The animal healthcare market includes a wide array of veterinary products and services for pets including drugs, vaccines, feed additives, and diagnostics services. Rising pet ownership globally has fueled the demand for animal healthcare solutions ensuring the wellbeing and safety of companion animals. Companies offer an extensive product portfolio ranging from parasiticides and anti-infectives to vitamins, minerals, and supplements. Increased spending on pet care coupled with growing pet humanization trend has propelled the animal healthcare industry. The global animal healthcare market is estimated to be valued at US$ 50.45 billion in 2023 and is expected to exhibit a CAGR of 5.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Key Trends:

One of the key trends driving growth in the animal healthcare market is the advancement of pet insurance. Like human health insurance, pet insurance provides financial protection for vet bills and incidental hospitalization expenses. Over the past few years, a large number of insurance providers have launched customized pet insurance plans tailored as per an owner’s budget and pet’s needs. For instance, more than 2 million pets were insured in the UK in 2020, a 27% increase over the past 5 years. Rising pet insurance adoption provides financial stability to pet owners and boosts spending at veterinary clinics. This has further stimulated investments by animal healthcare companies into new drug and vaccine development. Another significant trend is growing preference for online channels for purchasing pet care products. E-commerce platforms offer consumersvenience coupled with attractive offers and timely delivery. This has streamlined the supply chain and distribution channel for animal healthcare manufacturers.

Porter’s Analysis

Threat of new entrants: Low as the animal healthcare market requires large capital investments and established distribution channels. There are also regulatory barriers and high economies of scale.
Bargaining power of buyers: Moderate as large veterinary practices and organizations can negotiate lower prices. However, the need for animal healthcare products creates switching costs.
Bargaining power of suppliers: Moderate as key materials and technologies required are available from multiple sources. However, suppliers of specialized ingredients can negotiate prices.
Threat of new substitutes: Low as there are no cost-effective alternatives to pharmaceutical and vaccine products for animal health needs.
Competitive rivalry: High as the market is dominated by few large players. Companies compete on product quality, pricing and new product development.

Key Takeaways

The global Animal Healthcare Market Growth is expected to witness high growth.

Regional analysis: Asia Pacific region is expected to be the fastest growing market due to rising pet adoption, growth in livestock population, and increasing meat consumption. Europe currently dominates the market owing to high awareness levels and rising pet healthcare spending in countries like the UK and France.

Key players operating in the animal healthcare market are Low & Bonar PLC, Ahlstrom Group, E. I. du Pont de Nemours and Company (DuPont), 3M Company, Polymer Group Inc., Milliken & Company Inc., Arville Textiles Ltd., Dickson-Constant, Baltex, and Freudenberg & Co. KG. Companies focus on product innovation and expanding presence in emerging markets through strategic partnerships and acquisitions. For instance, Zoetis recently acquired Abaxis to enhance its veterinary diagnostic capabilities.

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