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Industry Insights, Market Size, CAGR, High-Level Analysis: Animal Health MarketThe global animal health market size was valued at USD 47.1 billion in 2019 and is expected to exhibit a CAGR of 5.8% during the forecast period. The market is largely driven by a significant rise in demand for protein food and increase in incidence of zoonotic and food-borne diseases globally. This unprecedented rise in disease prevalence has triggered companies to produce advanced vaccines and pharmaceuticals. The high demand has also resulted in subsequent increase in the number of companies undertaking consistent efforts to control pathogen contamination risks and food-borne diseases, which is contributing to the growth of the overall market for animal health. In addition, rising number of government initiatives to promote animal health products is presumed to drive the overall market. According to the UN Department of Economic and Social Affairs, the global population is approximately 7.3 billion and it is anticipated to reach around 9.7 billion by 2050, of which 795 million people are undernourished, as per the estimations of the International Fund for Agricultural Development (IFAD). The aforementioned statistics exemplify the urgent requirement to expand food supply through large-scale adoption of livestock. The heightened production of animal-based food products will lead to significant price reduction, facilitating easy access to food at affordable prices. The market is driven by technological advancements in veterinary health care, and this is anticipated to offer future growth opportunities. These advancements include advent of efficient information management systems, animal owner mobile technology, and vaccine banks. High focus on innovation in animal health has given rise to certain measures that are strengthening market growth prospects. For instance, the Innovative Medicines Initiative (IMI) is a public-private partnership to support collaborative research in order to boost innovation in veterinary pharmaceuticals in Europe.
Product Insights of Animal Health MarketFeed additives are bifurcated into two categories: nutritional and medicinal. The aforementioned categories cumulatively held a dominant share of over 35.0% in the market for animal health in 2019. The dominant share captured by the segment is presumed to be a consequence of consistent advancements in these products, including use of metabolic modifiers, enzymes, minerals, and probiotics. The aforementioned additives facilitate significant increase in muscle growth, thereby optimizing feed utilization. In addition, high inclination of government health care organizations toward enhancement of agricultural practices and animal health is presumed to be responsible for growth of this segment. For instance, certain additives are permitted and recommended by the European Union to use in feed, which includes vitamins, antioxidants, and performance promoters.
Distribution Channel InsightsPharmacies at hospitals and clinics accounted for the dominant share in the animal health market in 2019. Increasing number of hospital pharmacies, coupled with high procedural volume as a consequence of frequent readmission of pets for treatment, has supported segment growth. Retail channels and e-commerce platforms also accounted for a significant share in the total market. Retail pharmacies for animal health products are expected to grow at a moderate rate throughout the forecast period. Major manufacturers rely on only licensed veterinarians and authorized distributors for the distribution of medications and vaccines. This is anticipated to propel the segment growth over the forecast period.E-commerce/online pharmacies selling animal health products are anticipated to witness exponential growth throughout the forecast period. This growth is believed to be a result of various advantages such as increased convenience for patients not willing to purchase medicines from retail or hospital pharmacies.
End-use InsightsIncrease in incidence of zoonotic diseases caused by globalization and climate changes are expected to drive the demand for diagnostic procedures, which is expected to drive the point-of-care testing/in-house testing segment in the coming years. Increase in initiatives to create awareness among companion animal owners about the benefits and value of preventive care in pets is one of the key contributing factors for in-house testing in animal health. Tests such as ELISA have been proven an effective point-of-care test for heartworm diagnosis. Availability of a wide range of treatment as well as diagnostic options in veterinary hospitals and clinics is a high impact rendering growth driver for this segment. Veterinary hospitals and clinics accounted for the largest share in terms of end use in 2019. The dominant share captured by this segment is a consequence of various applications such as clinical pathology, toxicology tests, and therapy. Certain vaccines are only available in accredited veterinary hospitals and clinics, which is responsible for increasing the share of this end-use segment. Various government animal welfare organizations have issued guidelines for safety practices and standards to be implemented in veterinary hospitals and clinics, which has broadened the scope for segment growth over the past few years.
Animal Type Insights of Animal Health MarketProduction animals dominated the market in 2019. The substantial share captured by the segment is a consequence of high concern for food safety and sustainability by government healthcare organizations globally. Policymakers in various countries are striving to achieve total food security, which propels large-scale food production and results in greater rearing of livestock. The policies are focused on long-term sustainability, which can be achieved through a combination of improving productivity and greater attention to livestock veterinary healthcare. According to the Food and Agriculture Organization of the United Nations, in emerging economies, animal-based food products account for one-third of human protein consumption, leading to an increase in livestock productivity, which is critical to meet dietary needs of the growing human population. These factors cumulatively are responsible for the significant share captured by production animals in this segment.
Regional Insights of Animal Health MarketNorth America captured a substantial share in the global market in 2019, owing to a wide range of definitive measures adopted by government animal welfare organizations that are consistently working for overall improvement in animal health. Furthermore, technological advancements, rising incidence of zoonotic diseases, and increasing number of pet owners is expected to boost the market in this country. Collaborative efforts undertaken by major companies to enhance their R&D capabilities and ensure high quality standards are also anticipated to impel demand across this region. Asia Pacific is expected to register a lucrative CAGR over the coming years. The high growth registered by this region is believed to be a consequence of consistent R&D investments by prominent players in the field of animal health and their efforts to commercialize branded and generic therapeutics at a relatively inexpensive price. The exponential growth is owing to growing awareness pertaining to pet nutrition and supplies and increasing disposable income.
Market Share Insights of Animal Health MarketThe registered growth by the market for animal health is a result of extensive regional expansion strategies, mergers and acquisitions, and collaborative research initiatives undertaken by major market players. For instance, in January 2018, Zoetis aquaculture division, PHARMAQ acquired Norland Sett Vaks to increase its product portfolio for vaccines. In March 2018, Merck completed the acquisition of Vallee S.A. This acquisition was carried out to expand the former company's animal health product portfolio and enhance its presence in Brazil. In December 2016, Bayer AG entered into an agreement with Boehringer Ingelheim Vetmedica, Inc. (BIVI) to acquire BIVI's Cydectin ovine and bovine endectocide products. This acquisition was carried out to widen Bayer's product portfolio.
Segmentations, Sub Segmentations, CAGR, & High-Level Analysis overview of Animal Health Market Research ReportThis report forecasts revenue growth at global, regional, and country levels and provides an analysis on the latest industry trends in each of the sub-segments from 2019 to 2030. For the purpose of this study, this market research report has segmented the global animal health market report on the basis of animal type, product, distribution channel, end use, and region:
Animal Type Outlook (Revenue, USD Million, 2019 - 2030)
- Sheep & Goats
Product Outlook (Revenue, USD Million, 2019 - 2030)
- Live Attenuated Vaccines
- DNA Vaccines
- Recombinant Vaccines
- Inactivated Vaccines
Distribution Channel Outlook (Revenue, USD Million, 2019 - 2030)
- Veterinary Hospitals & Clinics
End-use Outlook (Revenue, USD Million, 2019 - 2030)
In Aug 2020, Merck Animal Health Completed the Acquisition of Worldwide Rights to VECOXAN® Brand of Parasiticides for Ruminant Portfolio. The acquisition Broadens Merck Animal Health's Position with Enhanced Parasite Protection in Calves and Lambs. Merck Animal Health, known as MSD Animal Health outside the United States and Canada, a division of Merck & Co., Inc., Kenilworth, N.J., USA (NYSE:MRK), today announced the completion of its previously announced acquisition of the worldwide rights to VECOXAN® (diclazuril), an oral suspension for the prevention of coccidiosis in calves and lambs, from Elanco Animal Health. VECOXAN is efficacious, in lambs, against the prevention of coccidiosis caused by Eimeria crandallis and Eimeria ovinoidalis, and in calves, against coccidiosis caused by Eimeria bovis and Eimeria zuernii. VECOXAN is available in Europe, South Africa, South Korea and Japan. Coccidiosis causes significant economic loss to farmers and producers due to reduced feed conversion, reduced growth rates, reduced performance or death, and by increased susceptibility to other infections, such as intestinal disease or Bovine Respiratory Disease. Elanco Animal Health Inc. agreed to sell the worldwide rights for Vecoxan to Merck & Co. Inc. unit Merck Animal Health for $55 million in an all-cash deal. Elanco is divesting the rights in a bid to address antitrust concerns regarding its $7.6 billion acquisition of Bayers animal health business, which is expected to close in mid-2020. The Vecoxan deal brings the total divestitures between $120 million and $140 million in revenue, which Elanco previously stated it would need to divest across both organizations to achieve any required clearances globally. In total, Elanco has generated about $425 million in pretax proceeds from the divestitures, and the company plans to use these funds to pay down debt associated with the Bayer animal health deal. Elanco has received antitrust clearance for the acquisition in China, Turkey and Ukraine. The company noted that it is in advanced discussions with the required regulatory authorities, which are progressing as expected. Vecoxan joins Elancos previously announced Osurnia® and Capstar® divestitures, and divestiture of European Economic Area and U.K. rights for Drontal® and Profender® from the Bayer portfolio.
- Reference Laboratories
- Point-of-care Testing/In-house Testing
- Veterinary Hospitals & Clinics
Table of Contents Chapter 1 Methodology and Scope 1.1 Segment Market Scope 1.1.1 Type 1.1.2 Product 1.1.3 Distribution Channel 1.1.4 End Use 1.1.5 Regional Scope 1.1.6 Estimates & Forecast Timeline 1.2 Research Methodology 1.3 Information Procurement 1.3.1 Purchased Database 1.3.2 GVR’s Internal Database 1.3.3 Secondary Sources 1.3.4 Primary Research | read more...