U.S. Companion Animal Health Market Size, Share & Trends Analysis Report By Animal Type (Dogs, Cat, Equine), By Product (Pharmaceuticals, Diagnostics), By Distribution Channel, By End Use, And Segment Forecasts, 2023 - 2030

Report Overview

The U.S. companion animal health market size was valued at USD 5.2 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 10.3% from 2023 to 2030. The market is primarily driven by the growing adoption of companion animals in the country, coupled with the increasing awareness among pet owners regarding animal diagnostics. Dogs are the most commonly owned companion animals, followed by cats. According to the U.S. Census Bureau’s American Housing Survey, in 2020, around 67% of households have at least one pet. Growing pet ownership has upped concerns regarding their health, thereby driving the market. The advent of artificial intelligence (AI) has enabled early and accurate diagnosis, thus providing promising growth opportunities in the coming years.

The market is positively impacted by the COVID-19 pandemic as there is an increase in pet adoption. During the first half of 2020, pet adoption in the U.S. alone reported a year-on-year increase of 50%. This has resulted in the increased number of households with pets and significant expenditure on them. Animal health companies as well registered the growth during the pandemic. For instance, Zoetis reported a 7% higher revenue in 2020 compared to the previous year. This performance was driven by the newly launched companion animal parasiticide product as well as Zoetis’ key dermatology portfolio.

Increasing availability and adoption of insurance for companion animals with widening coverage for accidents and illnesses is also anticipated to boost the market growth. As per the North American Pet Health Insurance Association in 2019, the average monthly charge of pet insurance is USD 27.9 for cats and USD 44.7 for dogs, covering both accidents and illnesses. The association also states that dogs accounted for around 83% of insurance premiums while cats held a 17% share. As the cost of surgeries and diagnostics continues to increase, the inclination of pet owners toward insurance is also on a rise.

The rising incidence of cancer, especially in dogs, is anticipated to provide a growth platform for the market. As per the Animal Cancer Foundation, 65 million dogs and 32 million cats are suffering from cancer in the U.S. Dogs are more prone to suffer from malignant neoplasia (tumor) and lymphoma, as per the American Veterinary Medical Association. The market is supported by numerous health initiatives, especially for cancer treatment, by government and private organizations.

Animal Type Insights

The dog segment held the largest revenue share of over 40.0% in 2022 majorly owing to the rising adoption of dogs. Dogs are known to provide numerous health benefits to their owners such as combating depression, reducing stress, and lowering blood pressure. Furthermore, dogs are more prone to various forms of cancer compared to other companion animals such as cats. As per the Veterinary Cancer Society, cancer is the foremost reason for death in 47% of dogs, especially those aged below 10 years.

The cat segment emerged as the second-largest animal type segment in 2022 and is expected to register the fastest growth rate over the forecast period. Cats are highly prone to infections and chronic health issues, such as cardiovascular disorders, diabetes, and kidney problems. Companies are focusing on expanding their product portfolio in this segment, giving it a major boost. For instance, Ceva expanded its range of cardiology products with the launch of Amodip for the treatment of arterial hypertension in cats.

Product Insights

The pharmaceuticals segment held the largest revenue share of over 50.0% in 2022. The segment is driven by the increasing usage of pharmaceuticals to treat the burgeoning prevalence of foodborne diseases and zoonotic diseases. These diseases are potentially hazardous to animal health and require immediate medical attention.

The vaccines segment is anticipated to grow at a lucrative rate during the forecast period. Vaccination is important for companion animals as it not only safeguards them from epidemics but also protects owners in case of any animal bites. As per the Centers for Disease Control and Prevention (CDC), in 2017, rabies vaccination is prime for pet animals; the vaccination has resulted in a 5.7% decrease in rabies cases in domestic animals since 2016. Moreover, clinical trials for vaccines take less time compared to pharmaceutical medicines, resulting in the release of new vaccination products in the market at a rapid pace.

The diagnostics segment is expected to register the fastest growth rate during the forecast period. Technological advancements in the field of radiology diagnostics such as electronic data capture, the inclusion of AI, and cloud-based storage are anticipated to drive the segment. For instance, IBM is working on AI assistants for doctors that can promptly recognize species the moment a pet is brought into a clinic. These assistants can also quickly scan through a database of over 800 medical conditions to make a diagnosis. Artificial intelligence is also giving rise to ‘smart farms’, helping in the diagnosis of affected animals without any human involvement.

Distribution Channel Insights

Hospital pharmacy held the largest revenue share of over 55.0% in 2022 due to the high accessibility and affordability. The segment is expected to grow at a steady pace owing to the increasing prevalence of epidemics and chronic health ailments among companion animals. Furthermore, hospitals provide advanced treatment products, which is expected to contribute to the overall growth of the segment.

E-commerce is estimated to be the fastest-growing segment owing to the ease of availability, greater accessibility, and less time consumption. E-commerce or online pharmacies eliminate other market intermediaries of the delivery channel, thereby reducing overall costs. This has driven customer preference over other channels. Furthermore, the OTC drug segment has significantly benefited from the advent of e-commerce. Consumers are progressively moving toward the usage of digital platforms for speedy delivery and convenience. The availability of home delivery services has given pet owners the option of having drugs delivered to them within a delivery window of an hour in many areas in the U.S.

End-use Insights

Veterinary hospitals and clinics dominated the market with a revenue share of over 80.0% in 2022. The demand for fast, accurate, and cost-effective diagnosis and treatment in companion animals has driven this segment. Moreover, in recent years, veterinary hospitals and clinics, and pet insurance companies have been collaborating efforts for better and fast reimbursement options, leading to better treatment and increased footfall.

The point-of-care or in-house testing segment is anticipated to register the fastest growth rate over the forecast period owing to the improved access to healthcare services and the ability to provide quick and accurate results. Moreover, facilities like lab-quality testing outside hospital settings will boost its adoption in veterinary healthcare. Another factor propelling this segment growth is the increase in the incidence of animal diseases that may affect companion animals and infect humans, thus raising the need for point-of-care tests.

Key Companies & Market Share Insights

Extensive mergers and acquisitions, product portfolios, geographical expansions, and collaborative research initiatives are strategies undertaken by the leading players. For instance, in July 2019, Zoetis and Colorado State University entered into an agreement for establishing a research lab for the development of new immunotherapies for veterinary patients.

Established players, in an attempt to increase their market presence and strengthen their product offering, are entering into alliances. For example, in April 2019, Merck acquired Antelliq Corporation in order to increase its foothold in animal health monitoring and smart data management for both companion and livestock animals. The market is competitive and the rising penetration of advanced technologies in this space is further anticipated to present this market with promising growth opportunities in the near future. Some prominent players in the U.S. companion 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.

• Norbrook Inc.

U.S. Companion Animal Health Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the country level and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2018 to 2030. For the purpose of this study, Grand View Research has segmented the U.S. companion animal health market report on the basis of animal type, product, distribution channel, and end use:

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

  • Dog

  • Cat

  • Equine

  • Others

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

  • Vaccines

  • Pharmaceuticals

    • OTC

    • Prescription

  • Feed Additives

  • Diagnostics

  • Others

• Distribution Channel Outlook (Revenue, USD Million, 2018 - 2030)

  • Retail

  • E-commerce

  • Hospital Pharmacy

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

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

  • Veterinary Hospitals & Clinics

  • Others