Market Challenges And Opportunities

Global Animal Parasiticides Market Drivers:

Increasing prevalence of animal diseases: The animal parasiticides market has been witnessing steady growth due to the rising incidence of various animal diseases globally. Parasitic infections in livestock and companion animals remain a major concern, thereby putting medical and economic burden. Various parasites including ectoparasites such as fleas, ticks and mites, and endoparasites such as roundworms, tapeworms and heartworm continuously threaten the health of animals. These parasites can cause severe diseases and infections, thus reducing animal productivity and spreading zoonotic diseases. According to data from the World Organization for Animal Health (WOAH), the reported incidence of animal trypanosomiasis increased by over 15% in 2020-2022 across many African countries where tsetse fly infestation is high. Similarly, cases of heartworm infections in dogs have also risen globally. The Centers for Disease Control and Prevention (CDC) estimates that over 7 million dogs in the U.S. are at risk of heartworm infection, with Texas, U.S. experiencing highest transmission rates.
Rising meat consumption and growing pet ownership: Growing consumption of meat and animal proteins has boosted the global livestock production which requires proper veterinary healthcare and disease prevention. The Food and Agriculture Organization (FAO) projects that growth in global consumption of meat proteins over the next decade is projected to increase by 14% by 2030. Several countries are experiencing expansion of cattle, pig, and poultry production to meet this growing demand for animal foods. Greater number of food animals raises the risks of parasitic infestations, if not properly managed.
Stringent regulations regarding animal health: Policy changes across Western nations view companion animals more as members of the family rather than property. According to the 2019/2020 National Pet Owners Survey, 84.9 million homes own a pet, which equates to 67% of U.S. households. As social attitudes shift to emphasize animal welfare, regulations have strengthened to curb the mistreatment and abuse of companion animals. As a result of prioritizing companion animal welfare, demand has grown for parasite preventatives and treatments.
Technological advancements in parasiticides products: Technological advancements are playing a key role in boosting the animal parasiticides market. Veterinary pharmaceutical companies are investing heavily in research and development (R&D) activities to come up with novel product formulations that improve efficacy and safety. Many new parasiticides products offer longer lasting protection with reduced treatment frequency. This provides better compliance for pet owners and veterinarians. They are also developing parasite control methods that destroy any stages of the lifecycle, thus making them more effective.

Global Animal Parasiticides Market Opportunities:

Emerging markets in developing countries: Emerging markets in developing countries present a major growth opportunity for the animal parasiticides market. As livestock farming is becoming more mainstream in nations like India, Brazil, and Nigeria, the demand for veterinary pharmaceuticals to protect animal health and welfare is expected to rise significantly in the near future. Farmers and ranchers in the developing world are becoming more aware of the financial and productivity losses caused by parasites and exploring effective preventive and treatment options. For instance, till March 2023, the U.S. Department of Agriculture reports that the growth of India's dairy industry is the primary cause of the rise in the number of cow herds, thereby encompassing both bovine and Asian domestic water buffalo. In India, the herd size increased to 307.5 million in 2023 from 306.7 million in 2022.
Increase in pet adoption and expenditure on pet care: The increase in pet adoption and expenditure on pet care presents a great opportunity for growth in the animal parasiticides market. Over the past few years, pet adoption has increased substantially across countries as more people embraced pet companionship during the pandemic. For instance, the American Pet Products Association (APPA) conducted the 2021–2022 National Pet Owners Survey, which found that 70 percent of American homes, or around 90.5 million families, own a pet.
Growing awareness about zoonotic diseases: Growing awareness about zoonotic diseases being transmitted from animals to humans could present a great opportunity for the animal parasiticides market taking a step forward. Globally, there is rising focus on preventing the spread of diseases like rabies, toxoplasmosis, Q fever, anthrax, and others. which can pass from animals to people. As people and governments realize the public health risks of such zoonotic diseases, there will likely be more investments and initiatives around controlling diseases in animal populations. This in turn, could drive increased demand for various antiparasitic drugs, vaccines, disinfectants, and other parasiticides for livestock as well as pet care.

Global Animal Parasiticides Market Restraints:

High research and development costs for new product development: High research and development (R&D) costs for new product development has been a major barrier inhibiting the growth of the global animal parasiticides market. Developing new parasiticides requires extensive research, testing, and clinical trials which requires significant costs. Bringing a new parasitic drug to the market often takes 8 to 10 years and costs anywhere between US$50- US$100 million. This prolonged timeline and heavy capital requirements make it an extremely expensive and risky endeavor for companies. For instance, in 2020, according to Food and Agriculture Organization (FAO), over 75% of livestock in Africa are owned by resource-poor small scale farmers and herders who often cannot afford premium priced novel drugs.

Environmental concerns regarding use of parasiticides: Environmental concerns surrounding the use of parasiticides are posing significant restraints on the growth of the global animal parasiticides market. Farming and livestock rearing practices that involve excessive or improper use of these chemicals can have detrimental effects on the surrounding ecosystem. Many parasiticides are toxic in nature and tend to accumulate in the soil if not disposed of properly. Their residual effects and potential leakage into water bodies through runoff can harm other organisms and disrupt the fragile balance within the natural environment.

Risk of product residue in meat and milk: The major concern restraining the growth of the animal parasiticides market is the risk of residue in animal-derived food products such as meat and milk. When veterinary medicines, containing parasiticides, are administered to food-producing animals, there is a possibility of small quantities of the active ingredients or their metabolites remaining in tissues and bodily secretions. These residues have the potential to persist until slaughter or lactation and may lead to accidental human ingestion. Several regulatory authorities including the U.S. Food and Drug Administration (U.S. FDA) and the European Medicines Agency (EMA) have stringent maximum residue limits and withdrawal periods for animal parasiticides to ensure consumer safety. Non-compliance with these regulations could result in contamination of meat or milk, thus leading to severe economic losses for farmers and loss of consumer trust in animal-derived products.

Counterbalance: The use of the parasiticides should be proper and must not be detrimental and hazardous to the surrounding ecosystem. Proper disposal methods of the parasiticides should be undertaken by the key market players.

Risk of product residue in meat and milk: The major concern restraining the growth of the animal parasiticides market is the risk of residue in animal-derived food products such as meat and milk. When veterinary medicines, containing parasiticides, are administered to food-producing animals, there is a possibility of small quantities of the active ingredients or their metabolites remaining in tissues and bodily secretions. These residues have the potential to persist until slaughter or lactation and may lead to accidental human ingestion. Several regulatory authorities including the U.S. Food and Drug Administration (U.S. FDA) and the European Medicines Agency (EMA) have stringent maximum residue limits and withdrawal periods for animal parasiticides to ensure consumer safety. Non-compliance with these regulations could result in contamination of meat or milk, thus leading to severe economic losses for farmers and loss of consumer trust in animal-derived products.