The animal healthcare market comprises products and solutions that enhance animal health and prevent diseases among companion animals and livestock animals. The products include pharmaceuticals, feed additives, and vaccines. Pharmaceuticals dominate the market and include medicines for infection, pain, osteoarthritis, and other ailments. Feed additives are microbial and non-microbial additives that improve gut health, nutrient absorption among livestock. Vaccines are administered to companion and farm animals to prevent the spread of contagious diseases. The rising expenditure on pet healthcare and food, increasing meat consumption, and growing livestock population drive the need for animal healthcare products.
The Global Animal Healthcare Market is estimated to be valued at US$ 53.22 Bn in 2024 and is expected to exhibit a CAGR of 5.5% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the animal healthcare market are Bayer AG, Boehringer Ingelheim GmbH, Cargill Inc., Ceva Santé Animale, Eli Lilly and Company, DSM, Merck & Co., Inc., Novartis AG, Nutreco N.V., Sanofi S.A., SeQuent Scientific Ltd., Virbac S.A., Vétoquinol S.A., Zoetis Inc. These companies develop diverse products for companion and livestock animals. Bayer AG and Zoetis Inc occupy significant market shares through their broad portfolio of vaccines, pharmaceuticals, and diagnostics.
The increasing pet population worldwide is driving the demand for animal healthcare products. According to recent surveys, around 70 million American households own a pet. The rising pet ownership is stimulating the sales of vaccines, medicines, and nutritional products. Livestock farmers are also increasing spending on healthcare driven by the growing demand for meat and dairy.
Technological advancements are aiding the animal healthcare industry. Pharmaceutical companies are developing novel therapeutics through intensive R&D. Telehealth and digitalization allow veterinarians to remotely monitor and diagnose animal health issues. Genomic sequencing and gene editing technologies help design superior vaccines and therapeutics. Automated manufacturing facilities ensure high production volumes to cater to growing demand.
Market Trends
The market is witnessing consolidation through mergers and acquisitions as large players aim to enhance their product portfolios. Companies are utilizing big data analytics to gain insights into animal disease patterns and better responses. There is an increased focus on nutrition and vaccines as preventive measures for common livestock diseases. Digital technologies like blockchain and AI are transforming supply chain operations and diagnostic processes.
Market Opportunities
The rising meat consumption in developing nations provides opportunities to expand feed additive sales. Asia Pacific accounts for over half of the global population and has growing awareness of pet healthcare. This presents lucrative prospects, especially in China and India. Livestock monitoring through IoT sensors and wearable devices is an emerging trend offering new commercialization opportunities. Preventive animal care through nutritional programs and recurring vaccinations ensures a steady revenue stream.
The Covid-19 pandemic has significantly impacted the growth of the animal healthcare market globally. Strict lockdowns and social distancing measures imposed across countries led to disruptions in supply chains and logistics. This severely hampered access to veterinary services and several animal healthcare products. Some key areas that were significantly affected include vaccine production and distribution, timely diagnosis for diseases as well as routine check-ups and treatments. However, with vaccinations driving down Covid infections in recent months, veterinary practices have resumed normal operations with appropriate safety protocols. Manufacturers are also ramping up production capacities to meet any sudden surges in demand. Going forward, focus on digital healthcare solutions, teleconsultations and e-commerce channels for product delivery will strengthen market resilience against future pandemics. Investments in R&D activities for new vaccines and therapeutics will further aid long term growth prospects of the animal healthcare industry.
The United States dominates the global animal healthcare market holding approximately one-third of the total market value. High levels of pet ownership and rising pet care expenditure are key factors supporting market growth in the region. Presence of leading international players along with robust healthcare infrastructure ensures widespread access to advanced veterinary services and products. Europe is another major regional market accounting for over 25% market share in terms of revenue owing to growing awareness about animal welfare. Rising pet population accompanied by rising farm animal numbers, especially livestock will drive future demand for animal healthcare products and services across both developed and emerging economies.
Asia Pacific region is poised to witness the fastest growth in the animal healthcare market over the coming years. Rapidly expanding livestock industry, aquaculture sector and rising pet adoption are collectively boosting demand for animal therapeutics, vaccines and diagnostic solutions. Countries like India, China and Indonesia which are among the top globally in terms of milk production and meat consumption will be at the forefront driving the animal healthcare market growth in Asia Pacific. Supportive government policies to promote animal health and public-private initiatives are facilitating industry growth across emerging Asian nations.
