Veterinary Active Pharmaceutical Ingredients Manufacturing Market Size, Share & Trends Analysis Report By Service Type (In-house, Contract Outsourcing), By Synthesis Type, By Product, By Region, And Segment Forecasts, 2021 - 2028

Report Overview

The global veterinary active pharmaceutical ingredients manufacturing market size was valued at USD 6.3 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 6.9% from 2021 to 2028. The market is primarily driven by the increasing pet expenditures and number of veterinarians & veterinary visits and high prevalence of zoonotic diseases. The growing livestock population is also driving the market. According to the U.S. Department of Agriculture, there were 103.0 million cattle and 32.1 million beef cows in the U.S. in July 2020, and this number is expected to grow substantially in the coming years. Moreover, factors such as rise in R&D investments, advancements in procedures, high pet adoption rates, increased consumption of meat, and mandatory vaccination are anticipated to boost the market growth during the forecast period.

The increasing number of oral formulations for various veterinary drugs is boosting the demand for veterinary Active Pharmaceutical Ingredients (APIs). These majorly include nonsteroidal anti-inflammatory drugs. Manufacturers are investing in process synthesis, which helps in accelerating the manufacturing process for active pharmaceutical ingredients. Furthermore, the introduction of biologically synthesized and high potency APIs, which act on the target cells with a much lower dose as compared to the general APIs, is also expected to support market growth.

Market players are consistently striving to achieve desired profit margins through geographical expansion. For instance, in November 2020, Ofichem Group expanded with a new office in Hangzhou, China. This supported the company’s growth strategy. In May 2018, Zoetis expanded its manufacturing and supply facility in Kalamazoo to provide high-quality medicines for veterinarian and livestock farmer customers.

Favorable government policies are boosting the manufacturing of veterinary active pharmaceutical ingredients. 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, is expected to have a positive impact on the political scenario of the market. This is expected to fuel the market growth.

Service Type Insights

The contract outsourcing service type accounted for the largest revenue share of over 58% in 2020 owing to the associated benefits with its adoption. Companies are outsourcing raw material procurement and manufacturing services. Moreover, this service type is gaining popularity owing to the absence of captive production capacity with small- and mid-scale pharmaceutical companies.

The in-house service type segment is estimated to register the fastest CAGR over the forecast period as this service type ensures complete control over the process and intellectual property associated with the therapy. This service type is especially popular among early-stage companies with innovative manufacturing processes or therapies that are developed by research staff or founders in the laboratory.

Synthesis Type Insights

The chemical-based API segment dominated the global veterinary API manufacturing market with a revenue share of over 39% in 2020. This can be attributed to the high usage of these APIs by many major manufacturing companies. Also, according to Lonza, around 70 to 80% of the drugs in the market are chemical-based. Furthermore, chemical-based APIs are cost-effective as compared to biological APIs, which further drives the segment.

The HPAPI segment is projected to register the fastest CAGR from 2021 to 2028. High-potency APIs have a dosage rate of 20 to 50 times lower than the typical APIs, which boosts their demand. Favorable government regulations for R&D and commercialization of novel drug molecules are also anticipated to drive the segment. Their ability to target specific diseased cells is expected to increase their demand further.

Product Insights

The vaccines product segment held the largest market share of over 23% in 2020 and will expand further at a significant CAGR from 2021 to 2028. This growth can be attributed to the rising demand for vaccines due to the high prevalence of chronic diseases in animals. Furthermore, increasing livestock population & animal husbandry coupled with the commercialization of animal products is expected to boost the demand for vaccines, thereby driving the segment growth.

NSAIDs are expected to be the fastest-growing segment over the forecast period. The anti-infectives products segment is estimated to account for the second-highest revenue share by 2028 due to increasing incidences of infections in animals. According to the CDC, in July 2017, over 6 out of every 10 known infectious diseases in people were found to be transmitted through animals. Due to this, there is a high pressure on pharmaceutical organizations to develop veterinary medicines for curbing such infections, which also boosts the demand for APIs for anti-infectives.

Regional Insights

North America was the dominant regional market in 2020 and accounted for a revenue share of over 31%. Zoonoses are an additional threat to public health as animals are often the natural source of a disease. The high prevalence of zoonotic diseases is the key factor contributing to the market growth. Favorable reimbursement programs are fueling the demand for veterinary medicine, thereby providing a growth platform for the market in this region.

On the other hand, Asia Pacific is projected to be the fastest-growing regional market from 2021 to 2028. Market growth in the region can be attributed to the significantly high cattle population, which has enhanced the demand for meat production. China and India constitute more than 30% of the global cattle population. Moreover, in 2018, Asia Pacific accounted for 40 to 50% of the total meat production worldwide.

Key Companies & Market Share Insights

Major companies are focusing on strategic initiatives like acquisitions and mergers to maintain their dominance in the market. For instance, in November 2020, Alivira Animal Health Ltd. acquired Provet Veteriner Urunleri San. Ve Tic. A. S. in Turkey. This furthered the company’s geographical footprint and product lineup. In October 2019, SUANFARMA acquired an API manufacturing plant in Italy called Sandoz Industrial Products SpA. This expanded the company’s production capacity and supported its global expansion strategy. Some of the key companies in the global veterinary API manufacturing market are:

• Alivira Animal Health Ltd.

• Excel Industries Ltd.

• Ofichem Group

• Shaanxi Hanjiang Pharmaceutical Group Co., Ltd.

• Menadiona

• Afton Pharma

• Jiangsu Lingyun Pharmaceutical Co., Ltd.

• SUANFARMA

• NGL Fine-Chem Ltd.

• FIS - Fabbrica Italiana Sintetici S.p.A

Veterinary Active Pharmaceutical Ingredients Manufacturing Market Report Scope

Segments Covered in the Report

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 2016 to 2028. For the purpose of this study, Grand View Research has segmented the global veterinary active pharmaceutical ingredients manufacturing market report on the basis of service type, synthesis type, product, and region:

• Service Type Outlook (Revenue, USD Million, 2016 - 2028)

  • In House

  • Contract Outsourcing

    • Contract Development

      • Preclinical Development

      • Others

    • Contract Manufacturing

      • API/Bulk Drugs

      • Finished Dose Formulations

• Synthesis Type Outlook (Revenue, USD Million, 2016 - 2028)

  • Chemical-based API

  • Biological API

  • HPAPI

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

  • Antiparasitic

  • Anti-infectives

  • NSAIDs

  • Vaccines

  • Biologics

  • Others

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

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

    • Italy

    • Spain

  • Asia Pacific

    • Japan

    • China

    • India

  • Latin America

    • Brazil

    • Mexico

  • Middle East and Africa (MEA)

    • Saudi Arabia

    • South Africa