The global veterinary healthcare market was valued at USD 27,875 million in 2020, and it is expected to reach USD 46,550 million by 2026, registering a CAGR of 8.9% during the forecast period of 2021-2026.
Supply disruption and medicine shortages of veterinary medicines had been observed in several countries, primarily due to the temporary lockdowns of manufacturing sites, export bans, and increased demand for medicine, for the treatment of COVID-19. Governments are taking measures to mitigate the supply of medicines. For instance, in 2020, the European Medicines Agency issued guidance for companies responsible for veterinary medicines, with respect to the adaptations to the regulatory framework, primarily to address the challenges faced during this pandemic situation. Also, the Centers for Disease Control and Prevention, in July 2020, recommended certain guidelines to the veterinary professionals for the treatment of companion animals during the COVID-19 pandemic.
The market is largely driven by the approval of new products related to the treatment of animal disorders. In May 2020, Felix Pharmaceuticals Pvt. Ltd announced that the US FDA (Food & Drug Administration) approved its "Enrofloxacin Flavored Tablets", for the treatment of diseases associated with bacteria. Also, companies are focusing on digitizing animal healthcare services. For instance, Folio3 Software Inc. designed mobile-based solutions to help farmers, ranchers, and animal care specialists overcome the challenges they face in livestock and companion animal healthcare and management.
The public health organizations are focused on new alternatives, non-traditional sources of data, to advance disease surveillance. Such approaches may boost current awareness about animal health. Also, in January 2020, the World Customs Organization started the African Swine Fever Campaign, primarily to highlight the risk of the disease and the need to manage it. It is highly prevalent in Europe, Sub-Saharan Africa and Asia.
Even the companies are designing various campaigns to create awareness about the importance of animal healthcare. For instance, in July 2020, Zoetis announced its second "Itchy Pet Awareness Month campaign", which aims to create awareness among veterinarians and pet owners about the severity of skin allergies and how treating them faster can significantly improve pets' lives. Thus, the rising support and awareness programs from several organizations for veterinary healthcare are boosting the market growth.
However, the high cost of several diagnostic imaging equipment and veterinary medicines, as well as the high cost of veterinary services, is anticipated to restrain the growth of the market studied over the forecast period.
Key Market Trends
Vaccine Segment is Expected to Hold the Largest Share Over the Forecast Period
Many government authorities, such as the Centers for Disease Control and Prevention, recommended veterinary hospitals and clinics prioritize urgent and emergency visits and procedures. This may reduce the usage and adoption of diagnostic equipment used in veterinary healthcare management. As per OIE: World Organization for Animal Health, many veterinary laboratories, and other healthcare facilities support the testing of COVID-19 in humans.
A slight short-term negative impact is witnessed on veterinary healthcare, primarily due to the reduced veterinary visits, along with the shortage of veterinary medicines, during the outbreak of COVID-19.
Vaccines are comprised of viruses, bacteria, or other disease-causing organisms that have been killed or altered so that they cannot cause any disease, thus, boosting immunity. Vaccines are being manufactured that contain genetically engineered components derived from those disease agents.
The increasing initiatives by various governments in different regions have improved animal healthcare and led to the increasing demand for veterinary vaccines. For instance, in February 2019, the Food and Agriculture Organization of the United Nations (FAO), in partnership with the Ministry of Fisheries and Livestock, launched a cattle vaccination campaign in the provinces of Kwango and Kwilu in the Democratic Republic of the Congo.
Additionally, market players are focusing on the launch of new vaccines across globe to enhance their market presence. For instance, in January 2020, Boehringer Ingelheim's launched a vaccine, VAXXITEK HVT+IBD+ND, that provides a strong immune foundation and optimized protection against Marek's Disease, Infectious Bursal Disease (classic and variant types), and Newcastle Disease. Thus, due to growing research & developments, and approval of new vaccines, the growth of the vaccines segment is estimated to grow steadily during the forecast period.
North America is Expected to Hold the Largest Share And Expected To Do The Same Over Forecast Period
Many countries were in lockdown and had suspended trade with other countries and implemented travel restrictions. This affected the export and import activities of veterinary medicines and diagnostics which leads to the decline in sales of many products. Supply disruption and medicine shortages of veterinary medicines have been observed in several countries, primarily due to the temporary lockdowns of manufacturing sites, export bans, and increased demand for medicine, for the treatment of COVID-19.
Also, the Society for the Prevention of Cruelty to Animals, Los Angeles, reported that the rate of adoption was doubled in June 2020, with daily adoptions of about 10 to 13 per day. The rising adoption of pets may drive the growth of the veterinary healthcare management market in the longer term.
North America is one of the most developed regions in the world. It currently holds the major share of the veterinary healthcare market, and it is expected to follow the same trend over the forecast period. The increasing number of collaborations and mergers and acquisitions between companies are also expected to contribute to the growth of the market studied. For instance, in August 2020, Bayer completed the sale of its Animal Health business unit to a US company, Elanco Animal Health Incorporated. These companies have entered a definitive agreement to this effect in August 2019.
The presence of major players, like Idexx Laboratories, Merck & Co. Inc, Zoetis Inc. and many other companies that have been launching new products, gives an edge to the country in the global market. In January 2020, Zoetis, a leading animal health company has further expanded its poultry vaccine portfolio with the introduction of Poulvac Procerta HVT-ND, a vectored recombinant vaccine for protection against Newcastle and Marek's disease viruses. In the future, with new products expected to hit the market, the studied market in the country is expected to witness rapid growth.
Major companies have undertaken several business strategies, such as regional expansion strategies, mergers and acquisitions, and collaborative research initiatives, to gain a competitive edge. Some of the key players in the market studied are Elanco Animal Health Incorporated, Boehringer Ingelheim International GmbH, Vetoquinol SA, Zoetis Inc., and IDEXX Laboratories, among others.
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TABLE OF CONTENTS
- 1.1 Study Deliverables
- 1.2 Study Assumptions
- 1.3 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
- 4.1 Market Overview
- 4.2 Market Drivers
- 4.2.1 Advanced Technology Leading to Innovations in Animal Healthcare
- 4.2.2 Increasing Initiatives by the Governments and Animal Welfare Associations of Different Countries
- 4.2.3 Increasing Productivity at the Risk of Emerging Zoonosis
- 4.3 Market Restraints
- 4.3.1 Use of Counterfeit Medicines
- 4.3.2 Increasing Cost of Animal Testing and Veterinary Services
- 4.4 Porter's Five Forces Analysis
- 4.4.1 Threat of New Entrants
- 4.4.2 Bargaining Power of Buyers/Consumers
- 4.4.3 Bargaining Power of Suppliers
- 4.4.4 Threat of Substitute Products
- 4.4.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
- 5.1 By Product
- 5.1.1 Therapeutics
- 22.214.171.124 Vaccines
- 126.96.36.199 Parasiticides
- 188.8.131.52 Anti-infectives
- 184.108.40.206 Medical Feed Additives
- 220.127.116.11 Other Therapeutics
- 5.1.2 Diagnostics
- 18.104.22.168 Immunodiagnostic Tests
- 22.214.171.124 Molecular Diagnostics
- 126.96.36.199 Diagnostic Imaging
- 188.8.131.52 Clinical Chemistry
- 184.108.40.206 Other Diagnostics
- 5.2 By Animal Type
- 5.2.1 Dogs and Cats
- 5.2.2 Horses
- 5.2.3 Ruminants
- 5.2.4 Swine
- 5.2.5 Poultry
- 5.2.6 Other Animals
- 5.3 Geography
- 5.3.1 North America
- 220.127.116.11 United States (By Product and and By Animal Type)
- 18.104.22.168 Canada (By Product and and By Animal Type)
- 22.214.171.124 Mexico (By Product and and By Animal Type)
- 5.3.2 Europe
- 126.96.36.199 France (By Product and and By Animal Type)
- 188.8.131.52 Germany (By Product and and By Animal Type)
- 184.108.40.206 United Kingdom (By Product and and By Animal Type)
- 220.127.116.11 Italy (By Product and and By Animal Type)
- 18.104.22.168 Spain (By Product and and By Animal Type)
- 22.214.171.124 Rest of Europe (By Product and and By Animal Type)
- 5.3.3 Asia-Pacific
- 126.96.36.199 China (By Product and and By Animal Type)
- 188.8.131.52 Japan (By Product and and By Animal Type)
- 184.108.40.206 India (By Product and and By Animal Type)
- 220.127.116.11 Australia (By Product and and By Animal Type)
- 18.104.22.168 South Korea (By Product and and By Animal Type)
- 22.214.171.124 Rest of Asia-Pacific (By Product and and By Animal Type)
- 5.3.4 Middle East and Africa
- 126.96.36.199 GCC (By Product and and By Animal Type)
- 188.8.131.52 South Africa (By Product and and By Animal Type)
- 184.108.40.206 Rest of Middle-East & Africa (By Product and and By Animal Type)
- 5.3.5 South America
- 220.127.116.11 Brazil (By Product and and By Animal Type)
- 18.104.22.168 Argentina (By Product and and By Animal Type)
- 22.214.171.124 Rest of South America (By Product and and By Animal Type)
6 COMPETITIVE LANDSCAPE
- 6.1 Company Profiles
- 6.1.1 Bayer AG
- 6.1.2 BioChek BV
- 6.1.3 bioMerieux SA
- 6.1.4 Boehringer Ingelheim International GmbH
- 6.1.5 Ceva Animal Health LLC
- 6.1.6 Elanco Animal Health
- 6.1.7 Heska Corporation
- 6.1.8 Idexx Laboratories
- 6.1.9 IDVet
- 6.1.10 INDICAL Bioscience GmbH
- 6.1.11 Merck & Co. Inc.
- 6.1.12 Phibro Animal Health
- 6.1.13 Randox Laboratories Ltd
- 6.1.14 Thermo Fisher Scientific
- 6.1.15 Vetoquinol
- 6.1.16 Virbac SA
- 6.1.17 Zoetis Inc.
7 MARKET OPPORTUNITIES AND FUTURE TRENDS