to the North American Pet Health Insurance Association, in 2023, the U.S. experienced 17.1% growth in total insured pets. Thus, surging demand for pet insurance coupled with the growing number of insured animals will drive the market expansion.
  
• Further, several technological advancements in the field of veterinary medicine are set to positively influence the animal health industry. Recent innovations such as monoclonal antibodies and gene therapies are transforming treatment options for complex diseases in companion animals. These technological developments have led to more effective and targeted therapies, improving the quality of life for pets and expanding the range of available treatments.
  
• Similarly, developments such as telemedicine platforms and veterinary point-of-care diagnostics coupled with ongoing research and development activities in veterinary medicine is set to bring rapid expansion in the market.
  

Companion Animal Drugs Market Analysis

Based on the product, the market is segmented into drugs, vaccines, and medicated feed additives. In 2024, drugs segment accounted for highest market share with a revenue of USD 13.8 billion. The market was valued at USD 10.4 billion, 11.8 billion, and 12.9 billion in 2021, 2022, and 2023, respectively.

• The drugs segment dominates in the market due to increasing cases of chronic diseases and infections in pets such as arthritis, cancer, and skin conditions. Increased pet ownership and the emerging trend of pet humanization have fuelled the demand for advanced veterinary medicine such as antibiotics, anti-inflammatory medicines, and parasiticides.
  
• Pharmaceutical companies are also investing significantly in research and development to introduce novel formulations, such as chewable tablets and flavoured medications, improving compliance among pet owners and driving higher sales.
  
• Rising prevalence of chronic diseases in animals coupled with growing awareness among pet owners is increasing the adoption of veterinary pharmaceuticals.
  
• Furthermore, regulatory approvals and advancements in veterinary medicine have contributed to the sustained growth of the drugs segment. The availability of advanced drug formulations and novel biologic drugs further enhances the market growth.
  

Based on the animal type, the companion animal drugs market is classified into dogs, cats, horses, and other animal types. The dogs segment held the highest revenue in 2024 with a market share of 54.2%.

• This substantial growth is attributed to the rising adoption rate of dogs as companion animals coupled with growing expenditure on dogs. According to the American Pet Products Association's 2021-2022 National Pet Owners Survey, around 69 million households own a dog.
  
• Also, a dog owner spends on average USD 1,400 on a dog throughout the year. Thus, the higher adoption rates along with increased spending is expected to propel the segmental growth.
  
• Further, there has been a significant increase in the incidence of various diseases among dogs. According to data published in the National Institute of Health (NIH), cancer is the leading cause of death in 47% of dogs, especially dogs over age ten.
  
• Similarly, it is estimated that the prevalence of diabetes in pet dogs ranges between 0.2% and 1.2%. This rising burden of chronic diseases in dogs translates to greater demand for drugs.
  
• The presence of several veterinary pharmaceutical companies that primarily focus on developing drugs for canines have also played a crucial role in maintaining the segment’s dominance.
  

Based on the route of administration, the companion animal drugs market is classified into oral, injectable, topical, and other routes of administration. The injectable segment dominated the market in 2024 and is anticipated to witness rapid growth at a CAGR of 6.3% over the forecast years.

• The injectable route involves the administration of medication via intramuscular, subcutaneous, and intravenous techniques. This method is favored due to the rapid onset of action and precise dosing, making it ideal for emergencies and acute treatments.
  
• Most vaccines, antibiotics, and analgesic medications that require quick and effective delivery of the drug are administered via the parenteral route. For example, increasing use of biologics such as monoclonal antibodies and recombinant vaccines have a high usage of injector devices.
  
• Also, innovations in injectable drug delivery by manufacturers further increases its adoption. As an example, in June 2022 NuGen Medical Devices Inc. launched the PetJet, a needle-free injector for use in pet cats and dogs. This device enables pet owners and veterinarians to conveniently administer medications without the need for needles. The PetJet allows for fast, pain free delivery of medications, making it less stressful for pets and easier for people to administer.
  
• Moreover, the growing global burden of chronic diseases such as diabetes and arthritis which require frequent injectable drugs is also anticipated to fuel the growth of this market.
  

Based on the distribution channel, the companion animal drugs market is bifurcated into veterinary hospital pharmacies, E-commerce, and retail pharmacies. In 2024, the veterinary hospital pharmacies segment dominated the market and is expected to grow at CAGR of 6.6% from 2025 to 2034.

• The growing number of veterinary hospitals and specialty clinics across the globe fuels the high market share for veterinary hospital pharmacies.
  
• Veterinary hospital pharmacies are dedicatedly established to dispense medications for animals. A wide range of animal healthcare products, including prescription drugs, over-the-counter medications, vaccines, and supplements are available in pharmacies. As they provide a comprehensive range of medications, it makes them a convenient and reliable source for purchasing animal healthcare products.
  
• Factors such as their brand recognition, high reputation for quality products, and expertise in medication dispensing are responsible for market dominance.
  

North America companion animal drugs market held the largest market share of 41.1% in 2024 in the global market, and it is anticipated to expand at a 5.9% CAGR over the forecast period. The U.S. market was valued at USD 7.4 billion in 2021. The market size was valued at USD 8.4 billion in 2022 and reached USD 9.1 billion in 2023.

• Well-developed veterinary healthcare systems, high pet ownership, and increasing spending on pet healthcare are key factors driving market growth.
  
• According to GlobalPets May 2024 research, there are approximately 196.9 million pets in the country, including dogs, cats, birds, fish, reptiles and small mammals. Such high volume of companion animals in the country increases the demand for various animal pharmaceuticals such as drugs, vaccines, and medicated feed additives, thus boosting the growth of the U.S. market.
  
• The pharmaceutical market is also well-developed due to the presence of major companies such as Zoetis, Elanco and Merck Animal Health which fortifies the market by providing a constant supply of innovative and effective drugs.
  

Europe companion animal drugs market accounted for USD 7.1 billion in 2024 and is anticipated to show lucrative growth over the forecast period.

• Due to the presence of large pharmaceutical companies, advanced infrastructure for veterinary healthcare, and the high rates of pet ownership, Europe commands a strong market share in the market.
  
• The increasing humanization of pets in the regions has led to greater spending on pet healthcare, including pharmaceuticals for disease prevention, treatment, and wellness.
  
• Moreover, advancements in veterinary medicine with frequent introduction and approval of novel pharmaceuticals will boost the market in the Europe region.
  

• As of 2023, 45% of German households have a pet and 14% of households have two pets or more. This totals 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.
  
• Additionally, the presence of a strong network of veterinary clinics and hospitals in the country, supported by advanced pharmaceutical companies that develop and distribute a wide range of companion animal drugs, further aid in the market growth.
  

India companion animal drugs market is poised to witness high growth over the analysis period.

• India has a large pet population with over 31 million pet dogs and 2.44 million pet cats. The increasing pet ownership and rising disposable income in the country coupled with high expenditure on pet healthcare will offer considerable 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, the growing investment of multinational and domestic companies into companion animal healthcare is a critical growth factor.
  

Brazil companion animal drugs market is anticipated to witness rapid growth over the forecast years.

• Brazil holds significant growth potential in the Latin America market due to its large and expanding pet population. Brazil has a large pet population with 160 million pets, of which 60 million are dogs, 30 million cats, and 32 million pet-owning households.
  
• Also, Brazil's improving veterinary infrastructure and expanding network of pet clinics and hospitals contribute to the rising adoption of companion animal medications.
  
• Additionally, the presence of several international as well as local veterinary companies in the country further aid in the market growth.
  

Companion Animal Drugs Market Share

The market is highly competitive, with several key companies striving to develop novel formulations in the market. The market is fragmented in nature, with major organizations, local small players, and start-ups joining the industry competition. Top 4 companies in the market such as Zoetis, Elanco Animal Health, Merck, and Boehringer Ingelheim International account for approximately 61% of the global market share.

Additionally, there are several local and regional players operating in the market are boosting competition by providing affordable options at lower costs. These players are also involved in several strategies such as mergers, acquisitions, and novel product launches to expand their product offerings. For instance, in February 2021, Vetoquinol announced the acquisition of the Canadian rights to the Profender product family from Elanco Animal Health. The Profender range consists of spot-on de-wormer products for cats. Such initiatives by market players enhances the competitive landscape in the market, thereby boosting the market growth.

Companion Animal Drugs Market Companies

Prominent players operating in the companion animal drugs industry include:

• Agrolabo
• Boehringer Ingelheim International
• Ceva Santé Animale
• Chanelle Pharma
• Dechra Pharmaceuticals
• Elanco Animal Health Incorporated
• Endovac Animal Health
• HIPRA
• Indian Immunologicals
• Merck.
• Norbrook
• Symrise
• Vetoquinol
• Virbac
• Zoetis
  

Boehringer Ingelheim has a notable presence in the market. The company offers a wide array of products, including vaccines, anti-infectives, parasiticides, and therapeutic solutions designed to improve animal health. NexGard SPECTRA is a chewable product designed for dogs. The launch leverages the rising trend of pet ownership and increasing awareness about pet health and wellness in India. This strategy is expected to add value to the company’s business portfolio.

Zoetis is one of the leading global animal health companies. The company discovers, develops, manufactures and commercializes a diverse portfolio of animal health medicines and vaccines and has operations in over100 countries. The company's dedication to R&D stimulates innovation in animal healthcare, allowing the launch of novel, effective, and safe treatments.

Companion Animal Drugs Industry News:

• In September 2024, Elanco Animal Health announced the approval of Zenrelia to control pruritus (itching) associated with allergic dermatitis and atopic dermatitis in dogs. This launch facilitated the company boosting revenue growth by adding a new product.
  
• In April 2024, Boehringer Ingelheim introduced NexGard SPECTRA for dogs in India. NexGard SPECTRA is a chewable product designed for dogs. The launch leverages the rising trend of pet ownership and increasing awareness about pet health and wellness in India. This strategy is expected to add value to the company’s business portfolio. 
  
• In January 2024, Ceva Sante Animale acquired Scout Bio, a biotechnology company focusing on cutting-edge therapies for pets, including monoclonal antibodies and gene therapy. This strategic acquisition is expected to enhance Ceva's innovative capabilities and provide access to key advancements in pet therapeutics.
  
• In September 2023, Elanco Animal Health launched Varenzin-CA1. Varenzin-CA1 is a first-of-its-Kind oral treatment for anemia in cats with chronic kidney disease. This strategy is expected to drive revenue growth for the company.
  

The companion animal drugs market research report includes an in-depth coverage of the industry with estimates and forecast in terms of revenue in USD Million from 2021 – 2034 for the following segments:

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Market, By Product

• Drugs
  • Antiparasitic
  • Anti-inflammatory
  • Anti-infectives
  • Corticosteroids
  • Tranquilizers
  • Cardiovascular drugs
  • Gastrointestinal drugs
• Vaccines
  • Modified live vaccines (MLV)
  • Killed inactivated vaccines
  • Recombinant vaccines
• Medicated feed additives
  • Antibiotics
  • Vitamins
  • Amino acids
  • Enzymes
  • Antioxidants
  • Prebiotics and probiotics
  • Minerals
  • Carbohydrates
  • Propandiol

Market, By Animal Type

• Dogs
• Cats
• Horses
• Other animal types

Market, By Route of Administration

• Oral
• Injectable
• Topical
• Other routes of administration

Market, By Distribution Channel

• Veterinary hospital pharmacies
• E-commerce
• Retail pharmacies

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
  • Rest of Latin America
• Middle East and Africa
  • South Africa
  • GCC countries
  • Israel