ANIMAL HEALTHCARE MARKET ANALYSIS

The Global Animal Healthcare Market was estimated at US$ 50.45 Billion in 2023 and is anticipated to reach around US$ 71.39 Billion by 2030, growing at a CAGR of roughly 5.1% between 2023 and 2030.

North America held dominant position in the global animal healthcare market in 2019, accounting for 33.1% share in terms of value, followed by Europe and Asia Pacific, respectively.

Analysts’ Views on Global Animal Healthcare Market:

Animal healthcare focuses on promoting the health and well-being of animals worldwide. It includes veterinary medicine, disease prevention, pharmaceuticals, diagnostics, and animal welfare. Veterinary professionals provide care and treatment, while preventive measures control disease spread. Pharmaceuticals and vaccines are developed to manage and treat animal diseases. Animal welfare initiatives emphasize responsible ownership and ethical practices. Global collaboration and regulations ensure safety and compliance. The goal is to protect animal health, support sustainable food production, and address public health concerns.

 Figure 1. Global Animal Healthcare Market Share (%), by Animal Type, 2022

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Global Animal Healthcare Market – Driver

Increasing consumption of meat, milk and other animal byproducts is expected to boost growth of the global animal healthcare market over the forecast period. For instance, Released December 19, 2022, by the National Agricultural Statistics Service (NASS), Agricultural Statistics Board, U.S. Department of Agriculture (USDA). In November ,2022 milk production in the 24 major states reached a total of 17.5 billion pounds, representing a 1.4% increase compared to November 2021.

The animal healthcare market is growing due to the increase in foodborne and zoonotic diseases, rising pet adoption, and the demand for natural products with transparent labeling. These factors are driving market expansion and increasing the need for comprehensive animal healthcare solutions.

In 2021 there was an overall increase in reported cases of zoonotic diseases and foodborne outbreaks compared to the previous year, but levels are still well below those of the pre-pandemic years, reveals the latest annual EU One Health zoonosis report released by European Food Safety Authority (EFSA)  and European Centre for Disease Prevention and Control (ECDC).

Figure 2. Global Animal Healthcare Market Value ( U.S.$ Million), By Region, 2023

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Global Animal Healthcare Market- Regional Analysis

Among region, North America is estimated to hold a dominant position in the global Animal Healthcare  market over the forecast period. North America is estimated to hold 33.1% of the market share in 2030. The 2021-2022 APPA National Pet Owners Survey found that pet ownership has increased to 70% of households, up from 67% in the previous survey. During the pandemic, 14% of respondents acquired a new pet, with a significant influence from the pandemic. Millennials were identified as the largest group of pet owners at 32%, followed by Boomers at 27% and Gen X at 24%. For instance, according to the (APPA) In 2021, the total  expenditure on pets was reported to be US$ 123.60 billion. This figure increased to US$ 136.8 billion in 2022, and it is projected to reach US$ 143.60 billion in 2023, indicating a continuous upward trend in pet-related spending.

Global Animal Healthcare Market – Impact of Coronavirus  (COVID-19) Pandemic

Since the COVID-19 virus  outbreak in December 2019, the disease has spread to over 100 countries across the globe, and the World Health Organization declared it a public health emergency on January 30, 2020.

COVID-19 affected the economy in three main ways: by directly affecting the production and demand of drugs, by creating disruptions in distribution channels, and through its financial impact on firms and financial markets. Due to nationwide lockdowns, several countries such as China, India, Saudi Arabia, the U.A.E., Egypt, and others faced problems regarding transportation of drugs from one place to another.

However, the COVID-19 pandemic had a positive impact on the global animal healthcare market, as evidenced by increased pet ownership and demand for animal healthcare products and services. According to the American Pet Products Association (APPA), pet ownership in the U.S. surged during the pandemic, with approximately 12.6 million households welcoming a new pet in 2020. Additionally, a study published in the Journal of Medical Internet Research found that online sales of pet medications and supplies rose by 70% during the pandemic.

Global Animal Healthcare Market- Segmentation

The Global Animal helathcare Marketreport is segmented into Animal type,Product type, End User, and region.

By Animal type, The animals are segmented into production animal and companion animal. companion animals are more dominant, with 70% of households owning pets. This includes a variety of animals such as dogs, cats, small mammals, birds, and fish. Companion animals are prevalent in American households, indicating a strong pet ownership culture. While livestock and production animals are also significant, in terms of sheer numbers and prevalence in households, companion animals are more dominant in the U.S.

By Product Type, the market is segmented into  Feed additives, pharmaceuticals and vaccines. Globally, vaccines are the dominant product type in animal healthcare management. They are widely  used to prevent the spread of infectious  diseases and ensure the health and well-being of animals across different species. Vaccination programs are crucial in maintaining animal health and reducing the risk of disease outbreaks.

By End User, the market is segmented into Retail, E-commerce, veterinary hospitals & clinics and others. Veterinary hospitals and clinics are the dominating force in the pet industry, with their essential healthcare services, trusted expertise, specialized offerings, disease prevention role, and widespread accessibility. They hold a dominant position due to their comprehensive care, public health contributions, and being the go-to resource for responsible pet ownership needs.

By Region, the market is segmented into North America,Latin ameria, Europe, Asia pacific, Middle east and Africa. Out of which, the North America is expected to hold a dominant position in the  Animal healthcare Market during the forecast period, owing to increasing the  usage of pharmaceuticals and vaccines.

Global Animal Healthcare Market- Cross Sectional Analysis

Increasing investment for healthcare infrastructure is also expected to boost demand for pets in North America region. Another significant factor influencing The animal healthcare market has been experiencing significant growth in recent years.

For instance, in 2022, North America dominated the market with the highest revenue share of 33.1%. Factors such as increasing pet ownership, rising awareness of animal health and welfare, and advancements in veterinary medicine have contributed to its expansion.

The animal healthcare market is segmented based on product types, including pharmaceuticals, vaccines, feed additives, and others. Each segment plays a vital role in addressing specific health needs in animals. The market is also segmented based on animal types, such as production & companion animals (pets), and others. Production animals, including cattle, poultry, and swine, represent a significant portion of the animal healthcare market due to the high demand for animal health products and services in the livestock industry.

Global Animal Healthcare Market: Key Developments

The increase in livestock is expected to drive the growth of the farm animal healthcare market going forward. For instance, according to a report published by the U.S.   Department of Agriculture in 2022, India's national herd of cattle increased from 1.2 million in 2021 to 306.7 million in 2022. Therefore, the growing livestock population will propel the farm animal healthcare market.

In 3^rd January  2023, one of the major global companies providing veterinary diagnostic and specialty products and solutions, Heska Corporation, acquired MBio Diagnostics, Inc. LightDeck Diagnostics to expand its research and development and manufacturing capabilities. The LightDeck's fully automated Longmont facility, which is expected to go online in 2023, will boost the manufacturing capacity and R&D efforts of Heska's Corporation in the future.

In May 2021, Cadila Healthcare’s wholly-owned material subsidiary Zydus  Animal Health and Investments (ZAHL) sold its animal healthcare business to a consortium led by Multiples Alternate Asset Management for nearly US$ 3.70 billion.

In April 2021, Hester Biosciences stated that it would begin developing research-based herbal products for poultry, cattle, sheep, goats, and swine.

Merck Animal Health bought Poultry Sense Limited in February 2021 boosting its poultry product range.

Merck Animal Health increased its animal vaccine production capacity by US$ 100 million in its Kansas manufacturing facility in July 2020.

In November 2022, A significant animal health pharmaceutical firm and the animal health biotechnology company Vetigenics announced a second discovery cooperation for utilizing the VETIGENICS CANIBODYTM Platform. The goal is to cooperatively identify and create new therapeutic antibodies to treat companion animal chronic illnesses. The all-canine, best-in-class phage display technology from Metagenics has specific benefits over other strategies. A patented process creates CANIBODIES, or Single chain variable fragments (scFvs), which are 100% canine in origin and structure since they are extracted from canine genetic material.

Global Animal healthcare Market- Key Trends

In January 2020, Boehringer Ingelheim, a Germany-based pharmaceutical company, launched the VAXXITEK HVT+IBD+ND vaccine based on trojan horse vaccine technology to protect poultry from three types of diseases. This vaccine technology is similar to a trojan horse in that it protects against disease by employing a non-pathogenic substance as a vector to carry pathogen-protective genes VAXXITEK HVT+IBD+ND builds a solid immune foundation and provides enhanced protection against marek's disease, infectious bursal disease (classic and variant kinds), and newcastle disease.

In April 2020, Heska Corporation, a U.S.-based advanced veterinary diagnostic and specialty products company, acquired Scil Animal Care Company for US$ 110 million. Through this acquisition, Heska Corporation aimed to expand the company with veterinarians and point-of-care analyzers to serve companion animals. Scil Animal Care Company is a U.S.-based company that specializes in animal health laboratories and imaging diagnostic products and services.

The Organization for Economic Co-operation and Development (OECD) and United Nations Food and Agriculture Organization (FAO) estimate that livestock and fish production will increase 14% from 2020–2030.

Global Animal healthcare Market: Restraint

High cost of animal healthcare products and services: The high cost of animal healthcare products and services, such as veterinary drugs, vaccines, and diagnostic tests, is a major challenge for pet owners and farmers.

Acording national institute of health (NIH) report by DMA Dewsbury, 2022, Discusions pertaining to the cost and price of products and services have dominated the veterinary field for years. The price of drugs and transparency of costs incurred for veterinary treatment is essential for building trust with pet-owners 

 Rise in Cost of Veterinary Services & Testing

The pet adoption across the globe is increasing swiftly and the increasing demand for companion animals. The growing need for animal healthcare is surging and costs of veterinary services and testing are increasing. For instance, The American Pet Products Association (APPA), stated in its annual state of the report industry that U.S. spending on pets reached US$ 123.6 billion in 2022, an increase of 6.7% from the Previous year. Owing to this factor, the market might slowdown in coming years and might face a decent setback.

Global Animal Healthcare  Market - Key Players

Major players operating in the Animal healthcare market include Bayer AG, Boehringer Ingelheim GmbH, Cargill Inc., Ceva Santé Animale, Eli Lilly and Company, DSM, Merck & Co., Inc., Novartis AG, Nutreco N.V., Sanofi S.A., SeQuent Scientific Ltd., Virbac S.A., Vétoquinol S.A., Zoetis Inc.

Global Animal Healthcare Market: Definition

The global animal healthcare market refers to the industry that focuses on providing medical care, products, and services for animals. It encompasses a wide range of activities, including the diagnosis, treatment, and prevention of diseases in various animal species. This market includes pharmaceuticals, vaccines, diagnostics, feed additives, and other related products and services aimed at promoting animal health and welfare.