Veterinary Active Pharmaceutical Ingredients (API) Market – By API Type, By Synthesis Type, By Animal Type, By Service Type – Global Forecast, 2025 – 2034

Veterinary Active Pharmaceutical Ingredients Market Size

The global veterinary active pharmaceutical ingredients market was valued at USD 7.9 billion in 2024. The market is expected to grow from USD 8.4 billion in 2025 to USD 16 billion in 2034 at a CAGR of 7.4%. The significant growth in the market is primarily driven by increasing pet ownership, growing technological advancement, and concern for animal health. The increasing prevalence of zoonotic diseases among pets has heightened the demand for effective veterinary medicines and, subsequently high-quality APIs.
 

For instance, the American Pet Products Association (APPA) stated that in 2024 pet industry expenditures in the U.S. reached approximately USD 152 billion, demonstrating growth and resilience of the industry. This milestone signified a growing investment in spending on pet care, veterinary services, and medicines. This growth reflected the shifts in veterinary APIs and therapeutic innovations for the overall demand.
 

Veterinary APIs offer several advantages, including cost efficiency through bulk manufacturing and reduced production costs of final formulations. They ensure high-quality control and consistency, meeting regulatory standards like GMP for safety and efficacy. Additionally, APIs provide flexibility in drug formulation, allowing customization for different species and administration forms such as tablets, injectables, or feed additives. These benefits collectively support the development of effective, affordable, and targeted veterinary treatments.
 

Veterinary active pharmaceutical ingredients are the active ingredients used in the formulations of veterinary medicines to treat, prevent and manage animal diseases. These API’s play a crucial role in manufacturing and drug formulation for livestock and companion animals. Veterinary APIs are subject to rigorous quality and safety standards to ensure they are effective and safe for use in animals.
 

Veterinary Active Pharmaceutical Ingredients Market Trends

• Increasing adoption of precision animal health has accelerated requirements for quality APIs, facilitating early disease detection and remote veterinary services.
   
• Growing technological advancement in animal health disease management has fueled market growth. For instance, in May 2024, ImpriMed, a leading precision medicine startup company, introduced a standalone test addressing veterinary care related concerns with accessible, affordable precision medicine solution - ImpriMed Drug Response Predictions (DRP).
   
• This test aided veterinarians with tailored solutions through advanced artificial intelligence (AI)-driven clinical outcome predictions for canine with lymphoma and leukemia. This innovation bolstered the veterinary APIs demand, thereby driving the need for advanced targeted therapies supporting personalized healthcare solutions for animals.
   
• Also, a variety of causes are driving this expansion, including an increase in the prevalence of zoonotic diseases, an increase in animal populations and pet ownership, and an increase in the number of veterinarians and veterinary visits. The average pet owner spends more than USD 700 on their pet's health care each year.
   
• This increased expenditure on veterinary care encourages the growth and expansion of the veterinary pharmaceutical industry. This includes the manufacturing and distribution of veterinary APIs, as well as finished pharmaceutical products.
   
• Moreover, the stringent regulatory barriers and lengthy approval process for new animal drugs approval limits market growth. Similarly, the high cost of drug development and specialized APIs, coupled with limited veterinary professionals hinders the widespread market access.
   

Veterinary Active Pharmaceutical Ingredients Market Analysis

In 2021, the global market was valued at USD 6.5 billion. The following year, it saw a slight increase to USD 6.9 billion and in 2023, the market further climbed to USD 7.4 billion.
 

Based on the API type, the global market is segmented into anti-infectives, anti-parasitics, vaccines, hormones, biologics, anti-inflammatory, and other API types. The anti-parasitics segment generated the largest market revenue of USD 2 billion in 2024 and is projected to reach USD 4.2 billion by 2034 witnessing its prominence throughout the forecast period at a CAGR of 7.9%.
 

• The growing number of parasitic infections such as mange, flea bites, heartworms, and gastrointestinal parasites, have led to an increased need for anti-parasitic drugs boosts the demand for high-quality API.
   
• For instance, according to the World Health Organization (WHO) estimation, nearly 7 million Trypanosoma cruzi Chagas Disease infection cases in the Latin America region were recorded as of April 2024. This rising case expects to drive the demand for anti-parasitics drugs, thereby fueling the demand for anti-parasitics APIs.
   
• There is a high demand for effective parasiticides to prevent and treat parasitic conditions. For example, flea and tick treatments for pets are typically applied monthly, and deworming of livestock may be done periodically. This frequent usage leads to higher consumption of parasiticides compared to some other types of veterinary APIs.
   
• Furthermore, the development of innovative and effective anti-parasitic drugs targeting drug-resistant parasites further stimulates the market growth.
   

Based on synthesis type, the veterinary active pharmaceutical ingredients market is categorized into chemical based API, biological API, and highly potent API (HPAPI). The chemical based API segment accounted for the highest market share of 58.2% in 2024.
 

• The widespread use of synthetic and semi-synthetic drugs in animal healthcare has strengthen the demand for chemical based API in the market. Chemical based APIs are favored for their cost-effectiveness, stability and ability for bulk production.
   
• These APIs are essentially important in treating animal disease including inflammation, infections, and other critical conditions; therefore, it has fueled its widespread adoption in companion and livestock care.
   
• Chemical based APIs have pharmacological activity mainly used with combination of other ingredients to diagnose, cure, mitigate, and treat veterinary diseases. Chemicals act as a base to convert raw materials into API thereby potentially creating a sustainable healthcare system and influencing product innovation.
   
• Further, advancement in chemical synthesis technologies further drives the segment growth in the market.
   

Based on animal type, the global veterinary active pharmaceutical ingredients market is categorized into companion animals and livestock animals. The companion animals segment is expected to witness high growth at a CAGR of 7.6% and is poised to reach USD 10.7 billion by 2034.
 

• The leadership in the companion animals segment is driven by the growing pet humanization trend and increases spending on companion animal healthcare.
   
• In addition, the increasing pet owners awareness for preventive healthcare measures has led to a heightened demand for veterinary pharmaceuticals, including APIs used in formulating biologics, anti-inflammatories, analgesics, and hormone therapies.
   
• Additionally, the growing advancement in veterinary drug formulation and increasing availability for specialized treatment catering to the pet health demand further supports the market growth.
   
• For instance, in September 2024, Bioveta in collaboration with Vetina Healthcare introduced Biocan NOVEL vaccine range against lethal canine infection. This launch aimed to improve the treatment outcome for infection control among dogs. This collaborative effort aimed to address the need in the animal healthcare industry, thereby accelerating the production process.
   
• Therefore, the aforementioned factors collectively intensified the concern for the companion animal health which in turn, increased the need of veterinary medicine with enhanced API quality demand.
   

Based on the service type, the global veterinary active pharmaceutical ingredients market is categorized into in-house and contract outsourcing. The in-house segment held the market share of 55.3% in 2024 and is poised to reach USD 8.7 billion by end of 2034.
 

• The dominance of the in-house segment is attributed to its strategic advantages, including enhanced quality control, reduced production costs, and expedited manufacturing timelines.
   
• Veterinary pharmaceutical companies with in-house manufacturing capabilities produce APIs more efficiently and maintain stringent quality controls essential for ensuring the safety and efficacy in veterinary drugs.
   
• Also, in-house enables better inventory management and flexible response for market demand. For instance, in November 2024, Boehringer Ingelheim invested around Euro 120 million in its newly expanded research and development facility in Koropi, Greece. This expanded production site in Greece aimed to increase manufacturing capacity.
   
• Therefore, growing investment in manufacturing abilities will strengthen the in-house manufacturing capabilities, thereby accelerating the segment prominence in the market.
   

In 2024, the North America veterinary API market accounted for the largest revenue of USD 3.1 billion and is projected to reach USD 6 billion by 2034 at a significant growth rate of 7.1% during the analysis period.
 

• Veterinary care and pet ownership have placed North America at the forefront of the veterinary services industry, while spending on veterinary services also contributes to sustainable economic growth.
   
• North America maintains its position as a leading market due to the presence of leading companies and supportive regulatory framework.
   
• The rising awareness for zoonotic diseases coupled with the growing demand for high-quality and novel medication further fueled the API consumption.
   
• Thus, the heightened focus on pet care and livestock farming in the region continues to be an important factor for the region’s retaining leadership position in the international API market.
   

In 2024, the U.S. held a significant position in the North America veterinary active pharmaceutical ingredients market and was valued at USD 2.8 billion.
 

• The U.S. leadership is asserted due to its advanced veterinary pharmaceutical infrastructure, high demand for veterinary medicines and strong focus on animal health.
   
• In addition, increasing pet ownership, rising awareness for veterinary care and early diagnosis for animal disease with expanding livestock sector bolsters the demand for veterinary API in the country.
   
• For instance, according to the American Veterinary Medical Association (AVMA) spending on pets by pet owning households was approximately USD 1,515 in 2023 and 2024 in U.S. This also reported that dog-owning households spend more as compared to cat-owning for the year 2024.
   
• This increasing pet care spending stimulated the pet medications, spurring the demand for veterinary APIs for effective formulation development.
   
• Additionally, the rising investment in animal healthcare along with the stringent regulatory support for innovation and ensuring quality control further strengthen the U.S. position in the market.
   

Germany is poised to achieve significant growth in the Europe veterinary active pharmaceutical ingredients market.
 

• The country’s robust pharmaceutical sector along with advancement and strong focus on animal health has solidified Germany’s prominence in European market.
   
• Germany benefits from robust R&D funding along with a well-established regulation that fuel the capabilities of veterinary medicine manufacturing in the country.
   
• Further, the growing rate of pet ownership, coupled with strong growth prospects for the livestock industry and baseline policies on animal welfare, increase the need for veterinary services which in turn propel the use of veterinary API, thereby augmenting the country level market growth.
   

The Asia-Pacific veterinary API region is poised to experience significant growth of 8% during the analysis period.
 

• Regional growth is anticipated due to the expanding livestock farming, rising pet ownership, and greater awareness of animal healthcare.
   
• Countries such as China, Australia and India are witnessing robust economic growth, leading to enhance the veterinary infrastructure, and services, thereby fueling the demand for veterinary pharmaceuticals.
   
• Also, supportive policies offered by the government to foster animal health and the increasing funding directed towards the local production of APIs is fueling the growth of the market.
   
• Moreover, the increased shifts towards owning pets alongside the growing middle class with higher disposable incomes is further driving the adoption of advanced veterinary medicines, thus intended to escalate the demand for high-quality APIs.
   

China veterinary active pharmaceutical ingredients market is anticipated to witness rapid growth in Asia Pacific market in coming years.
 

• The robust growth in the country is driven due to its fast-paced growth in the animal health industry, high focus of livestock farming, and rising ownership of pets.
   
• The country is also a significant OEM veterinary API producer owing to its substantial healthcare spending and existing infrastructure in manufacturing. China has also increased its innovation capabilities in veterinary pharmaceuticals by enhancing R&D activities.
   
• In addition, increasing concern regarding animal health and changing policies have further escalated the need for veterinary medicines and positioned China to be at the epicenter of veterinary pharmaceutical production.
   
• The government support resulted in increased animal welfare and healthcare in the country, which makes China much more prominent in the region.
   

Brazil held a prominence position in the Latin America veterinary active pharmaceutical ingredients market.
 

• The country’s leadership is attributed to its significant agricultural and livestock resources, rising demand for animal health care products and services. The country’s robust veterinary infrastructure and growing advocacy on animal health is increasing the demand for veterinary APIs.
   
• Brazil’s prominence is also solidified by the country’s focus on animal welfare and improvement in regulations.
   
• Moreover, Brazil’s advanced ability in research and development in animal health strengthens its leadership position in the Latin America veterinary API market.
   

Saudi Arabia’s veterinary active pharmaceutical ingredients industry is poised to grow at a considerable growth rate in Middle East and Africa region.
 

• Saudi Arabia's agriculture and livestock industries, especially cattle and poultry farming, position it as a key player in the MEA veterinary API market.
   
• Growing pet ownership, the increasing concern for animal health and welfare also fuels the need for veterinary pharmaceuticals.
   
• In addition, the Saudi government's attempt to modernize and widen the scope of veterinary services, along with the growing livestock production sector which is expected to strengthen the country’s position in the MEA veterinary API market.
   

Veterinary Active Pharmaceutical Ingredients Market Share

The top 5 players in the market generated ~10% of market share. The key players in the market include Sequent Scientific, NGL Fine-Chem, SUANFARMA, Grupo Indukern and Ofichem Group. These companies have established a strong global and regional position by focusing on expanding their manufacturing capacities. Strategic partnerships, mergers and acquisitions play a pivotal role in the market dynamics.
 

For instance, the Competition Commission of India (CCI) granted the merger agreement of nine entities with Sequent Scientific aiming to streamline the operation in animal and human healthcare sector. This amalgamation of Sequent Scientific aimed to strengthen Sequent’s business in the animal health sector including APIs, finished dosage formulations, and the analytical services.
 

Furthermore, as the market is characterized by the combination of established players, regional and emerging players are primarily focusing on innovation, cost-efficiency and advancement to broaden their portfolio and maintain its position in the market.
 

Veterinary Active Pharmaceutical Ingredients Market Companies

Few of the prominent players operating in the veterinary active pharmaceutical ingredients industry include:

• Abino Pharma
• AMGIS Lifescience
• BOC Sciences.
• Boehringer Ingelheim
• Hikal
• Huvepharma (Olon)
• Indukern Group
• Menadiona
• NGL Fine-Chem
• Ofichem Group
• Procyon Life Sciences
• Qilu Pharmaceutical
• Sequent Scientific
• SUANFARMA
• Vetpharma
• Veyx-Pharma
   
• Boehringer Ingelheim invests in R&D to expand its manufacturing capacities for the development of new chemical entities. For instance, in May 2023, Boehringer unveiled a new API plant in Germany. This expansion is focused on expanding the company’s commercial production of APIs in the market.
   
• NGL Fine-Chem focuses on enhancing quality control, with reduced dependency, and cost effectiveness. For instance, the company’s 95% of the process is performed in in-house manufacturing with forward integrated plants ensuring cost efficiency.
   
• SUANFARMA offers an extensive range of around 250+ molecules catering to various therapeutic areas of veterinary medicines including antiparasitics, anti-inflammatories, anti-infectives, and other types.
   

Veterinary Active Pharmaceutical Ingredients Industry News:

• In September 2024, Sequent Scientific signed a merger agreement with Viyash Life Sciences resulting in a combination of two companies that will broaden the company’s competences in veterinary pharmaceuticals, end-to-end integrated capabilities across the global pharmaceutical market. This strategic activity has expanded the company’s capabilities in the competitive industry.
   
• In October 2023, Willow Bioscience and SUANFARMA signed a collaborative agreement for cell-line productivity optimization development program for manufacturing large volume anti-infective API through precision fermentation. This partnership allowed SUANFARMA access to Willow’s proprietary strain optimization technologies enabling the development of cost-effective production process.
   

The veterinary active pharmaceutical ingredients market research report includes 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 API Type

• Anti-infectives
• Anti-parasitics
• Vaccines
• Hormones
• Biologics
• Anti-inflammatory
• Other API types

Market, By Synthesis Type

• Chemical based API
• Biological API
• Highly potent API (HPAPI)

Market, By Animal Type

• Companion animals
• Livestock animals

Market, By Service Type

• In-house
• Contract outsourcing
  • Contract development
  • Contract manufacturing

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

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Spain
  • Italy
  • Netherlands
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea 
• Latin America
  • Brazil
  • Mexico
  • Argentina 
• Middle East and Africa
  • South Africa
  • Saudi Arabia
  • UAE