The animal health market is projected to reach US$ 126,500.20 million by 2028 from US$ 87,547.03 million in 2022; it is estimated to register a CAGR of 6.2% from 2022 to 2028.
Preventing animal disease and monitoring animal food supplies are vital to ensure safety of food supply. Breeding of healthy livestock guarantees a safe supply of food and keep selling prices stable. Zoonotic diseases can adversely affect public health, international trade, and the stability of the agricultural sector, resulting in a loss of millions of dollars owing to livestock trade halts, animal slaughters, and subsequent disease elimination efforts. In November 2017, Porcine reproductive and respiratory syndrome virus (PRRSV) that causes stillborn piglets costed the US farmers US$ 600 million. Disease free and healthy animals are therefore likely to result in safer food supplies, higher farm productivity, reduced environmental impacts, reduced use of antibiotics.
Factors such as increasing incidences of zoonotic diseases, rise in the demand for proteinaceous food, and initiatives by governments and animal welfare associations are expected to propel the growth of the animal health market during the forecast period. However, the use of counterfeit medicines, and high complexity and cost of animal drug development and approval processes are likely to pose a negative impact on the animal health market growth.
The animal health market is segmented based on product, animal type, and geography. By geography, the market is broadly segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and South & Central America. The report offers insights and in-depth analysis of the market, emphasizing on parameters such as market trends, technological advancements, and market dynamics, along with the analysis of the competitive landscape of the world's leading market players.
Strategic Insights
Lucrative Regions for Animal Health Market
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Market Insights
Increased Adoption of Pets for Companionship
The adoption of pets is a significant animal healthcare market trend. More than 67% of American households own pets, totaling almost 400 million pets, including dogs, cats, horses, birds, and fish. As per American Society for the Prevention of Cruelty to Animals, ~6.5 million companion animals enter the countrywide animal shelters every year. The number of dogs and cats entering these shelters yearly has declined from ~7.2 million in 2011. This decline can be moderately explained by an increase in the percentage of animals adopted. As per the European Pet Food Industry Federation (FEDIAF), cats remain the most popular pets in European households with a stable population of 74.4 million in the region. Also, the popularity of dogs is growing as there were 66.4 million pet dogs in the EU (84.9 million in Europe and Russia) in 2017, compared to 63.7 million (82.2 million) in 2016.
Americans spent over US$ 75.5 billion on their pets in 2016, with an average total household expenditure of US$ 892 on pet food, veterinary services, supplies, and other services. Pets improve their owners’ overall health and well-being, and may help them live longer. Research shows dog owners have a 36% lower risk of dying from cardiovascular disease and an 11% lower risk of a heart attack. Hence, the trend toward the adoption of pets is likely to drive the market growth in the study period.
Increase in R&D Activities
Over the last two decades, the cost and time of developing an animal health product have both increased by >100% and six years, respectively. According to the Animal Health Institute’s Research and Development Survey, animal health companies spent US$ 663 million in 2006 in the R&D pertaining to new potential products as well as in the research for maintaining the long life of offered products. This constitutes a 7% increase over the spending reported in 2005. Innovative research accounts for 86% of total R&D spending, while the remaining 14% was occupied by the research required to ensure prolonged performance of existing products.
Investments by significant players are further likely to augment the market growth. For instance, Zoetis is focused on continuous innovation to develop animal health solutions meeting the needs of buyers. R&D is at the center of the company’s efforts to provide innovation outcomes that anticipate the future needs of veterinarians and livestock producers in their local markets. On January 30, 2020, Zoetis and Colorado State University signed an agreement to establish the Zoetis Incubator Research Lab and begin a research collaboration focused on exploring the livestock immune system to target new immunotherapies.
Product-Based Insights
Based on product, the animal health market is segmented into prescription and non-prescription. The prescription segment held a larger share of the market in 2022. The non-prescription segment is estimated to register a higher CAGR of 7.0% in the market during the forecast period. The prescription segment is further sub-segmented into vaccines, pharmaceuticals, feed additives, and diagnostics. The non-prescription segmented is further categorized into parasiticides, grooming products, and nutrition/supplements.
Animal Type-Based insight
Based on animal type, the animal health market is segmented into production animal and companion animal. The production animal segment held a larger share of the market in 2022. The companion animal segment is estimated to register a higher CAGR of 6.8% in the market during the forecast period.
Animal Health Market, by Animal Type – 2022 and 2028
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Product launches and mergers and acquisitions are the highly adopted strategies by the players operating in the global animal health market. A few of the recent key product developments are listed below:
In February 2020, Vetoquinol SA announced the acquisition of Profender and Drontal product families from Elanco Animal Health. It will also acquire intellectual property, registrations and other rights currently owned by Bayer AG’s animal health business.
In January 2020, Nutreco N.V. announced investment in a Dutch company Kingfish Zeeland. The company aims to bring supplies of yellowtail kingfish to the US and European markets. The distribution will be done through a proprietary recirculating aquaculture system.
In March 2020, Bayer AG announced the launch of Care4Pigs initiative; this was launched in collaboration with the Farm Animal Welfare Education Centre (FAWEC) and the Korean Association of Swine Veterinarians (KASV). Under the collaboration, EUR 10,000 were granted to support innovation aimed at enhancing swine well-being.
In February 2020, Zoetis received FDA approval for Simparica Trio, a new combination parasite preventative for dogs. It is a first monthly chewable tablet launched in the US, which provides all-in-one protection from heartworm disease, ticks, and fleas, roundworms, and hookworms in dogs.
Company Profiles
- Merck & Co., Inc
- Boehringer Ingelheim International GmbH
- Ceva Santé Animale
- Cargill, Incorporated
- Zoetis Inc.
- Bayer AG
- Vetoquinol SA
- Nutreco N.V
- Virbac
- Elanco