The global veterinary pharmaceutical drugs market size was valued at USD 50.93 billion in 2023. It is estimated to reach USD 97.64 billion by 2032, growing at a CAGR of 7.5% during the forecast period (2024–2032). The global veterinary pharmaceutical drugs market growth is primarily boosted by the surging incidence of infectious and non-infectious diseases in animals, which can be treated with pharmaceutical drugs. Moreover, the growing number of veterinary hospitals that ensure proper treatment of animals is further boosting the market expansion. There has also been a rise in the regulatory approval of novel pharmaceutical drugs for use in veterinary applications, thereby creating opportunities for market expansion.
Veterinary pharmaceutical drugs refer to medications explicitly formulated and approved for animal use to prevent, treat, or manage a range of medical disorders. These drugs target the distinct physiological and metabolic requirements of various animal species. They encompass anti-infectives, anti-inflammatory agents, parasiticides, vaccinations, and medicated feed additives. Veterinary pharmaceutical drugs have a wide reach, including all animal species, including domesticated and companion animals, and a diverse range of illnesses that can impact different species.
Veterinary pharmaceutical drugs are frequently used, both with and without expert supervision. A veterinary physician, often known as a veterinarian, veterinary surgeon, or "vet," oversees professional care. However, veterinary nurses, technicians, and assistants are also commonly involved in this role. Other paraprofessionals possessing particular expertise, such as animal physiotherapy or veterinary dentistry, and those with species-specific responsibilities, like farriers, can provide further support.
The rising incidence of both infectious and non-infectious diseases in animals, including mastitis, arthritis, diabetes, cancer, and Lyme disease, is fueling the need for veterinary pharmaceutical drugs. As per the World Organisation for Animal Health, there are over 200 diseases that are shared between people and animals, and 60% of all disease-causing agents in humans are zoonotic.
Diabetes is the prevailing non-communicable ailment in dogs and cats. Obesity is the primary factor contributing to the development of both type 1 and type 2 diabetes in animals. As per the Association for Pet Obesity Prevention, the obesity rates for dogs and cats in the U.S. were 56% and 60%, respectively, in 2017. There is a projected rapid increase in the prevalence of pets with clinical obesity during the projection period. Moreover, clinical obesity leads to medical disorders such as high blood pressure, arthritis, and specific forms of cancer. Hence, the critical importance of preventing and managing animal diseases plays a pivotal role in propelling the growth of the global market.
The increasing expenditure on veterinary hospitals to ensure high-quality services is driving the market's growth. The global rise in adopting companion animals has led to the growth of animal hospitals and clinics. Driven by the rising per capita income, pet owners have recently increased their animal welfare expenditure.
The future of veterinary medicine relies not only on technological progress but also on providing exceptional patient care. Owners of pets are actively seeking the most effective therapies for their animal friends and are willing to allocate more funds for this purpose. Thus, there has been a rise in the allocation of funds towards veterinary facilities. Furthermore, governments worldwide are allocating substantial funds towards veterinary facilities.
The scarcity of veterinarians is having a negative impact on the global veterinary pharmaceutical drugs market growth. As per the American Veterinary Medical Association, the number of veterinarians in the United States in 2018 was 113,394. Approximately 20,000 veterinarians are projected to retire within the upcoming decade. The US Department of Agriculture has detected a deficit of about 200 veterinarians. This scarcity is more widespread in developing nations. Moreover, the limited adoption of novel technology in developing countries can be ascribed to the need for more veterinarians.
The regulatory agencies have increasingly approved new and improved veterinary pharmaceutical drugs in the past few years. For instance, in December 2020, SeQuent Scientific Ltd, a pharmaceutical company, introduced Halofusol, a veterinary drug. SeQuent Scientific has announced the launch of Halofusol 0.5 mg/ml oral solution for calves in 19 European countries, as stated in a regulatory filing. The European Medicines Agency (EMA) recently approved the product through its Spanish affiliate, Laboratorios Karizoo, S.A.
Furthermore, the FDA approved Ayradia, an oral suspension of metronidazole, in October 2023. This medication is intended to treat Giardia duodenalis infection, specifically in dogs. Ayradia is the inaugural animal medication sanctioned by the FDA for treating Giardia duodenalis infections. Ayradia can be obtained through a qualified veterinarian's prescription and is given orally at a dosage of 25 mg/kg (11.3 mg/lb) of body weight using the provided syringe. It should be delivered twice daily for five consecutive days. Therefore, these factors give rise to opportunities for market expansion.
| Study Period | 2020-2032 | CAGR | 7.5% |
| Historical Period | 2020-2022 | Forecast Period | 2024-2032 |
| Base Year | 2023 | Base Year Market Size | USD 50.93 billion |
| Forecast Year | 2032 | Forecast Year Market Size | USD 97.64 billion |
| Largest Market | North America | Fastest Growing Market | Asia-Pacific |
Based on region, the global veterinary pharmaceutical drugs market share is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.
North America is the most significant global veterinary pharmaceutical drugs market shareholder and is expected to expand substantially during the forecast period. The North American market for veterinary pharmaceutical drugs is projected to be driven by the growing population of pets and livestock and the increasing expenditure on them. The American Pet Products Association (APPA) surveyed in 2022 and discovered that more than 66% of households in the United States own at least one pet. Similarly, as per the identical source, approximately 8% of American households engage in animal fostering. A follow-up analysis revealed that 11% of pet-owning households also serve as foster homes for other animals. Moreover, many Americans perceive their pets as integral members of their households. As a result, there is a consistent increase in the annual expenditure owners allocate towards their dogs. According to research, the United States expended USD 136.8 billion on pets in 2022.
Furthermore, many veterinary doctors are anticipated to bolster the market's expansion. In 2017, the American Veterinary Medical Association (AVMA) estimated that around 110,531 veterinary practices existed. This number increased to 113,394 in 2018. According to data released by the Canadian Veterinary Medical Association in 2018, Canada had around 12,517 veterinarians. Moreover, the increasing prevalence of zoonotic diseases and favorable compensation schemes are key factors in the dominance. Zoonotic infections are prevalent in the United States and globally, as stated by the Centers for Disease Control and Prevention. It is widely accepted that animals are responsible for transmitting 6 out of 10 known infectious diseases and are also the source of 3 out of 4 newly emerging infections in humans. Therefore, these factors are expected to stimulate the expansion of the regional market.
Asia-Pacific is expected to have the highest CAGR during the projection period. The reason for this is the expanding presence of the veterinary industry, rising consciousness regarding animal well-being, the proliferation of private veterinary clinics, and government initiatives promoting the welfare of companion animals in Japan, India, China, South Korea, and Australia. For instance, in June 2023, Union Minister Parshottam Rupala introduced a Nandi portal to handle applications and issue non-objection certification (NOC) efficiently for animal drugs and vaccines. Moreover, the nations in the region are undertaking several measures to enhance their pet adoption rate. An adoption campaign organized by The Hindu and Amazon Prime Video took place in India in April 2022, allowing residents to welcome stray animals into their households. The initiative encouraged people to adopt strays instead of buying certain breeds, as many are ill-suited for the Indian environment. These measures would lead to a rise in demand for veterinary drugs in the Asia-Pacific region.
Furthermore, the Asia-Pacific region is witnessing significant investments in research and development by major market participants. A growing focus is on making veterinary pharmaceuticals and inoculations commercially available at affordable rates. These factors are expected to contribute to the profitable expansion of the market in the foreseeable future. In May 2018, Boehringer Ingelheim established its new Asian Veterinary Research & Development Centre to bolster China's animal health business. This move is expected to contribute to the future expansion of the market.
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The global veterinary pharmaceutical drugs market is segmented by animal type and product type.
Based on animal type, the global veterinary pharmaceutical drugs market share is divided into companion animals and production animals.
The production animals segment owns the highest market share. Production animals encompass cattle, poultry, swine, sheep, and other farm animals. The increasing global demand for proteins is fueling the expansion of this particular industry segment. In 2018, the United States Department of Agriculture (USDA) and the National Agricultural Statistics Service (NASS) reported that the combined production of eggs, broilers, and turkey and the value of chicken sales reached USD 46.3 billion. This represented an increase of around 8% compared to the USD 42.7 billion recorded in 2017.
Moreover, the veterinary medicine market is experiencing expansion due to factors such as an increase in the occurrence of diverse medical disorders in animals and a rise in the demand for livestock products. The increased spending on animal healthcare is also a significant catalyst for the market's rapid expansion.
Based on the product type, the global veterinary pharmaceutical drugs market is divided into biologics, pharmaceuticals, and medicated feed additives.
The pharmaceuticals segment dominates the global market. Pharmaceuticals encompass anti-infectives, anti-inflammatory medications, parasiticides, and other types of drugs. Nonsteroidal anti-inflammatory pharmaceuticals suppress the production of enzymes that induce tissue swelling following an injury. Veterinary practitioners favor the use of NSAIDs for alleviating edema. Metacam, Previcox, Piroxicam, Etodolac, Novox, Rimadyl, and Deramaxx are widely accessible nonsteroidal anti-inflammatory medications (NSAIDs).
Moreover, the introduction of new products will bolster the expansion of the market during the forecast period. Merck Animal Health launched Banamine Transdermal (flunixin transdermal solution) in January 2018. This product is the sole US FDA-approved medication for managing pain in animals raised for food production. It is advisable to manage the pain caused by foot rot and the fever caused by Bovine Respiratory Disease (BRD). Consequently, a strong inclination toward these drugs and introducing new products will enhance the market's expansion over the forecast period.
