Veterinary Active Pharmaceutical Ingredients Manufacturing Market Size, Share & Trends Analysis Report By Service Type, By Synthesis Type, By Therapeutic Category, By Animal Type, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global veterinary active pharmaceutical ingredients manufacturing market size was estimated at USD 6.28 billion in 2022 and is expected to grow at a lucrative compound annual growth rate (CAGR) of 6.9% over the forecast period. The market is primarily driven by the growing demand for veterinary drugs owing to the rising prevalence of zoonotic diseases, the increasing number of veterinary pharmaceutical players, and the growing animal population, pet ownership, pet humanization & pet expenditure. For instance, according to the American Pet Products Association, overall spending in the U.S. pet industry was USD 123.6 billion in 2021, while veterinary care expenditure was approximately USD 34.3 billion.

Furthermore, growing demand for pet insurance, strategic initiatives undertaken by market players, and government initiatives, are also expected to boost the market growth. The increasing global animal population is further driving the demand for manufacturing veterinary APIs that are used in the formulation of efficient drugs. Moreover, the adoption of pets has increased in recent years owing to their psychological benefits, including decreased risk of cardiac arrhythmias, reduced anxiety, blood pressure stabilization, increased psychological stability, and overall improvement in well-being. The rising number of pet owners is expected to drive the overall market over the forecast period, which can be attributed to the increasing demand for treatment options.

For example, according to the American Pet Products Association (APPA) National Pet Owners Survey, approximately 32% of U.S. millennial generations (26–41 years oldpeople) owned pets in 2021. Over 67% of American households own at least one pet and they collectively spend more than USD 95 billion on their pets annually, according to the APPA. Moreover, 12% of adults with kids younger than 18 years of age have adopted pets because of the COVID-19 pandemic. These factors are significantly contributing to the industry growth. Moreover, factors, such as rise in R&D investments, advancements in treatment procedures, increased consumption of meat, and mandatory vaccination is anticipated to boost the industry growth during the forecast period.

The WHO is engaged in various activities to address health risks at the animal-human–ecosystem interface involving food-borne zoonoses, food safety, and antimicrobial resistance. Initiatives, such as routine medications, are being implemented by governments at the country, regional, and international levels by the WHO. According to the CDC, three out of every four new or emerging infectious diseases in humans are animal-borne and more than 6 out of 10 existing infectious diseases in humans can be transmitted from animals. Therefore, the CDC undertakes initiatives in the U.S. as well as at the global level to protect people from zoonotic diseases.

The increasing number of oral formulations for various veterinary drugs is boosting the demand for veterinary API manufacturing. These majorly include nonsteroidal anti-inflammatory drugs. Furthermore, favorable government initiatives in developing countries are boosting the production of veterinary APIs. For instance, initiatives, such as Pharma Vision 2020 by the Indian government, which is aimed at developing the country’s capabilities in the fields of drug discovery, innovation, and drug manufacturing, are expected to have a positive impact on the political scenario of the market. This is expected to fuel market growth.

Service Type Insights

The contract outsourcing segment dominated the industry in 2022 and accounted for the maximum share of more than 58.15% of the overall revenue. More veterinary pharmaceutical companies are outsourcing API production to prevent investment in expensive infrastructure, equipment, and employees. Therefore, the majority of companies in major markets, such as the U.S., outsource API manufacturing services and raw material procurement to countries, such as China. Moreover, contract outsourcing provides access to better expertise, improving the application and quality of APIs.

The in-house service type segment is estimated to register the fastest growth rate over the forecast period as this service ensures complete control over the manufacturing process and intellectual property associated with it. For instance, retaining in-house API manufacturing gives a lot of flexibility to change or advance a product and further enables the internal managers to control the production & quality of ingredients. This service is widely preferred among early-stage emerging companies that have innovative manufacturing processes or therapeutics developed by their research staff or founders in the laboratory.

Synthesis Type Insights

The chemical-based API segment held the dominant share of more than 39.50% in 2022 owing to the easy availability of raw materials as well as the simple synthesizing procedures. The synthesis of APIs is usually a multi-step process and involves numerous chemical transformations of raw materials that have different chemical & physical properties. According to Lonza, around 70 to 80% of medical drugs in the market are chemical-based, which further supports segment growth. Moreover, chemical-based APIs are cost-effective as compared to biological APIs.

The biological API segment is expected to grow at the fastest CAGR over the forecast period owing to the wide commercial acceptance of such products and increasing research studies on biological veterinary medicines. Several pharmaceutical companies and contract API manufacturers are offering biological APIs to develop specific therapeutic drugs for chronic veterinary diseases, such as cancer. For instance, Jinan Qinghe Biological Technology Co., Ltd. is a veterinary raw material manufacturer with a GMP certificate, that deals in R&D and production of biological products for veterinary use, feed additives, and API raw materials.

Therapeutic Category Insights

The anti-infective segment held the largest revenue share of more than 43.00% in 2022. This is owing to the increasing prevalence of bacterial, fungal, and viral infections in both companion and livestock animals. Growing challenges among livestock owners to uphold veterinary health standards to meet the demand for healthy dairy products, fresh meat, and dietary nutrition are driving the need for anti-infective drug production. As perthe WHO, around 60% of globally emerging infectious diseases are reported to be zoonoses, which is driving the need for veterinary pharmaceutical drugs and APIs.

NSAIDs are growing at a significant rate owing to their therapeutic benefits against chronic diseases, such as osteoarthritis in horses, dogs, and other animals. These drugs are easily available, inexpensive, and relatively long-acting for a wide range of conditions. NSAIDs can be administered in the form of oral drugs, injectables, topical ointments, as well as intravenous drugs. The large production of NSAIDs requires the respective quantities of API from API manufacturers, which propels the industry growth. The othersegment is expected to grow at the fastest CAGR over the forecast period owing to the advancements in API production for biologics.

Animal Type Insights

On the basis of animal types, the industry has been further categorized into production/food animals and companion animals. The production/food animal segment held the largest revenue share in 2022, which can be attributed to the growing livestock population and people’s dependence on animals for resources, such as meat, milk, etc. Due to this, the health of livestock is indirectly related to the health of humans, which increases the concerns over food security. There is a wide range of API-based veterinary livestock medicines that play an important role in keeping them free from infectious diseases.

Whereas, the companion animals segment is anticipated to grow at the fastest CAGR of over 7.30% over the forecast period. This is due to the growing pet ownership, rising prevalence/incidence of various diseases, increasing pet healthcare expenditure, and the significant number of companies offering pet pharmaceutical products. Pet owners around the world are now showing more willingness to pay for veterinary medicines, such as antibiotics, anti-infectives, NSAIDs, and parasiticides, among others. These factors are significantly contributing to the growth of the market.

Regional Insights

North America accounted for more than 31.45% share of the market in 2022. A key factor contributing to this significant share is the strong local presence of major animal healthcare companies, favorable reimbursement programs, high prevalence of zoonotic diseases, and growing R&D in veterinary healthcare.Zoonoses (zoonotic diseases) are a significant burden in North America as they are an additional threat to public health as animals are often the source of diseases.The high prevalence of zoonotic diseases is another factor contributing to segment growth.

On the other hand, the Asia Pacific region is anticipated to exhibit the fastest growth rate during the forecast period. This can be attributed to the growing health concerns about animals, increasing adoption of pet animals, growing disposable income & veterinary expenditure, and rising number of veterinary API manufacturing units.In addition, the urgent need to curb the high incidence rate of zoonotic disease and manage disease outbreaks, such as swine influenza and Ebola, is expected to propel the region’s growth over the coming years.

Key Companies & Market Share Insights

The market is fairly competitive owing to the presence of a large number of notable API manufacturers, which is expected to intensify the competition in the coming years. These players are undertaking various strategic initiatives, such as partnerships, sales & marketing activities, mergers & acquisitions, serviceexpansion, integrated offerings, and product launches, to strengthen their presence in the global industry. Some of the key players in the global veterinary active pharmaceutical ingredients manufacturing market include:

• Alivira Animal Health Ltd.

• Excel Industries Ltd.

• Ofichem Group

• Chempro Pharma Private Ltd.

• Menadiona

• SUANFARMA

• Vetpharma (Insud Pharma, S.L.U)

• Siflon Drugs

• Qilu Pharma Spain, S.A.

• FIS - Fabbrica Italiana Sintetici S.p.A.

Veterinary Active Pharmaceutical Ingredients Manufacturing Market Report Scope

Global Veterinary Active Pharmaceutical Ingredients Manufacturing Market Segmentation

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 2018 to 2030. For the purpose of this study, Grand View Research has segmented the global veterinary active pharmaceutical ingredients (API) manufacturing market report on the basis of service type, synthesis type, therapeutic category, animal type, and region:

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

  • In House

  • Contract Outsourcing

    • Contract Development

      • Preclinical Development

      • Others

    • Contract Manufacturing

      • API/Bulk Drugs

      • Finished Dose Formulations

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

  • Chemical Based

  • Biological

  • HPAPI

• Therapeutic Category Outlook (Revenue, USD Million, 2018 - 2030)

  • Antiparasitic

  • Anti-infectives

  • NSAIDs

  • Others

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

  • Companion Animals

  • Production/Food Animals

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

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • Japan

    • India

  • Latin America

    • Brazil

    • Mexico

  • MEA

    • South Africa

    • Saudi Arabia