Veterinary Antibiotics Market is Estimated to Witness High Growth, Owing to Rising Pet Adoption and Growing Veterinary Healthcare Expenditure
Veterinary antibiotics market is estimated to be valued at USD 4.02 Bn in 2024, exhibiting a CAGR of 3.8% over the forecast period (2024-2031). Increasing adoption of companion animals globally can boost demand for veterinary care and associated antibiotic drugs. Furthermore, growing expenditure on animal healthcare can also drive the market growth.
Market Dynamics
Veterinary antibiotics market growth is driven by rising pet adoption and increasing veterinary healthcare expenditure. Rising pet adoption has enhanced the importance of pet healthcare and treatment of various animal diseases. On August 13, 2024, around 82 million U.S. households own a pet, according to the American Pet Products Association (APPA). Growing per capita animal healthcare expenditure has increased demand for antibiotic drugs for various animal disease treatments. As per the same source, veterinary care expenditure in America grew from USD 30 billion in 2018 to over USD 31 billion in 2020, indicating higher spending on pet health. The increase in farm animal population, particularly dairy cattle and livestock, has also augmented the consumption of veterinary antibiotics for disease management and prevention in food-producing animals. However, stringent regulations pertaining to the judicious use of antibiotics in animal feed can hamper the market growth over the forecast period.
Increase in adoption of companion animals boosts demand for veterinary antibiotics
There has been increase in adoption of companion animals such as dogs and cats over the past decade. As companionship, these animals have become an important part of families. With rising pet ownership, the focus on pet health and wellbeing has also increased. Pet owners are more willing to spend on veterinary care and treatment to ensure the good health of their companion animals. This includes veterinary visits, vaccinations, and medications like antibiotics in case of illness or infections. Growing human-animal bond can also drive the veterinary antibiotics market growth as owners look to provide the best standard of care to their pets.
Growing meat consumption leads to use of antibiotics in livestock
With rising incomes and changing diets, there has been increase in consumption of meat especially poultry, pork and beef across the world. Several countries are witnessing a shift towards non-vegetarian diets. To meet the increasing demand for meat, large commercial farms are rearing livestock in bulk. However, large livestock numbers in close quarters can lead to outbreaks of disease. As a preventive measure, these farms increasingly administer antibiotics in animal feed. This is done both for disease prevention and as growth promoters. Rapid growth of global meat industry can boost demand for veterinary antibiotics to maintain animal health and optimize meat production from livestock.
Antimicrobial resistance is a growing concern
Veterinary antibiotics market faces challenges like rising threat of antimicrobial resistance. The overuse and misuse of antibiotics makes many bacteria resistant to these drugs. When livestock are fed antibiotics in small regular doses, it can enable drug-resistant microbes to multiply rapidly. During meat production, these antibiotic-resistant bacteria can then get transferred to humans through the food chain. Antimicrobial resistance is a serious global health issue with implications for both animal and human health. Regulators worldwide are implementing measures to curb the non-therapeutic use of antibiotics, in animals in order to address this problem. This may impact profitability for veterinary pharmaceutical companies reliant on antibiotic sales.
Increasing regulations on antibiotic usage in livestock farming
Following the emergence of antimicrobial resistance, regulators across major economies have imposed stricter usage guidelines for antibiotics in livestock production. For instance, the EU has banned the use of antibiotics for growth promotion in farm animals. In the U.S., the FDA is formulating policies to phase out the non-therapeutic use of antibiotics important for human medicine. While necessary for public health, such regulations hamper the revenues of veterinary antibiotic producers dependent on sales to large commercial meat farms. Producers may face supply chain disruptions and loss of certain antibiotic products from their portfolios. Complying with evolving regulations also entails additional costs.
Growing pet insurance offering opportunities
One key opportunity for antibiotic manufacturers and veterinary pharmacies includes increasing adoption of pet health insurance. While still at a nascent stage, the concept of insuring companion animals against illness and accidents is gaining traction globally. Reimbursement programs help reduce the financial burden on pet owners. This improves accessibility to advanced veterinary care including antibiotics when required. Pet insurance expands the potential clientele base and secures demand. Companies can collaborate with insurance providers to promote listed essential medications through these policies. The market can witness expansion as insurance penetration rates for companion animal healthcare rise in the future.
Rising breeder and exporter market in developing regions
Developing countries are emerging as an important market for veterinary antibiotics due to burgeoning livestock industry. There is a proliferation of commercial meat and dairy farms as well as export-oriented breeders to meet rising protein demand. Many governments also offer incentives to boost local meat production. This presents scope to established players to tap new breeder markets and expand operations into the developing world. Localizing manufacturing and distribution through strategic partnerships can help access high growth markets. Veterinary antibiotic producers need to strengthen their presence in BRICS and Asian countries to leverage arising opportunities from the southward shift of the global meat industry.
Link: https://www.coherentmarketinsights.com/market-insight/veterinary-antibiotics-market-2324
Key Developments
- On October 29, 2024, the Union Ministry of Animal Husbandry, introduced The Standard Veterinary Treatment Guidelines (SVTG) to reduce and regulate the use of antibiotics to treat diseases found among the livestock and poultry.
- On April 10, 2024, Elanco US Inc., animal health company, announced that the U.S. Food and drug Administration approved Pradalex (pradofloxacin injection) solution for certain respiratory diseases in cattle and swine. Pradofloxacin is a medically important antimicrobial in the fluoroquinolone class and may only be prescribed by a licensed veterinarian as a single injection.
- On February 14, 2024, Blacksmith Medicines, Inc., a biopharmaceutical dedicated to discovering and developing medicines targeting metalloenzymes, and Zoetis, a animal health company, announced a collaboration to discover and develop novel antibiotics for animal health
Key Players
Merck & Co., Inc., Ceva Santé Animale, Zoetis, Boehringer Ingelheim International GmbH, Dechra Pharmaceuticals, Elanco Animal Health Incorporated, Virbac S.A., Bimeda, Inc., Vetoquinol, Zydus Animal Health, Blacksmith Medicines, Inovet, Calier, and Phibro Animal Health Corporation
