Veterinary Medicine Market - Industry Insights by Product and End Use, 2028

The global veterinary medicine market size was estimated at USD 29.2 billion in 2020 and is expected to expand at a CAGR of 7.4% from 2021 to 2028.

The global Veterinary Medicine Market size is expected to reach USD 50.8 billion by 2028, according to a new report by Grand View Research, Inc. The market is expected to expand at a CAGR of 7.4% from 2021 to 2028. The companion animal segment is anticipated to demonstrate the fastest growth during the forecast period owing to the increasing prevalence of chronic diseases and rising demand for advanced treatment alternatives for canines suffering from chronic diseases.

COVID19 pandemic resulted in to regulatory changes which are anticipated to iron out the disruptions thereby increasing manufacturing and adoption of vet medicines in near future. The federal government has taken various relief measures which include new tax provisions, small business loans and unemployment insurance in order to respond to the pandemic and support the veterinarians. AVMA has also taken supportive measures to support small veterinary businesses or practices. In August 2020 USFDA stated that, 6 out of 32 animal drug companies who source their API from China could soon face shortages. Due to labor shortage, there is also reduced capacity to work on animal health activities such as vaccination, good biosecurity and prophylactic treatment. The manufacturing units are taking preventive measures for uninterrupted production of veterinary drugs.

Growing consumption of meat is fueling the demand for mandatory vaccination for animals, which results in the market growth. According to The World Counts, Denmark, the global meat production has increased 2-fold from 1988 to 2018. It also stated that meat consumption is estimated to range between 460 - 570 million tons by 2050. Such factors are expected to drive the growth of the market during the forecast period.

The market leaders are involved in strategic collaborations, regional expansion, and new product launch to sustain the competition. For instance, in Elanco acquired Bayer’s animal health division in August 2020 in an attempt to strengthen its R&D capabilities, eCommerce presence, and multiply its product portfolio. Additionally, in March 2020, Virbac signed an agreement with Pebble Labs for co-development and commercialization of products for disease prevention in aquatic animals.

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Veterinary Medicine Market Report Highlights

• The production animal segment dominated the overall revenues share as of 2020 and is projected to show a CAGR of over 7.3% from 2021 to 2028. Increasing focus on food safety and sustainability by government healthcare organizations globally is contributing to market growth
• North America held a major market share as of 2020, due to the high prevalence of zoonotic diseases in this region. Moreover, reimbursement programs across the U.S. make this continent a major contributor to the market
• Europe held the second largest market share owing to the favorable government regulations such as the EU Veterinary Medicines Regulation and high number of insured pets in the Western European countries
• The industry participants are focusing on strategic collaborations, acquisitions, investing in new product segments, mergers, and new product launches to gain a competitive edge in the market
• Some of the leading players are expected to maintain their market position during the forecast period in terms of product penetration, regional presence, revenue, as well as strategic initiatives
• The biologics segment which includes vaccines and other such products is expected to exhibit the fastest growth over the forecast period owing to the increasing awareness regarding important of vaccination in animals
• The oral mode of administration is expected to grow at the fastest growth rate owing to the increasing incidence of chronic conditions in pets
• The reference laboratories held a considerable market share of about 9% in 2020 in the market as the laboratories enable testing of various infections, toxic agents, and different ailments in specimens obtained from pets
• Asia Pacific is anticipated to witness lucrative growth of around 8.0% owing to increasing adoption of pet animals, growing health concerns about the animals, and rising prevalence of diseases in animals