The global veterinary CRO and CDMO market size was valued at USD 5.80 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 8.94% from 2023 to 2030. The market growth is majorly propelled by factors, such as the wide adoption of veterinary outsourcing services owing to the therapeutic experience of Contract Development &Manufacturing Organizations (CDMO) and Contract Research Organizations (CRO), technical competence, high reliability, quality, & cost efficiency in outsourcing key processes of product development, and improved geographic convenience with local players. In addition, the on-time development & delivery of final products, coupled with the smooth introduction of novel veterinary drugs or devices into the market in compliance with specific regulatory standards, are boosting the market growth.
The key players operating in the animal health industry prefer contract outsourcing over in-house manufacturing, considering its associated benefits. For instance, Zoetis, one of the major players in the veterinary industry, has reported having only 29 in-house manufacturing sites. However, the said company employs a network of 132 third-party contract manufacturing organizations. Therefore, owing to the complex manufacturing processes of certain veterinary products, animal health drug or device manufacturers solely outsource key stages of production to expertise CROs and CDMOs. Outsourcing activities enable companies to reduce financial risk and encourage more developments & research in the field.
During the year 2020, the COVID-19 pandemic negatively affected the market, similar to several other markets in the industry. Resource allocation shift from non-covid to covid-related human products and supply shortages of API & other raw materials faced by contract organizations in countries, such as China, have caused outsourcing issues among veterinary companies. In addition, the logistics and transportation disruption and lack of availability of quality raw materials & transparency with veterinary vendors majorly affected the market growth during the pandemic. Several veterinary contract manufacturers reported facing challenges in establishing interruption-free, timely, and reliable supply channels for raw materials during the period.
However, the animal health CRO & CDMO market growth quickly recovered in the following year with significant measures implemented by key players and contract organizations. Furthermore, the rising pet ownership and animal humanization trends that happened during the pandemic have increased the expenditure in the veterinary space. These trends in pet care and veterinary diagnostics are anticipated to impact CDMO and CRO segments, positively. Moreover, the continuous growth seen in both acquisition and merger activities on the veterinary diagnostics and pharmaceutical levels is unveiling opportunities for emerging CROs & CDMOs. Although the penetration of outsourcing activities in animal health is much less compared to the human health sector, the increasing awareness about drugs among pet owners is boosting market growth.
The livestock animal segment dominated the industry in 2022 with a revenue share of 40.4% of the overall revenue owing to the large production rate of vaccines, pharmaceuticals, and infectious disease diagnostic products specifically for food-producing animals. The dominant share is also contributed to the rising demand for proteins, respective milk or meat requirements, and growing live animal trades globally. Furthermore, rising zoonosis concerns and increasing expenditure on livestock animals are propelling the need for CROs & CDMOs to support massive drug production. For instance, on July 2022, the USDA’s National Agricultural Statistics Service reported that the overall expenditure on farms in the U.S. exceeded USD 390 Billion in 2021, 7.3% up from 2020.
The companion animal segment is expected to grow at the fastest CAGR during the projected period. Growing pet adoption in developed countries has directly or indirectly increased the willingness of people to spend more money and time on their pet’s healthcare. According to the American Kennel Club (AKC), the number of U.S. households owning dogs reached 69 million (54%) in 2021, which increased from 50% in 2018. Similarly, in Europe, nearly 90 million households (46%) own at least one pet, according to the FEDIAF European Pet Food Industry in 2021. In addition, the COVID-19 pandemic has encouraged most people in the world to adopt pets for psychological comfort. These factors have largely contributed to the increased demand for medical products among end-users, which boosted the production scale by players and the involvement of contract organizations.
The development segment generated the largest revenue share of over 30.20% in 2022 and dominated the global industry. The development processes of veterinary drugs or medical devices generally involve two stages: early phase/preclinical and late phase/clinical. Several animal product manufacturing companies outsource the early-phase stages to CROs that help with the processes, such as pre-formulation development, pharmacology, toxicology drug testing in the case of medicines, and concept & feasibility analysis in the case of devices. Similarly, the late-phase/clinical stages involving processes, such as clinical trials & NDA submissions for drugs, and designing, verifying, & validating designs for medical equipment, are outsourced to CDMOs.
Moreover, as per a survey article published by Pharma’s Almanac in June 2022, 94% of surveyed veterinary product manufacturers reported that their companies outsource the late-phase development stages and followed manufacturing processes to CDMOs and CMOs. The same source also suggests that the majority of veterinary players consider the developing & manufacturing stage to be the greatest challenge owing to the procurement of quality raw materials and related resources. Therefore, the development and manufacturing services are highly offered by contract organizations, contributing to their significant shares. Whereas, the discovery segment is anticipated to grow at the fastest CAGR during the forecast period.
The medicine segment dominated the market in 2022 and generated the largest revenue share of more than 62.80%. The medicine segment is further divided into pharmaceuticals, biologics, and others. The rising incidence of zoonotic disease outbreaks and growing concerns with preventative measures are supporting the increased production of vaccines and pharmaceutical products by key veterinary players. New outbreaks of infectious diseases are, in turn, increasing veterinary research and development activities with significant expenditure for novel drug launches.
Therefore, CROs are contributing largely to the smooth discovery and development processes. The medical devices segment, on the other hand, is expected to grow at the fastest CAGR during the projected period. Rising technological advancements in veterinary diagnostics, growing animal healthcare expenditure, and easy availability of contract veterinary device manufacturers & raw material suppliers are propelling the segment growth. Furthermore, companies are investing more in the expansion of their production capacities by employing large networks of CROs & CDMOs, which is positively influencing and supporting the subsequent growth rate.
North American region dominated the animal health CRO & CDMO market with the largest revenue share of more than 30% in 2022. This substantial share can be attributed to the strong presence of key players coupled with the increased number of drug development and veterinary product launch activities in the region. The rising veterinary clinical trial activities in the U.S., the growing availability of contract organizations in veterinary product development, enhanced manufacturing infrastructure in developed countries of the region, and growing animal healthcare investments are further supporting the market growth. The Asia Pacific region will witness the fastest CAGR during the forecast period.
This is majorly owing to the region’s attractiveness with the inexpensive and flexible sourcing offered by the large networks of veterinary outsourcing companies. Countries, such as China and India, have been dominant in medical outsourcing for several years; moreover, recently, Southeast Asian countries, such as the Philippines, Malaysia, Indonesia, and Vietnam, are gaining market attention with potent opportunities. Similarly, Latin America, Middle East, and Africa regions are some of the popular destinations considered for veterinary outsourcing activities.
The market is highly competitive with the strong presence of key players offering various services for veterinary product manufacturers. The key companies are implementing significant measures and strategies to enhance their industry presence. For instance, in October 2022, Klifovet (a part of Argenta Group), a combined CRO and CDMO dedicated to animal health, acquired Ondax Scientific to expand its footprint in Western and Southern Europe. Some of the prominent players in the global veterinary CRO and CDMO market include:
Labcorp Drug Development
Charles River Laboratories
KLIFOVET GmbH (Argenta Group)
OCR – Oncovet Clinical Research
Knoell – Triveritas
Veterinary Research Management
Zoetis – Nexvet
Market size value in 2023
USD 6.27 billion
Revenue forecast in 2030
USD 11.42 billion
CAGR of 8.94% from 2023 to 2030
Base year for estimation
2018 - 2021
2023 - 2030
Revenue in USD million/billion and CAGR from 2023 to 2030
Revenue forecast, company share, competitive landscape, growth factors, and trends
Animal type, service type, application, region
North America; Europe; Asia Pacific; Latin America; Middle East & Africa
U.S.; Canada; U.K.; Germany; France; Italy; Spain; China; Japan; India; Australia; South Korea; Brazil; Mexico; South Africa; Saudi Arabia
Key companies profiled
Labcorp Drug Development; Charles River Laboratories.; Clinvet; KLIFOVET GmbH (Argenta Group); OCR – Oncovet Clinical Research; Knoell – Triveritas; Veterinary Research Management; VETSPIN; Inotiv.; IDEXX Laboratories; Zoetis – Nexvet; Vetio
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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 2018 to 2030. For the purpose of this study, Grand View Research has segmented the global veterinary CRO And CDMO market report based on animal type, service type, application, and region:
Animal Type Outlook (Revenue, USD Million, 2018 - 2030)
Service Type Outlook (Revenue, USD Million, 2018 - 2030)
Packaging & Labeling
Market Approval & Post-marketing
Application Outlook (Revenue, USD Million, 2018 - 2030)
Regional Outlook (Revenue, USD Million, 2018 - 2030)
Rest of Europe
Rest of APAC
Rest of LATAM
Middle East & Africa
Rest of MEA
b. The global veterinary CRO and CDMO market size was estimated at USD 5.80 billion in 2022 and is expected to reach USD 6.27 billion in 2023.
b. The global veterinary CRO and CDMO market is expected to grow at a compound annual growth rate (CAGR) of 8.94% from 2023 to 2030 to reach USD 11.42 billion by 2030.
b. North America dominated the global veterinary CRO and CDMO market with a share of over 30% in 2022. This substantial share can be attributed to the large presence of animal health key players coupled with increased drug development and veterinary product launches in the region.
b. Some key players operating in the global veterinary CRO and CDMO market include Labcorp Drug Development; Charles River Laboratories.; clinvet; KLIFOVET GmbH (Argenta Group); OCR – Oncovet Clinical Research; knoell – Triveritas; Veterinary Research Management; VETSPIN; Inotiv.; IDEXX Laboratories; Zoetis – Nexvet, and Vetio.
b. Key factors that are driving the market growth include the wide preference for veterinary outsourcing services over in-house production, the growing number of CROs and CDMOs in developing countries, increasing expenditure on veterinary R&D activities, expanding pet ownership & humanization trends, and therapeutic & technical expertise offered by contract outsourcing facilities.
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