June 18, 2024

The Rising Need for Effective Animal Treatment Drives the Global Animal Healthcare Market

The global animal healthcare industry has seen significant growth in recent years due to rising pet ownership and increasing awareness regarding animal health. Animal healthcare products like vaccines, pharmaceuticals, feed additives and others help prevent widespread infections and ensure the overall well-being of pets and livestock. Vaccines help provide immunity against fatal diseases in animals. Pharmaceuticals like antibiotics, anthelmintics and anti-inflammatory drugs are used for treatment of various diseases and infections. Feed additives are increasingly used for improved growth performance, feed efficiency and preventing risk of diseases. The growing humanization of pets and their perception as companions rather than utility has boosted spending on animal health and wellness. Rising disposable incomes in developing countries allow owners to spend more on quality pet food and healthcare. Moreover, there has been a surge in livestock farming to meet the rising demand for meat and dairy. Proper animal health management through vaccines and therapeutics is essential for increased productivity and regulated food supply.

The global Animal Healthcare Market is estimated to be valued at US$53.22 billion in 2024 and is expected to exhibit a CAGR of 5.5% over the forecast period 2024-2031, as highlighted in a new report published by Coherent Market Insights.

Market key trends: One of the key trends spurring market growth is product innovation. Leading companies are investing heavily in R&D to develop advanced vaccines, pharmaceuticals and feed additives with better efficacy, fewer side effects and tailored applications. For instance, companies are developing long-acting vaccines and injectables that offer protection for 6-12 months with a single dose. Such innovations help improve compliance and reduce treatment costs. There is also a shift towards preventative healthcare with emphasis on vaccines and feed supplements for immunity building rather than curative drugs alone. This trend is driven by rising awareness about benefits of prevention. Digitization is another area witnessing investments with introduction of e-pharmacies, telehealth, online appointment and consultation portals for seamless access to veterinary care.

Porter’s Analysis
Threat of new entrants: Low barriers to entry in terms of capital requirements and regulations. However, established players dominate the market with their strong brand recognition and distribution networks.

Bargaining power of buyers: Buyers have moderate to high bargaining due to the availability of substitute products. However, buyers bargain more on pricing than on products.

Bargaining power of suppliers: Few large multinational companies control the supply of raw materials and key ingredients providing them some bargaining power. However, high competition reduces suppliers’ ability to significantly influence prices.

Threat of new substitutes: Potential threat arises from new products and therapies which can replace existing products. However, switching costs deter shifts to substitutes in the short run.

Competitive rivalry: Intense due to the presence of many global and regional players. Players compete based on pricing, innovation, marketing, and distribution channels to gain market share.

Key Takeaways
The global animal healthcare market is expected to witness high growth.

Regional analysis: North America region accounts for the largest share due to increasing pet expenditure along with rising number of veterinary practitioners and growing pet insurance purchase in the US and Canada. Europe is the second-largest market driven by increased awareness regarding animal health.

Key players: Zoetis, Merck, Elanco Animal Health, Boehringer Ingelheim, and Ceva Santé Animale. Key players operating in the animal healthcare market focus on new product launches, partnerships, and mergers and acquisitions to strengthen their product portfolio and market presence.

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  1. Source: Coherent Market Insights, Public sources, Desk research

2. We have leveraged AI tools to mine information and compile it