MIDDLE EAST AND AFRICA ANIMAL HEALTHCARE MARKET ANALYSIS

Good animal health is essential for efficient use of natural resources, high productivity of proteins such as meat and milk, increased consumer trust and food security in the livestock sector, and protection of farmers and consumers from food borne and other zoonotic viral pathogens. The most common zoonotic viral diseases diagnosed in the Middle East & Africa region over the past few years include rabies, dengue fever virus, Rift Valley fever, influenza virus, West Nile fever, Middle East respiratory syndrome, Alkhurma hemorrhagic fever, Crimean-Congo haemorrhagic fever, and others. Rabies virus is considered an endemic viral infectious disease in animals in Saudi Arabia. Recent scientific data indicated that incidence of rabies is increasing in camels, one of the most important animals in Saudi Arabia. According to the World Health Organization (WHO) statistics published in 2018, over ten thousands of deaths are caused annually by rabies virus in parts of Africa and Asia Pacific.

The Middle East & Africa animal healthcare market is estimated to be valued at US$ 3,883.0 million in 2020 and is expected to exhibit a CAGR of 5.2% during the forecast period (2020-2027).

Figure 1. Middle East & Africa Animal Healthcare Market Share (%) in Terms of Value, By Region, 2020

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Increasing incidence of zoonotic viral pathogens is expected to propel the market growth during the forecast period

Increasing incidence and prevalence of zoonotic viral diseases in the region, as zoonotic diseases can easily be transmitted to humans working in close proximity with animals, is expected to drive growth of the Middle East & Africa animal healthcare market during the forecast period. According an article published in the National Center for Biotechnology Information, in August 2019, around 21,476 human deaths in Africa occur due to dog-mediated rabies every year.

Figure 2. Middle East & Africa Animal Healthcare Market Share (%) in Terms of Value, By Product Type, 2020

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Increasing demand for protein from animal source is expected to drive the market growth during the forecast period

Increasing demand for animal-based products for dietary use in the Middle East and Africa is expected to propel growth of the market during the forecast period. The significant increase in animal farming in the region has also led to rising demand for more efficient animal health services to improve food safety. According to United States Department of Agriculture (USDA), the chicken meat production in Saudi Arabia was expected to reach 650,000 MT in 2018 and 700,000 MT in 2019. The local authorities in the Middle East and Africa regions are also regularly organizing workshops to provide information about improving poultry production.

Middle East & Africa Animal Healthcare Market – Impact of Coronavirus (Covid-19) Pandemic

COVID-19 has had a significant impact on the livestock sector. The actions taken in many countries across the world to stop the spread of the coronavirus such as travel restrictions, nationwide lockdowns, and border controls have led to the following consequences:

• Difficulty in transporting live animals and animal products such as milk, meat, and eggs
• Restrictions and limitations on seasonal border crossings with ruminants
• Restricted capacity to purchase necessary production inputs
• Restricted access to labor and professional services

Such factors have led to a decrease in sales and processing capacity of animal products, and a slowdown of the market growth.

However, some players in the animal healthcare vaccine have reported that their manufacturing activities and supply activities were operational despite the pandemic. For instance, Elanco Animal Health reported that its manufacturing network remained fully operational. The company is taking extra precautions to protect its team and maintain continuity of supply.

Middle East & Africa Animal Healthcare Market: Restraint

The major factors restraining growth of the animal healthcare market are high cost of animal healthcare services and lack of pet insurance. Veterinary care for domestic pets in Saudi Arabia is expensive and can cost more than medical care for humans. The average cost of vaccinations, vet visits, medication, and supplies for a dog in UAE is approximately US$ 1,000, annually. In case the animal is diagnosed with diseases, the overall cost is expected to increase. Moreover, pet owners disown their pets due to the lack of favorable pet insurance.

Key Players

Major players operating in the Middle East & Africa animal healthcare market include Zoetis Inc., Elanco, Merck & Co., Inc., Boehringer Ingelheim GmbH, Ceva, Bayer AG, Evonik Industries AG, and Archer Daniels Midland Company.