Global Veterinary Industry
The global veterinary industry encompasses various veterinary health products such as biologicals, medicated feed additives and veterinary pharmaceuticals. Animal health product ranges are becoming more extensive, now including metabolic drugs, anti-infectives, reproductive aids, feed additives, vaccines, imaging diagnostics, topical solutions and parasite controls, reports TriMark Publications. Products used to treat chronic illnesses including cancer, cardiovascular disease and osteoarthritis, also fall into this market category.
Pet owners are spending more and more on caring for their pets’ health. In the US, consumer spending on domestic animals is forecast to reach $33 billion in 2014, according to research from Freedonia. Pet health product demand at the manufacturer level is expected to rise almost 6% yearly to reach $5.5 billion in 2014.
Market growth will be fuelled by an expanding pet population and changing attitudes that see owners treat their pets as companions or family members. Due to this new trend, the pet health market has fared the economic recession well, with owners reluctant to cut back on pet spending.
Key Market Segments
- The bulk of the animal health market is comprised of products that aim to increase animal longevity and improve quality of life, such as vaccines, medical feed additives, antifungals, anthelmintics and parasiticides. Koncept Analytics breaks down the market in terms of categories based on animal species. The market can be broken down according to products used, with medicinal feed additives, biologics and parasiticides representing the three leading market segments. Pharmaceuticals represent the leading category and encompass anti-infectives, parasiticides and other drugs.
- Products emphasizing prevention continue to record strong market growth, including parasiticides and dietary supplements. Prior to 2010 pharmaceuticals replaced parasiticides as the leading market segment. Due to the array of medical conditions affecting domestic animals, rising veterinary costs and greater awareness, many owners are opting to cover their pets with pet insurance policies. Owners are therefore in a better position to pay for costly veterinary procedures.
Regional Market Share
The Americas and the EU hold the lion’s share of the global animal health care market, reports Koncept Analytics. Both regions combined represent over 75% of the overall market.
- The 10 leading companies in the global animal health care market hold the majority share of the overall market, with consolidation set to increase in the future. Leading names operating in the market include Bayer, Virbac, Alpharma, Merial, Pfizer, Tetnate, Novartis, Schering-Plough, Elanco/Eli Lilly, Merial and Fort Dodge/Wyeth.
The global animal health care market is set to continue recording strong growth, driven by the humanization of domestic animals, reports Koncept Analytics. Owners are growing increasingly attached to their pets, and are therefore willing to dedicate a higher percentage of the household budget to caring for them.
Pet health spending will continue to expand due to developments in the realm of veterinary technology, while increasing pet longevity means that age-related illnesses like cancer and arthritis should continue to rise. With almost 40% of pets overweight or obese, weight-related medical conditions such as heart disease and diabetes are also on the up. Increasingly aware of the health issues that can face their pets, owners are investing more in preventative medicine to keep their pets healthy.
Leading Industry Associations