Veterinary Medicine Market

Market Overview

The global veterinary medicine market size was valued at USD 32.77 billion in 2022. It is estimated to reach USD 52.47 billion by 2031, growing at a CAGR of 5.37% during the forecast period (2023–2031). The global veterinary medicine market's expansion is attributed to the growing number of pets in developed and emerging economies. The rising zoonotic and chronic disease is also driving the veterinary medicine market growth.

Veterinary medicine is the sub-field of medicine concerned with the prevention, treatment, management, and diagnosis of disease, disorder, and injury in animals. It also deals with animal husbandry, breeding, nutrition research, and product development. The scope of veterinary medicine is expansive, as it encompasses all animal species, both domesticated and companion, and a vast array of conditions that can affect various species.

Veterinary medicine is widely practiced both with and without professional supervision. A veterinary physician typically manages professional care (also known as a veterinarian, veterinary surgeon, or "vet"); however, veterinary nurses, technicians, and assistants are also frequently involved. This can be supplemented by the services of other paraprofessionals who have specialized knowledge and training in areas like animal physiotherapy, veterinary dentistry, and species-specific tasks like farriery.

Market Dynamics

Veterinary Medicine Market Drivers

Growing Rates of Pet Ownership

The rise in pet ownership is fueling the demand for better care of companion animals, driving the overall expenditure on pets. As estimated by the American Pet Products Association, there has been a considerable rise in the overall spending in the US pet industry. The overall spending in the pet industry increased by 5.2 billion in 2019 compared to 2018 in the country. It is also worth noting that approximately 67% of homes in the United States possess pets.

The increasing rate of pet insurance in developed countries is also propelling the ownership rate of pets. Countries like Brazil, China, and Ukraine also spend a lot on pet health. Similarly, the dog population in India is increasing at the highest rate. Hence, the rise in the number of companionship animals and spending propels the growth of the veterinary medicine market.

Rising Zoonotic and Chronic Diseases Animals

The growing prevalence of animal diseases poses a serious threat to food security. Growing zoonotic and chronic animal diseases have a significant impact on human interests. The longer average lifespan of pets due to improved medical care and dietary practices is one of the main causes of the rise in chronic diseases. However, one out of every five animals loses their life due to diseases. The cost of these diseases is staggering to the economy. These chronic diseases can be controlled with the help of preventive tools such as vaccination. The animal health industry invests a substantial amount in preventing chronic diseases among animals, therefore supplementing the growth of the global market.

Veterinary Medicine Market Restraint

Shortage of Veterinarians

The lack of veterinarians is adversely affecting the growth of the global  market. As per the American Veterinary Medical Association, there were 113,394 veterinarians in the US in 2018. Nearly 20,000 veterinarians are expected to retire within the next ten years. The US Department of Agriculture identified the shortage of nearly 200 veterinarians. This shortage is more prevalent in emerging countries. The slow adoption of recent technologies in emerging nations is also attributed to the shortage of veterinarians.

Veterinary Medicine Market Opportunities

Increasing Investment in Veterinary Hospitals

The rising spending on veterinary hospitals to ensure quality services provides a lucrative growth opportunity for the market. Increasing adoption of companion animals globally has driven animal hospitals and clinics. Buoyed by the increasing per capita income, the spending of pet owners on animal well-being has increased considerably in the recent past.

The future of veterinary medicine depends not only on technological advancement but also on superior patient care. Pet owners are seeking the best treatments for their companions and willing to spend more. This has led to an increase in investment in veterinary hospitals. Governments across the globe are also spending a significant amount on veterinary hospitals.

Regional Analysis

Based on region, the global veterinary medicine market share is bifurcated into the Americas, Europe, Asia-Pacific, and the Middle East and Africa. 

North America Dominates the Global Market

Americas is the most significant global veterinary medicine market shareholder and is anticipated to exhibit a CAGR of 5.44% during the forecast period. The Americas has been segmented into North America and Latin America. The rising population of pets and livestock with many veterinary practices is expected to support the veterinary medicine market's growth. The American Veterinary Medical Association (AVMA) predicted that around 110,531 veterinary practices were operating in 2017, reaching 113,394 in 2018. Similarly, as per the statistics published by the Canadian Veterinary Medical Association in 2018, about 12,517 veterinarians were present in Canada. In addition, Ontario had about 4,880 veterinarians in the same year. Moreover, according to the Canadian Animal Health Institute (CAHI), the population of dogs rose to 8.2 million in 2018 from 7.6 million in 2016.

Furthermore, new product launches also played a key role in market growth. In 2017, Elanco, a US-based global animal health company, launched Galliprant for inflammation associated with canine osteoarthritis (OA) and pain management. Hence, high numbers of veterinary doctors, the growing prevalence of animal diseases, and increasing pet ownership are expected to support the market's growth.

Europe is anticipated to exhibit a CAGR of 4.87% over the forecast period. Europe would follow the Americas regarding the market value during the forecast period. This is attributed to the surging prevalence of diseases, new product approvals, and the presence of developed veterinary healthcare infrastructure. The rising prevalence of cancer contributes to the expansion of the market. According to the Animal Tumor Registry of Genoa in Italy, the estimated incidence rate of malignant tumors in dogs is 185.7 cases per 100,000. Moreover, a high prevalence of animal diseases, including musculoskeletal disorders, osteoarthritis, and cancer, will support the market's growth during the forecast period. According to a research article in the UK, about 2.5% of dogs suffer from osteoarthritis annually.

Additionally, Europe's high population of companion animals is expected to boost the market's growth during the forecast period. As per the Industrial Association of Pet Care Producers, around 34.3 million pets, including dogs, cats, small mammals, and birds, lived in 2017, which increased by 2.7 million compared to 2016. Hence, the high prevalence of animal diseases and increasing pet population will support European veterinary medicine industry growth.

Asia-Pacific is expected to exhibit the greatest CAGR over the forecast period. This is because of the growing penetration of the veterinary sector, increasing awareness about animal welfare, the surge in the number of private veterinary clinics, and government campaigns for the welfare of pet animals in Japan, India, China, South Korea, and Australia. In 2017, according to a research paper, about 50.8 million dogs were living in China. The large population of pets in this region will support the market's growth.

In addition, high R&D spending by numerous key market players in the Asia-Pacific region and increasing efforts to commercialize veterinary pharmaceuticals and inoculations at reasonable prices would also support the lucrative market growth over the forecast period. In May 2018, Boehringer Ingelheim integrated its new Asian Veterinary Research and Development Centre to enhance China's animal health industry, which will likely support market growth soon. All these factors are expected to boost the market's growth during the forecast period.

In the Middle East and Africa, the market development has been considerably low recently. In the Middle East, the adoption rate of veterinary medicine was mainly in developing nations like South Africa, the UAE, and Saudi Arabia. The market's growth was low, owing to the presence of low-income countries in the region. Further, the average household net adjusted disposable income per capita in South Africa is USD 10,872 annually, considerably less than the OECD average of USD 30,563, according to data from the Organization for Economic Co-operation and Development (OECD). However, growing awareness and an increasing number of companion animals are expected to boost market growth soon.

Segmental Analysis

The global veterinary medicine market is segmented by animal type, product, route of administration, and distribution channel.

Based on animal type, the global veterinary medicine market is segmented into domesticated and companion. 

The domesticated segment owns the highest market share and is estimated to exhibit a CAGR of 5.99% during the forecast period. The rising demand for proteins worldwide is driving this segment's growth. According to the United States Department of Agriculture (USDA) and National Agricultural Statistics Service (NASS), the total production from eggs, broilers, and turkey, and the value of sales from chicken, was USD 46.3 billion in 2018, a surge of about 8% from USD 42.7 billion in 2017. Likewise, factors such as a surge in the prevalence of various medical conditions in animals and an advancement in demand for livestock products also boost the global market growth. The surge in animal healthcare expenditure is another major factor that expedites the market's growth.

Based on product, the global veterinary medicine market is bifurcated into drugs and vaccines. 

The drugs segment dominates the global market share and is projected to exhibit a CAGR of 4.86% over the forecast period. The flourishing number of chronic diseases in animals is driving the growth of this segment. Various categories of drugs used to treat different types of drugs include nonsteroidal anti-inflammatory, local anesthetics, opioids, muscle relaxants, and medicated feed. Nonsteroidal anti-inflammatory drugs inhibit the production of enzymes that cause tissue swelling during injury. Veterinary practitioners prefer NSAIDs to relieve the swelling. The major drugs such as Metacam, Previcox, Piroxicam, Etodolac, Novox, Rimadyl, and Deramaxx are commonly available NSAIDs.

The new product launches will also support the segment's growth during the forecast period. In January 2018, Merck Animal Health introduced Banamine Transdermal (flunixin transdermal solution), the first US FDA-approved pain control product in food-producing animals. Controlling pain associated with foot rot and fever associated with Bovine Respiratory Disease (BRD) is recommended. Thus, a high preference for these drugs and new product launches are expected to boost the market's growth during the forecast period.

Based on the route of administration, the global market is divided into oral, parental, and other. 

The oral segment is the most significant contributor to the market and is estimated to exhibit a CAGR of 5.01% over the forecast period. Due to developments in the oral veterinary medication sector, such as chewable pills, the oral segment currently accounts for the greatest market share. Moreover, it is anticipated that the soaring prevalence of chronic illnesses in pets will drive the market for veterinary medication. For instance, Merck expanded its medication line when the US FDA approved Bravecto monthly chews for dogs and puppies in July 2020.

The oral route of administration is adopted in the form of tablets or capsules. A shorter treatment time is expected to drive market growth. Moreover, this route of administration is the least expensive, convenient, and safe, which increases its popularity.

Based on distribution channels, the global market is divided into veterinary hospitals and clinics, retail stores, and online pharmacies. 

The veterinary hospitals and clinics segment owns the largest market share and is predicted to exhibit a CAGR of 5.60% throughout the forecast period. The development of this segment can be attributed to advanced diagnostic imaging, nuclear and regenerative medicines, novel therapies, laser diagnostics, and specialized surgeries available in veterinary hospitals and clinics. Veterinary hospitals are important animal health product distribution channels, particularly veterinary formulas. In addition, the growing support from professional organizations to community and hospital veterinary pharmacists augments the segment's growth. For instance, the Society of Veterinary Hospital Pharmacists is an organization comprising pharmacists working exclusively in the veterinary field, mainly at veterinary teaching hospitals in colleges of veterinary medicine.

Furthermore, several public and private authorities have taken several initiatives to decrease the off-label use of drugs and illegal service offerings of veterinary hospitals and clinics. For instance, the American Animal Hospital Association is the only group that certifies veterinary clinics in the US and Canada. This accelerates the development of this market.

Recent Developments

• January 2023- The U.S. Department of Agriculture (USDA) granted a conditional license for honeybee vaccination against American Foulbrood disease caused by Paenibacillus larvae, it was announced today by Dalan Animal Health, Inc. ("Dalan"), a pioneering biotech company in the field of insect health.
• June 2023- IDEXX Laboratories, Inc., a global leader in pet healthcare innovation, introduced the first veterinary diagnostic test for detecting kidney damage in cats and dogs.