Veterinary Medicine Market Size, Share, Market Research and Industry Forecast Report, 2030 (Includes Business Impact of COVID-19)

                                          
Updated on 9th of Aug 2021

Introduction, Industry Insights, Market Size, CAGR, High-Level Analysis of Veterinary Medicine Market

Veterinary medicine is a branch of medicine which deals with the diagnosis, treatment, prevention, control of injuries in animals. It also deals with animal husbandry, breeding, and product development for animals. The filed encompasses both domesticated as well as wild animals of different species with varying medical conditions. A veterinary specialist who is board certified leads the diagnosis and the treatment of the animals. Based on the type of services provided by the veterinarians, they can be segmented into companion-animal veterinarians, veterinary specialists, food-animal veterinarians, food safety and inspection veterinarians, research veterinarians.

Ownership of pets is expected to improve the overall well-being of humans leading to longer life and lower risk of diseases. In a recent study conducted to analyze the effect of owning dogs, it has been found that owners have a 36% lower risk of having cardiovascular disorders and 11% reduced chances of a heart attack. Not only pets but food-producing animals such as chickens, pigs, and other livestock contribute a huge income and also boost the growth of the economy. Maintaining the health and safety of these animals will ensure that they are not affected by pathogens and other diseases that can be transferred to humans. As a growing industry, the demand for veterinary services is high, which in turn has drawn a younger population to adopt it as a profession. Emerging markets such as veterinary software also integrated IT and communication systems with universities to streamline services and engage various animal welfare organizations. Imaging procedures such as ultrasounds are integrated into animal health services to provide better care to the animals.

The outbreak of COVID-19, which is a highly contagious disease, has prompted governments to undertake measures to reduce the transmission of disease from humans to animals. Although few cases about COVID-19 transmission from humans to cats, dogs, and tigers have been registered, cases of transmission from animals to animal transmission have not been registered yet. With the limited amount of information available on the novel virus, the spectrum of a clinical illness associated with the disease has not been studied yet. Centers for Disease Control and Prevention(CDC) has developed several guidelines to ensure that the infected person and staff member in a hospital infected with the disease don’t come in contact with the animals. Safety precautions have also been developed to ensure that the owners can take proper care of the animals.

The global veterinary medicine market size was estimated at USD 27.8 billion in 2020 and is projected to reach at US$ 52.46 billion in 2030 registering a CAGR of 6.55% during the forecast period. Increasing demand to curb chronic and zoonotic diseases in livestock and pet animals is the key driver of this market.

The global livestock population has been experiencing rapid growth over the past few decades. In developing countries, the demand for livestock products is increasing. According to the USDA, there were around 94.4 million cattle and calves in the U.S. as of 2017 and this number is expected to grow substantially in the coming years.

Moreover,rising concerns about food security and animal husbandries are anticipated to boost demand for veterinary pharmaceuticals and vaccines for livestock population in the near future.

Increase in the number of pet owners is driving the need for better treatment options for companion animals. According to The American Pet Products Association report 2018, the overall spending in the U.S. pet industry increased by 4.1% from 2016 to 2017.Moreover, veterinary care spending rose by 7.0% from USD 15.95 billion in 2016 to USD 17.07 billion in 2017.

Disease outbreaks in livestock animals result in major socio-economic threats such as production loss, disruption to local markets, rural economy, and international trade. Increasing demand for antibiotic free protein is fueling the demand for pharmaceuticals and vaccines.

According to the Food and Agriculture Organization (FAO), the global demand for protein will increase by 70.0% by 2050. Moreover, increasing stringent animal health and food safety regulations is fueling the demand for mandatory vaccination in livestock animals.

Increasing prevalence of diabetes, kidney-related diseases, high blood pressure, and spinal disc problems is further propelling the market for veterinary medicine among companion animals. Increasing incidence of pet obesity owing to conditions such as osteoarthritis and other joint diseases is pushing demand for better treatment options. For instance, according to APPA, ~56.5 million cats and ~50.2 million dogs were obese or overweight in the U.S. in 2017. Moreover, rising concerns of owners about their pets have resulted in increased pet care expenditure on medicines, which is further propelling the market for veterinary medicine.

Industry players are trying to develop innovative products such as mAbs and carrier drugs for better treatment outcome. For instance, in 2017, Zoetis launched Cytopoint, a monoclonal antibody indicated for canine atopic dermatitis, which became a blockbuster drug in 2018. Moreover, Kinderbio, a biopharmaceutical company, reportedly has a pipeline of 12 biologic products for companion animals as of 2019, which is expected to propel the market in the near future.

Drivers for Global Veterinary Medicine Market

Risks associated with the transmission of diseases such as rabies and other contagious diseases that can be easily transferred from animals to humans can be combated by the use of veterinary medicine. The medication protects against disease-causing pathogens and helps to provide a better life to the pets. This acts as the main factor that is expected to drive the growth of global veterinary medicine market.

The increasing disposable income in various countries is fueling the demand for companion animals such as dogs, rabbits, cats, etc. among the younger as well as older population. This, in turn, has fueled the need to maintain the well-being of pet animals. Furthermore, the availability of pet insurances has increased the affordability of medications for pets. This acts as yet another factor that is expected to fuel the growth of the target market.

According to the North American Pet Health Insurance Association (NAPHIA), pet health insurance in US and Canada rose from US$ 1.15 billion in 2017 to US$ 1.42 billion in 2018. & around 88.9 percent of premiums were filed for pet dogs in North America.

Dairy products obtained from animals such as poultry and pigs are used mainly for human consumption. With the increasing demand for these products, the need for maintaining healthy livestock is also expected to rise. This in turn also increases the demand for the prevention of disease and infections among animals, which in turn also acts as yet another factor that is expected to drive the growth.

With cases of transmission of the virus from humans to pet cats and dogs,  the need arises to limit human contact to limit the spread of the virus. Hence regulatory bodies such as FDA has restricted the in-person visit of doctors for examining animals and promoted the use of telehealth platform to treat the patients. Practitioners are conducting video calls for examining the patients and interacting with the pet owners as well as providing electronic prescriptions along with the freedom of making payments online. This acts as one of the main factors that is expected to drive the growth of global veterinary medicine market.

Various services providers such as Airvet and AskVet have started to provide telehealth services for pets, and in March the demand saw a spike of up to 48% and the demand for consultations rose by 170%.

Animal Type Insights of Veterinary Medicine Market

Based on animal type, the market for veterinary medicine is segmented into production and companion animals. Production animals accounted for the largest share in 2018. The segment is further categorized into poultry, swine, cattle, sheep and goats, and fish. The dominant share captured by production animals is a consequence of increasing demand for proteins globally. Furthermore, increasing animal healthcare spending, specifically in developed regions, is presumed to be responsible for the wide-scale adoption of veterinary medicine among production animals. According to American NASS reports, the total expenditure in U.S. firms was USD 359.8 billion in 2017 where livestock, poultry, and related expenses increased by 11.7% in 2017 from the previous year.

The companion animal segment is expected to exhibit the fastest growth over the forecast period owing to increasing prevalence of chronic diseases. Companion animals are further segmented into dogs, cats, horses, and others. Dogs held around 40.0% share in the companion animal segment owing to increasing demand for better treatment options for chronic diseases in canines. According to an AVMA report, a dog owner spent around USD 1,285 on an average on over-the-counter medicines and clinic visits in 2018. The aforementioned factors are expected to propel the segment over the forecasted period.

In North America, The companion animals segment is estimated to contribute 44.0% revenue share in 2020, and is expected to register at a CAGR of 7.3% during the forecast period. The livestock animals segment is projected to be valued at US$ 11,252.8 Mn, with a revenue share of 55.0% in 2030, and register a CAGR of 6.9% from 2021 to 2030

Product Insights of Veterinary Medicine Market

On the basis of product, the market for veterinary medicine is segmented into biologics, pharmaceuticals, and medicated feed additives. The biologics segment is divided into vaccines and others, which include monoclonal antibodies and hormonal supplements. The pharmaceuticals segment is further divided into parasiticides, anti-infectives, anti-inflammatory, analgesics, and others. Pharmaceuticals held the major share as of 2018, owing to the clinical urgency for use of potent pharmaceuticals and targeted medicines to protect livestock animals from zoonotic diseases.

Moreover, rising pet ownership and concern of owners regarding pet health are fueling the demand for veterinary pharmaceuticals. Increasing adoption of anti-infective drugs such as anti-microbials and parasiticide, especially endectocides, is continuing to revenue growth. New product launches by industry players to address chronic diseases such as osteoarthritis and diabetes is further propelling the growth.

In Europe for the year 2020, the vaccines segment is estimated to account for US$ 2,265.0 Mn, and account for a revenue share of 31.2% The drugs segment is estimated to account for a 57.1% revenue share in 2020, and is expected to register a CAGR of 6.4% during the forecast period

The biologics segment is expected to exhibit lucrative growth in the veterinary medicine market over the forecast period owing to an increased usage of vaccines among livestock as well as companion animals. Moreover, epidemics over previous years have caused significant losses in the animal breeding industry, propelling demand for vaccinations. In addition, a consistent number of mergers and acquisitions undertaken by key market players to expand vaccines portfolio is expected to expand the growth potential to a significant level. For instance, in January 2018, Elanco acquired Boehringer Ingelheim Vetmedicas U.S. Canine, Feline, and Rabies vaccines product portfolio in order to expand its business.

Mode of Delivery Insights

On the basis of mode of delivery, the market for veterinary medicine is segmented into oral, parenteral, and others. Others include topical and targeted drug delivery. The parenteral segment held the largest revenue share as of 2018. The growth can be attributed to product availability and rapid onset of action. Therapeutic effect can be achieved within an hour of administration and thus it is preferred for faster action. On the contrary, risk of adverse reaction is more in parenteral as compared to others, which may hinder segment growth in the coming years.
The oral segment held a substantial share in the market owing to its lesser price. There is an increasing demand for palatable dosage forms to improve convenience and compliance. For instance, in February 2016 Zoetis received approval for SimparicaTM, a chewable dosage form indicated for fleas and ticks. Moreover, increasing demand for oral controlled release drug delivery owing to its advantages such as easier handling and less frequent dosing.

End-use Insights

Based on end-use, the market for veterinary medicine is segmented into veterinary hospitals and clinics, point-of-care/in-house testing, reference laboratories, and research institutes and universities. Veterinary hospitals and clinics held the largest market share as of 2018. The growth can be attributed to the availability of a wide range of treatments as well as diagnostic options in veterinary hospitals and clinics. Moreover, ease of availability in accredited veterinary hospitals and clinics is responsible for the growth of this end-use segment. Government animal welfare organizations have issued guidelines for safety practices and standards to be implemented in hospitals, which has broadened the scope for segment growth over the past few years.

Reference laboratories are expected to exhibit lucrative growth over the forecast period. The increase in the prevalence of zoonotic diseases globally has triggered the demand for better treatment options, which is expected to drive the segment over the forecast period. Emergence of veterinary health information systems in developed economies that enable real-time diagnostics is expected to help researchers in the development of therapeutics. Moreover, increasing concern among pet owners regarding pet health is fueling the growth of this segment.

In APAC for the year 2020, the reference laboratories segment is contributed 28.8% revenue share and is expected to register at a CAGR of 7.4% during the forecast period

Regional Insights of Veterinary Medicine Market
North America accounted for the largest revenue share in the market for veterinary medicine in 2018 owing to favorable healthcare structure and rising government initiatives in this region. Moreover, U.S. topped the list of highest meat consumption in 2018, which is further increasing the need to prevent foodborne and zoonotic diseases in livestock animals.North America has a strong presence of major animal health companies. Increasing pet healthcare expenditure is another major factor contributing to the growth of this region.

Favorable reimbursement programs in the U.S. is also propelling market growth. For instance, the North American Pet Health Insurance Association is aimed at promoting awareness pertaining to pet health insurance coverage and developing and exploring partnerships to address the challenges affecting the animal health industry.Moreover, in July 2017, VitusVet partnered with Nationwide to provide mobile app-based claim submission functionality for pet owners.

The Asia Pacific region is growing at a rapid pace and is expected to register the fastest growth rate during the forecasted period. This growth can be attributed to emerging economies such as China and India, which is leading to rapid expansion of manufacturing facilities in the region. Moreover, Asia Pacific held around 40 to 50% of the global meat production as of 2018. According to a report by the Australian Bureau of Agriculture and Resources Economics and Sciences, China will represent around 40% of the increase in meat demand by 2050, which will further propel demand for vaccination in livestock animals.

Market Share Insights of Veterinary Medicine Market

The industry is marked by the presence of various small and large companies and is highly fragmented. Leading market participants include Elanco, Boehringer Ingelheim GmbH, Novartis, Evonik, Ceva Santé Animale S.A, Virbac, Dechra Pharmaceuticals, Vetoquinol SA, Bayer AG, Zoetis, and Merck. Players are constantly involved in strategic initiatives such as regional expansion, new product launch, technological advancements, and mergers and acquisitions to gain deeper penetration.
For instance, in August 2019, Elanco acquired the animal health unit of Bayer in order to strengthen its product portfolio and pipeline. In June 2018, Merck entered into a partnership with Vinovo B.V., a division of Viscon Hatchery Automation. This has helped the company expand its portfolio of poultry vaccines. In August 2019, Zoetis acquired Platinum Performance to extend its nutritional feed product portfolio.

Segmentations, Sub Segmentations, CAGR, & High-Level Analysis overview of Veterinary Medicine Market Research Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of latest industry trends in each of the sub-segments from 2019 to 2029. For the purpose of this study, this market research report has segmented the global veterinary medicine market report on the basis of product, animal type, mode of delivery, end use, and region:

Product Outlook (Revenue, USD Million, 2020 - 2029) 

Biologics

 	
Vaccine
 	
Live attenuated vaccines
 	
DNA Vaccines
 	
Recombinant Vaccines
 	
Inactivated Vaccines
 	
Others

Pharmaceuticals

 	
Parasiticides
 	
Anti-infectives
 	
Anti-inflammatoryAnalgesicsOthers
 	
Medicated Feed Additives

 
Animal Type Outlook (Revenue, USD Million, 2019 - 2029)

Production

 	
Poultry
 	
Swine
 	
Cattle
 	
Sheep & Goats
 	
Fish

Companion

 	
Dogs
 	
Cats
 	
Horses
 	
Others


Mode of Delivery Outlook (Revenue, USD Million, 2020 - 2029)

 	
Oral
 	
Parenteral
 	
Others (Topical, carrier)

End-use Outlook (Revenue, USD Million, 2020 - 2029

 	
Reference Laboratories
 	
Point-of-care testing/In-house testing
 	
Veterinary Hospitals & Clinics
 	
Others


Key Development in global veterinary medicine market for the year 2020 are: 

 	
Merck Animal Health Completed the Acquisition of Worldwide Rights to VECOXAN® Brand of Parasiticides for Ruminant Portfolio. The acquisition Broadens Merck Animal Healths 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.