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Animal Healthcare products including pharmaceuticals, vaccines, and feed additives are an integral part of veterinary practices aimed at disease prevention and treatment in livestock and companion animals. The rising animal population, increasing focus on zoonotic diseases, and growing pet humanization trends have resulted in animal owners opting for advanced veterinary care options and services for their healthy and happy coexistence. The market leaders in animal healthcare are focusing on developing innovative solutions through R&D efforts to cater to the needs arising from rapid urbanization, intensification of animal farming, and changing consumer preferences.
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 of 2024 to 2031.
Key Takeaways
Key players operating in the Animal Healthcare 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 leading companies dominate market share through their diversified product portfolios and global distribution networks.
Growing awareness about animal health and welfare has increased demand for premium animal food and medicines. Pet humanization trends have further propelled expenditure on various healthcare and diagnostic services. The market for companion animal products is growing at a faster rate compared to livestock.
Global players are expanding their manufacturing and distribution footprint in emerging markets through partnerships and acquisitions. The consolidation of private labels by major companies has strengthened their market position.
Market key trends
The rising incidence of zoonotic diseases is driving the development of advanced vaccines and testing kits. Continuous innovation in pharmaceutical formulations and feed supplements is allowing the treatment of complex conditions and diseases in livestock and pets. Digitization of veterinary practices through adoption of practice management software, telehealth, and e-pharmacy solutions is enhancing access and convenience.
Porter’s Analysis
Threat of new entrants: The animal healthcare market requires high R&D investments and regulatory approvals for new products. This poses significant barriers for new companies.
Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of substitutable products and less differentiation between products of different companies.
Bargaining power of suppliers: A few dominant multinational companies control the supply of raw materials and technologies. This gives suppliers higher bargaining power.
Threat of new substitutes: Threat of substitutes is moderate as alternate treatment options like generic medicines and herbal supplements are available but cannot match the effectiveness of innovator drugs and vaccines.
Competitive rivalry: The market is highly competitive with presence of top global players and biosimilars. Companies compete based on pricing strategies, new product innovations and marketing activities.
Geographical Regions
North America accounts for the largest share of the global animal healthcare market, valued at over $20 billion in 2024. This is attributed to rising pet adoption, increasing meat consumption and presence of leading pharmaceutical companies in the region.
Asia Pacific is poised to be the fastest growing regional market during the forecast period. Factors such as rising awareness about animal health, growing meat consumption in China and India, and establishment of manufacturing facilities of global players are driving double-digit growth in this region.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
