Canine Atopic Dermatitis Market

Market Overview

The global canine atopic dermatitis market size was valued at USD 2.65 billion in 2023. It is expected to reach USD 10.47 billion in 2032, growing at a CAGR of 16.5% over the forecast period (2024-32). Rising pet ownership rates worldwide, particularly in developed countries, drive demand for veterinary care and treatment options for conditions like canine atopic dermatitis. Pets are increasingly viewed as family members, leading to higher spending on pet healthcare. Chronic pruritis and the typical pattern of skin lesions are characteristics of atopic dermatitis. IgE antibodies to environmental allergens, which vulnerable animals are genetically prone to become sensitized, are typically linked to it. Many allergies and disorders are brought on by ecological factors, which is anticipated to fuel market expansion.

The market is also expected to be driven by growing R&D partnership activities with the companies. For instance, in January 2020, Boragen teamed up with one of the top animal health firms in the world solely to conduct research and development for the creation of a novel medication for canine atopic dermatitis. Thus, the market for canine atopic dermatitis is predicted to rise in revenue due to increasing pollution related to allergens and rising dog ownership.

Market Dynamics

Global Canine Atopic Dermatitis Market Drivers

Growing Pollution Worldwide

There has been a long-standing interest in the possible role of indoor and outdoor air pollutants in dogs' development of atopic dermatitis as these can penetrate the skin, binding to the stratum corneum, entering the systemic circulation. The MDPI's review article published in July 2021, titled ''Atopic Dermatitis in Domestic Animals: What Our Current Understanding Is and How This Applies to Clinical Practice'', states that Atopic dermatitis similarly affects animals to the human disease.

The same source contends that because pets were previously exposed to an outdoor environment with greater exposure to parasites and bacteria and less exposure to house dust mites, the current conditions of consuming processed foods rather than raw diets, increasing exposure to indoor environments and house dust mites, and decreasing exposure to beneficial bacteria may contribute to an increase in the development of clinical signs of atopic dermatitis. Since atopic dermatitis is a lifetime ailment that does not go away on its own, it is critical to control the dog's surroundings and administer adequate medication. The increasing pollution worldwide and the changing lifestyle patterns of dogs that are similar to humans are expected to drive the growth of the market studied.

Rising Dog Ownership

There has been a rising adoption of pet animals, especially dogs. The primary reason behind this rise in pet adoption is that animals give humans unconditional love and have been proven emotionally, psychologically, and physically beneficial to their companions. Caring for a pet animal provides a sense of purpose and fulfillment in one's day-to-day life and reduces the feeling of loneliness in this era of busy schedules and nuclear families. According to the National Pet Owners Survey by American Pet Products Association 2019–2020, about 63.4 million US households own a dog.

Additionally, with the increasing ownership of dogs, the expenditure on their health and visits to veterinary doctors have increased. With the adoption of a dog comes the responsibility of taking care of it, as dogs are also being diagnosed with several allergies. Consequently, the demand for treatment of atopic dermatitis in pets has risen significantly. Atopic dermatitis is a common allergy and can happen with environmental allergens. The increasing adoption of dogs and the rising pet healthcare expenditure are expected to propel market growth.

The surging number of veterinary practitioners

One central element anticipated to drive revenue growth of the global canine atopic dermatitis market in the coming years is the rising number of veterinary professionals. Additionally, expanding veterinary hospitals and clinics is anticipated to support future revenue development.

Global Canine Atopic Dermatitis Market Restraint

Usage of Off-label Drugs

The usage of drugs for an indication that is not approved by the regulatory authority of the region or the usage of human medicines for the sign in the animal is commonly known as off-label usage of drugs. However, the usage of off-label drugs or extra-label drugs can lead to a lot of severe health issues and can negatively affect a dog's health. Many authorities have permitted the practice of prescribing off-label medicines, allowing them to write a prescription or authorization to a client to enable them to use a registered drug or veterinary chemical contrary to the approved label directions. For instance, in Australia, veterinarians are permitted to prescribe off-label drugs.

With the access to the prescription of off-label drugs by the veterinarians, the medicines that are not related to the market studied also becomes the competition for the drugs that belong to the canine atopic dermatitis market, thereby affecting the growth of the market studied. Therefore, there is a prevailing and common practice among veterinarians to use labeled drugs for animals. It provides a large pool of veterinarians to choose the prescribing drug for atopic dermatitis in dogs. This factor is expected to restrain the market growth over the forecast period.

Global Canine Atopic Dermatitis Market Opportunities

Increasing Research and Development

Over the past decades, the veterinary healthcare market has shown tremendous change with the development of new drugs, treatments, or routes of administration for the already approved drugs all over the globe. The companies are continuously working on research and development to boost the segment. In April 2020, Bioiberica Companion Animal Health and the University of Florida published the results of a clinical study in dogs with atopic dermatitis that confirmed the efficacy of the Atopivet Spot-On topical formulation to help restore skin barrier function, hydrate skin, and reduce itching, as a monotherapy or part of a multimodal treatment.

The clinical effectiveness of a spray version of a veterinary product containing heat-killed lactobacilli (L. rhamnosus and L. reuteri) marketed as adjuvant therapy for allergic dogs on the clinical signs of canine atopic dermatitis was examined as per an article published in Wiley Online Library in November 2020. The above studies show an increased focus on the research and development and adoption of new technologies in veterinary health and medicines in different parts of the world. The collaboration of the companies depicts their interest in innovation for the market. Consequently, there is a tremendous opportunity for market growth.

Regional Analysis

Region-wise, the global canine atopic dermatitis market share is segmented into North America, Europe, Asia-Pacific, and LAMEA.

North America Surpasses the Rest of the World

North America dominates the growth of the canine atopic dermatitis market expected at a CAGR of 16.1% over the forecast period. This is attributed to the rising dog adoption and the increasing per capita animal healthcare expenditure. The substantial presence in veterinary practices has been identified as the primary factor fueling the market growth. In August 2020, researchers from the College of Veterinary Medicine, University of Florida published a study titled, ''Comparison of various treatment options for canine atopic dermatitis: a blinded, randomized, controlled study in a colony of research atopic beagle dogs''. The study found that administering lokivetmab drugs prevented flares when given before allergen inoculation. It also found that oclacitinib and lokivetmab positively affect skin barrier parameters. Clinical studies such as these are expected to boost market growth.

Europe is the second-largest region and is estimated to reach USD 1,445 million by 2030, growing at a CAGR of 16.7%. Germany is the most significant contributor to the European market. The growth in Germany can be attributed to the growing pet adoption in the region and the presence of major companies introducing new products. Many companies in Germany offer products for the treatment of canine atopic dermatitis. For instance, Boehringer Ingelheim is a prominent Germany-based manufacturer of veterinary drugs for dogs. These factors are expected to contribute to market growth over the forecast period.

Asia-Pacific is the fastest-growing region. In China, a significant increase in the adoption of dogs has been observed. Movements toward animal welfare and animal rights have also expanded in China, which is expected to augment the market growth. In 2019, the World Small Animal Veterinary Association (WSAVA) collaborated with ACTAsia, a non-profit organization that provides veterinary training in China, to promote animal welfare. Increasing dog adoption, raising pet care awareness, and expenditure is boosting the market growth in the region.

Asia-Pacific is the fastest-growing region. In China, a significant increase in the adoption of dogs has been observed. Movements toward animal welfare and animal rights have also expanded in China, which is expected to augment market growth. In 2019, the World Small Animal Veterinary Association (WSAVA) collaborated with ACTAsia, a non-profit organization that provides veterinary training in China, to promote animal welfare. Increasing dog adoption, raising pet care awareness, and expenditure is boosting the market growth in the region.

Due to the prevalence of pet dogs in this region, Latin America held a substantial share. Among the top 10 nations in the world with the most pets are Brazil and Argentina.

Segmental Analysis

The global canine atopic dermatitis market share is segmented by treatment type, route of administration, and region. 

Treatment type-wise, the global canine atopic dermatitis market is segmented into Glucocorticoids, Immunosuppressants, Monoclonal Antibodies, and Others.

Monoclonal Antibodies account for the largest market share and are estimated to grow at a CAGR of 18.3% during the forecast period. They are monospecific antibodies made by identical immune cells with a monovalent affinity. There is more research going on in this field, boosting the growth. For instance, in June 2018, Regeneron Pharmaceuticals, Inc. and Zoetis Inc. announced a five-year collaboration to research the use of Regeneron's monoclonal antibody therapeutics in animals and discover new veterinary treatments, boosting the segment growth. The above factors are expected to boost segment growth in the forecast period.

Glucocorticoids are the second-largest segment. Fast-acting glucocorticoids deactivate many inflammatory cells and lessen inflammatory/itch mediators. They are used to treat canine atopic dermatitis to induce remission and maintain long-term control (CAD). Glucocorticoids are extensively used to treat atopic dermatitis in dogs. These drugs are recommended as first-line therapies in the updated guidelines for managing this disease.

Administration route-wise, the global canine atopic dermatitis market is segmented into Topical, Oral, and Injectable.

The Topical route accounts for the largest market share and is estimated to grow at a CAGR of 20.7% during the forecast period. There is an increase in the research activities in this segment as it is easy for application and effective in controlling the flares and itches. The study “Topical treatment with SPHINGOLIPIDS and GLYCOSAMINOGLYCANS for canine atopic dermatitis” was published in 2020. It aimed to evaluate the effects of a novel topical treatment consisting of sphingolipids and Glycosaminoglycans extracts in dogs with atopic dermatitis. In September 2020, Bioiberica Companion Animal Health, a company specializing in dermo-repair, announced the launch of Atopivet Mousse, which maintains the integrity and protective barrier of the skin internally and externally, which otherwise is impaired in canine atopic dermatitis. These ongoing research activities and product advancements boost the segment’s growth.

The Oral route is the second-largest segment. The immunosuppressants and antihistamines fall under this section. There are oral glucocorticoids, oral ciclosporin, and oral oclacitinib for managing atopic dermatitis. The key prevention strategy for canine atopic dermatitis is allergen-specific immunotherapy, and it is currently the only treatment that may induce complete remission of clinical signs. In July 2021, Virbac launched Cyclavance, the first United States Food and Drug Administration (FDA) approved liquid cyclosporine for dogs diagnosed with atopic dermatitis. These factors are expected to boost the segment growth during the forecast period.

Due to its effectiveness and potency, the injectables market is anticipated to grow profitably over the forecast period. Injectables exhibit a quick beginning of the action, which is predicted to drive demand shortly. For improved results, veterinarians are currently suggesting a combination of oral and injectable medication. An extensive product pipeline will support the growth of the injectable market.

Based on the distribution channel the market is segmented into veterinary hospitals/clinics, retail, and E-commerce.

The market for canine atopic dermatitis is mainly dominated by the retail segment. Its wide network of distribution channels enabled it to maintain its dominant position. Pet owners can readily obtain a variety of atopic dermatitis products at veterinary clinics due to their retail departments and specialist pet stores. With a range of easily accessible products like medicated wipes, shampoos, lotions, and nutritional supplements, pet owners can take care of their dogs' health without having to rush them to the doctor. Because of its accessibility, retail has emerged as the primary channel through which canine atopic dermatitis products is distributed.

Recent Developments

• June 2024 - OKAVA Pharmaceuticals has announced the results of a pilot study on a new treatment for canine atopic dermatitis. The study, published in the journal Veterinary Dermatology, evaluated OKV-1001, a modified-release formulation of mycophenolate. This novel treatment showed significant improvement in dogs with moderate-to-severe AD who had not responded to conventional therapies. The results indicated a substantial reduction in skin lesion severity with no adverse events reported, making it a promising alternative for dogs with chronic AD.
• May 2024 - Johnson & Johnson acquired Proteologix, Inc., a biotechnology company specializing in bispecific antibodies. This acquisition includes Proteologix’s portfolio of antibodies targeting key pathways in immune-mediated diseases such as atopic dermatitis. Their lead candidate, PX128, targets IL-13 and TSLP, which are critical in the pathogenesis of AD and asthma. This acquisition aims to enhance Johnson & Johnson’s dermatology portfolio by offering potentially best-in-class therapeutics for patients with moderate-to-severe AD