June 18, 2024

Animal Healthcare Market Dynamics: Emerging Opportunities

Animal Healthcare Market1

The animal healthcare market deals with medications, vaccines, parasiticides, feed additives and diagnostic services for animal health and welfare. Rising pet adoption globally and increasing consumption of animal-derived food products have been driving the demand for medicines and vaccines to keep livestock healthy. Inadequate nutrition, changing climatic conditions and changing disease patterns have necessitated regular monitoring and prevention services.

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. The rising demand for protein-rich diets has enabled key market players to expand their feed additive portfolios that improve nutrient absorption and overall gut health of animals.

Geographies such as North America, Western Europe and Asia Pacific present lucrative opportunities for animal healthcare providers owing to growing pet population, availability of advanced veterinary facilities and risk of zoonotic diseases. Rising demand for pet insurance and growing emphasis on animal welfare standards in developed nations will further aid market expansion.

Population growth, urbanization, higher purchasing power and changing lifestyles in emerging economies are expected to positively influence the animal derived food market. This increased demand would necessitate higher productivity from poultry and livestock by using more preventive healthcare measures and performance enhancers over the forecast period.

Market drivers

The global pet population has been increasing steadily over the years due to changed social norms where pets are considered family members. Advances in animal health research have resulted in new product launches targeting disease prevention, pain management and wellness needs of companion animals. Rising pet healthcare expenditure is expected to drive the animal healthcare market during the forecast period.

PEST Analysis

Political: Animal healthcare industry is regulated by government bodies that create regulations around food safety, drug approval, and animal welfare. Regulations have an impact on cost of development and approval of new animal drugs and vaccines.

Economic: Economic growth leads to increased disposable income and prosperity which drives pet humanization trend and higher spending on pet healthcare. However, economic slowdowns can negatively impact spending on animal health.

Social: Higher pet humanization trend where pets are considered as family members drives higher spending on pet nutrition, vaccination and preventive care services. Social media also influences awareness and spending trends.

Technological: Development of new drug delivery systems, genomic tools for precision medicine, digitization and AI supported diagnostics are driving innovations. Widespread internet and e-commerce penetration enables virtual care and tele-consultations.

The geographical regions where the animal healthcare market in terms of value is concentrated are North America and Europe. North America represents the largest market owing to high pet adoption and expenditure. Europe is the second largest regional market driven by innovative product development and increasing awareness about animal health and welfare.

The fastest growing regional market for animal healthcare is Asia Pacific. Growing pet humanization trend along with rising incomes is fueling market growth across developing nations like India and China. Increasing awareness about zoonotic diseases is also driving demand for vaccinations and preventive care.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it