Veterinary Medicine Market Size, Share & Trends Analysis Report By Animal Type (Production, Companion), By Product, By Mode Of Delivery (Oral, Parenteral), By End Use, By Region, And Segment Forecasts, 2020 - 2027

Report Overview

The global veterinary medicine market size was estimated at USD 28.1 billion in 2019 and is expected to expand at a CAGR of 6.6% during the forecast period. The increasing cases of zoonotic and chronic diseases is the key factor driving the market for veterinary medicine. The global livestock population has also been experiencing rapid growth over the past few decades. According to the USDA, there were around 103.0 million cattle and 32.1 million beef cows in the U.S. as of July 2020 and are expected to grow substantially in the coming years. Moreover, rising R&D and procedural advancements, pet adoption rates, and increasing consumption of meat and mandatory vaccination are anticipated to boost demand for veterinary pharmaceuticals and vaccines for animals in the near future.

An increase in the number of pet owners is driving the need for better treatment options for companion animals, which is resulting in rising health expenditure on pets. According to The American Pet Products Association, the overall spending in the U.S. pet industry increased to USD 95.7 billion in 2019 from USD 90.5 billion in 2018 and is estimated to reach USD 99.0 billion in 2020. As per the same source, in 2019 - 2020, about 67.0% of households in the U.S. owned a pet, which is equal to approximately 84.9 million homes. This percentage has increased by about 11.0% since 1988, where 56.0% of the households in the U.S. owned a pet.

Additionally, the growing consumption of meat is fueling the demand for mandatory vaccination for animals, which results in the growth of the market for veterinary medicine. According to The World Counts, Denmark, global meat production has increased 2-fold from 1988 to 2018. It also stated that meat consumption is estimated to range between 460-570 million tons by 2050.

New product launches, strategic collaborations, acquisitions, and mergers have positively impacted the market for veterinary medicine in recent years. Furthermore, there has been a significant increase in the demand for veterinary medicines due to the growing pet ownership, which, in turn, is fueling the market growth.

Animal Type Insights

The production animal segment led the market for veterinary medicine and accounted for more than 50.0% share of the global revenue in 2019. The production animal segment is further classified into swine, poultry, cattle, fish, and sheep & goats. The dominant share captured by production animals is a consequence of the rising demand for proteins in the world. Additionally, increasing spending on animal health, especially in the developed regions, is also presumed to be responsible for the wide-scale adoption of production animals. According to USDA (United States Department of Agriculture) NASS (National Agricultural Statistics Service), the total production from eggs, broilers, & turkey, and the value of sales from chicken, was USD 46.3 billion in 2018, an increase of about 8% from USD 42.7 billion in 2017.

The companion animal segment is expected to demonstrate the fastest growth over the forecast period owing to the increasing prevalence of chronic diseases. The companion animal is further sub-segmented into horses, cats, dogs & others. Dogs took about 40% share of the segment due to the rising demand for advanced treatment alternatives for canines suffering from chronic diseases. As per an AVMA report, in the U.S., spending on pets reached about USD 95.7 billion in 2019, with dogs and cats contributing to a dominant share. The above-mentioned factors are expected to propel the market for veterinary medicine over the forecasted period.

Product Insights

The pharmaceuticals segment dominated the market for veterinary medicine and held the largest revenue share of 57.8% in 2019, owing to the rising prevalence of zoonotic diseases, brucellosis, and food-borne diseases. The pharmaceuticals segment is further divided into anti-infectives, parasiticides, analgesics, anti-inflammatory, and others. The biologics segment is further bifurcated into vaccines and others. Others include monoclonal antibodies, immunomodulators, and hormonal supplements.

The biologics segment is expected to show the fastest growth in the veterinary medicine market over the forecast period owing to the increased usage of vaccines among livestock as well as companion animals for disease prevention. In addition, epidemics over the previous years have caused huge losses in the animal breeding industry, propelling the demand for vaccinations as protection against such epidemics. In addition, a significant number of mergers and acquisitions undertaken by key companies in the market in order to expand their product portfolio of vaccines is expected to boost the growth potential to a significant level. For instance, in October 2019, Ceva signed an agreement with ProBioGen Ag for manufacturing vectorized poultry vaccines using ProBioGen’s proprietary AGE1.CR technology. This helped both companies to strengthen their long-term partnership and long track record of developing innovative vaccines.

The medicinal feed additives segment is also expected to witness a significant growth rate owing to their increasing usage in maintaining animal health. Furthermore, the rising global population is increasing the demand for meat as well as dairy, which also drives the growth of the medicinal feed additives segment.

Mode of Delivery Insights

The parenteral segment held the largest revenue share of over 44.0% as of 2019. The growth can be credited to the product availability and instant onset of action. On the basis of mode of delivery, the market for veterinary medicine is segmented into oral, parenteral, and others. Others include topical, targeted drug delivery, etc. The therapeutic effect for parenteral drugs is usually achieved within an hour after the administration, thus it is preferred for faster action.

The oral segment is projected to witness the fastest CAGR owing to the advancements in the oral veterinary medicines segment, such as chewable tablets. Moreover, the increasing prevalence of chronic conditions in pets is also expected to drive the market for veterinary medicine. For instance, in July 2020, Merck received the U.S. FDA approval for Bravecto monthly chews for dogs and puppies, hence expanding its product portfolio. Oral mode of delivery is further segmented into powder and tablets.

Other modes of administration include suspension, topical, and carrier. Among these, the topical segment is expected to hold the largest market share owing to its high adoption for the treatment of skin infections in animals. On the other hand, the carrier segment is expected to grow at the fastest growth rate owing to advancements in the segment by market players.

End-use Insights

The veterinary hospitals and clinics segment held the largest market share of 72.3% in 2019. The growth can be attributed to the advanced diagnostic imaging, novel therapies, nuclear and regenerative medicines, laser diagnostics, and specialized surgeries, available in the veterinary hospitals and clinics. Based on end-use, the market for veterinary medicine is segmented into point-of-care testing/in-house testing, reference laboratories, veterinary hospitals and clinics, and others.

The reference laboratories segment is expected to exhibit the fastest growth over the forecast period. This growth is because these laboratories enable testing of various infections, toxic agents, and chronic diseases in the specimen which are obtained from animals. These tests include general laboratory tests as well as specialized tests.

The point-of-care testing/in-house testing segment is also expected to demonstrate a significant growth rate owing to their convenience, precise symptomatic testing, easy usage, and quick analysis. Strategic developments by companies are expected to contribute to the growth of the market for veterinary medicine. For instance, Zoetis acquired Abaxis in July 2018, which is a leader in veterinary point-of-care diagnostic instruments. Zoetis expanded its product portfolio through this.

Regional Insights

North America dominated the market for veterinary medicine and accounted for over 38.5% share of global revenue in 2019. The dominance is followed by the European countries due to the favorable government regulations such as the EU Veterinary Medicines Regulation and increasing adoption of pet insurance in European countries.

Key contributing factors attributing to dominance are the increasing prevalence of zoonotic diseases and favorable reimbursement programs. Moreover, the increasing adoption of pet health insurance in the U.S. is also expected to contribute to the growth of the market for veterinary medicines.

In Asia Pacific, the market is expected to show lucrative growth over the forecast period. Factors such as higher adoption of companion animals and increasing health concerns in animals have promoted the market in the region. In addition, growing expenditure on animal health and veterinary services and cattle population are factors that are driving the market for veterinary medicine.

Key Companies & Market Share Insights

The market leaders are involved in strategic collaborations, regional expansion, and new product launches to sustain the competition. Established organizations and large enterprises are investing in acquisitions of other market players to gain a competitive edge. For instance, in August 2020, Merck acquired IdentiGEN, a company dealing in DNA-based animal traceability solutions for aquaculture and livestock, from Ireland-based MML Growth Capital Partners. This helped the company expand its product portfolio.

Furthermore, in October 2019, Ceva signed an agreement with ProBioGen Ag for manufacturing vectorized poultry vaccines using ProBioGen’s proprietary AGE1.CR technology. This helped both companies to strengthen their long-term partnership and long track record of developing innovative vaccines. Some of the prominent players in the veterinary medicine market include:

• Merck Animal Health

• Ceva Sante Animale

• Vetoquinol S.A.

• Zoetis

• Boehringer Ingelheim GmbH

• Elanco

• Nutreco N.V.

• Virbac

• Kindred Biosciences, Inc.

• Biogenesis Bago

• Indian Immunologicals Ltd

• Neogen Corporation

• Hester Biosciences

• Phibro Animal Health

Veterinary Medicine 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 2027. For the purpose of this study, Grand View Research has segmented the global veterinary medicine market report on the basis of animal type, product, mode of delivery, end-use, and region:

• Animal Type Outlook (Revenue, USD Million, 2016 - 2027)

  • Production

    • Poultry

    • Swine

    • Cattle

    • Sheep & Goats

    • Fish

  • Companion

    • Dogs

    • Cats

    • Horses

    • Others

• Product Outlook (Revenue, USD Million, 2016 - 2027)

  • Biologics

    • Vaccine

      • Live attenuated vaccines

      • DNA Vaccines

      • Recombinant Vaccines

      • Inactivated Vaccines

      • Others

    • Others

  • Pharmaceuticals

    • Parasiticides

    • Anti-infectives

    • Anti-inflammatory

    • Analgesics

    • Others

  • Medicated Feed Additives

• Mode of Delivery Outlook (Revenue, USD Million, 2016 - 2027)

  • Oral

  • Parenteral

  • Others (Topical, carrier)

• End-use Outlook (Revenue, USD Million, 2016 - 2027)

  • Reference Laboratories

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

  • Veterinary Hospitals & Clinics

  • Others

• Regional Outlook (Revenue, USD Million, 2016 - 2027)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

    • Italy

    • Spain

    • Russia

  • Asia Pacific

    • Japan

    • China

    • India

  • Latin America

    • Brazil

    • Mexico

    • Argentina

  • Middle East & Africa

    • South Africa

    • Saudi Arabia