The global animal health market size was valued at USD 42.2 billion in 2017. It is expected to witness a CAGR of 5.5% during the forecast period. Rising incidence of zoonotic and food-borne diseases worldwide is one of the key trends stoking market growth. Unprecedented rise in the prevalence is prompting companies to develop advanced vaccines and pharmaceuticals. Widening base of companies undertaking consistent efforts to control pathogen contamination risks and food-borne diseases is also likely to augment the market.
In addition, increasing number of government initiatives to promote veterinary products is poised to drive the market. According to the UN Department of Economic and Social Affairs, the global population is approximately 7.3 billion and it is projected to reach around 9.7 billion by 2050, of which 795 million people will be undernourished, as per the estimations of the International Fund for Agricultural Development (IFAD).
Aforementioned statistics indicate urgent requirement to expand food supply through large-scale adoption of livestock. Heightened production of animal-based food products is anticipated to lead to significant price reduction, facilitating easy access to food at affordable prices. Technological advancements in veterinary healthcare are estimated to unfold ample growth opportunities for the market.
These advancements include advent of efficient information management systems, animal owner mobile technology, and vaccine banks. High focus on innovation in veterinary health has given rise to certain measures that are fueling growth prospects. For instance, Innovative Medicines Initiative (IMI), which is a public-private partnership to support collaborative research in order to boost innovation in veterinary pharmaceuticals in Europe.
The feed additives segment was at the forefront in 2017, with a share of 36.8% of the overall market. The segment is further bifurcated into nutritional and medicinal. The dominant share captured by the segment is anticipated to be a consequence of consistent advancements in these products. These advancements include 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 healthcare organizations towards enhancement of agricultural practices and veterinary health is estimated to bolster the growth of the segment. For instance, certain additives are permitted and recommended by the European Union to use in feed, which includes vitamins, antioxidants, and performance promoters.
Production animal dominated the market in 2017. The growth of the segment can be attributed to rising concerns regarding food safety and growing emphasis on sustainability by government healthcare organizations globally. Policymakers in various countries are striving to achieve total food security, which augments large-scale food production and results in greater rearing of livestock.
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, 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 growing human population. These factors, cumulatively, are responsible for the dominance of the segment.
On the basis of distribution channel, the veterinary hospitals and clinics segment was the leading revenue contributor in the animal health market in 2017. Increasing number of hospital pharmacies coupled with high procedural volume as a consequence of frequent readmission of pets for treatment is triggering the growth of the segment. Retail channels and E-commerce platforms, cumulatively accounted for sizeable share in the overall market. The growth of these segment can be attributed to factors such as high convenience offered and increasing number of retail pharmacies.
E-commerce/online pharmacies are projected to witness healthy growth during the forecast period. High convenience offered by online pharmacies to patients who are not willing to purchase medicines from retail or hospital pharmacies is one of the key factors encouraging the growth of the segment.
Increasing incidence of zoonotic diseases, caused by globalization and climate changes, is poised to drive the demand for diagnostic procedures, which in turn will propel point-of-care testing/in-house testing market in the coming years. Increasing initiatives to create awareness among pet owners regarding benefits and values of preventive care are also stimulating the growth of the in-house testing segment. Tests such as ELISA have been proven an effective point-of-care test for heartworm diagnosis.
Veterinary hospitals & clinics accounted for the largest share in the market in 2017. Availability of a wide range of treatment and diagnostic options in veterinary hospitals and clinics is benefiting the growth of the segment. The growth of the segment can be attributed to various applications such as clinical pathology, toxicology tests, and therapy.
Certain vaccines are only available in accredited veterinary hospitals & clinics, which are responsible for increasing the share of the segment. Several government animal welfare organizations have issued guidelines for safety practices and standards to be implemented in veterinary hospitals & clinics, which are escalating the growth of the segment.
North America captured a substantial share in the companion animal health segment in 2017, owing to a wide range of definitive measures adopted by government animal welfare organizations, which are consistently working for overall improvement in animal health. Furthermore, technological advancements, rising incidence of zoonotic diseases, and increasing number of pet owners are anticipated to boost the growth of the regional market.
In 2017, North America accounted for the dominant share in the overall market. Several collaborative efforts undertaken by major companies to enhance their R&D capabilities and ensure high quality standards are estimated to contribute to the growth of the regional market. High disease burden is also playing a vital role in the development of the market in North America.
On the other hand, the Asia Pacific market is expected to register a noteworthy CAGR during the forecast period. Increasing investments by prominent players in R&D activities and their efforts to commercialize branded and generic therapeutics at a relatively inexpensive price are the key growth stimulants for the regional market. Growing awareness pertaining to pet nutrition & supplies and rising disposable income are also likely to supplement the growth of the market.
Extensive regional expansion strategies, mergers & acquisitions, and collaborative research initiatives undertaken by major companies are supporting the growth of the market. For instance, In January 2015, Zoetis entered into a collaborative agreement with the University of Nottingham to conduct 4-year research that was focused on maximizing muscle growth and enhancing feed efficiency in pig farming.
Similarly, in May 2016, Bayer AG and BioNTech entered into a collaborative agreement to develop mRNA vaccines and therapeutics in order to aid veterinary applications and expand their product development capabilities. Moreover, in November 2016, Merck announced acquisition of Harris vaccines, a manufacturer and distributor of vaccines for companion animals. This acquisition was carried out to widen their vaccines portfolio and increase product development capabilities.
Base year for estimation
Actual estimates/Historical data
2014 - 2016
2018 - 2025
Revenue in USD Million and CAGR from 2018 to 2025
North America, Europe, Asia Pacific, Latin America, Middle East & Africa
U.S., Canada, Germany, U.K., France, Italy, Russia, Spain, Netherlands, Switzerland, Sweden, Ireland, Poland, Japan, China, India, Indonesia, Thailand, Australia, South Korea, Philippines, Malaysia, Singapore, Brazil, Mexico, Argentina, South Africa, Saudi Arabia, Turkey, Iran, United Arab Emirates, Israel
Revenue forecast, company share, competitive landscape, growth factors and trends
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This report forecasts revenue growth at global, regional, & country levels and provides an analysis on the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research 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, 2014 - 2025)
Sheep & Goats
Product Outlook (Revenue, USD Million, 2014 - 2025)
Live Attenuated Vaccines
Distribution Channel Outlook (Revenue, USD Million, 2014 - 2025)
Veterinary Hospitals & Clinics
End-use Outlook (Revenue, USD Million, 2014 - 2025)
Point-of-care Testing/In-house Testing
Veterinary Hospitals & Clinics
Regional Outlook (Revenue, USD Million, 2014 - 2025)
Middle East & Africa
United Arab Emirates
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