Market Is Estimated To Witness High Growth Owing To Rising Demand & Favorable Regulations

Purvaja Jadhao

posted on 10 months ago — updated on 2 seconds ago

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The Animal Healthcare Market is estimated to be valued at US$ 50.45 Bn in 2023 and is expected to exhibit a CAGR of 5.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Is Estimated To Witness High Growth Owing To Rising Demand & Favorable Regulations

Market Overview:
Animal healthcare products include pharmaceuticals and feed additives, vaccines, medical devices and equipment used for diagnosis and treatment of various animal diseases. The global animal healthcare industry caters to livestock, companion and other types of animals. Pharmaceuticals such as parasiticides and vaccines are commonly used products in this market. Rapidly growing companion animal ownership globally is fueling demand for healthcare and treatment of pets.

Market Dynamics:
The animal healthcare market is expected to grow owing to rising demand for meat and dairy products globally and the need for disease prevention in livestock. According to FAO, by 2050 global meat consumption is projected to increase by over 70%. This raises the need for massive livestock production with high focus on animal health and welfare. Furthermore, favorable regulatory environment supporting veterinary care and disease control is supporting market growth. For instance, governments worldwide are offering subsidies and incentives for strengthening veterinary infrastructure in rural areas. Additionally, growing pet ownership especially in developing nations along with rising pet care expenditure is driving demand for animal vaccines and pharmaceuticals. However, lack of standardization in regulations pertaining to veterinary drugs and rising pet care costs pose a challenge to market players.
Segment Analysis
The Global Animal Healthcare Market Size is dominated by the companion animal segment. Within this segment, dogs and cats together account for over 60% share owing to rising pet ownership globally. People are increasingly considering pets as part of their family and thus willing to spend more on their well-being. With rising disposable incomes, pet owners are open to advanced healthcare options for their companion animals.

PEST Analysis
Political: Regulations regarding animal healthcare and testing are getting stronger worldwide promoting ethical practices.
Economic: Growth in emerging economies is driving higher spending on animal food and healthcare. Rising family incomes favor pet adoption and related spending.
Social: Changing social norms perceive animals more as companions than before. This fuels services around animal wellness and insurance.
Technological: Advancements in diagnostics, vaccinations and veterinary software/equipment improve outcomes and accessibility of care for animals.

Key Takeaways
The global animal healthcare market is expected to witness high growth, exhibiting CAGR of 5.1% over the forecast period, due to increasing urbanization and willingness to spend more on pets' healthcare. Regionally, North America dominated the market in 2023 with over 30% share owing to presence of major players and rising veterinary infrastructure in the US and Canada. In terms of revenue, the global animal healthcare market was valued at US$ 50.45 Bn in 2023 and is projected to reach around US$ 75 Bn by 2030.

Key players operating in the animal healthcare market include 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 players are focused on product innovations and strategic mergers to consolidate their position. For instance, Zoetis launched new parasiticide products in 2022 for dogs and cats. Similarly, Boehringer Ingelheim expanded its production facility in Missouri in 2022.

The companion animal segment dominates the market owing to rising pet adoption in major economies like the US, China, India. Within this segment, dogs and cats occupy over 60% share as they are the most popular pet species and owners spend substantially on their nutrition and healthcare needs. Growing social acceptance of pets as family members drives more spending on premium food brands and vet services to ensure their well-being.