Animal Healthcare Market

Animal Healthcare Market Outlook (2024 to 2034)

The global animal healthcare market is estimated at US$ 42.87 billion in 2024, as per a new study by Fact.MR. Worldwide demand for animal health products is forecasted to increase at a CAGR of 4.6% and reach a market value of US$ 67.48 billion by the end of 2034.

Growing trend of pet ownership in most countries is set to stimulate the demand for pet healthcare products and veterinary services. Many livestock farmers and pet owners are becoming aware of the pivotal role of preventive healthcare facilities for animals. This is also set to push global demand for animal vaccines, diagnostics, and similar healthcare products.

Key Market Growth Drivers

• Rising occurrence of zoonotic diseases is raising concerns related to human and animal healthcare. This is expected to lead to an increased focus on animal healthcare facilities as a preventive measure against infections.
• Ongoing R&D activities in veterinary pharmaceuticals are estimated to lead to the introduction of improved drugs to prevent animal diseases.

Advancements in diagnostic technologies are forecasted to enhance the ability of healthcare providers to detect and prevent diseases among animals, which is leading to more effective treatment outcomes. Owing to the rising global population, demand for animal-derived products, including eggs, milk, and meat is also increasing. This is projected to result in increased investments in animal healthcare products to improve the productivity and health of livestock.

• Worldwide demand for animal healthcare facilities for companion animals is predicted to increase at 4.5% CAGR and reach a market size of US$ 26.49 billion by the end of 2034.
• Sales of animal healthcare services in East Asia are forecasted to advance at a CAGR of 4.8% and reach US$ 8.89 billion by 2034.
• Veterinary hospitals held 32.2% share of global market revenue in 2023.

Adoption of more efficient digital technology in pet health and livestock is estimated to contribute to market growth. Predictive monitoring tools, including wearables and sound detection tools, enable precision care for animals.

Report Attributes	Details
Animal Healthcare Market Size (2024E)	US$ 42.87 Billion
Forecasted Market Value (2034F)	US$ 67.48 Billion
Global Market Growth Rate (2024 to 2034)	4.6% CAGR
North America Market Share (2024E)	33.5%
Japan Market Value (2034F)	US$ 2.7 Billion
Canada Market Value (2034F)	US$ 3.22 Billion
Farm Animals Segment Value (2034F)	US$ 41 Billion
Companion Animals Segment Share (2024E)	39.9%
Key Companies Profiled	Bayer AG Virbac SA Boehringer Ingelheim GmbH Zoetis, Inc. Intas Pharmaceuticals Ltd. Hester Biosciences Ltd. Merck Animal Health Ceva Sante Animale Elanco Alivira Animal Health Limited Zydus Animal Health Vetoquinol S.A. Norbrook Laboratories Limited Dechra Pharmaceuticals PLC Phibro Animal Health Corporation Norbrook Laboratories, Inc.

What’s Influencing Demand for Animal Healthcare Solutions?

“Automated Injection Devices Ensuring Efficient and Timely Vaccination”

The precision and effectiveness of mass immunization are improved with the development of new vaccine platforms. Newly produced automated injection devices and oral vaccinations enable effective protection in aquaculture and avoid manual injections that are time-consuming.

Farmers can avail protection facilities that are customized to their environment and livestock thanks to autogenous vaccines. If a veterinarian suspects that a herd may be harboring a disease and conventional immunization is insufficient, they can consider seeking autogenous vaccines.

Animal healthcare facilities can offer customized solutions according to specific virus strains with the use of a herd culture sample, which can help in the protection of farm animals that are not infected.

“Regulatory Flexibility Speeding Up Vaccine Development Process”

Regulatory flexibility is forecasted to speed up the process of vaccine development as well as delivery. An elementary vaccine technology can be approved initially, which further allows subsequent evaluation to focus on the unique and innovative features of vaccine application.

Promotion strategies by businesses are crucial for the submission of samples for vaccine development. This is predicted to improve flexibility and agility in addressing disease threats in several geographical locations and push the global animal healthcare market size up at a faster pace.

Regulators are projected to improve the options to demonstrate safety and efficacy to minimize the count of study animals required for creating standards for new testing procedures, including in vitro testing and others. This is predicted to eliminate the need for pointless batch safety testing.

What Challenges are Expected to Affect Market Growth?

“Short Patent Protection Period and Laborious Regulatory Approval Activities”

More than 50 different animal species need the administration of health products and veterinary medicines for disease diagnosis, treatment, and prevention. It is difficult to develop vaccines that can operate in diverse contexts, and therefore, it becomes pivotal to adhere to several regulatory frameworks. Moreover, it takes longer to use any drug for animal treatment, and that is why animal healthcare market trends are quite different from most other businesses.

Potential for a return on investment in the pharmaceutical industry is constrained by time, unless the product is safeguarded by a patent, especially in the context of livestock. In Europe, companies benefit from a ten-year data protection period after obtaining approval to sell a novel product.

In the United States, data protection is in place for five years only, and after this, a process needs to be followed for recovery for setting international standards. Manufacturers who want to export products need to establish MRLs (maximum residue levels) before product employment. It means that, before getting a return on investment, manufacturers lose their exclusivity protection due to time limitations.

The animal health sector adopts GMP (good manufacturing practice) regulations that are specifically designed for human health. Without modifications in these practices, an animal health product can be subject to pointless regulations that make production unprofitable.

What Strategies are Start-ups Incorporating to Establish Themselves in the Market?

“Focus on Digitalization Enabling Precision Care for Animals”

Veterinary healthcare is evolving rapidly with technological advancements, including artificial intelligence, big data, biotech, cloud computing, and genomics. New entrants in the industry have the opportunity to invest in technology that is anticipated to facilitate precise care for animals. Technologies such as sound detection tools, wearables, and smart tags are among the popular choices that can enhance the profit margin for start-ups.

Country-wise Insights

Asia Pacific held a significant animal healthcare market share in 2023 due to the increasing number of veterinary hospitals, polyclinics, and healthcare institutions in the region. In addition, collaborations between these organizations with animal healthcare centers and trusts are also offering growth opportunities to players.

What is Driving Demand for Animal Healthcare Facilities in the United States?

“Growth of Livestock Sector and Rising Adoption of Companion Animals”

Attribute	United States
Market Value (2024E)	US$ 11.09 Billion
Growth Rate (2024 to 2034)	4.6% CAGR
Projected Value (2034F)	US$ 17.31 Billion

The United States is predicted to account for 78.12% share of the North American market in 2034. The increased production of dairy and meat products for international and domestic consumers is largely dependent on healthy livestock. It offers Americans wholesome pocket-friendly and healthy food and benefits the American economy.

• As per the data provided by the American Health Institute, about 400 million pets, including dogs, cats, fish, birds, and horses, are owned by around 67% of American homes. Ranchers and farmers employ medication for the well-being of animals used in food cultivation to safeguard food supply and public health.

Why are Animal Healthcare Providers Eyeing Germany?

“Supportive Guidelines and Reimbursement Policies”

Germany held 19% share of the Europe market in 2023. According to a study by Fact.MR, a market research and competitive intelligence provider, animal health is one of the key concerns among many Germans. This concern is acknowledged due to its implications for both food safety and public health. There are financial repercussions associated with animal health epidemics, along with the consideration of the well-being of the animals involved.

The government of Germany plays a significant role in protecting animals’ health with effective protection policies and quick responses against disease epidemics.

What is Set to Position China at the Forefront in the East Asian Market?

“Increasing Investments in Animal Healthcare Facilities”

Attribute	China
Market Value (2024E)	US$ 2.42 Billion
Growth Rate (2024 to 2034)	5.1% CAGR
Projected Value (2034F)	US$ 3.96 Billion

The regulatory environment in China is undergoing significant changes. Chinese authorities and executives are making the policy-making process transparent by involving businesses in the process. Several multinational companies are establishing their manufacturing operations and R&D facilities in China. This is attributed to the support provided to the veterinary pharmaceutical sector in the country.

Category-wise Insights

Farm animals are predicted to account for 60.8% share of global market revenue in 2034 owing to increased concerns about sustainability and food safety among government healthcare organizations. The long-term goal of sustainability is possible with a concentration on livestock animal care.

Why Do Farm Animals Account for a Leading Market Share?

“High Demand for Animal-based Products for Efficient Farm Animal Management”

Attribute	Farm Animals
Segment Value (2024E)	US$ 25.75 Billion
Growth Rate (2024 to 2034)	4.8% CAGR
Projected Value (2034F)	US$ 41 Billion

Farm animals held 60% share of the global market in 2023. Animal husbandry is pivotal to human nutrition. The emergence of the middle-class population in developing countries and their new consumption patterns are predicted to push the demand for animal protein. Some new difficulties can be experienced in disease control due to growth in animal production. Therefore, the management of farm animals is crucial because of the growing need for animal-based products.

Which Route of Administration is Most Popular in Animal Healthcare?

“Physical and Chemical Stability of Oral Route of Administration”

The oral route of administration held 44.5% share of global market revenue in 2023. Regular vaccines and oral treatments are provided by many farmers to their respective cattle and horses. The majority of typical medications that are given to cats and dogs are chewable and traditional pills. Compared to liquid forms, tablets are more physically and chemically stable, which is predicted to contribute to their increased demand.

Competition Landscape

Companies are incorporating multiple strategies to achieve several purposes, including efficient management of supply chain systems, ensuring quality control of products, and new developments. New launches, collaborations, etc., are some organic and inorganic strategies adopted by companies to drive their animal healthcare market growth.

For instance :

• In April 2021, Hester Biosciences started developing research-based herbal products for pigs, goats, sheep, cattle, and poultry.

Key players in the animal healthcare market are Bayer AG, Virbac SA, Boehringer Ingelheim GmbH, Zoetis, Inc., Intas Pharmaceuticals Ltd., Hester Biosciences Ltd., Merck Animal Health, Ceva Sante Animale, Elanco, Alivira Animal Health Limited, Zydus Animal Health, Vetoquinol S.A., Norbrook Laboratories Limited, Dechra Pharmaceuticals PLC, Phibro Animal Health Corporation, and Norbrook Laboratories, Inc.

Segmentation of Animal Healthcare Market Research

• By Drug Type :

  • Anti-infective Agents
  • Antibiotics & Antimicrobials
  • Parasiticides
  • Vaccines
  • Hormones & Substitutes
  • Nutritional Products

• By Animal Type :

  • Companion Animals
  • Farm Animals

• By Route of Administration :

  • Oral
  • Parenteral
  • Topical

• By Distribution Channel :

  • Veterinary Hospitals
  • Veterinary Clinics
  • Pharmacies & Drug Stores

• By Region :

  • North America
  • Europe
  • East Asia
  • Latin America
  • Middle East & Africa
  • South Asia & Oceania