Companion Animal Health Market Analysis By Animal Type, By Product (Vaccines, Pharmaceuticals, Feed Additives, Diagnostics), By Distribution Channel, By End-use, And Segment Forecasts, 2018 - 2025

Industry Insights

The global companion animal health market size was valued at USD 12.7 billion in 2016 and is expected to witness a lucrative CAGR of 5.7% over the forecast period. Rise in the number of government initiatives that help promote veterinary care products is anticipated to drive market growth during the forecast period. The introduction of initiatives, such as “One Health Initiative” for the enhancement of healthcare standards for animals, has increased growth prospects for the companion animal health market. This collaborative initiative unifies clinical care, control, disease surveillance, and education & research for improving the management of epidemics. 

High demand for efficient monitoring and awareness about epidemiology & pathogenesis of diseases in pets has urged organizations, such as Companion Animal Parasite Council and European Scientific Counsel Companion Animal Parasites, to ensure appropriate measures are taken. These organizations also aim at maximizing productivity, focus on disease prevention, and improve the nutritional content of finished pet products.

Key companies in the market are collaborating with animal welfare organizations to promote awareness and improve veterinary healthcare. For instance, in 2015, Ceva renewed its partnership with American Association of Feline Practitioners. This collaboration is aimed at protecting against zoonotic diseases, encouraging pet owner to live in urbanized societies for better pet care, and establishing standards for feline medicine, research, & surgery practices and raising awareness among owners & practitioners.

Similarly, Bayer, one of major market players, is also focused on deploying initiatives to curb companion vector-borne diseases and collaborate with researchers to develop advanced solutions. Collaborative programs to improve research in pet care are among key contributors to the market. For instance, the EU-funded network STAR-IDAZ, a global strategic alliance for the coordination of research on major infectious diseases and zoonoses.

Government animal welfare authorities and policymakers are encouraging farmers through incentives to achieve optimization and innovation in food production. These organizations are involved in issuing guidelines for promoting veterinary health, which is expected to contribute to market growth over the forecast period. For instance, OIE International Standards, a part of the WTO framework, issues standards to improve pet care and promote international trade of veterinary products.

Animal Type Insights

Dogs accounted for the largest share of the animal type segment in 2016. This can be attributed to increase in spending on pet healthcare, especially in developed regions. According to American Pet Product Association, pet spending has been consistently on the rise to reach USD 66.75 billion in 2016. This can also be attributed to high penetration of feed additives, vaccines, diagnostics, and pharmaceuticals for pets. The increase in adoption of these products has resulted from growing consumer awareness pertaining to their availability and benefits. In addition, general concern of owners pertaining to overall hygiene and health of the pets is also one of the factors contributing to market growth. This segment is anticipated to grow at an exponential rate throughout the forecast period.

Cats are increasingly being adopted in some countries such as Canada and are preferred over dogs. Growing prevalence of infectious diseases among cats is also one of the high impact rendering drivers for this segment. This is anticipated to boost the adoption of pharmaceuticals and vaccines in the treatment of these diseases.

Other prevalent conditions in cats, such as chronic kidney disease and diabetes, have also increased the clinical urgency to adopt pharmaceuticals, thereby presenting the segment with lucrative growth opportunities. Moreover, companies are focusing on increasing their product portfolio for cats owing to greater sensitivity to diseases in comparison with other companion animals. For instance, Ceva extended its range of cardiology products with the launch of Amodip for the treatment of arterial hypertension in cats.

Product Insights

Pharmaceuticals held the largest share in the product segment in 2016; which can be attributed to increasing prevalence of food-borne diseases, brucellosis, and other zoonotic diseases that are potentially hazardous to animals. This has resulted in rising clinical urgency for the use of potent pharmaceuticals and targeted medicines. In addition, significant increase in instances of animal bites has increased chances of disease and microbe transmissions, which is also expected to propel demand for pharmaceuticals. 

Considerable increase in pet ownership has also been found to have accelerated the adoption of pharmaceuticals for their longevity. Moreover, increasing number of mergers & acquisitions, for instance the acquisition of Novartis by Eli Lilly, has resulted in multimarket distribution of the products of Novartis, including pharmaceuticals. In addition, Virbac acquired two parasiticides of Eli Lilly, Sentinel Flavor Tabs, and Sentinel Spectrum for dogs, marketed by Novartis Animal Health.

Growing prevalence of zoonotic diseases such as rabies and Lyme is among high impact rendering drivers for this segment. This is expected to increase the establishment of reference laboratories to improve veterinary health in the coming years. The WHO is involved in various cross-sectoral activities for addressing health threats at the human-animal-ecosystem interface.

Food-borne zoonotic diseases, antimicrobial resistance, and emerging zoonoses are some of the threats in the companion animal health market. Availability of a wide range of technologically advanced products for detection and monitoring of various diseases is the one of the major factors contributing to growth. Technologies utilized in the diagnosis of diseases are clinical chemistry, hematology, immunodiagnostics, molecular diagnostics, urinalysis, and other veterinary diagnostics.

Distribution Channel Insights

Hospital pharmacy held the largest share in the distribution channel segment in 2016. This can be attributed to high accessibility of veterinary hospital pharmacies. The segment is expected to grow consistently owing to increase in prevalence of epidemics and chronic diseases.

Furthermore, hospitals provide advanced treatment products, which are expected to contribute to the overall growth of the hospitals segment. High procedural volume because of frequent readmission of pets for treatment is one of the factors responsible for growth. This has led to an increase in the need for veterinary pharmaceuticals, thereby increasing the adoption of veterinary care products in hospital pharmacies.

E-commerce is expected to witness lucrative growth during the forecast period. This growth is believed to be a result of various advantages such as increased convenience for patients, thereby eliminating the need to purchase medicines from retail or hospital pharmacies. Moreover, these also facilitate consistent supply of drugs as these medications can be preordered.

Benefits associated with online pharmacies are anticipated to accentuate demand for e-commerce throughout the forecast period. With the help of online pharmacies, order procurement & tracking becomes easy as associated supply chain management eliminates other market intermediaries of the delivery channel. This reduces overall costs, and this is expected to drive demand for e-commerce.

End-use Insights

Veterinary hospitals & clinics accounted for the largest share of the end-use segment in 2016, which can be attributed to various procedures conducted by them such as toxicology tests. Availability of a wide range of treatments as well as diagnostic options in veterinary hospitals & clinics is among high impact rendering drivers for this segment. 

Certain vaccines are only available in accredited veterinary hospitals & clinics, which is responsible for increasing the share of veterinary hospitals & clinics among end-use segments. Various government animal welfare organizations have issued guidelines for safety practices & standards to be implemented in veterinary hospitals & clinics, which has broadened the scope for segment growth over the past few years.

Point-of-care testing/In-house testing is anticipated to witness lucrative growth in the coming years owing to an increase in the number of initiatives undertaken for veterinary care and availability of cost-efficient measures for disease diagnosis & monitoring. Commonly used veterinary point-of-care tests include cCRP, fibrinogen, fructosamine, hemoglobin, lactate, lipase (pancreatic), NH3, phenobarbital, Serum Amyloid A (SAA), and T4 tests.

Increase in incidence of zoonotic diseases caused by globalization and climate changes is expected to drive demand for diagnostic procedures, which is expected to drive the point-of-care testing/in-house testing market in the coming years. Increase in initiatives to create awareness among pet owners about the benefits and value of preventive care in pets is one of the key contributing factors for the growth of in-house testing. Tests such as ELISA have been proven to be effective for point-of-care testing for the diagnosis of heartworms.

Competitive Insights

Some of the key players are Zoetis, Nutreco N.V.; Merck& Co., Inc.; Elanco; and Bayer AG. They are involved in the development of new products and expansion of their distribution channels to capture a larger share of the market. They are inclined toward maintaining competition in the market as well as delivering economic value to customers and fulfilling unmet needs. In addition, these companies are working toward improving overall health outcomes. They are also consistently striving to boost their profits through regional expansion.

Moreover, greater focus toward strengthening supply chain and refinement of operational structures has facilitated major companies to gain competitive advantage. For instance, in May 2017, Elanco Animal Health opened a new autogenous poultry vaccine manufacturing facility in Maine to enhance its abilities to meet demands of customers.

Report Scope

Segments covered in the report

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 companion animal health market on the basis of animal type, product, distribution channel, end use and region:

• Animal Type Outlook (Revenue, USD Million, 2014 - 2025)

  • Dogs

  • Equine

  • Cats

  • Others

• Product Outlook (Revenue, USD Million, 2014 - 2025)

  • Vaccines

  • Pharmaceuticals

    • OTC

    • Prescription

  • Feed Additives

  • Diagnostics

  • Others

• Distribution Channel Outlook (Revenue, USD Million, 2014 - 2025)

  • Retail

  • E-commerce

  • Hospital Pharmacies

• End-use Outlook (Revenue, USD Million, 2014 - 2025)

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

  • Hospitals & Clinics

  • Others

• Regional Outlook (Revenue, USD Million, 2014 - 2025)

  • North America

    • U.S.

    • Canada

  • Europe

    • UK

    • Germany

    • France

  • Asia Pacific

    • Japan

    • China

    • India

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa

    • South Africa