Veterinary medicine involves the application of medical, diagnostic, and therapeutic principles to both companion and production animal care. With growing pet adoption rates worldwide, there has been an increased need for veterinary services to provide routine healthcare and treatment for animals. Veterinary doctors play a vital role in ensuring the overall health and wellbeing of pets through vaccinations, surgeries, dental care, and other medical interventions. They help prevent, diagnose, and treat various diseases and injuries that animals may suffer from.
The global veterinary medicine market size is estimated to be valued at US$ 39.27 billion in 2024 and is expected to exhibit a CAGR of 5.0% over the forecast period ending 2031.
A number of factors such as rising pet adoption, increasing pet healthcare expenditure, and growing animal farming are fueling the demand for veterinary services. Veterinary practices aim to not only treat sick animals but also promote pet wellness through routine check-ups and preventive care programs. Furthermore, growing awareness about zoonotic diseases and their transmission to humans has drawn more focus on animal health monitoring.
Key Takeaways
Key players operating in the veterinary medicine market are BASF SE, BP Plc., China Petroleum & Chemical Corporation, ExxonMobil Corporation, IRPC Plc., LyondellBasell Industries Holdings B.V., and SABIC. These companies manufacture and supply a wide range of veterinary drugs, medicated feed additives, and vaccines.
The growing demand for pets across the world has significantly driven the demand for veterinary care. As people are increasingly adopting dogs, cats, and other companion animals, they are also willing to spend more on pet healthcare and insurance. It is estimated that pet owners in developed nations easily spend over $500 per year for routine veterinary care and treatments.
The Global Veterinary Medicine Market Demand industry has also expanded rapidly over the past decade due to rising animal agriculture in emerging markets. Countries with a large livestock population such as China, India, Brazil, and Argentina have seen substantial investments in animal health and production. This has widely benefited pharmaceutical manufacturers and distributors serving the veterinary medicine sector.
Market Drivers
One of the key drivers of the veterinary medicine market is increased pet ownership due to changing lifestyles and rising income levels globally. Pets are no longer considered luxury items and are gaining widespread acceptance as companions and family members. It is estimated that about 70% of American households own at least one pet. This growing pet population has heightened the demand for veterinary healthcare services for routine check-ups, vaccinations, and also specialized care for older pets.
The current geopolitical situation is impacting the growth of the veterinary medicine market. The ongoing Russia-Ukraine conflict has disrupted the supply chains of key raw materials and Active Pharmaceutical Ingredients (APIs) used in manufacturing veterinary drugs. Russia and Ukraine are major exporters of APIs like vitamins and antibiotics. The restrictions on trade with Russia due to sanctions are hampering the accessibility and affordability of various veterinary medicines in Europe and globally. This is challenging goals to ensure animal health and welfare.
To deal with this crisis, manufacturers will need to diversify their sourcing strategies and establish partnerships with API producers in other regions like North America, Latin America, and Asia Pacific. Short-term strategies involve increasing inventory levels and seeking alternative vendors to overcome immediate supply issues. In the long-run, companies will have to factor geopolitical risk assessment as a key element of their supply chain management practices. They should aim for multi-sourcing from politically stable countries to reduce single-source dependence. Governments too need supportive policies to incentivize local production of veterinary APIs.
In terms of value, the veterinary medicine market remains concentrated in North America and Western Europe currently. This is owing to rising pet adoption, growing animal husbandry, and well-established veterinary healthcare infrastructure in these regions. However, Asia Pacific is emerging as the fastest growing market for veterinary medicine globally. Countries like India, China, and Indonesia are witnessing rapid economic development and increasing livestock population. Rising affluence is also pushing up pet care spending and adoption of modern veterinary practices in Asia Pacific. Governments are supporting animal health initiatives, presenting lucrative opportunities for market players.
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