Veterinary Services Market Size, Share & Trends Analysis Report By Animal Type (Production, Companion), By Region (North America, Latin America, APAC), And Segment Forecasts, 2021 - 2028

Report Overview

The global veterinary services market size was valued at USD 97.34 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 5.7% from 2021 to 2028. The market is mainly driven by a significant rise in zoonotic and food-borne diseases globally. Veterinary services play an important role in protecting animal health and welfare and maintaining the sanitary safety of international trade. In addition, it also aids safeguarding public health and ensuring food safety. According to the article published by the Organization for Animal Health (OIE), demand for animal source foods is growing globally, which includes demand for meat that is expected to reach 445 million tons by 2050. The COVID-19 pandemic has shifted purchasing preference of consumers from a regular brick-and-mortar store to online platforms and has put the market on an expedited growth rate.

For the Q1 2020 financial performance, PetMed Express, Inc. and Chewy, Inc. reported incremental sales. Owing to the V shape recovery, the services market is anticipated to gain traction in the coming years, thereby providing a growth platform to the market. Moreover, it is seen as a preventive approach to counter zoonotic diseases within the livestock population thus fueling the growth potential of the market.

A rising number of government initiatives to ensure food security and biosecurity is presumed to expedite the adoption of veterinary services in livestock globally. For instance, the OIE is focused on maintaining food safety and have been consistently issuing guidelines to eliminate potential biological hazards and risks associated with checks on-farm, pre-slaughter, pre-processing, and processing stages.

Pets are an important part of many people’s lives and the pandemic has increased pet adoption owing to more employees working from home. Many consider their pet as a family fellow. Cats and dogs are ubiquitous—and individuals are spending more on them. As a result, veterinary companies introduced some new products, diagnostic tools, services to cater to the rising demand. For instance, in September 2020, Zoet is launched VetscanImagyst.

Veterinary Services Market: Supply chain disruptions due to the pandemic adversely affected the market

This is a new diagnostic platform to detect intestinal parasites in pets. Furthermore, a subsequent increase in the pet population globally has also contributed to the expedited growth of the market. Veterinarians and veterinary service providers are undertaking consistent efforts to ensure animal welfare, thus encouraging pet owners to use these services.

For instance, Birdnip launched Nootropic supplement for canines in 2018 to raise memory, mental clarity, and support cognitive health. The surge in both the pet and livestock population is leading to an increased demand for elderly pet care. Moreover, an increasing number of pet owners are perceiving pets as an important part of the family, which is resulting in increased expenditure on pet care.

Animal Type Insights

The production animal type segment dominated the market in 2020 with a revenue share of more than 61%. The substantial share captured by the segment can be presumed a consequence of high concern for food safety and sustainability by government healthcare organizations globally. Policymakers in various countries are striving to achieve total food security, which propels large-scale food production and results in greater rearing of livestock.

The policies are focused on long-term sustainability, which can be achieved through a combination of improving productivity and greater attention to livestock veterinary healthcare. According to the Food and Agriculture Organization, in the emerging economies, animal-based food products account for one-third of human protein consumption, leading to an increase in livestock productivity, which is critical to meet the dietary needs of the growing human population. These factors cumulatively are responsible for the significant share captured by production animals in this segment.

The COVID-19 pandemic has severely disrupted the livestock industry. Numerous packing and processing plants across the globe were temporarily closed, while some plants faced delivery difficulties as restaurants or food service professionals had to close down their businesses. In addition, during the COVID-19 pandemic, numerous veterinary laboratories received a low number of animal samples for testing, which adversely impacted the segment growth.

The high demand for efficient monitoring and awareness about epidemiology & pathogenesis of diseases in pets has urged organizations, such as Companion Animal Parasite Council and European Scientific Counsel Companion Animal Parasites, to ensure appropriate measures are taken. These organizations also aim at maximizing productivity, focus on disease prevention, and improve the nutritional content of finished pet products. The aforementioned factors are anticipated to fuel the demand for pet care services in the coming years.

Moreover, the COVID-19 pandemic is encouraging pet owners, healthcare providers, and even payers to adopt telehealth in veterinary care. In October 2020, online pet pharmacy Chewy Inc. brought a telehealth platform for cats and dogs as pandemic disturbed vet visits. The initiatives like these are further contributing to the segment growth.

Regional Insights

North America accounted for the highest revenue share of more than 42% in 2020. Definitive measures undertaken by various government animal welfare organizations inclined toward the overall improvement of veterinary services in the U.S. and Canada are the key drivers for this substantial growth. In the U.S. expansion of new animal education programs including non-traditional programs seeking accreditation is anticipated to improve access to these services, therefore widening the scope for adoption of veterinary services over the coming years.

On the other hand, Asia Pacific is projected to be the fastest-growing regional market over the forecast years. The exponential growth is a result of the growing pet and livestock population in the developed and emerging economies in this region. Furthermore, veterinary services also contribute to reducing poverty, especially among rural populations in developing countries as it helps in the preservation of precious livestock population.

In Japan, the proportion of veterinarians catering to pets and other small animals is increasing, thus creating a potential growth opportunity for the market. The demand for veterinarians and their services is expected to increase in India owing to the high demand for products, such as meat and milk, as a consequence of the rising population, resulting in livestock rearing.

Key Companies & Market Share Insights

The global market is highly fragmented. The growth attained by this market is a result of extensive animal welfare initiatives, mergers & acquisitions, and regional expansion strategies adopted by the key companies. For instance, in December 2020, Mars’ Linnaeus division acquired five specialty referral centers from Pets at Home in Britain, for USD 132.2 million.

This was the company’s biggest acquisition in 2020 and strengthened its business operations in the U.K. Also, VetPartners Pty. Ltd. acquired National Veterinary Care Ltd. in April 2020, for USD 251.5 million. The two companies would combine their resources to improve veterinary health services across Australia and New Zealand. The initiatives like these are further contributing to the market growth over the forecast period. Some of the prominent players in the global veterinary services market include:

• Mars Inc.

• Greencross Ltd.

• National Veterinary Care Ltd.

• Pets at Home Group PLC

• CVS Group PLC

• Ethos Veterinary Health

• Addison Biological Laboratory

• Armor Animal Health

• PetIQ, LLC

Veterinary Services 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 2028. For the purpose of this study, Grand View Research has segmented the global veterinary services market report based on animal type and region:

• Animal Type Outlook (Revenue, USD Billion, 2016 - 2028)

  • Production Animal

    • Cattle

      • Artificial Insemination

      • Hoof Care

      • Diagnostic Services

      • Others

    • Poultry

      • Biosecurity

      • Reproductive Consulting

      • Diagnostic Services

      • Others

    • Swine

      • Biosecurity

      • Reproductive Consulting

      • Diagnostic Services

      • Others

    • Others

  • Companion Animal

    • Dogs

      • Dental Care

      • Vaccinations

      • Grooming

      • Diagnostic Services

      • Others

    • Cats

      • Dental Care

      • Vaccinations

      • Grooming

      • Diagnostic Services

      • Others

    • Horses

      • Hoof Care

      • Dental Care

      • Artificial Insemination

      • Grooming

      • Others

    • Others

• Regional Outlook (Revenue, USD Billion, 2016 - 2028)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

    • Italy

    • Spain

    • Sweden

    • Norway

    • Denmark

    • The Netherlands

  • Asia Pacific

    • Japan

    • China

    • India

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa

    • South Africa