Veterinary Hospitals Market Size, Share & Trends Analysis Report By Type (Medicine, Surgery), By Animal Type (Companion, Farm Animals), By Sector (Private, Public), By Region (APAC, Europe), And Segment Forecasts, 2022 - 2030

Report Overview

The global veterinary hospitals market size was valued at USD 76.16 billion in 2021 and is expected to grow at a compound annual growth rate (CAGR) of 5.7% from 2022 to 2030. The increasing pet population is driving the need for veterinary clinics & hospitals across the world. In addition, lockdown restrictions due to the COVID-19 pandemic resulted in an increased demand for companion animals. The pet population in the U.K. has grown tremendously. The Pet Food Manufacturers Association, in their recent survey, signifies that there are currently over 24m cats and dogs in the U.K. This upsurge in the pet population is driving the market, not just in the short term when kittens and puppies require vaccinations, initial checkups, or neutering, but significantly in the long term as they become mature animals requiring more veterinary intervention.

Furthermore, the global livestock population has been growing over the past few decades. Increasing demand for animal products has intensified livestock production worldwide. Factors, such as changes in food preferences owing to the changing lifestyle habits and population growth, are further boosting the demand for veterinary services, such as vaccinations, which, in turn, supports market growth. Veterinarians across the world have implemented new safety measures. These measures affected how veterinarians care for sick as well as healthy pets, and that has accounted for reports of delays and long wait times. Dr. Cynthia Maro wrote a column in Beaver County (Pa.) Times in August 2020, saying emergency hospitals were seeing wait times of up to 8 hours.

She also wrote that appointments were scheduled 3 to 6 weeks in advance. As per the Veterinary Medical Association report, the average wait time approximately doubled in 2020 as compared to 2019. Moreover, numerous hospitals reduced their hours and eliminated wellness appointments and elective procedures. In addition, in January 2021, Banfield Pet Hospital confirmed a massive boom in pet ownership in the U.S., sharing that 9.2% more juvenile canines and 12.4% more juvenile felines were carried into Banfield for veterinary visits in 2020 compared to the previous year. Thus, the demand for better veterinary critical care is boosting the market growth.

Moreover, market players are continuously improving the standards of care for hospitals and veterinary medicine to make it accessible to individuals globally. For instance, in September 2020, Petco opened up its 100th in-store veterinary hospital in Encinitas, California. Many veterinary care providers are implementing big data technologies to deliver better treatment for all animals. This technology is used to diagnose and evaluate potential diseases. Big data allows veterinarians to recognize the diseases affecting livestock and companion animals in various locations and regions. Some of the major veterinary care providers choosing big data analytics to treat pet health problems are Banfield Pet Hospitals, VCA Inc., and Greencross Ltd.

Such trends permit for better growth in the market. In addition, existing market players are adopting various technologies to cater to the rising demand. For instance, in June 2021, CVS Group announced the planning of a new state-of-the-art specialist veterinary hospital in Bristol. The hospital will open in 2022 with modern technology and treatments in all disciplines, including orthopedics, general surgery, internal medicine, neurology, and neurosurgery, among others. Thus, the use of technology has guaranteed better care outcomes-not just for the companions, but also for their owners. Access to veterinary healthcare is comparatively poor in most developing nations and some developed countries.

The disease burden is significantly high in low- and middle-income nations globally. The upsurge in pet ownership goes hand in hand with a surge in demand for animal healthcare, and the veterinarian profession is reporting a shortage of staff. For instance, according to a survey conducted in 2020 by the Federation of Veterinarians of Europe, the Netherlands is experiencing a shortage of veterinarians in rural areas, both for private and public professionals. This, in turn, is anticipated to limit the market growth.

Type Insights

The medicine type segment dominated the market with a revenue share of more than 51% in 2021. The growing awareness among farmers and consumers has augmented the usage of medicines. An increase in the use of vaccinations for disease prevention is also responsible for the growth of this segment. Animal and food safety systems are currently facing challenges due to the increasingly long and complex supply chains, primarily due to globalization & trade liberalization. Stringent animal health and food safety regulations are further increasing the demand for medicines, which, in turn, is expected to fuel the market growth.

The surgery type segment is estimated to register the fastest CAGR from 2022 to 2030. Obesity is a silent killer in animals too. Animals can become overweight due to the absence of exercise and excessive food intake. In June 2021, an animal clinic, based in Pune, Maharashtra, India, carried out its first laparoscopic surgery on an overweight canine. In addition, according to Banfield Pet Hospital’s 2020 report on Veterinary Emerging Topics, pet obesity in the U.S. has become an epidemic. Of the 1.9 million adult dogs examined at the hospital, 51% were reported to be overweight. Obesity leads to comorbid conditions, such as osteoarthritis, which often require surgical interventions.

Sector Insights

The private sector accounted for the dominant revenue share of more than 65% in 2021. In recent years, in many developing countries, the improvement in the economy has given more disposable income to individuals to spend on high-quality private veterinary services. In addition, willingness to pay premium prices for veterinary services further boosts the growth of the private sector. Growing investments in hospitals will further drive the market growth. VCA was a publicly traded business, its acquisition in 2017 by MARS has made it private.

In the U.S., the MARS family of veterinary practices includes VCA Hospitals, Banfield, Pet Partners, and BluePearl Veterinary Partners. The others sector accounted for the second-largest revenue share in 2021. In recent years, the demand for veterinarians from non-government agencies is increasing as veterinarians are good animal welfare & development workers. Moreover, their technical knowledge is also an additional advantage for NGOs to implement animal welfare and livestock-associated development intervention.

Animal Type Insights

The companion animals segment dominated the global in 2021 with a revenue share of more than 63%. The dominant share was captured by the dogs segment due to the increasing animal healthcare spending, specifically in the developed regions. According to the American Pet Product Association, companion animal spending has been consistently on the rise to reach USD 109.6 billion in 2021 within the U.S. In addition, the growing prevalence of infectious diseases among pets is one of the high-impact rendering growth drivers for this segment. The rise in disease prevalence is expected to broaden the prospects for hospital visits for routine vaccinations or routine health checkups. The farm animals type segment is expected to grow at a CAGR of 5.6% during the forecast period.

The growth is owing to the rising number of farm animals, especially considering meat consumption across the globe. Moreover, high demand for animal-based products and rising consumption of meat are contributing to the segment growth. As per the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) estimates, global meat consumption improved by 58% over the 20 years to 2018 to reach 360 million tonnes. Thus, the increasing consumption of animal protein together with augmented demand for dairy products will support the segment growth. Traction for farm animals is expected to fuel the trend for healthcare considering the risks of food-borne diseases globally. More significantly, robust initiatives undertaken by stakeholders have also driven the segment's growth.

Regional Insights

North America accounted for the dominant revenue share of over 43.0% in 2021. Various initiatives and healthcare programs are undertaken by key players to promote companion animal health drive the regional market. For instance, the North American Pet Health Insurance Association spreads awareness about pet health insurance coverage and develops & explores partnerships to address challenges affecting the companion animal health industry. In Asia Pacific, the market is expected to witness lucrative growth over the forecast period.

Increasing disposable income is expected to improve the probability of higher adoption of companion animals, which is creating growth opportunities for the market. Furthermore, the continual up-gradation of advanced healthcare infrastructure is expected to boost the market over the forecast period. For instance, DCC (Dogs Cats & Companions) Animal Hospital is planning to launch a series of multi-specialty animal hospitals across India. These hospitals will be equipped with advanced and innovative infrastructure and medical expertise.

Key Companies & Market Share Insights

The hospitals are constantly involved in strategic initiatives, such as regional expansion, mergers, acquisitions, and new service launches, to gain a higher market share. For instance, in February 2021, the CVS group announced the purchase of the Market Hall Vets, a first opinion practice functioning three locations across Carmarthenshire in southwest Wales. In May 2020, Greencross Vets introduced WebVet a 24/7 online consultation service. Thus, enhanced its service offering to Australia’s network of 1000 veterinary professionals. Some of the prominent players in the global veterinary hospitals market include:

• CVS Group PLC

• Greencross Vets

• Ethos Veterinary Health

• Pets At Home Group PLC

• Mars, Incorporated

• Animal Hospital Inc.

• All Pets Animal Hospital

• Cahaba Valley Animal Clinic

• Blaine Central Veterinary Clinic

• Belltowne Veterinary Center

Veterinary Hospitals 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 2017 to 2030. For the purpose of this study, Grand View Research has segmented the global veterinary hospitals market report on the basis of type, animal type, sector, and region:

• Type Outlook (Revenue, USD Billion, 2017 - 2030)

  • Surgery

  • Medicine

  • Consultation

• Animal Type Outlook (Revenue, USD Billion, 2017 - 2030)

  • Companion Animals

  • Farm Animals

• Sector Outlook (Revenue, USD Billion, 2017 - 2030)

  • Public

  • Private

  • Others

• Regional Outlook (Revenue, USD Billion, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

    • France

    • Italy

    • Spain

  • Asia Pacific

    • Japan

    • China

    • India

  • Latin America

    • Brazil

    • Mexico

    • Argentina

  • Middle East and Africa (MEA)

    • Saudi Arabia