Veterinary Active Pharmaceutical Ingredients (API) Market Analysis

Veterinary Active Pharmaceutical Ingredients Market Analysis

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Based on type, the veterinary active pharmaceutical ingredients market is segmented into anti-infectives, anti-parasitics, vaccines, hormones, biologics, anti-inflammatory, and other APIs. The anti- parasitics segment held largest share of 25% in 2022. Parasitic diseases can significantly impact animal health and productivity. As a result, there is a high demand for effective parasiticides to prevent and treat these conditions. These diseases can significantly impact animal health and productivity. As a result, there is a high demand for effective parasiticides to prevent and treat these 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.

Based on synthesis type, the veterinary active pharmaceutical ingredients market is segmented into chemical-based API, biological API, and highly potent API (HPAPI). Chemical-based API segment held a major market share of 57.4% in 2022. Chemicals in their active form are used for the manufacturing of active pharmaceutical ingredient (API) that produces the intended effect. Chemical based APIs have pharmacological activity mainly used with combination of other ingredients to diagnose, cure, mitigate, and treat veterinary diseases. Chemicals acts as a base to convert raw materials into API thereby potentially creating a sustainable healthcare system and influencing product innovation.

Based on contract outsourcing type, the veterinary active pharmaceutical ingredients market is segmented into contract outsourcing and inhouse. Contract manufacturing segment held a majority market share in 2022 and is forecasted to grow at 7.4% CAGR by 2023. This robust expansion rate is owing to increasing preference for outsourcing manufacturing process of APIs and drugs to reduce the operational cost of the company.

The contract manufacturing segment is further sub segmented into contract development and contract manufacturing. Increasing demand for veterinary APIs has influenced the service providers including contract manufacturing and contract development. Moreover, outsourcing will continue to grow as it significantly lowers the cost of R&D expense and in-turn, increase the profit margin for the company.

Based on animal type, the veterinary active pharmaceutical ingredients market is segmented into companion animals and livestock. The companion animals segment held a significant market share in the veterinary active pharmaceutical ingredients accounting for USD 4,139.1 million in 2022. The rising pet ownership rates have led to a larger customer base for veterinary products, including APIs.

The humanization of pets, where they are treated as members of the family, has driven pet owners to seek higher standards of care. This cultural shift translates into higher demand for advanced treatments, further contributing to the prominence of companion animals in the veterinary API market.

North America veterinary active pharmaceutical ingredients market held more than 39% revenue share in 2022 and is expected to reach USD 4.5 billion by 2032. This high revenue share is mainly attributed to the significant pet expenditure, presence of large number of grazing animals, and supportive government initiatives, etc. Favorable laws and policies implemented in the region by regulatory authorities would further aid the companies operating in the market. Increasing prevalence of zoonotic diseases in the U.S. is set to increase the demand for animal health products comprising of veterinary APIs. For instance, according to the reports published by the National Centers for Biotechnology Information, in 2021, zoonoses contributes around 61% of infectious diseases, approximately 75% of emerging infectious diseases, and around 80% potential bioterrorism pathogens.