GVR Report cover Animal Health Market Size, Share & Trends Report

Animal Health Market Size, Share & Trends Analysis Report By Animal Type (Production, Companion), By Product (Pharmaceuticals, Diagnostics), By Distribution Channel, By End-use, By Region, And Segment Forecasts, 2021 - 2028

  • Published Date: Aug, 2021
  • Base Year for Estimate: 2020
  • Report ID: GVR-1-68038-763-6
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2019
  • Number of Pages: 200

Report Overview

The global animal health market size was valued at USD 45.4 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 9.0% from 2021 to 2028. The market is largely driven by a significant rise in demand for protein food and an increase in the 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 a subsequent increase in the number of companies undertaking consistent efforts to control pathogen contamination risks and food-borne diseases, which is contributing to the market growth. In addition, the rising number of government initiatives to promote animal health products is presumed to drive the overall market.

North America animal health market size, by product, 2018 - 2028 (USD Billion)

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 a significant price reduction, facilitating easy access to food at affordable prices. The market is also driven by technological advancements in veterinary healthcare. These advancements include the advent of efficient information management systems, animal owner mobile technology, and vaccine banks.

Growing 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 to boost innovation in veterinary pharmaceuticals in Europe.

Animal Health Market: The market growth remains steady despite supply chain disruptions caused by the pandemic

Pandemic Impact

Post COVID Outlook

Despite disruption due to the COVID-19 pandemic, the animal health industry witnessed a steady growth of 8% from 2019 to 2020. The economic downturn is relatively lower in the animal health market as compared to others

There will be a shift in business models for veterinarians. Traditional veterinary practices generate a majority of their revenues from selling high-margin products like pharmaceuticals. However, as the adoption of telehealth has been on the rise, the demand for knowledge, expertise, and consulting solutions will increase

The trend for telemedicine has witnessed significant growth during the pandemic. Online channels, such as eCommerce, are the most preferred distribution channels by pet owners for purchasing vet products & pet food. The E-Commerce segment witnessed a lucrative growth rate of 10.7%

Animal healthcare is rebounding faster as compared to other sectors. Large-scale animal health companies are focusing on innovative strategies to gain a competitive edge

Major players operating in the market witnessed growth during the pandemic despite the restriction & supply chain disruption. IDEXX reported a 12% increase in year-on-year revenue, driven by the Companion Animal Group (CAG) diagnostics segment in December 2020

Consolidation will continue in the market. For instance, Merck Animal Health completed the acquisition of Poultry Sense Ltd. in February 2021 to expand its vertical in the poultry business and have technology in health & environmental monitoring solutions

By Q3 2020, Elanco's revenue improved by 15%, compared to Q3 2019, with notable recovery in the pet health industry. However, unfavorable macroeconomic conditions and reduced consumption trends continued to affect Elanco's international livestock business



Product Insights

The pharmaceutical segment led the market in 2020 accounting for the highest revenue share of more than 35%. It is estimated to retain its dominant position throughout the forecast period on account of consistent advancements in veterinary drugs. Pharmaceuticals primarily include anti-inflammatory drugs, parasiticides, antibiotics, and others. It is believed that a considerable rise in companion animal ownership has also expedited the adoption of pharmaceuticals to help increase longevity. Moreover, mergers & acquisitions are considered as one of the key factors contributing to segment growth. For instance, the acquisition of Bayer by Elanco has resulted in multimarket distribution of their products, including pharmaceuticals.

The veterinary diagnostics segment is expected to witness a lucrative CAGR of 11.7% from 2021 to 2028. Various factors, such as the increasing number of veterinary practitioners & their incomes in developed economies, growing animal health expenditure, and rising incidence of zoonotic diseases, are responsible for segment growth. Companies are investing in the expansion of their manufacturing facilities, which is expected to positively influence the market growth over the forecast period. There has been an increase in the demand for Point-of-Care (POC) diagnostics, such as blood glucose monitors, pregnancy kits, and urinalysis strips, by pet owners. Food animal diagnostics remain confined to labs due to high sensitivity and efficacy requirements in disease testing.

Distribution Channel Insights

Pharmacies at vet hospitals and clinics accounted for the dominant share of more than 51% in 2020. The increasing number of hospital pharmacies, coupled with high procedural volume as a consequence of frequent readmission of pets for treatment, has supported the segment growth. Retail channels and e-commerce platforms also accounted for a significant share of the total market.

Retail pharmacies for animal health products are expected to grow at a moderate CAGR during 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 over 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 Insights

Veterinary hospitals and clinics accounted for the largest share of 73.0% in 2020. The dominant share captured by this segment is a consequence of various applications, such as clinical pathology, toxicology tests, and therapy. The 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.

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.

An increase in the incidence of zoonotic diseases caused by globalization and climate changes is expected to drive the demand for diagnostic procedures, which is expected to drive the POC testing/in-house testing segment in the coming years. The growing 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 the segment growth. Tests, such as ELISA, have been proven an effective POC test for heartworm diagnosis.

Animal Type Insights

Production animal was the dominant animal type segment with a share of more than 63.0% in 2020. The substantial share captured by the segment can be presumed 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.

Global animal health market share, by animal type, 2020 (%)

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, in the 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 the 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

North America captured the largest revenue share of 34.0% in 2020, owing to the 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 an increasing number of pet owners are expected to boost the market growth in this region. Several collaborative efforts were undertaken by major companies to enhance their R&D capabilities and ensure high-quality standards are anticipated to impel the demand further across the region. The majority share can also be attributed to the high disease burden in this region.

Asia Pacific is expected to register the fastest CAGR of 10.3% over the forecast 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 relatively low prices. The exponential growth is also credited to the rising awareness pertaining to pet nutrition and supplies and increasing disposable income levels in emerging economies of Asia Pacific.

Key Companies & Market Share Insights

The market growth is a result of extensive regional expansion strategies, mergers and acquisitions, and collaborative research initiatives undertaken by major industry players. For instance, in February 2021, Merck Animal Health acquired Poultry Sense Limited, strengthening its poultry products portfolio. In July 2020, Merck Animal Health ramped up its animal vaccine production capacity with a USD 100 million investment in its Kansas manufacturing site. These types of initiatives are anticipated to fuel market growth in the coming years. Some of the prominent players in the global animal health market include:

  • Zoetis

  • Ceva Santé Animale

  • Merck Animal Health

  • Vetiquinol S.A.

  • Boehringer Ingelheim GmbH

  • Bayer AG

  • Virbac

  • Heska

  • Nutreco N.V.

Animal Health Market Report Scope

Report Attribute


The market size value in 2021

USD 48.56 billion

Revenue forecast in 2028

USD 88.67 billion

Growth rate

CAGR of 9.0% from 2021 to 2028

Base year for estimation


Historical data

2016 - 2019

Forecast period

2021 - 2028

Quantitative units

Revenue in USD million/billion and CAGR from 2021 to 2028

Report coverage

Revenue forecast, company share, competitive landscape, growth factors, and trends

Segments covered

Animal type, product, distribution channel, end-use, region

Regional Scope

North America; Europe; Asia Pacific; Latin America; MEA

Country Scope

U.S.; Canada; U.K.; Germany; France; Italy; Russia; Spain; The 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; UAE; Israel

Key companies profiled

Zoetis; Ceva Santé Animale; Merck Animal Health; Vetiquinol S.A.; Boehringer Ingelheim GmbH; Bayer AG; Virbac; Heska; Nutreco N.V.

Customization scope

Free report customization (equivalent up to 8 analysts’ working days) with purchase. Addition or alteration to country, regional & segment scope.

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Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2028. 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, 2016 - 2028)

    • Production Animal, By Type

      • Poultry

      • Swine

      • Cattle

      • Sheep & Goats

      • Fish

    • Companion Animal, By Type

      • Dogs

      • Cats

      • Horses

      • Others

  • Product Outlook (Revenue, USD Million, 2016 - 2028)

    • Vaccines

      • Live Attenuated Vaccines

      • DNA Vaccines

      • Recombinant Vaccines

      • Inactivated Vaccines

      • Others

    • Pharmaceuticals

      • Parasiticides

      • Anti-infectives

      • Anti-inflammatory

      • Analgesics

      • Others

    • Feed Additives

      • Nutritional

      • Medicinal

    • Diagnostics

      • Instruments

      • Consumables

    • Medical Devices & Disposables

      • Critical Care

      • Anesthesia Equipment

      • Fluid Management Equipment

      • Temperature Management Equipment

      • Rescue & Resuscitation Equipment

      • Research Equipment

      • Patient Monitoring Equipment

    • Others

      • Veterinary Telehealth

      • Veterinary Software

      • Livestock Monitoring

  • Distribution Channel Outlook (Revenue, USD Million, 2016 - 2028)

    • Retail

    • E-commerce

    • Veterinary Hospitals & Clinics

  • End-use Outlook (Revenue, USD Million, 2016 - 2028)

    • Reference Laboratories

    • POC Testing/In-house Testing

    • Veterinary Hospitals & Clinics

    • Others

  • Regional Outlook (Revenue, USD Million, 2016 - 2028)

    • North America

      • U.S.

      • Canada

    • Europe

      • U.K.

      • Germany

      • France

      • Italy

      • Russia

      • Spain

      • The Netherlands

      • Switzerland

      • Sweden

      • Ireland

      • Poland

    • Asia Pacific

      • Japan

      • China

      • India

      • Indonesia

      • Thailand

      • Australia

      • South Korea

      • Philippines

      • Malaysia

      • Singapore

    • Latin America

      • Brazil

      • Mexico

      • Argentina

    • Middle East & Africa

      • South Africa

      • Saudi Arabia

      • Turkey

      • Iran

      • United Arab Emirates

      • Israel

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