The global companion animal health market size was valued at USD 15.91 billion in 2018 and is expected to witness a CAGR of 6.1% over the forecast period. Rise in the number of government initiatives to promote veterinary care products is anticipated to drive the growth during the forecast period. Introduction of initiatives, such as One Health Initiative to improve healthcare standards for animals, has further boosted growth prospects. These collaborative initiatives unify clinical care, control, disease surveillance, and education and research for improving the management of epidemics.
High demand for efficient monitoring coupled with awareness about epidemiology and 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, disease prevention, and improve the nutritional content of pet products.
Key companies are collaborating with animal welfare organizations to promote awareness and to 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 and surgery practices, and raising awareness among owners and practitioners.
Similarly, Bayer, one of major market players, is also focused on deploying initiatives to curb companion vector-borne diseases and to collaborate with researchers to develop advanced solutions. Collaborative programs to improve research in pet care are among key growth drivers. 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 Companion Animal Health market growth over the forecast period. For instance, OIE International Standards, a part of the WTO framework, issues standards to improve pet care and to promote international trade of veterinary products.
Dogs emerged as the animal type segment in 2018, attributed to increased pet healthcare spending, especially in developed regions. According to the American Pet Product Association (APPA), pet spending has been consistently on the rise and was estimated 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 regarding overall hygiene and health of pets is one of the driving factors. This segment is anticipated to expand at an exponential pace throughout the forecast period.
Adoption of cats is on the rise in some countries such as Canada and they are preferred over dogs. High 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 for the treatment of these diseases. Other prevalent conditions in cats, such as Chronic Kidney Disease (CKD) and diabetes, have also increased the clinical urgency to adopt pharmaceuticals, thereby presenting 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.
Pharmaceuticals held the largest share in the product segment in 2018, 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 rise in instances of animal bites has increased risk of disease and microbe transmissions, which is also expected to propel demand for pharmaceuticals.
Considerable rise in pet ownership is observed to have accelerated the adoption of pharmaceuticals for longevity of the pets. Moreover, increasing number of mergers and acquisitions, for instance the acquisition of Novartis by Eli Lilly, have 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 forthcoming years. The World Health Organization (WHO) is involved in various cross-sectoral activities for addressing health threats at the human-animal-ecosystem interface. This factor is also projected to create growth opportunities for the market over the forecast period.
Food-borne zoonotic diseases, antimicrobial resistance, and emerging zoonoses are some of the major threats to pet health. Availability of a wide range of technologically advanced products for detection and monitoring of various diseases is one of the major factors contributing to growth. Clinical chemistry, hematology, immunodiagnostics, molecular diagnostics, urinalysis, and other veterinary diagnostics are commonly utilized for disease diagnosis.
Hospitals and clinics accounted for the largest market share of in 2018, attributed to various procedures including toxicology tests, conducted by these institutes. Availability of a wide range of treatments as well as diagnostic options in veterinary hospitals and clinics is among high impact rendering drivers for this segment.
Certain vaccines are only available in accredited veterinary hospitals and clinics, which is responsible for increasing market share of this segment in near future. Various government animal welfare organizations have issued guidelines for safety practices and standards to be implemented in these facilities, which has broadened the scope of for the segment.
Point-of-care/In-house testing is anticipated to witness lucrative growth in the forthcoming years owing to an increase in the number of initiatives undertaken for veterinary care and availability of cost-efficient measures for disease diagnosis and 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 segment. Rise in initiatives to create awareness among pet owners about the benefits and value of preventive care is one of the key contributing factors for growth. Tests such as ELISA have been proven to be effective for point-of-care testing for the diagnosis of heartworms.
Hospital pharmacy held the largest market share in 2018, attributed to high accessibility of these pharmacies. The segment is expected to grow consistently over the forecast period owing to increase in prevalence of epidemics and chronic diseases.
Hospitals provide advanced treatment products, which is expected to contribute to the overall growth of the hospitals segment. High procedural volume due to frequent readmissions is one of the major growth drivers. This has led to an increase in the need for vet pharmaceuticals, thereby increasing the adoption of vet 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, they also facilitate consistent supply 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 and tracking becomes easy as associated supply chain management eliminates other market intermediaries of the delivery channel. This reduces overall costs, and is expected to drive demand for e-commerce.
In 2018, North America captured a substantial market share, primarily due to the presence of prominent players undertaking extensive expansion strategies. Moreover, increasing number of R&D investments initiated by the companies is one of the key potential factors presumed to be responsible for the sizeable share garnered by the region. Furthermore, increasing chronic animal disease burden is anticipated to drive the inclination of researchers and healthcare professionals toward advanced technologies, which in turn is further anticipated to widen the scope for growth.
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 market share. They are inclined toward maintaining competition, 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 expansions.
Moreover, greater focus on 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 the demand.
Base year for estimation
Actual estimates/Historical data
2014 - 2017
2019 - 2026
Revenue in USD Million and CAGR from 2019 to 2026
North America, Europe, Asia Pacific, Latin America, Middle East & Africa
U.S., Canada, Germany, U.K., France, Italy, Russia, Spain, Japan, China, India, Thailand, Australia, South Korea, 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, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2026. 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, 2014 - 2026)
Product Outlook (Revenue, USD Million, 2014 - 2026)
Distribution Channel Outlook (Revenue, USD Million, 2014 - 2026)
End use Outlook (Revenue, USD Million, 2014 - 2026)
Point-of-care Testing/In-house Testing
Veterinary Hospitals & Clinics
Regional Outlook (Revenue, USD Million, 2014 - 2026)
Middle East & Africa
United Arab Emirates
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