The global farm animal healthcare market was valued at USD 19.98 billion in 2022, and it is estimated to reach an expected value of USD 33.76 billion by 2031, registering a CAGR of 6% during the forecast period (2023-2031). The growth of the global farm animal healthcare market is currently being driven by various factors, including the increased productivity at the risk of zoonoses, initiatives taken by the government and other organizations to create awareness among people concerning the importance of veterinary healthcare, and technological advancements related to the management of animal health, among others.
Proper veterinary services, which include the diagnosis and treatment of several diseases for livestock animals, have gained much importance, as it is directly associated with commerce. Animal diseases are the foremost and increasingly significant factor reducing livestock productivity, specifically in developing countries, like China and India, further fueling demand for the market studied across these emerging economies.
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Improved Technology Leading to Innovations in Animal Healthcare
The demand for food safety and produce traceability is pushing farm, ranch, and feed yard owners to use more innovative methods for efficient monitoring and tracking of livestock health data, which is having a significant impact on the growth of the studied market during the forecast period. Animal healthcare is one of the most well-established industries in the world. Also, aside from the food safety compliance aspect, better livestock and facility management means higher quality meat, increased dairy production, and, ultimately, better profitability. Thus, there is great importance in using technology in animal health management.
The companies are also developing and launching innovative drug products for unmet needs. For instance, in September 2020, the major player in animal healthcare, Hester Biosciences Limited, reported that the company would develop a Brucella vaccine that ensures enhanced safety, immunogenicity, and lifelong immunity with a single shot in calf-hood. Hester reported signing an agreement with the Indian Council of Agriculture Research (ICAR) and the Indian Veterinary Research Institute (IVRI) to acquire the indigenously developed technology to develop the Brucella Abortus S19 Delta Per vaccine to develop the Brucella vaccine. Also, companies are now digitizing animal healthcare services. Companies have been able to develop innovative digital solutions that support farm animal owners and animal care specialists in their operations by optimizing animal healthcare management practices and providing a better, more efficient way of recording, tracking, and analyzing animal health data to gain actionable insights and drive better decision-making, helping them improve farm and feed yard productivity and profitability and animal longevity. Thus, increasing innovation leading to the development of advanced technologies by various companies for the enhancement of veterinary healthcare is likely to drive the growth of the studied market in the country over the forecast period of the study.
Increasing Initiatives by the Governments and Animal Welfare Associations in Different Countries
Animal health surveillance is essential for food safety, related public health, and the trade of animals and animal products. There is a rising awareness of animal health, primarily through various government initiatives. Historically, many active and passive animal health surveillance activities have been used and will be used continually across the globe. Several policies and regulations have been developed to support the management of diseases in animals. For instance, The Italian Ministry of Health (MOH) is the central body that deals with orientation and planning on veterinary health, food hygiene, and safety issues. Which aims to raise awareness and recommendation of appropriate and proven control measures to protect companion animals.
As severe storms, floods, droughts, and wildfire events harm their operations and impact their livelihoods, farmers, ranchers, and forest landowners increasingly feel the effects of climate change. The United States Department of Agriculture (USDA) joined forces with rural communities to create climate solutions to support rural America in September 2021. Climate-smart farming and forestry practices will help in marketing climate-smart agricultural commodities. This will help US farmers, ranchers, and forest landowners as leaders in addressing climate change, thus, driving the market growth. Thus, considering the above factors and the increasing number of campaigns and initiatives, the market studied is expected to witness growth over the forecast period.
Use of Counterfeit Medicines
Counterfeit, faked, unregistered medications, and unapproved parallel imports are examples of illegal veterinary pharmaceuticals. The risks of illegal veterinary medicines are not only a concern for animal safety but also becomes a significant risk to human safety. Humans consume food from animals in many ways, and when animals treated with illegal veterinary medicines are consumed by humans, the risk of zoonotic infections and antimicrobial and anti-parasitic resistance increases to be transferred into humans too, which can create a severe problem. Thus, restraining the growth of the studied market. The availability of a considerable number of counterfeit animal drugs, including fake or copied farm animal drugs within the world due to a lack of adequate and stringent policies along with low awareness among people about veterinary medicines, can be identified as an obstruction to the growth of the market for genuine drug products.
According to an article published by NewVision in February 2021, farmers found that the veterinary officers and drug operators are adultering medicines and giving wrong prescriptions, which has negatively impacted the animal's productivity. Such acts by the senior authorities are expected to restrain market growth. As per the data of "Health For Animals," published in April 2018, illegal veterinary medicines are responsible for between USD 1-2 billion loss of veterinary medicines worldwide, including anti-infective medicines, annually, thus, hampering the studied market growth.
Increasing Productivity at the Risk of Emerging Zoonosis
Animal health has both direct and indirect impacts on human health. The primary public health zoonotic diseases include brucellosis, toxoplasmosis, cysticercosis, echinococcosis, Japanese encephalitis (JE), plague, leptospirosis, scrub typhus, Nipah, trypanosomiasis, Kyasanur forest disease (KFD), and Crimean-Congo hemorrhagic fever (CCHF). With the increasing incidence of such diseases, there is an immediate requirement for vaccination against these diseases. The increasing livestock production and the growing animal population are the major factors increasing the risk of the emergence of zoonosis, which is boosting the demand for veterinary healthcare products across the globe and driving the studied market of veterinary healthcare toward growth over the forecast period. India and United States are becoming significant hubs for livestock and poultry production, which is also the primary factor for market growth. For instance, according to an article published by Koala Guide LLC in June 2021, India, the United States, Pakistan, China, and Brazil are the five largest producers of milk, and India, the United States, and Pakistan account for 40% of the total milk production in the world. The incidences of zoonosis increase in these areas, thus driving the market.
The global farm animal healthcare market is segmented by product, animal type, and region.
By product, the global farm animal healthcare market is segmented into vaccines, parasiticides, medical feed additives, anti-infectives, and other products. The vaccines segment accounted for the largest market share and is estimated to grow at a CAGR of 7% during the forecast period. The development of new vaccines, rising investments by governmental organizations and associations, increased animal health awareness, expanding demand for animal protein, such as milk, meat, eggs, and fish, and rising costs of veterinary care for pets are all predicted to boost the vaccination market. The market for veterinary vaccinations has increased as a result of the increasing steps taken by various governments in various regions to promote animal healthcare. For instance, in the Democratic Republic of the Congo's provinces of Kwilu and Kwango, the Food and Agriculture Organization of the United Nations (FAO) initiated a cow vaccination campaign in February 2019 in collaboration with the Ministry of Fisheries and Livestock. Market participants are also concentrating on introducing novel vaccinations across Europe to increase their market position. For instance, Boehringer Ingelheim's VAXXITEK piglets poultry vaccine was introduced in the United Kingdom and Ireland in January 2020. Salmonella Typhimurium and its monophasic forms are resistant to salmoporc. Piglets receive it orally, and sows receive it via subcutaneous injection. The growth of the vaccines segment is therefore anticipated to continue growing steadily during the projected period due to the causes mentioned above.
By animal type, the global farm animal healthcare market is segmented into cattle, swine, poultry, sheep, and other farm animals. The cattle segment accounted for the largest market share and is estimated to grow at a CAGR of 7.3% during the forecast period. With governmental support, dairy production has been steadily increasing worldwide, giving a place for private initiatives in the industry. There is also awareness of new farming techniques, which has been a driving factor for the healthcare market. These also include maintaining the good health of animals for a healthy yield. Progress in this market has created a demand for better diagnostic techniques and drugs to treat various diseases in cattle.
Additionally, the increasing number of product launches and development in technologies used in the respective segment is expected to drive market growth during the forecast period. For instance, the WHISPER ON ARRIVAL tool, developed by Merck Animal Health and Allflex Livestock Intelligence, predicts which animals will benefit from medication for the management of Bovine Respiratory Disease (BRD). Therefore, it is anticipated that the market under study will expand rapidly due to the rising incidence of diseases and the rising number of cattle.
By region, the global farm animal healthcare market is segmented into North America, Europe, Asia Pacific, Middle East & Africa, and South America.
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North America accounted for the largest market share and is estimated to grow at a CAGR of 6.8% during the forecast period. One of the economies with the most development is the United States. It currently controls a sizable portion of the farm animal healthcare market and is anticipated to continue along the same path during the forecast period. The United States Department of Agriculture estimates that there were 93.6 million cows and calves in the nation as of January 2021. The abundance of cattle heads is anticipated to increase demand for veterinary services. The gross output of pork production in the United States is estimated to be USD 23.4 billion annually, with roughly 26% of the nearly 2.2 million metric tons of pork and pork products produced being exported to other countries, according to an article written by Terri Queck-Matzie in 2019. The FDA is legally able to approve and control medications for animals thanks to the Federal Food, Drug, and Cosmetic Act. Veterinary vaccines in the United States have been regulated by the Center for Veterinary Biologics (CVB) in the Animal and Plant Health Inspection Service (APHIS). The CVB grants establishment and product license to animal health companies to manufacture and sell veterinary biologics. The presence of significant players, like Idexx Laboratories, Merck & Co. Inc, Zoetis Inc., and many other companies launching new products, gives an edge to the country in the global market.
Europe is the second largest region. It is estimated to reach an expected value of USD 13100 million by 2031, registering a CAGR of 6.4%. The rising technological advancements and increasing awareness of zoonotic and foodborne diseases are key factors propelling the growth of the studied market. Also, innovations and research initiatives have helped improve the health of livestock. Therefore, the market studied has been experiencing rapid growth. The increasing poultry population is also expected to drive market growth and increase the demand for therapeutics and diagnostic procedures in poultry health management. As per the Department of Environment, Food and Rural Affairs, the United Kingdom, in 2018, the total poultry population was about 188,442 thousand, which increased from 181,818 in 2017. As per the Department for Environment, Food and Rural Affairs 2021 report, bovine tuberculosis (bTB) is the biggest and most significant animal health problem faced by farmers and the government in the United Kingdom. Moreover, the UK government is committed to working with the industry and vet professionals to eradicate the disease by 2038. Such initiations from the government will boost the market growth in the near future
Asia Pacific is the third largest region. The growing consumption of meat, pork, and beef and the risk of zoonotic diseases fuel the growth of the Chinese farm animal healthcare market. Inter-government organizations and food production agencies are making reforms to maintain good health through surveillance and vaccination. By investing in R&D. China, Animal Husbandry Group (CAHG) is one of the two subsidiaries of China National Agricultural Development Group Corporation (CNADGC). In addition, according to the estimates provided by the United States Department of Agriculture (USDA) Foreign Agricultural Service, China is the fourth-largest beef-producing country in the world. In 2020, USDA estimated that beef production would continue increasing in 2021, forecast of 6.9 million tons. In 2020, USDA predicted that pork production would go up to 41.5 million tons by 2021, with around 370 million heads of swine. Thus, the rising population and production of these animals require veterinary services solutions to treat various ailments. This trend is expected to drive the market in the coming years.
Key players in the global farm animal healthcare market are Ceva Sante Animale, Elanco Animal Health Incorporated, IDEXX Laboratories, Merck & Co. Inc., Phibro Animal Health Corporation, Vetoquinol SA, Virbac, Zoetis Inc.