Animal Health Market Size, Share & Trends Analysis Report By Animal Type (Companion), By Product (Biologics), By Distribution Channel, By End-use, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global animal health market size was valued at USD 58.66 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 8.8% from 2023 to 2030. Factors driving the market growth include rising animal health expenditure, the prevalence of diseases in animals, concerns over zoonoses, initiatives by key companies, and pet humanization. For instance, in January 2023, Merck opened a new manufacturing facility for the production of companion animal vaccines in Boxmeer, Netherlands to meet increased global customer demand.

The market remained resilient during the COVID-19 public health emergency owing to a surge in pet adoption, increasing pet humanization, and growing concerns over zoonoses. Some of the negative impacts of the pandemic include decreased sales, supply chain or distribution disruptions, low demand & purchasing rates, and operational hurdles due to changing regulations worldwide. On the other hand, the trend for telemedicine witnessed significant growth during the pandemic. Online channels such as e-commerce emerged as the most preferred distribution channels by pet owners for purchasing vet products and pet food.

The market was also impacted by macroeconomic headwinds such as inflation, foreign exchange rate fluctuations, and geopolitical conflict during H2 2022 and the impact is expected to result in dampened growth rate for a short period. Zoetis for instance, reported a decrease in revenue growth by 3% in Q1 and Q2, and 4% in Q3 in 2022. The company reported an overall decrease of 4% in revenue growth in the year 2022. Elanco’s revenue growth was negatively impacted by the change in foreign exchange rates, with a 4% decrease in H1 and a 5% decrease in the Q3 results in 2022. On the other hand, Vimian, based in Sweden, reported a positive impact on revenue growth, estimated at 2.5% in Q1, 4.9% in Q2, and 5.6% in Q3 2022.

The increased production of animal-based food products will lead to a significant price reduction, facilitating easy access to pet food at affordable prices. The market is also driven by technological advancements in veterinary health care, and this is anticipated to offer future growth opportunities. These advancements include the advent of efficient information management systems, mobile technology placing animal owners at the center of the developments, 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.

Product Insights

The pharmaceutical segment dominated the market for animal health and held the largest revenue share of over 40% in 2022. 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 also believed that a considerable increase in companion animal ownership has also expedited the adoption of pharmaceuticals to help increase their life expectancy. Moreover, an increasing number of mergers and acquisitions also continue to promise new growth opportunities. For instance, the acquisition of Bayer by Elanco has resulted in the multimarket distribution of their products, including pharmaceuticals. Mergers and acquisitions are considered one of the key factors contributing to segment growth over the years.

The veterinary diagnostics segment is expected to witness significant growth over the forecast period. Various factors such as growing animal health expenditure, rising incidences of zoonotic diseases, and an increasing number of veterinary practitioners and their incomes in developed economies are also responsible for market growth. Companies are investing in the expansion of their manufacturing facilities, which is expected to positively influence the market for animal health over the forecast period. There has been an increase in the demand for point-of-care 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.

Animal Type Insights

The production animal segment dominated the market for animal health and accounted for the largest revenue share in 2022. 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. 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 Food and Agriculture Organization (FAO), 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 the dietary needs of the growing human population. These factors cumulatively are responsible for the significant share captured by production animals in this segment. The companion animal segment is expected to grow at a lucrative rate of about 9% during the forecast period owing to an increase in demand for efficient animal care and the pet-human bond due to the associated health benefits. Companion animals are known to lower blood pressure, provide psychological stability, and reduce the frequency of cardiac arrhythmias and anxiety attacks, which enhance the overall well-being of humans. Consequentially, animal-assisted therapy is increasingly preferred as a result of these companion animal products, which, in turn, is likely to drive the segment in the coming years.

Distribution Channel Insights

The hospital/ clinic pharmacy segment accounted for the largest revenue share of about 50% in 2022. The increasing number of hospital pharmacies, coupled with high procedural volume has supported segment growth. Retail channels and e-commerce platforms also accounted for a significant share of the total market. The e-commerce segment is anticipated to witness exponential growth of over 11% throughout the forecast period. This can be attributed to various advantages such as increased convenience for patients not willing to purchase medicines from retail or hospital pharmacies.

Moreover, these also facilitate a consistent supply of drugs, and as medications, these can be preordered. Benefits such as these are anticipated to accentuate the demand for e-commerce throughout the forecast period. With the help of online pharmacies, order procurement and tracking become easy as associated Supply Chain Management (SCM) eliminates other market intermediaries of the delivery channel. This reduces overall costs, thereby increasing customer preference. Retail pharmacies for animal health products are expected to grow at a moderate rate throughout the forecast period.

End-use Insights

The veterinary hospitals and clinics segment accounted for the largest revenue share of over 70% in 2022. 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. An increase in the incidences of zoonotic diseases is expected to drive the demand for diagnostic procedures, which will drive the point-of-care testing and in-house testing segments in the coming years.

The 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 to in-house testing in animal health. Tests such as ELISA have been proven effective point-of-care tests for heartworm diagnosis. Certain vaccines are only available in accredited veterinary hospitals and clinics, which is responsible for increasing the share of this end-use segment. Various animal healthcare 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.

Regional Insights

North America dominated the market for animal health and accounted for the largest revenue share of over 30% in 2022. This can be attributed to the wide range of definitive measures adopted by government and animal welfare organizations that are consistently working for overall improvement in animal health. Furthermore, technological advancements in animal diagnostics, the rising incidence of zoonotic diseases, and the increasing awareness among pet owners are expected to boost the market growth. Several collaborative efforts by major companies to enhance their R&D capabilities to ensure high-quality standards are anticipated to impel the demand further across this region. Moreover, North America's dominant market share can also be attributed to the high disease burden in the region.

In Asia Pacific, the market for animal health is expected to register a lucrative CAGR of about 10% 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 of pet nutrition and supplies and increasing disposable income.

Key Companies & Market Share Insights

Major players operating in the market witnessed growth during the pandemic despite the restriction and supply chain disruption. IDEXX reported a 12% increase in year-on-year revenue, driven by the Companion Animal Group (CAG) diagnostics segment. Consolidation will continue in the animal health market. For instance, Merck Animal Health completes the acquisition of Poultry Sense Ltd in February 2021 to expand its vertical in the poultry business and have technology in health and environmental monitoring solutions. The registered growth in the market for animal health is a result of product launches, extensive regional expansion strategies, mergers and acquisitions, and collaborative research initiatives undertaken by major market players.

For instance, in August 2021, Elanco closed the acquisition of Kindred Biosciences. With this acquisition, Elanco strengthened and accelerated its innovation, portfolio, and productivity (IPP) strategy, and positioned itself to bring solutions for veterinarians and animal owners in areas of under-served or unmet medical needs. In April 2021, Hester Biosciences launched a range of herbal veterinary products. Likewise, 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 prominent players in the global animal health market include:

• Zoetis

• Ceva Santé Animale

• Merck & Co., Inc.

• Vetoquinol S.A.

• Boehringer Ingelheim GmbH

• Elanco

• Virbac

• Heska

• Dechra Pharmaceuticals plc

• IDEXX Laboratories, Inc.

Animal Health Market Report Scope

Global Animal Health Market Report Segmentation

This report forecasts revenue growth at global, regional & country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global animal health market report based on animal type, product, distribution channel, end-use, and region:

• Animal Type Outlook (Revenue, USD Million, 2018 - 2030)

  • Production Animals

    • Poultry

    • Swine

    • Cattle

    • Sheep & Goats

    • Fish

  • Companion Animals

    • Dogs

    • Cats

    • Horses

    • Others

• Product Outlook (Revenue, USD Million, 2018 - 2030)

  • Biologics

    • Attenuated Live Vaccines

    • Inactivated Vaccines

    • Other Vaccines & Biologics

    • DNA Vaccines

    • Recombinant Vaccines

  • Pharmaceuticals

    • Parasiticides

    • Anti-infectives

    • Anti-inflammatory

    • Analgesics

    • Others

  • Medicinal Feed Additives

  • Diagnostics

    • Consumables, reagents, and kits

    • Instruments and devices

  • Equipment & Disposables

    • Critical Care Consumables

    • 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, 2018 - 2030)

  • Retail

  • E-commerce

  • Hospital/ Clinic Pharmacy

• End-use Outlook (Revenue, USD Million, 2018 - 2030)

  • Veterinary Reference Laboratories

  • Point-of-care Testing/In-house Testing

  • Veterinary Hospitals & Clinics

  • Others

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

    • Italy

    • Spain

    • Russia

    • Netherlands

    • Switzerland

    • Sweden

    • Ireland

    • Poland

    • Rest of Europe 

  • Asia Pacific

    • Japan

    • China

    • India

    • Indonesia

    • Thailand

    • Australia

    • South Korea

    • Philippines

    • Malaysia

    • Singapore

    • Rest of Asia Pacific

  • Latin America

    • Brazil

    • Mexico

    • Argentina

    • Rest of Latin America

  • Middle East & Africa

    • South Africa

    • Saudi Arabia

    • Turkey

    • Iran

    • UAE

    • Israel

    • Rest of MEA