Veterinary services market is estimated to be valued at USD 118.24 Bn in 2024, and is expected to exhibit a CAGR of 7.2% over the forecast period (2024-2031). The market is witnessing high growth owing to factors such as rising pet ownership across the globe especially in developed nations and growing expenditure on pet healthcare. Furthermore, increasing awareness about animal health & welfare and new product innovations are also fueling the market growth.
Market Dynamics:
Over the past few decades, there has been a significant rise in pet ownership globally. Pet owners are increasingly treating their pets as part of the family and willing to spend more on their healthcare. This growing trend of pet humanization has created a strong demand for veterinary services. Growing Healthcare Expenditure: Along with increased pet adoption, the expenditure on pet healthcare has also grown substantially over the years. According to recent industry reports, the average spending per pet on veterinary services has increased by over 30% since 2010. Pet owners are now willing to spend more on advanced medical care and technologies for their pets. This rising spending on pet healthcare is directly driving the veterinary services market.
Increasing Pet Ownership and Humanization of Pets
One of the key drivers of growth in the global veterinary services market is the rising pet ownership around the world. More people nowadays consider pets as companions and family members rather than just animals. This growing humanization of pets has increased spending on pet care, nutrition, grooming, and most importantly veterinary services. Pet owners want the best medical care and treatment for their furry friends similar to what they get for themselves. This has boosted the demand for veterinary checkups, vaccinations, surgeries, and other services.
Advancements in Veterinary Healthcare
Technological advancements and improved capabilities in the veterinary field have emerged as another important market growth driver. Developments like advanced diagnostic equipment, surgical instruments, pet imaging systems, and novel drug therapies have enhanced the ability of vets to treat diseases and injuries. Pet owners now have access to many specialty services like oncology, dermatology, ophthalmology, etc. which were not widely available a decade ago. These advancements make it possible for vets to offer advanced care and better outcomes to pets. This encourages more spending on veterinary services.
High Cost of Specialty and Emergency Veterinary Care
One of the key challenges faced by the veterinary services market is the high cost of certain services like pet surgeries, cancer treatment, ICU hospitalization, and emergency or after-hours care. Specialized procedures and equipment boost the costs significantly. While basic consultation and routine services may be affordable for most pet owners, critical or specialized care requiring extensive treatment can burn a big hole in one's pocket. This deters some pet parents from opting for advanced medical care and acts as a restraint.
Shortage of Veterinary Professionals
Another factor limiting the full potential of the veterinary market is the persistent shortage of trained veterinarians and other staff. There is a lag between rising pet population and jobs in this field to support it. Although veterinary colleges are increasing enrollment, it will take time to bridge this demand-supply gap. The long education process adds to this constraint. Short-staffed clinics may not be able to take on all patients or provide 24/7 emergency services. This restrains access to timely veterinary care.
Growth in Livestock Population
While companion animal healthcare drives a major share of current demand, livestock farming is opening up new opportunities. With the burgeoning global population, demand for milk, meat and eggs is rising steadily which is increasing the livestock count. Farm animals now require structured healthcare involving vaccination programs, treatment of diseases, and management of epidemics. This presents a lucrative area of growth for veterinary pharmaceutical companies and large animal practice owners.
Link: https://www.coherentmarketinsights.com/market-insight/veterinary-services-market-5050
Key Development
- On May 28, 2024, SK Telecom announced that it had launched its AI-based veterinary X-ray image diagnosis assistance service 'X Caliber' in Australia. X Caliber is an innovative service that uses AI to analyze X-ray images of dogs/cats within around 15 seconds. Since X Caliber uses cloud to store and retrieve data, there is no need to install a separate server within the hospital.
- On April 24, 2024, the Veterinary Innovation Council (VIC) announced the launch of new resources to help provide access to veterinary care to millions of pet owners in underserved communities
- On March 5, 2024, the government of Himachal Pradesh, India announced that it had launched the 1962-Mobile Veterinary Service of the Animal Husbandry Department, under the service ambulances have been provided in 44 development blocks
- In December 2023, Chewy, Inc., an online retailer of pet food and other pet-related products announced the launch of its pet health practices under the brand name "Chewy Vet Care." The first practice will open in Florida, U.S.
Key Players: CVS Group PLC, Greencross Vets, Ethos Veterinary Health, Idexx Laboratories Inc., Pets at Home Group PLC, CityVet Inc., FirstVet AB, Kremer Veterinary Services, Armor Animal Health (Animart), PetSmart LLC, Airpets International, Mars, Incorporated, Petiq LLC, and National Veterinary Care Ltd.
