Veterinary Medicine Market Size, Share & Trends Analysis Report By Animal Type (Production Animals, Companion Animals), By Product (Biologics, Pharmaceuticals), By Mode Of Delivery, By End-use, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global veterinary medicine market size was estimated at USD 44.59 billion in 2022 and is expected to expand at a lucrative compound annual growth rate (CAGR) of 8.2% over the forecast period. The market is primarily driven by the rise in livestock population and production in developing countries. Besides, the increasing prevalence of zoonotic & chronic diseases and the growing meat consumption, coupled with rising awareness about food-borne diseases, contribute to the market growth. To mitigate the spread of contagious infections among animals and humans, animal health organizations such as OIE and FAO among others, in collaboration with the governments of various countries, are implementing stringent regulations and mass vaccination programs. In addition, the increasing incidence of pet obesity, owing to conditions such as osteoarthritis and other joint diseases, is boosting the demand for better veterinary treatment options. For instance, according to the Morris Animal Foundation, nearly 60% of cats and 56% of dogs are obese or overweight in the U.S., as of October 14, 2022.

Disease outbreaks in livestock can be major socioeconomic threats, resulting in production loss and disruption of local markets, rural economy, & international trade. In addition, some of the pathogens that cause livestock diseases can spread to humans, such as E. coli & salmonella. The FAO (Food and Agricultural Organization) is engaged in various activities to address health threats in the human-animal-ecosystem interface, including antimicrobial resistance (AMR), food-borne zoonosis, and food safety. For instance, in November 2022, the FAO under its annual theme “preventing AMR together” planned to launch certain activities during ‘World AMR Week 2022’ in order to raise understanding and awareness of antimicrobial resistance in Central Asia and Europe regions.

During the year 2020, the COVID-19 pandemic adversely affected the veterinary medicine market, similar to several other global industries. Some of the major impacts of COVID-19 on the animal health industry include supply chain disruptions, a decline in sales, demand slowdowns, and operational hurdles due to changing policies and restrictions. As many regions went under nationwide lockdowns and imposed restrictions on the movement of goods & people, manufacturing companies and veterinary service providers were greatly affected. The uncertain conditions created by COVID-19 made the veterinary industry stakeholders, such as wholesalers and distributors, cautious about the market scenario. Orders were canceled, put on hold, or postponed, which affected the sales of veterinary medicines on a large scale. However, owing to several strategic measures, ease of lockdown restrictions, resumed veterinary clinic admissions, a switch to digital modes of services, and declining COVID-19 cases, the market growth has shown quick recovery during the last quarter of 2020 followed by 2021.

Furthermore, global meat production has increased rapidly over the past 50 years due to increasing demand, which is fueling the veterinary medicine market. Asia held around 40-50% of the market for global meat production, with other key producers including the U.S., Brazil, and Argentina. Increasing disposable income in developing economies is further boosting the meat production rate and simultaneous concern over food-borne infections.

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 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 the total meat consumption. These factors are significantly contributing to the market growth.

Animal Type Insights

The production animal segment led the market and accounted for the largest share of the global revenue in 2022. The production animal segment is further classified into swine, poultry, cattle, fish, and sheep & goats. The dominant share captured by production animals is a result of the rising demand for proteins in the world. In addition, increasing spending on animal health, especially in the developed regions, is responsible for the wide-scale adoption of production animals. According to the National Agricultural Statistics Service, USDA, report published on July 2022, the total expenditure in the U.S. farms was USD 392.9 billion in 2021, which increased from 366.2 Billion in 2020 (up 7.3%). Out of which the livestock, poultry, and related expenses increased by 10.8% in 2021 from the previous year, reaching USD 42.4 Billion.

The companion animal segment is expected to demonstrate the fastest CAGR over the forecast period owing to the increasing prevalence of chronic diseases. The companion animal segment is further sub-segmented into horses, cats, dogs & others. The dog segment held a significant revenue share due to the rising demand for advanced treatment alternatives for canines suffering from chronic diseases. Moreover, according to the APPA National Pet Owners Survey 2021-2022, around 90.5 million families, or 70% of U.S. households, own a pet, with 69.0 million households owning dogs. Thus, this is expected to boost market growth.

Product Insights

Based on product, the market is segmented into biologics, pharmaceuticals, and medicated feed additives. The biologics segment is bifurcated into vaccines and others. The others segment include monoclonal antibodies, immunomodulators, hormonal supplements, etc. The pharmaceuticals are further divided into anti-infectives, parasiticides, analgesics, anti-inflammatories, and others. Pharmaceuticals held a market share of more than 59% in 2022 owing to the rising prevalence of zoonotic diseases, brucellosis, and food-borne diseases. The biologics segment is expected to register the fastest CAGR over the forecast period owing to the increased usage of vaccines among livestock as well as companion animals for disease prevention.

Moreover, 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 & acquisitions undertaken by key companies in the market to expand their product portfolio of vaccines is expected to boost the growth potential to a significant level. The medicinal feed additives segment is also expected to grow at a significant rate during the forecast years, owing to their increasing usage in maintaining animal health. Furthermore, the rising global population is boosting the demand for meat as well as dairy, which also drives segment growth.

Mode of Delivery Insights

Based on the mode of delivery, the market is segmented into oral, parenteral, and others. The others segment includes topical and targeted drug delivery, etc. The parenteral segment held the largest revenue share of over 44% in 2022. The growth can be credited to product availability and the instant onset of action. The therapeutic effect of parenteral drugs is usually achieved within an hour after the administration, thus it is preferred for faster action. The oral segment is projected to attain the fastest CAGR from 2023 to 2030 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 market growth. 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. The 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 advance at the fastest CAGR over the forecast period owing to advancements in the segment by market players.

End-use Insights

Based on end-uses, the market is segmented into point-of-care testing/in-house testing, reference laboratories, veterinary hospitals & clinics, and others. The veterinary hospitals & clinics held the largest market share of over 72% in 2022. The growth can be attributed to advanced diagnostic imaging, novel therapies, nuclear & regenerative medicines, laser diagnostics, and specialized surgeries, available in vet hospitals & clinics. The reference laboratories segment is expected to demonstrate significant growth over the forecast period as these laboratories enable testing of various infections, toxic agents, and chronic diseases in the specimen, which is obtained from animals.

These tests include general laboratory tests as well as specialized tests. Point-of-care testing/in-house testing is expected to exhibit the fastest CAGR owing to its convenience, precise symptomatic testing, easy usage, and quick analysis. Strategic developments by companies are expected to contribute to market growth. For instance, AAD proclaimed a USD 7.0 million investment to grow the corporation’s platform for fast, point-of-care decisions in animal and human health.

Regional Insights

Based on the geographies, the global market has been divided into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The market is dominant in the North American region. The region accounted for the maximum share of more than 26% of the global revenue in 2022. This growth is mainly due to factors such as the increasing prevalence of zoonotic diseases and favorable reimbursement programs. Europe was the second-largest regional market in 2022 due to favorable government regulations, such as the EU Veterinary Medicines Regulation, and the increasing adoption of pet insurance.

The Asia Pacific market is expected to register a significant growth rate in the forecast period. Factors, such as higher adoption of companion animals and increasing health concerns in animals, have promoted market growth in this region. In addition, the growing expenditure on animal health & veterinary services, and the substantial cattle population are expected to drive the market in the Asia Pacific region.

Key Companies & Market Share Insights

The market players are involved in strategic collaborations, regional expansions, 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 October 2021, Zoetis invested in a new manufacturing and development facility in Ireland, to increase its Monoclonal Antibodies (mAbs) production capabilities. This is anticipated to enhance its veterinary therapeutic biopharmaceuticals portfolio. In April 2022, as part of its commitment to sustainable development, Boehringer Ingelheim organized multiple rabies vaccination initiatives across Asia. The company aims to vaccinate 12,000 animals across Malaysia, the Philippines, Indonesia, and Vietnam. Initiatives like these are further contributing to market growth. Some of the key players operating in the global 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 Corp.

• Hester Biosciences

• Phibro Animal Health

Veterinary Medicine Market Report Scope

Global Veterinary Medicine Market Segmentation

This report forecasts revenue growth at global, regional & 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 animal type, product, mode of delivery, end-use, and region:

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

  • Production

    • Poultry

    • Swine

    • Cattle

    • Sheep & Goats

    • Fish

  • Companion

    • Dogs

    • Cats

    • Horses

    • Others

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

  • 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, 2018 - 2030)

  • Oral

    • Powder

    • Tablets

  • Parenteral

  • Others

    • Suspension

    • Topical

    • Carrier

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

  • Reference Laboratories

  • Point-of-Care Testing/In-house Testing

  • Veterinary Hospitals & Clinics

  • Others

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

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

    • Italy

    • Spain

    • Russia

    • Rest of Europe

  • Asia Pacific

    • Japan

    • China

    • India

    • Rest of APAC

  • Latin America

    • Brazil

    • Mexico

    • Argentina

    • Rest of LATAM

  • Middle East & Africa 

    • South Africa

    • Saudi Arabia

    • UAE

    • Rest of MEA