Veterinary Medicine Market Size, Share & Trends Analysis Report By Product (Biologics, Pharmaceuticals), By Animal Type, By Route Of Administration, By Distribution Channel, By Region, And Segment Forecasts, 2025 - 2030

Veterinary Medicine Market Size & Trends

The global veterinary medicine market size was estimated at USD 49.96 billion in 2024 and is projected to grow at a CAGR of 8.5% from 2025 to 2030. The market is driven by increasing demand for animal protein, incidence of diseases in animals, and product launches. Other factors fueling market growth include advancements in veterinary medicine and penetration of pet insurance. For instance, In August 2024, Elanco Animal Health announced that the FDA had completed its review of Credelio Quattro, its new broad-spectrum parasiticide, and is now in the final 60-day administrative review stage. The Product, which targets fleas, ticks, heartworms, and other internal parasites, is expected to receive U.S. approval by the end of October 2024 and launch in the first quarter of 2025.

In addition, rising government initiatives play a significant role in driving the market's growth. These initiatives aim to enhance animal welfare, ensure food safety, prevent disease spread, and promote sustainable agriculture. Governments establish regulations and standards for the approval, manufacturing, distribution, and use of veterinary pharmaceuticals, vaccines, & feed additives. Regulatory agencies ensure that products meet safety, efficacy, and quality standards, which provides assurance to consumers and promotes trust in animal health products. In the U.S., the FDA and other bodies, such as the United States Department of Agriculture (USDA), regulate the animal health market. In March 2024, the FDA approved Dechra’s DuOtic under the New Animal Drug Applications for treating otitis externa in dogs. In March 2024, the FDA also approved CONTRASED by Parnell Technologies Pty. Ltd. under the Abbreviated New Animal Drug Application (ANADA) process for the reversal of the sedative and analgesic effects of medetomidine hydrochloride and dexmedetomidine hydrochloride in dogs.

The overall animal health sector, including veterinary medicine, turned out to be resilient despite many challenges and is expected to grow significantly over the forecast period owing to underlying solid drivers. 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. As per the OECD 2022-2031 agricultural outlook, global pig meat consumption is forecast to reach 129 metric tons in the next 10 years, which is expected to account for one-third of total meat consumption. This increasing consumption is expected to fuel demand for safe food sources, highlighting biosecurity and prudent use of veterinary medicines. This is anticipated to propel market growth in the near future.

Market Concentration & Characteristics

The market for veterinary medicine is moderately concentrated, with a few key players dominating the industry. Major companies such as Zoetis, Elanco, Merck Animal Health, and Boehringer Ingelheim collectively hold a significant market share, accounting for over 50% of total sales. This concentration allows these companies to utilize economies of scale and invest heavily in research and development, driving innovation and product offerings in veterinary medicine. In addition, emerging companies and niche players are also entering the market, particularly in segments such as biologics and specialty therapeutics, contributing to a growing diversity of products. The market is expected to witness increased consolidation as key players acquire smaller companies to enhance their product offerings and expand into new geographical regions. In addition, the trend toward personalized medicine and advanced therapies, such as monoclonal antibodies, encourages innovation and competition among existing players, further shaping the market landscape.

Advancements in animal preventive and therapeutic treatments, such as new drugs and procedures, contribute to innovation. Ongoing research and development efforts, collaboration between academia and industry, regulatory frameworks, and the evolving needs of the veterinary community and animal owners influence the degree of innovation. As technology and scientific knowledge continue to advance, the veterinary medicine market is likely to see further innovations that improve the quality of care for animals.

M&A activities are often initiated by market players driven by the desire to achieve economies of scale, improve operational efficiency, expand their geographic reach, or gain access to new markets and strengthen market presence. In September 2024, Boehringer Ingelheim acquired Saiba Animal Health AG, enhancing its R&D capabilities in pet therapeutics, particularly for chronic conditions. This acquisition strengthens Boehringer's R&D and sets a precedent in developing long-lasting, immune-based treatments, which could become a new standard in managing chronic diseases in pets. M&As increase investment in veterinary health, introduce new technologies faster, and foster a more competitive market, improving care standards and expanding options available to veterinarians and pet owners.

Regulations are crucial in shaping and influencing the market. These regulations are designed to ensure the safety and efficacy of veterinary products, protect animal health and welfare, and safeguard public health. Regulatory agencies, such as the U.S. Food and Drug Administration (FDA) and the European Medicines Agency (EMA), oversee the approval and registration of veterinary medicines. Strict regulatory requirements ensure that products meet safety and efficacy standards before marketing. The approval process can affect the time and cost of bringing new products to market. The impact of regulations on the market is thus medium to high.

Companies focus on product portfolio expansion by investing in R&D and partnerships. Market players are involved in diversifying product lines. For instance, in April 2024, Phibro Animal Health reached a definitive agreement to acquire a medicated feed additive (MFA) portfolio from Zoetis and related assets for $350 million. This acquisition includes over 37 product lines and six manufacturing sites and is expected to enhance Phibro's animal care and nutrition offerings, potentially boosting its profitability. Phibro Animal Health's product expansion strengthens its market position and enhances veterinary medicine by providing practical, diverse, and sustainable treatment options that improve animal health and productivity.

Companies are expanding their regional reach to increase market presence and share. Expanding into new areas allows companies to introduce customized products that address specific regional health issues and comply with local regulatory standards, which is essential in addressing global veterinary needs. For Instance, in August 2024, Elanco Animal Health announced a $130 million investment to expand its biologics manufacturing facility in Elwood, Kansas, to develop its monoclonal antibody (mAb) platform. This expansion will boost production capacity, introduce new processing equipment, and create approximately 70 jobs over the next two years. The facility is pivotal for developing Elanco's Canine Parvovirus Monoclonal Antibody (CPMA) and future mAb therapies, emphasizing the growing significance of antibody-based treatments in the animal health industry.

Product Insights

In 2024, the pharmaceuticals segment held the largest revenue share of 67.38% of the market. Pharmaceuticals primarily include anti-inflammatory drugs, parasiticides, anti-infectives, and others. The segment growth can be attributed to a combination of factors, including increasing pet ownership, technological advancements, growing awareness of animal health, investments in R&D, and a shift towards preventive healthcare. Pharmaceutical companies invest heavily in R&D activities to introduce new and improved veterinary medicines. For instance, in 2023, Boehringer Ingelheim launched four essential products: SENVELGO for diabetic cats, NexGard PLUS for comprehensive protection against fleas, ticks, and heartworm in dogs, NexGard COMBO for similar parasite control, and FRONTPRO, a non-prescription chewable for flea and tick control in dogs. These new offerings significantly contributed to the company's sales growth.

The biologics segment is anticipated to witness the fastest CAGR from 2025 to 2030. The growth of this market can be attributed to increasing animal health expenditure, availability of veterinary medicines, R&D activities, product launches by key companies, and the rising prevalence of diseases in animals. For instance, in July 2024, ELIAS Animal Health launched a clinical study to evaluate its ELIAS Cancer Immunotherapy (ECI) in combination with an innovative adjuvant as a limb-sparing treatment for large-breed dogs with appendicular osteosarcoma. This study was funded by the Morris Animal Foundation to assess the safety and efficacy of this approach, which could provide alternatives to amputation for eligible breeds, offering hope for improved quality of life for affected dogs.

Animal Type Insights

The production animals segment held the largest revenue share in 2024. This is owing to the high uptake of medicines in the livestock sector, the need for disease prevention & control, and the intensification of livestock farming; as the global population continues to grow, so does the demand for animal products such as meat, milk, and dairy products. This puts pressure on the livestock industry to increase production, leading to a greater need for veterinary medicine to ensure the health and well-being of animals.

The companion animal segment is expected to grow lucratively during the forecast period owing to increased pet ownership, humanization of pets, and expenditure of pets. Dogs and cats are the most popular pets. The growing availability of canine and feline medicines and a strong R&D pipeline are estimated to propel segment growth in the coming years. In September 2024, Elanco Animal Health launched Zenrelia, a once-daily oral JAK inhibitor approved by the FDA for managing allergic and atopic dermatitis in dogs. The introduction of Zenrelia reflects Elanco's commitment to expanding treatment options in veterinary medicine, enhancing the well-being of pets and their owners. Similarly, Dechra in September 2024 introduced Furosoral, a new diuretic for cats and dogs, designed to treat fluid retention associated with conditions like hydrothorax, hydropericardium, ascites, and edema, particularly in cases related to cardiac and renal issues.

Distribution Channel Insights

The veterinary hospitals & clinics segment held the largest revenue share in 2024. These facilities play a pivotal role in providing healthcare services to animals and are well-positioned to integrate veterinary medicines into a broader spectrum of care, addressing both acute and chronic conditions in animals. Moreover, these facilities typically have in-house pharmacies or partnerships with external pharmacies to dispense prescribed veterinary medicines directly to animal owners. This ensures a seamless process from diagnosis to treatment.

Veterinary hospitals and clinics also build ongoing relationships with pet owners or livestock producers. This fosters trust and communication, creating an environment where clients are more likely to follow prescribed treatment plans. The continuity of care is reinforced by obtaining medications directly from the same facility where animals receive other veterinary services. The E-commerce segment, on the other hand, is estimated to register the fastest CAGR over the forecast period. This is owing to the convenience of ordering medicines online, wide product selection, price comparison, and competitive pricing offered by e-commerce platforms.

Route of Administration Insights

The injectable segment dominated the market in 2024 in terms of revenue share. The segment comprises drugs administered via intravenous, intramuscular, & subcutaneous routes. The availability of numerous injectable medicines, the high cost of injections, and the benefits associated with the injectable route are some of the key factors driving market growth. The injectable route facilitates the rapid onset of action, precise dosage control, and higher drug bioavailability, contributing to its growing adoption. In May 2023, Zoetis received FDA clearance for Librela-its injectable anti-nerve growth factor (NGF) monoclonal antibody (mAb) for osteoarthritic dogs.

Other route segments include inhalational routes and controlled-release implants. This segment is expected to grow at the fastest CAGR from 2025 to 2030 due to the increasing availability of products and the growing adoption of alternative modes of delivery by livestock farmers & pet parents. For instance, REVALOR-XS by Merck & Co., Inc. is an extended-release implant containing trenbolone acetate and estradiol that improves feed efficiency and increases the rate of weight gain in cattle.

Regional Insights

The North America veterinary medicine market held the largest revenue share globally in 2024. This can be attributed to the presence of key companies, high expenditure on pets, pet humanization, and rising awareness about animal disease. For instance, key market players, such as Zoetis, Merck & Co., Inc., Elanco Animal Health, and Vetbiologics, are headquartered in the U.S. and are undertaking various strategic initiatives to increase their market share. In September 2023, Elanco launched Varenzi-CA1- its U.S. FDA conditionally approved Product- to control non-regenerative anemia in felines with chronic kidney disease (CKD).

U.S. Veterinary Medicine Market Trends

The veterinary medicine market in U.S. is driven by rising incidences of zoonotic diseases, increased livestock population, growing focus on preventive care, advancements in pet medicine, and increasing pet ownership. According to the October 2024 report released by the American Pet Products Association (APPA), 59.8 million households in the U.S. own a dog, and 42.1 million families own cats. Furthermore, the livestock population has increased, with significant growth in cattle, sheep, pigs, and poultry being raised for meat production. For instance, as of January 2024, the U.S. had 87.8 million cattle and 74.97 million swine stock, according to the U.S. Foreign Agricultural Service’s Livestock and Poultry: World Markets and Trade report. This substantial livestock population necessitates comprehensive veterinary care and medical interventions to maintain health and productivity.

Europe Veterinary Medicine Market Trends

The veterinary medicine market in Europe has some of the world's most stringent animal welfare regulations. Compliance with these regulations necessitates using veterinary medicines to ensure the health and welfare of animals, whether they are companion animals or part of the livestock sector. The region is also characterized by a well-developed veterinary healthcare infrastructure. Ongoing technological advancements, including the development of innovative medicines, diagnostic tools, and treatment modalities, contribute to the growth of the market as practitioners adopt new and improved methods of care.

The veterinary medicine market in Germany is driven by rising animal adoption & cattle population, increasing preventative care for animals, and growing awareness about the significance of the health of farm & companion animals in the country. For instance, according to the German Livestock, the country has the largest dairy cattle herd & the second-largest cattle population in the European Union (EU). Furthermore, according to the International Committee for Animal Recording (ICAR), 50% of German farms specialize in livestock, which is anticipated to drive the veterinary medicine market.

Moreover, according to a survey commissioned by Industrieverband Heimtierbedarf (IVH) e.V., 44% of all households in Germany have at least one domestic animal. Rising partnerships and acquisitions among major players in the country drive the market. For instance, in September 2023, Zoetis acquired a German biotech company, adivo. The acquisition would provide Zoetis access to technological & existing species-specific antibody libraries and the opportunity to develop numerous novel veterinary products.

Asia Pacific Veterinary Medicine Market Trends

The Asia Pacific veterinary medicine market is expected to witness the fastest CAGR over the forecast period. As economies in the Asia Pacific region continue to grow, there is a noticeable increase in the size of the middle-class population, higher disposable incomes, and growing urbanization. This is associated with lifestyle changes, including a growing preference for companion animals. Urban dwellers often seek veterinary care for their pets, contributing to the demand for various veterinary medicines, preventive treatments, and healthcare services. Market players have begun to capture opportunities in these emerging markets. The abundant growth of opportunities in Indian animal health has, in recent years, attracted many new entrants into the market. For instance, in January 2024, ENTOD Pharmaceuticals, one of the leading announced entries into the veterinary sector with the launch of “Fur,” a range of veterinary ophthalmic medicines ranging from lubricating eye drops, anti-allergic drugs, antibiotics, as well as anti-glaucoma medications. Furthermore, in August 2024, Godrej Consumer products announced an investment of over INR 500 crore (USD 60 million) over the next five years into a new pet care business in India.

The veterinary medicine market in India is expected to grow at a CAGR of 10.5% over the forecast period due to the rising livestock production, growing dairy industry, and supportive strategic initiatives by key players. Companies like Zoetis, Merck Animal Health, and Elanco are increasingly investing in India, establishing R&D centers, and enhancing production capabilities to meet rising domestic demand. This growth is fueled by India’s skilled workforce, cost-effective operations, and thriving livestock sector, making it an attractive destination for veterinary innovations. For instance, in September 2024, Zoetis expanded its Global Capability Center in Hyderabad, India, strengthening its commitment to utilizing India's skilled workforce for global innovation in animal health. This expansion will create hundreds of advanced technology roles in AI, Machine Learning, and Data Science, aligning with Zoetis' strategy to strengthen R&D and digital capabilities.

Latin America Veterinary Medicine Market Trends

The veterinary medicine market In Latin America is driven by the growth in the livestock sector, including cattle, poultry, and swine, which necessitates the use of veterinary medicines for disease prevention, treatment, and overall herd health management. Livestock producers seek effective veterinary solutions to enhance the productivity of their animals and ensure a stable and reliable supply of meat and dairy products to meet the dietary needs of the growing population. In the MEA, food security concerns play a crucial role in driving the market growth. Governments and stakeholders recognize the importance of a robust and sustainable livestock sector to ensure a stable food supply. Veterinary medicines are thus essential in maintaining livestock's health and well-being, preventing disease outbreaks, and supporting the production of safe and abundant animal-derived food products.

The veterinary medicine market in Brazil is growing due to rising mandates for vaccination to curb livestock disease outbreaks and increasing demand for livestock-related food products. Brazil's veterinary medicine market growth can be attributed to a large cattle population. For instance, according to Agro Concept Management Ltd, Brazil had the second-largest cattle herd, accounting for 232 million heads. Moreover, the country is also the world's largest exporter of beef. This has resulted in greater awareness of animal health and, subsequently, boosted the demand for veterinary medicines in the country.

Middle East & Africa Veterinary Medicine Market Trends

The Middle East & Africa (MEA) veterinary medicine market constitutes South Africa, Saudi Arabia, UAE, Kuwait, Egypt, and Israel. In the Middle East & Africa, the increasing adoption of veterinary services drives the veterinary medicines market. The growing prevalence of infectious diseases in animals increases the demand for veterinary treatments and medicines. A study published in January 2024 in the Journal of Tropical Medicine & Infectious Diseases examined rabies trends in South African animals from 1998 to 2022. Studies showed a significant rise in rabies cases, with companion animals like dogs, cats, and horses experiencing a 59% increase and livestock, including cattle, pigs, goats, and sheep, seeing over a 21% rise. The spread of animal pathogens due to the increasing international trade drives the demand for veterinary medicines. The shortage of veterinary vaccines is another major factor that drives the veterinary medicines market, resulting in increased import of veterinary vaccines. In addition, the rise in the adoption of livestock and poultry in MEA impels the regional market growth.

The South Africa veterinary medicine market is driven by the rising incidence of diseases and major outbreaks. According to an FAO report published on October 2024, Since February 2017, Sub-Saharan Africa has faced outbreaks of high pathogenic avian influenza (HPAI) subtypes, including H5, H5N1, H5N2, H5N6, H5N8, H7, and H7N6. As of October 2024, South Africa, among other countries, has reported numerous cases across various regions, with significant impacts on poultry and other bird species. The increasing prevalence of similar diseases across animal types is expected to propel the demand for veterinary medicines, such as pharmaceuticals and biologics.

Furthermore, according to an April 2024 article in Dogster, dog ownership is prevalent in South Africa, with over 78% of pet owners having at least one dog. Additionally, more than 45% of households in the country own some type of pet, indicating a growing trend in pet adoption. This increasing popularity has increased the demand for veterinary medications and treatment services. Pet owners in South Africa typically spend between USD 1,800 and 4,000 annually on their pets, further emphasizing the growing investment in pet care.

Key Veterinary Medicine Company Insights

The presence of several small and large companies leads to a competitive market. These companies offer a wide range of veterinary medicines across segments and target species. Furthermore, market players are deploying various strategic initiatives, such as R&D, mergers & acquisitions, regional expansion, partnerships, & collaborations, to support their growth objectives. For instance, in August 2024, Elanco Animal Health is investing $130 million to expand its biologics manufacturing facility in Elwood, Kansas, by 25,000 sq ft, enhancing its monoclonal antibody (mAb) platform. This expansion, expected to generate 70 new jobs by 2026, will support the production of Canine Parvovirus Monoclonal Antibody and future mAb therapies in canine dermatology, emphasizing the industry's shift toward antibody-based treatments to improve pet health.

Recent Developments

• In September 2024, Zoetis and Danone partnered to advance sustainable dairy farming through innovative genetic solutions to improve cow health and reduce environmental impacts. This collaboration will utilize Zoetis' genetic testing technologies, including the Dairy Wellness Profit Index, to help dairy producers breed resilient animals while aligning with increasing consumer demands for sustainable dairy products, ultimately enhancing the veterinary medicine market's role in promoting animal welfare and farm productivity.

• In August 2024, Boehringer Ingelheim India formed a strategic distribution partnership with Vvaan Lifesciences Pvt Ltd to enhance its pet parasiticide portfolio and expand its reach in India's pet health market, valued at around USD 124.51million. This collaboration aims to improve access to quality pet healthcare in Tier 2 and underserved cities, leveraging Vvaan's expertise to better serve these regions and elevate veterinary care standards across the country.

• In June 2024, Trupanion and Boehringer Ingelheim entered into a strategic collaboration to enhance pet healthcare by improving access to quality treatment and disease management. This partnership will leverage both companies' expertise to facilitate early detection of pet health risks and support veterinary education, ultimately benefiting the veterinary medicine market by integrating innovative insurance solutions with advanced animal health treatments. Trupanion's unique ability to provide immediate payment to veterinarians will further streamline the healthcare process for pet owners.

• In March 2024, Merck Animal Health has received a positive opinion from the European Medicines Agency's CVMP for its NOBILIS MULTRIVA RT+IBm+ND+Gm+REOm+EDS vaccine, a 9-valent vaccine designed for chickens to protect against multiple viral infections, including Newcastle Disease, Infectious Bronchitis, and Egg Drop Syndrome. This vaccine, given in a low 0.3 ml dose, aims to reduce waste and streamline the vaccination process.

Veterinary Medicine Market Report Scope

Global Veterinary Medicine Market Report 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 this study, Grand View Research has segmented the global veterinary medicine market report based on product, animal type, route of administration, distribution channel, and region.

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

  • Production Animals

    • Poultry

    • Pigs

    • Cattle

    • Sheep & Goats

    • Others

  • Companion Animals

    • Dogs

    • Cats

    • Horses

    • Others

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

  • Biologics

    • Vaccines

      • Modified/ Attenuated Live

      • Inactivated (Killed)

      • Other Vaccines

    • Other Biologics

  • Pharmaceuticals

    • Parasiticides

    • Anti-infectives

    • Anti-inflammatory

    • Analgesics

    • Others

  • Medicated Feed Additives

• Route of Administration Outlook (Revenue, USD Million, 2018 - 2030)

  • Oral

  • Injectable

  • Topical

  • Other Routes

• Distribution Channel Outlook (Revenue, USD Million, 2018 - 2030)

  • Veterinary Hospitals & Clinics

  • E-commerce

  • Offline Retail Stores

  • Others

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

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • UK

    • France

    • Italy

    • Spain

    • Netherlands

    • Norway

    • Denmark

    • Sweden

    • Rest of Europe

  • Asia Pacific

    • Japan

    • China

    • India

    • South Korea

    • Australia

    • Thailand

    • Rest of Asia Pacific

  • Latin America

    • Brazil

    • Mexico

    • Argentina

    • Rest of Latin America

  • Middle East & Africa

    • South Africa

    • Saudi Arabia

    • UAE

    • Kuwait

    • Egypt

    • Israel

    • Rest of MEA