Global Animal Health Market By Animal Type (Production and Companion), By Product (Feed Additives, Vaccines, and Pharmaceuticals), By Distribution Channel (Retail Pharmacies, Hospital Pharmacies, and E-commerce, Others), and By End-Users (Veterinary Hospitals and Clinics, Animal Care and Rehabilitation Centres, Diagnostic Centres, and Other End-Users), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2023-2032

Report Overview

The Global animal health market size is expected to be worth around USD 239 Bn by 2032 from USD 150 Bn in 2022, growing at a CAGR of 4.9% during the forecast period from 2022 to 2032.

The market is mainly driven by the significant increase in demand for protein foods and the increase in zoonotic diseases and foodborne diseases worldwide. This unpredictable increase in diseases has encouraged companies to develop improved vaccines and drugs. The high demand has also led to an increase in the number of companies that are constantly trying to mitigate the risks of pathogenic contamination and foodborne diseases, which is fueling the growth of the animal health market.

Additionally, increasing initiatives by governments to promote sales of veterinary products are expected to drive the overall market.

Key Takeaways

• Global animal health market projected to grow from USD 150 billion in 2022 to USD 239 billion by 2032, with a CAGR of 4.9%.
• Production animal segment dominated in 2022, holding over 60% revenue share, driven by global initiatives towards food security and sustainable livestock practices.
• Pharmaceuticals led product categories, maintaining market dominance due to advancements in veterinary drugs and increasing pet ownership.
• Hospital pharmacies were the main distribution channel in 2022, accounting for over 52% of the market share, supported by frequent pet treatments.
• Veterinary hospitals and clinics were the largest end-users in 2022, offering a wide range of treatments and diagnostic services.
• North America led the regional market in 2022 with a 33.6% revenue share, driven by stringent animal welfare regulations and technological advancements.
• The Asia Pacific region is expected to grow at a 12.7% CAGR due to rising disposable incomes and increasing awareness of pet nutrition.
• Market growth drivers include rising pet adoption, increasing incidence of foodborne diseases, and growing demand for natural product transparency.
• Challenges include rising costs of veterinary services, potentially slowing market growth as financial burdens increase for pet owners.
• Opportunities are expanding with the increased life expectancy of pets, promoting advancements in early wellness and elder care treatments in veterinary services.

Animal Type Analysis

In 2022, The Production Animal Segment Registered the largest Revenue Share and Dominated the Animal Health Market

Based on animal, the global animal health market is segmented into production and companion. The production animal segment dominated the animal health market and had the largest revenue share, more than 60% in 2022. It can be assumed that the reason for the largest share accounted for by the segment is the global concern of national health organizations about food safety and sustainability.

Policymakers in various countries strive to achieve total food security, which encourages large-scale food production and increases animal husbandry. The policy focuses on long-term sustainability, which can be achieved by increasing productivity and paying more attention to livestock health.

According to the Food and Agriculture Organization, animal foods account for a third of human protein consumption in developing countries, increasing livestock productivity. These factors are cumulatively responsible for a significant proportion of livestock in this segment. The companion animal segment is predicted to grow profitably over the forecast period due to the demand for animal care and the increasing pet-to-human ratio associated with health benefits.

Companion animals are known to provide psychological stability, lower blood pressure, reduce the frequency of heart arrhythmias, and lower anxiety attacks, which increases people’s overall sense of well-being. Therefore, due to these products of animal origin, animal-assisted therapy is increasingly popular, which in turn can lead this segment in the upcoming years.

Product Analysis

The Pharmaceuticals Segment Accounted for its Dominance in Animal Health Market in 2022

Based on product, the global animal health market is divided into feed Additives, vaccines, and pharmaceuticals, among these, the pharmaceuticals segment dominated the animal health market and held the largest revenue share in 2022. Due to the continuous development of veterinary drugs, it is estimated to maintain its dominant position during the forecast period.

Medicines mainly include parasiticides, anti-inflammatory drugs, antibiotics, etc. It is also believed that the significant increase in pet ownership has also accelerated the adoption of longevity-enhancing drugs. In addition, more and more mergers and acquisitions, such as Bayer’s purchase of Elanco, led to the distribution of these products, including pharmaceuticals, in multiple markets. Mergers and acquisitions are considered to be one of the major factors influencing segment growth over the years.

The diagnostic segment is expected to grow significantly during the forecast period. Various factors such as increasing costs of animal health care services, increasing zoonotic cases, and an increasing

number and income of veterinarians in developed economies are also influencing the market growth. Companies are investing to expand their production facilities, which is expected to positively impact the animal health market during the forecast period. Demand for pet care diagnostics, such as blood glucose meters, pregnancy kits, and urine analysis strips, has increased. Diagnosis of the food of animals is limited to laboratories due to the high sensitivity and efficiency requirements of disease research.

The other segment is estimated to exhibit the fastest CAGR during the forecast period of 2023 to 2032. This segment includes other veterinary care products and services such as grooming, livestock monitoring, veterinary software, veterinary telehealth, and others. Increasing R&D efforts to develop more effective products are expected to boost the animal health market. In addition, the increasing prevalence of diseases among pets, growing attention of pet owners towards animal health, increasing expenditure on animal treatment, increasing number of veterinarians, increasing number of pets, and increasing demand for pet insurance driving the animal health market growth and income levels in advanced economies.

Distribution Channel Analysis

The hospital pharmacies segment accounted for holding largest market share in 2022

The hospital pharmacies segment accounted for more than 52% of the turnover in 2022. The growth of the segment was supported by the increasing number of hospital pharmacies combined with a high intervention of frequent admissions of pets for treatment. The share of retail channels and e-commerce platforms in the total market was also significant. The e-commerce segment is expected to grow exponentially during the forecast period. This is due to several advantages, such as greater convenience for patients who do not want to buy drugs from retail stores or hospital pharmacies.

In addition, they also facilitate the continuous supply of medicines because medicines can be ordered in advance. Such benefits are expected to increase the demand for e-commerce during the forecast period. With online pharmacies, order sourcing, and tracking become easier because the associated supply chain management (SCM) eliminates other middlemen from the supply channel. This reduces overall costs and thus increases customer preferences. Retail pharmacy segment growth is projected to be moderate during the forecast period.

End-User Analysis

The Veterinary Hospitals and Clinics Segment Dominated the Animal Health Market by Holding the largest Revenue Share in 2022

The veterinary hospitals and clinics segment held the largest share of revenue in 2022. The dominant part of this segment came from different applications such as toxicology testing, clinical pathology, and therapy. The availability of an extensive range of treatment and diagnostic options in veterinary hospitals and clinics is an important growth factor for the growth of this segment. The increasing incidence of zoonotic diseases due to climate change and globalization is expected to increase diagnostic procedures demand, which is anticipated to boost the point-of-care testing / indoor testing segment during the forecast period.

Increasing awareness of the value of preventive pet care and its benefits is one of the main drivers of pet health screening. The ELISA test has proven to be an effective checkpoint for the diagnosis of heartworm. Some vaccines are available in accredited veterinary hospitals and clinics only, which are responsible for the growth of this end-user segment. Several national animal welfare organizations

have published guidelines on standards and safety practices for veterinary hospitals and clinics, which have expanded the segment’s growth opportunities in recent years.

Key Market Segments

By Animal Type

• Production
• Companion

By Product

• Feed Additives
• Vaccines
• Pharmaceuticals

By Distribution Channel

• Retail Pharmacies
• Hospital Pharmacies
• E-commerce
• Others

By End-User

• Veterinary Hospitals and Clinics
• Animal Care and Rehabilitation Centres
• Diagnostic Centres
• Other End-Users

Drivers

Technological Advancements in the Veterinary Industry, Rising Investments in the Animal Health Sector, and an Increase in the Production of Animal Feed are Expected to Boost the Market Growth During the Forecast Period

The increase in the production of animal feed leads to a significant decrease in prices, which promotes the availability of food at a reasonable price. The animal health market is also driven by technological advancements in the veterinary industry and is expected to create growth opportunities in the future. These advances include the emergence of efficient information management systems, mobile technology for pet owners, and vaccine banks.

Growing investments in animal health innovations have led to some measures that boost the growth prospects of the market. For example, the Innovative Medicines Initiative (IMI) is a public-private partnership that supports research collaboration to promote innovation in veterinary medicines in Europe.

Rising pet adoption and increasing foodborne and zoonotic diseases are expected to increase the animal health market share

The main demand drivers for the animal healthcare market are the increasing consumption of meat and milk around the world. In addition, an increase in foodborne and zoonotic diseases and the adoption of pets are driving the growth of the animal health market.

Natural products are in high demand, and food processors and food manufacturers want transparent labels, which is expected to increase the demand during the forecast period for the growth of the animal healthcare market.

Restraints

Rising Costs of Veterinary Testing and Services

Pet adoption is growing rapidly worldwide, and the demand for companions is increasing. The need for veterinary care is rising, and the cost of veterinary services and testing is rising. For example, the American Pet Products Association (APPA) reported in its annual State of the industry report that U.S. spending on pets was $103.6 billion in 2020, a higher of 6.7 % from the previous year. Due to this factor, the market may slow down in the coming years.

Opportunity

The Increased Life Expectancy of Pets

Pets are living longer than ever before. Greater veterinary care means better opportunities to create a strong “foundation” for early pet wellness, while advances like immunotherapy, diagnostics, and pain management mean better “elder care” for aging animals. The result is that pets share longer and healthier lives with their owners.

Regional Analysis

North America Dominated the Global Animal Health Market in 2022 with the Largest Revenue Share of 33.6%

Based on regional analysis, the animal health market includes North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. Due to the vast range of concrete actions adopted by governmental animal welfare groups that continuously work for general improvement in animal health, North America dominated the market for animal health and accounted for the greatest revenue share of 33.6% in 2022.

Additionally, the market is anticipated to rise in this nation because of technological developments, an increase in zoonotic diseases, and an increase in pet owners. It is projected that a number of cooperative initiatives by significant corporations to improve their R&D capabilities and guarantee high-quality standards will further fuel demand in this region. Furthermore, the high disease load in this area might also be blamed for the overwhelming share.

Asia Pacific is predicted to grow at a significant rate in the coming years

Over the next few years, the animal health market in Asia Pacific is anticipated to grow at a CAGR of 12.7%. The significant businesses in the field of animal health are thought to have consistently

invested in R&D and worked to commercialize both branded and generic treatments at a reasonable cost as a result of the region’s high growth rates. Growing pet nutrition and supply awareness and rising disposable money are the main drivers of the exponential rise.

Key Regions

• North America
  • The US
  • Canada
  • Mexico

• Western Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Portugal
  • Ireland
  • Austria
  • Switzerland
  • Benelux
  • Nordic
  • Rest of Western Europe

• Eastern Europe
  • Russia
  • Poland
  • The Czech Republic
  • Greece
  • Rest of Eastern Europe

• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia & New Zealand
  • Indonesia
  • Malaysia
  • Philippines
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC

• Latin America
  • Brazil
  • Colombia
  • Chile
  • Argentina
  • Costa Rica
  • Rest of Latin America

• Middle East & Africa
  • Algeria
  • Egypt
  • Israel
  • Kuwait
  • Nigeria
  • Saudi Arabia
  • South Africa
  • Turkey
  • United Arab Emirates
  • Rest of MEA

Key Players Analysis

Even with the restrictions and supply chain disruption caused by the epidemic, major market participants experienced growth such as the Companion Animal Group (CAG) diagnostics business, which was the primary driver of IDEXX’s, which grew 12% year-over-year revenue growth. The animal health market will continue to consolidate.

Major players are involved in collaborations, partnerships, and mergers & acquisitions to increase their portfolio, forming a competitive landscape.

Below are some major companies in the global animal healthcare market:

Market Key Players

• Merck Animal Health
• Ceva Santé Animale
• Vetoquinol
• Zoetis
• Boehringer Ingelheim GmbH
• IDEXX
• Elanco
• Heska Corporation
• Virbac
• B.Braun Vet Care
• Covetrus
• DRE Veterinary
• Televet
• Mars Inc.
• Phibro Animal Health Corporation
• Dechra Pharmaceuticals PLC
• Bimeda, Inc.
• Midmark Corporation
• Thermo Fisher Scientific, Inc.
• IDVet
• Intas Pharmaceuticals Ltd.
• Other Key Players

Recent Developments

• Elanco Animal Health Incorporated announced its financial results for the third quarter in November 2021, which included Bayer Animal Health (secured in August 2020). According to the company, the business demonstrated strong fundamentals and outstanding momentum following the purchase of Bayer Animal Health, with top-line growth expectations being exceeded for the fourth consecutive quarter.
• In April 2021, Hester Biosciences introduced a range of herbal veterinary products.
• In February 2021, Merck Animal Health bought Poultry Sense Limited, boosting its product range.

Report Scope