Companion Animal Health Market Size, Share & Trends Report

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

  • Published Date: Apr, 2021
  • Base Year for Estimate: 2020
  • Report ID: GVR-2-68038-260-0
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2020
  • Number of Pages: 150

Report Overview

The global companion animal health market size was valued at USD 18.67 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 9.2% from 2021 to 2028. A rise in the initiatives by the government and private sectors to help promote animal health is anticipated to drive market growth during the forecast period. The One Health Initiative is one such collaborative effort undertaken by multiple organizations. These include the World Organization for Animal Health (OIE), Food and Agriculture Organization (FAO), WHO, the American Veterinary Medical Association, and others. It is aimed at protecting public health via the prevention and control of zoonotic pathogens by safeguarding animal health. It is carried out through the implementation of appropriate policies at national, regional, and global levels.

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

The Covid-19 pandemic had a notable impact on the industry. Companies had to adapt to the challenging circumstances while facing operational and logistics hurdles. However, many market players leveraged the opportunity to increase profits and market share. For example, Vetoquinol S.A.reported an overall increase in 2020 sales compared to the previous year. This growth was driven by its essentials comprising veterinary drugs and non-medical products.

Driven by the increasing humanization of pets, the expenditure on pet health and wellness is also on the rise. In 2019, in Australia, more than USD 2.6 billion was spent on animal health services as per Animal Medicines Australia. This trend was estimated to continue in the near future. The top reasons cited for veterinary visits were general health checkups, pathology & lab tests, vaccinations, illness or injury, X-ray & imaging, hospitalization, and others.

Increasing availability and adoption of pet health insurance is another factor propelling the market growth. For instance, in April 2020, OneDegree insurance start-up in Hong Kong—launched Pawfect Care portfolio of pet insurance plans. The company estimated that only 3% of the pet dogs and cats population in Hong Kong was insured, even though veterinary care costs were high in the country. The company projected more and more pet owners would opt for pet health insurance in the coming years.

Animal Type Insights

In 2020, the dogs animal type segment dominated the market with a revenue share of more than 40%. As per the Holland Insurance Company Pty. Ltd., India’s pet dog population is growing at an exponential rate owing to urbanization and millennials opting for dogs as pets. Furthermore, rising awareness regarding pet insurance as well as the importance of animal health is also anticipated to boost the market growth.

However, the cats segment is anticipated to register the highest CAGR from 2021 to 2028. Cats are increasingly being adopted in some countries, such as Canada, and are preferred over dogs. Moreover, many companies are focusing on increasing their product portfolio for cats owing to greater sensitivity to diseases in comparison with other pet animals.

Product Insights

The market was dominated by the pharmaceuticals segment in 2020 and the segment accounted for over 50% share of the overall revenue. However, the diagnostics segment is expected to register the highest CAGR of more than 10% from 2021 to 2028. The rising prevalence of various diseases occurring in pets is expected to fuel the R&D for newer diagnostic tests and products, boosting the segment growth.

Market players are also involved in expanding their product portfolio through R&D, product launches, and other strategic initiatives. In September 2020, Zoetis launched Vetscan Imagyst—a diagnostic platform—to improve its pet diagnostics portfolio. IDEXX Laboratories is involved in pet healthcare, veterinary diagnostics, and veterinary practice software and offers an extensive lineup of tests, devices, and services for companion animals.

Distribution Channel Insights

In 2020, the hospital pharmacies segment accounted for the maximum revenue share of over 57%. The segment will retain its leading position growing at a steady CAGR from 2021 to 2028 due to factors, such as easy accessibility and a higher volume of prescriptions fulfilled by these outlets. On the other hand, e-commerce is expected to be the fastest-growing distribution channel segment during the forecast period.

This growth can be credited to the benefits offered by these platforms, such as convenience, which eliminates the need to purchase medicines from retail or hospital pharmacies, and a consistent supply of drugs as these medications can be preordered. The rapid digitization of healthcare catalyzed by Covid-19 and its adoption by users is expected to further add to the segment growth.

End-use Insights

The veterinary hospitals & clinics segment held the largest revenue share of over 81% in 2020 and will remain dominant throughout the forecast period owing to the high volume of patients received by hospitals and clinics. The number of procedures carried out at these facilities from laboratory tests to general health check-ups and surgery to vaccinations also contributes to the segment growth.

Global companion animal health market, by end-use, 2020 (%)

The Point-of-Care (PoC)/in-house testing segment is anticipated to register the fastest CAGR from 2021 to 2028 due to increased testing needs for pets for a variety of health conditions and infections. Commonly used veterinary PoC tests include cCRP, fibrinogen, fructosamine, hemoglobin, lactate, lipase (pancreatic), NH3, phenobarbital, Serum Amyloid A (SAA), and T4 tests, among others.

Regional Insights

North America held the largest revenue share of more than 37% in 2020. This growth is attributed to the increased pet population and pet expenditure along with the humanization of pets. For instance, 58% of households in Canada owned at least one cat or dog in 2020, as per the Canadian Animal Health Institute (CAHI). The country is witnessing an upward trend in the pet population as per the data from 2018 to 2020 wherein the dog population rose from 7.6 million to 7.7 million. The percentage of pets receiving medical care also increased notably in 2020 according to CAHI. Feline vet visits increased in the months following the start of the Covid-19 pandemic.

Asia Pacific is estimated to be the fastest-growing regional market from 2021 to 2028 due to factors, such as rising pet ownership and awareness about pet health & treatment. For instance, as per a 2019 report by Nationthailand, Thailand’s pet animal population is on the rise, with dogs dominating the pet population. In India, insurance companies have begun offering pet insurance, driven by the demand for quality & affordable pet care and a growing understanding of the needs of modern-day pet parents, especially those owning rare and foreign breeds. This is likely to propel the regional market growth. Bajaj Allianz, New India Assurance, Vetina Pawtect, and Oriental Insurance are some of the key players offering pet insurance in the country.

Key Companies & Market Share Insights

Market players focus on new product development, mergers & acquisitions, and distribution channel expansion to capture a larger share of the market. Companies are inclined towards maintaining a competitive edge as well as delivering economic value to customers and fulfilling unmet needs. For instance, in April 2020, Heska acquired Scil animal care to enhance its portfolio of PoC diagnostics. In January 2020, Heska acquired CVM Diagnostico Veterinario, S.L., and CVM Ecografía, S.L. to expand its pet animal diagnostics business in Spain. Some of the prominent players in the global companion animal health market include:

  • Merck & Co., Inc.

  • Ceva

  • Vetoquinol S.A.

  • Zoetis

  • Boehringer Ingelheim International GmbH

  • Elanco

  • Virbac

  • IDEXX Laboratories, Inc.

  • Indian Immunologicals Ltd.

  • Agrolabo S.p.A

Companion Animal Health Market Report Scope

Report Attribute

Details

The market size value in 2021

USD 20.23 billion

The revenue forecast in 2028

USD 37.49 billion

Growth rate

CAGR of 9.2% from 2021 to 2028

Base year for estimation

2020

Historical data

2016 - 2020

Forecast period

2021 - 2028

Quantitative units

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

Report coverage

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

Segments covered

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

Regions covered

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

Country Scope

U.S.; Canada; U.K.; Germany; Italy; France; Spain; Russia; Japan; China; India; Australia; South Korea; Singapore; Malaysia; Thailand; Brazil; Mexico; Argentina; South Africa; Saudi Arabia; Turkey; Iran; UAE; Israel

Key companies profiled

Merck & Co., Inc.; Ceva; Vetoquinol S.A.; Zoetis; Boehringer Ingelheim International GmbH; Elanco; Virbac; IDEXX Laboratories, Inc.; Indian Immunologicals Ltd.; Agrolabo S.p.A.

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Segments Covered in the Report

This report forecasts revenue growth at the 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 companion 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)

    • Dogs

    • Equine

    • Cats

    • Others

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

    • Vaccines

    • Pharmaceuticals

      • OTC

      • Prescription

    • Feed Additives

    • Diagnostics

    • Others

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

    • Retail

    • E-commerce

    • Hospital Pharmacies

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

    • PoC/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

    • Asia Pacific

      • Japan

      • China

      • India

      • Australia

      • South Korea

      • Malaysia

      • Singapore

      • Thailand

    • Latin America

      • Mexico

      • Brazil

      • Argentina

    • Middle East & Africa

      • South Africa

      • Saudi Arabia

      • Turkey

      • Iran

      • UAE

      • Israel

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