Find Out More About Animal Health Market Global Growth With Rising CAGR And Forecast Till 2030

Posted by Mrudula Anil Karmarkar on December 15th, 2023

San Francisco, 15 December 2023: The ReportAnimal Health Market Size, Share & Trends Analysis Report By Animal Type (Companion), By Product (Biologics), By Distribution Channel, By End-use, By Region, And Segment Forecasts, 2023 - 2030

The global animal health market size is expected to reach USD 112.36 billion by 2030, expanding at 8.8% CAGR from 2023 to 2030, according to a new report by Grand View Research, Inc. The market is driven by increased investments in animal health R&D, increased diagnostic rates, initiatives by key companies, and increased animal health expenditure. The market has also remained largely resilient during the COVID-19 pandemic.

The market especially for the companion animal segment was positively impacted during late 2020 and 2021, due to increased pet adoption rates, pet humanization trends, and improved overall diagnostics business sales with increased awareness among pet parents. During 2022 and 2023 however, macroeconomic uncertainties, such as global recession and inflation, are expected to impact market revenues for a short period.

The emergence of veterinary health information systems, specifically in developed economies, is expected to provide high growth potential in the future. With the help of these systems, data generated in veterinary clinics can be uploaded on the internet, which can be further shared with other researchers and clinicians. The incorporation of this technology will facilitate real-time analysis for fluctuations in disease prevalence. As a consequence of the aforementioned factors, it is presumed that there will be a significant improvement in the overall penetration rate of veterinary health products, which is anticipated to fuel market demand as well as revenue.

The threat of zoonotic infections spreading through ticks, and fleas or through contact with animals is high. The WHO is involved in various cross-sectoral activities for the purpose of addressing health threats at the human-animal-ecosystem interface. Food-borne zoonoses, antimicrobial resistance, and emerging zoonoses are some of the threats in the animal health market. Also, MediLabSecure, a laboratory network project, was initiated with an aim of identifying emerging viruses and pathogens in 19 countries in the Mediterranean region. The implementation of a wide range of technologies for the detection and monitoring of various animal diseases is one of the major growth contributing factors.

North America captured a substantial share of the global market, owing to a wide range of definitive measures adopted by welfare organizations, technological advancements, rising incidence of zoonotic diseases, and an increasing number of pet owners. Asia Pacific is expected to exhibit lucrative growth over the coming years as a consequence of consistent R&D investments deployed by prominent players and their efforts to commercialize branded and generic therapeutics at a relatively inexpensive price.

Key market participants employ various strategies, such as expanding their product portfolio, to gain a competitive advantage. For instance, in January 2021, Zoetis launched the Poulvac Procerta HVT-IBD vaccine for the protection of poultry against Infectious Bursal Disease (IBD). This added to Zoetis’ product portfolio of recombinant vector vaccines.

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Factors driving the market growth include rising animal health expenditure, the prevalence of diseases in animals, concerns over zoonoses, initiatives by key companies, and pet humanization. For instance, in January 2023, Merck opened a new manufacturing facility for the production of companion animal vaccines in Boxmeer, Netherlands to meet increased global customer demand.

The market remained resilient during the COVID-19 public health emergency owing to a surge in pet adoption, increasing pet humanization, and growing concerns over zoonoses. Some of the negative impacts of the pandemic include decreased sales, supply chain or distribution disruptions, low demand & purchasing rates, and operational hurdles due to changing regulations worldwide. On the other hand, the trend for telemedicine witnessed significant growth during the pandemic. Online channels such as e-commerce emerged as the most preferred distribution channels by pet owners for purchasing vet products and pet food.

Animal Health Market Report Highlights

• By product, pharmaceuticals dominated the market with a share of over 40% in 2022, due to a significant increase in the adoption of pets, which demands long-term health plans
• Based on animal type, the companion animal segment is anticipated to grow at a lucrative rate of 9% during the forecast period, owing to an increased need for companionship, increasing pet expenditure, and adoption of pet insurance
• By distribution channel, retail channels, and e-commerce platforms accounted for a notable share owing to factors such as convenience associated with online pharmacies and the increasing number of retail pharmacies
• In terms of end-use, the Point-of-care testing/in-house testing segment is expected to grow at the fastest CAGR of about 13% during the forecast period, due to an increase in demand for related products and services
• In 2022, North America accounted for the largest share of over 30% of the global animal health industry owing to the presence of established pharmaceutical companies consistently striving for extensive commercialization of their products
• Asia Pacific is anticipated to grow at a rate of about 10% during the forecast period, owing to the high clinical urgency to curb the incidence of zoonotic diseases and management of disease outbreaks, such as swine influenza
• Industry rivalry in the market is expected to remain at a higher level over the forecast period. Market players are involved in adopting extensive growth strategies such as entering strategic alliances, engaging in product differentiation, and expansion of product portfolio in an attempt to capture a larger share of the market
• In February 2021, Ceva and INRAE signed an agreement to collaborate in the arena of animal health. This partnership is expected to accelerate innovation and the development of new products

The market was also impacted by macroeconomic headwinds such as inflation, foreign exchange rate fluctuations, and geopolitical conflict during H2 2022 and the impact is expected to result in dampened growth rate for a short period. Zoetis for instance, reported a decrease in revenue growth by 3% in Q1 and Q2, and 4% in Q3 in 2022. The company reported an overall decrease of 4% in revenue growth in the year 2022. Elanco’s revenue growth was negatively impacted by the change in foreign exchange rates, with a 4% decrease in H1 and a 5% decrease in the Q3 results in 2022. On the other hand, Vimian, based in Sweden, reported a positive impact on revenue growth, estimated at 2.5% in Q1, 4.9% in Q2, and 5.6% in Q3 2022.

The increased production of animal-based food products will lead to a significant price reduction, facilitating easy access to pet food at affordable prices. The market is also driven by technological advancements in veterinary health care, and this is anticipated to offer future growth opportunities. These advancements include the advent of efficient information management systems, mobile technology placing animal owners at the center of the developments, and vaccine banks.

Animal Health Market Report Scope

Growing focus on innovation in animal health has given rise to certain measures that are strengthening market growth prospects. For instance, the Innovative Medicines Initiative (IMI) is a public-private partnership to support collaborative research to boost innovation in veterinary pharmaceuticals in Europe.

The production animal segment dominated the market for animal health and accounted for the largest revenue share in 2022. The substantial share captured by the segment can be presumed a consequence of high concern for food safety and sustainability by government healthcare organizations globally. Policymakers in various countries are striving to achieve total food security, which propels large-scale food production and results in greater rearing of livestock. The policies are focused on long-term sustainability, which can be achieved through a combination of improving productivity and greater attention to livestock veterinary healthcare.

List of Key Players in the Animal Health Market

• Zoetis
• Ceva Santé Animale
• Merck & Co., Inc.
• Vetoquinol S.A.
• Boehringer Ingelheim GmbH
• Elanco
• Virbac
• Heska
• Dechra Pharmaceuticals plc
• IDEXX Laboratories, Inc.