Veterinary Medicine Market Size, Share & Trends Analysis Report By Product (Biologics, Pharmaceuticals), By Animal Type (Production, Companion), By Mode of Delivery (Oral, Parenteral), By End Use, And Segment Forecasts, 2019 - 2026

Industry Insights

The global veterinary medicine market size was estimated at USD 24.5 billion in 2018 and is expected to register a CAGR of 6.2% during the forecast period. Increasing demand to curb chronic and zoonotic diseases in livestock and pet animals is the key driver to this market. The global livestock population has been experiencing rapid growth over the past few decades. In developing countries, the demand for livestock products is increasing. According to the USDA, there were around 94.4 million cattle and calves in the U.S. as of 2017 and this number is expected to grow substantially in the coming years. Moreover,rising concerns about food security and animal husbandries are anticipated to boost demand for veterinary pharmaceuticals and vaccines for livestock population in the near future.

Increase in the number of pet owners is driving the need for better treatment options for companion animals. According to The American Pet Products Association report 2018, the overall spending in the U.S. pet industry increased by 4.1% from 2016 to 2017.Moreover, veterinary care spending rose by 7.0% from USD 15.95 billion in 2016 to USD 17.07 billion in 2017.

Disease outbreaks in livestock animals result in major socio-economic threats such as production loss, disruption to local markets, rural economy, and international trade. Increasing demand for antibiotic free protein is fueling the demand for pharmaceuticals and vaccines. According to the Food and Agriculture Organization (FAO), the global demand for protein will increase by 70.0% by 2050. Moreover, increasing stringent animal health and food safety regulations is fueling the demand for mandatory vaccination in livestock animals.

Increasing prevalence of diabetes, kidney-related diseases, high blood pressure, and spinal disc problems is further propelling the market for veterinary medicine among companion animals. Increasing incidence of pet obesity owing to conditions such as osteoarthritis and other joint diseases is pushing demand for better treatment options. For instance, according to APPA, ~56.5 million cats and ~50.2 million dogs were obese or overweight in the U.S. in 2017. Moreover, rising concerns of owners about their pets have resulted in increased pet care expenditure on medicines, which is further propelling the market for veterinary medicine.

Industry players are trying to develop innovative products such as mAbs and carrier drugs for better treatment outcome. For instance, in 2017, Zoetis launched Cytopoint, a monoclonal antibody indicated for canine atopic dermatitis, which became a blockbuster drug in 2018. Moreover, Kinderbio, a biopharmaceutical company, reportedly has a pipeline of 12 biologic products for companion animals as of 2019, which is expected to propel the market in the near future.

Animal Type Insights

Based on animal type, the market for veterinary medicine is segmented into production and companion animals. Production animals accounted for the largest share in 2018. The segment is further categorized into poultry, swine, cattle, sheep and goats, and fish. The dominant share captured by production animals is a consequence of increasing demand for proteins globally. Furthermore, increasing animal healthcare spending, specifically in developed regions, is presumed to be responsible for the wide-scale adoption of veterinary medicine among production animals. According to American NASS reports, the total expenditure in U.S. firms was USD 359.8 billion in 2017 where livestock, poultry, and related expenses increased by 11.7% in 2017 from the previous year.

The companion animal segment is expected to exhibit the fastest growth over the forecast period owing to increasing prevalence of chronic diseases. Companion animals are further segmented into dogs, cats, horses, and others. Dogs held around 40.0% share in the companion animal segment owing to increasing demand for better treatment options for chronic diseases in canines. According to an AVMA report, a dog owner spent around USD 1,285 on an average on over-the-counter medicines and clinic visits in 2018. The aforementioned factors are expected to propel the segment over the forecasted period.

Product Insights

On the basis of product, the market for veterinary medicine is segmented into biologics, pharmaceuticals, and medicated feed additives. The biologics segment is divided into vaccines and others, which includes monoclonal antibodies and hormonal supplements. The pharmaceuticals segment is further divided into parasiticides, anti-infectives, anti-inflammatory, analgesics, and others. Pharmaceuticals held the major share as of 2018, owing to the clinical urgency for use of potent pharmaceuticals and targeted medicines to protect livestock animals from zoonotic diseases. 

Moreover, rising pet ownership and concern of owners regarding pet health are fueling the demand for veterinary pharmaceuticals. Increasing adoption of anti-infective drugs such as anti-microbials and paraciticides, especially endectocides, is continuing to revenue growth. New product launches by industry players to address chronic diseases such as osteoarthritis and diabetes is further propelling the growth.

The biologics segment is expected to exhibit lucrative growth in the veterinary medicine market over the forecast period owing to increased usage of vaccines among livestock as well as companion animals. Moreover, epidemics over previous years have caused significant losses in the animal breeding industry, propelling demand for vaccinations. In addition, consistent number of mergers and acquisitions undertaken by key market players to expand vaccines portfolio is expected to expand the growth potential to a significant level. For instance, in January 2018, Elanco acquired Boehringer Ingelheim Vetmedica’s U.S. Canine, Feline, and Rabies vaccines product portfolio in order to expand its business.

Mode of Delivery Insights

On the basis of mode of delivery, the market for veterinary medicine is segmented into oral, parenteral, and others. Others include topical and targeted drug delivery. The parenteral segment held the largest revenue share as of 2018. The growth can be attributed to product availability and rapid onset of action. Therapeutic effect can be achieved within an hour of administration and thus it is preferred for faster action. On the contrary, risk of adverse reaction is more in parenteral as compared to others, which may hinder segment growth in the coming years.

The oral segment held a substantial share in the market owing to its lesser price. There is an increasing demand for palatable dosage forms to improve convenience and compliance. For instance, in February 2016 Zoetis received approval for SimparicaTM, a chewable dosage form indicated for fleas and ticks. Moreover, increasing demand for oral controlled release drug delivery owing to its advantages such as easier handling and less frequent dosing.

End-use Insights

Based on end-use, the market for veterinary medicine is segmented into veterinary hospitals and clinics, point-of-care/in-house testing, reference laboratories, and research institutes and universities. Veterinary hospitals and clinics held the largest market share as of 2018. The growth can be attributed to availability of a wide range of treatments as well as diagnostic options in veterinary hospitals and clinics. Moreover, ease of availability in accredited veterinary hospitals and clinics is responsible for the growth of this end-use segment. Government animal welfare organizations have issued guidelines for safety practices and standards to be implemented in hospitals, which has broadened the scope for segment growth over the past few years.

Reference laboratories are expected to exhibit lucrative growth over the forecast period. Increase in prevalence of zoonotic diseases globally has triggered the demand for better treatment options, which is expected to drive the segment over the forecast period. Emergence of veterinary health information systems in developed economies that enable real-time diagnostics is expected to help researchers in the development of therapeutics. Moreover, increasing concern among pet owners regarding pet health is fueling the growth of this segment.

Regional Insights

North America accounted for the largest revenue share in the market for veterinary medicine in 2018 owing to favorable healthcare structure and rising government initiatives in this region. Moreover, the U.S. topped the list of highest meat consumption in 2018, which is further increasing the need to prevent foodborne and zoonotic diseases in livestock animals. North America has a strong presence of major animal health companies. Increasing pet healthcare expenditure is another major factor contributing to the growth of this region.

Favorable reimbursement programs in the U.S. are also propelling the market growth. For instance, the North American Pet Health Insurance Association is aimed at promoting awareness pertaining to pet health insurance coverage and developing and exploring partnerships to address the challenges affecting the animal health industry. Moreover, in July 2017, VitusVet partnered with Nationwide to provide mobile app-based claim submission functionality for pet owners. 

The Asia Pacific region is growing at a rapid pace and is expected to register the fastest growth rate during the forecasted period. This growth can be attributed to emerging economies such as China and India, which is leading to rapid expansion of manufacturing facilities in the region. Moreover, Asia Pacific held around 40 to 50% of the global meat production as of 2018. According to a report by the Australian Bureau of Agriculture and Resources Economics and Sciences, China will represent around 40% of the increase in meat demand by 2050, which will further propel demand for vaccination in livestock animals.

Veterinary Medicine Market Share Insights

The industry is marked by the presence of various small and large companies and is highly fragmented. Leading market participants include Elanco, Boehringer Ingelheim GmbH, Bayer AG, Zoetis, and Merck. Players are constantly involved in strategic initiatives such as regional expansion, new product launch, technological advancements, and mergers and acquisitions to gain deeper penetration.

For instance, in August 2019, Elanco acquired the animal health unit of Bayer in order to strengthen its product portfolio and pipeline. In June 2018, Merck entered into a partnership with Vinovo B.V., a division of Viscon Hatchery Automation. This has helped the company expand its portfolio of poultry vaccines. In August 2019, Zoetis acquired Platinum Performance to extend its nutritional feed product portfolio.

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 2014 to 2026. For the purpose of this study, Grand View Research has segmented the global veterinary medicine market report on the basis of product, animal type, mode of delivery, end-use, and region:

• Product Outlook (Revenue, USD Million, 2014 - 2026)

  • Biologics

    • Vaccine

      • Live attenuated vaccines

      • DNA Vaccines

      • Recombinant Vaccines

      • Inactivated Vaccines

      • Others

    • Others

  • Pharmaceuticals

    • Parasiticides

    • Anti-infectives

    • Anti-inflammatory

    • Analgesics

    • Others

  • Medicated Feed Additives

• Animal Type Outlook (Revenue, USD Million, 2014 - 2026)

  • Production

    • Poultry

    • Swine

    • Cattle

    • Sheep & Goats

    • Fish

  • Companion

    • Dogs

    • Cats

    • Horses

    • Others

• Mode of Delivery Outlook (Revenue, USD Million, 2014 - 2026)

  • Oral

  • Parenteral

  • Others (Topical, carrier)

• End-use Outlook (Revenue, USD Million, 2014 - 2026

  • Reference Laboratories

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

  • Veterinary Hospitals & Clinics

  • Others

• Regional Outlook (Revenue, USD Million, 2014 - 2026)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

    • Italy

    • Spain

  • Asia Pacific

    • Japan

    • China

    • India

  • Latin America

    • Brazil

    • Mexico

    • Argentina

  • Middle East & Africa

    • South Africa

    • Saudi Arabia