Trusted Business Insights answers what are the scenarios for growth and recovery and whether there will be any lasting structural impact from the unfolding crisis for the Veterinary Medicine market.
Trusted Business Insights presents an updated and Latest Study on Veterinary Medicine Market. The report contains market predictions related to market size, revenue, production, CAGR, Consumption, gross margin, price, and other substantial factors. While emphasizing the key driving and restraining forces for this market, the report also offers a complete study of the future trends and developments of the market. The report further elaborates on the micro and macroeconomic aspects including the socio-political landscape that is anticipated to shape the demand of the Veterinary Medicine market during the forecast period.
It also examines the role of the leading market players involved in the industry including their corporate overview, financial summary, and SWOT analysis.
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Industry Insights, Market Size, CAGR, High-Level Analysis: Veterinary Medicine Market
The global veterinary medicine market size was estimated at USD 24.5 billion in 2018 and is expected to register a CAGR of 6.2% during the forecast period. Increasing demand to curb chronic and zoonotic diseases in livestock and pet animals is the key driver to this market.
The global livestock population has been experiencing rapid growth over the past few decades. In developing countries, the demand for livestock products is increasing. According to the USDA, there were around 94.4 million cattle and calves in the U.S. as of 2017 and this number is expected to grow substantially in the coming years.
Moreover,rising concerns about food security and animal husbandries are anticipated to boost demand for veterinary pharmaceuticals and vaccines for livestock population in the near future.
Increase in the number of pet owners is driving the need for better treatment options for companion animals. According to The American Pet Products Association report 2018, the overall spending in the U.S. pet industry increased by 4.1% from 2016 to 2017.Moreover, veterinary care spending rose by 7.0% from USD 15.95 billion in 2016 to USD 17.07 billion in 2017.
Disease outbreaks in livestock animals result in major socio-economic threats such as production loss, disruption to local markets, rural economy, and international trade. Increasing demand for antibiotic free protein is fueling the demand for pharmaceuticals and vaccines.
According to the Food and Agriculture Organization (FAO), the global demand for protein will increase by 70.0% by 2050. Moreover, increasing stringent animal health and food safety regulations is fueling the demand for mandatory vaccination in livestock animals.
Increasing prevalence of diabetes, kidney-related diseases, high blood pressure, and spinal disc problems is further propelling the market for veterinary medicine among companion animals. Increasing incidence of pet obesity owing to conditions such as osteoarthritis and other joint diseases is pushing demand for better treatment options. For instance, according to APPA, ~56.5 million cats and ~50.2 million dogs were obese or overweight in the U.S. in 2017. Moreover, rising concerns of owners about their pets have resulted in increased pet care expenditure on medicines, which is further propelling the market for veterinary medicine.
Industry players are trying to develop innovative products such as mAbs and carrier drugs for better treatment outcome. For instance, in 2017, Zoetis launched Cytopoint, a monoclonal antibody indicated for canine atopic dermatitis, which became a blockbuster drug in 2018. Moreover, Kinderbio, a biopharmaceutical company, reportedly has a pipeline of 12 biologic products for companion animals as of 2019, which is expected to propel the market in the near future.
Animal Type Insights of Veterinary Medicine Market
Based on animal type, the market for veterinary medicine is segmented into production and companion animals. Production animals accounted for the largest share in 2018. The segment is further categorized into poultry, swine, cattle, sheep and goats, and fish. The dominant share captured by production animals is a consequence of increasing demand for proteins globally. Furthermore, increasing animal healthcare spending, specifically in developed regions, is presumed to be responsible for the wide-scale adoption of veterinary medicine among production animals. According to American NASS reports, the total expenditure in U.S. firms was USD 359.8 billion in 2017 where livestock, poultry, and related expenses increased by 11.7% in 2017 from the previous year.
The companion animal segment is expected to exhibit the fastest growth over the forecast period owing to increasing prevalence of chronic diseases. Companion animals are further segmented into dogs, cats, horses, and others. Dogs held around 40.0% share in the companion animal segment owing to increasing demand for better treatment options for chronic diseases in canines. According to an AVMA report, a dog owner spent around USD 1,285 on an average on over-the-counter medicines and clinic visits in 2018. The aforementioned factors are expected to propel the segment over the forecasted period.
Product Insights of Veterinary Medicine Market
On the basis of product, the market for veterinary medicine is segmented into biologics, pharmaceuticals, and medicated feed additives. The biologics segment is divided into vaccines and others, which includes monoclonal antibodies and hormonal supplements. The pharmaceuticals segment is further divided into parasiticides, anti-infectives, anti-inflammatory, analgesics, and others. Pharmaceuticals held the major share as of 2018, owing to theclinical urgency for use of potent pharmaceuticals and targeted medicines to protect livestock animals from zoonotic diseases.
Moreover, rising pet ownership and concern of owners regarding pet health are fueling the demand for veterinary pharmaceuticals. Increasing adoption of anti-infectve drugs such as anti-microbials and paraciticides, especially endectocides, is continuting to revenue growth. New product launches by industry players to address chronic diseases such as osteoarthritis and diabetes is further propelling the growth.
The biologics segment is expected to exhibit lucrative growth in the veterinary medicine market over the forecast period owing to increased usage of vaccines among livestock as well as companion animals. Moreover, epidemics over previous years have caused significant losses in the animal breeding industry, propelling demand for vaccinations. In addition, consistent number of mergers and acquisitions undertaken by key market players to expand vaccines portfolio is expected to expand the growth potential to a significant level. For instance, in January 2018, Elanco acquired Boehringer Ingelheim Vetmedicas U.S. Canine, Feline, and Rabies vaccines product portfolio in order to expand its business.
Mode of Delivery Insights
On the basis of mode of delivery, the market for veterinary medicine is segmented into oral, parenteral, and others. Others include topical and targeted drug delivery. The parenteral segment held the largest revenue share as of 2018. The growth can be attributed to product availibility and rapid onset of action. Therapeutic effect can be achieved within an hour of administration and thus it is preferred for faster action. On the contrary, risk of adverse reaction is more in parenteral as compared to others, which may hinder segment growth in the coming years.
The oral segment held a substantial share in the market owing to its lesser price. There is an increasing demand for palatable dosage forms to improve convenience and compliance. For instance, in February 2016 Zoetis received approval for SimparicaTM, a chewable dosage form indicated for fleas and ticks. Moreover, increasing demand for oral controlled release drug delivery owing to its advantages such as easier handling and less frequent dosing.
Based on end use, the market for veterinary medicine is segmented into veterinary hospitals and clinics, point-of-care/in-house testing, reference laboratories, and research institutes and universities. Veterinary hospitals and clinics held the largest market share as of 2018. The growth can be attributed to availibility of a wide range of treatments as well as diagnostic options in veterinary hospitals and clinics. Moreover, ease of availablity in accredited veterinary hospitals and clinics is responsible for the growth of this end-use segment. Government animal welfare organizations have issued guidelines for safety practices and standards to be implemented in hospitals, which has broadened the scope for segment growth over the past few years.
Reference laboratories are expected to exhibit lucrative growth over the forecast period. Increase in prevalence of zoonotic diseases globally has triggered the demand for better treatment options, which is expected to drive the segment over the forecast period. Emergence of veterinary health information systems in developed economies that enable real-time diagnostics is expected to help researchers in the development of therapeutics. Moreover, increasing concern among pet owners regarding pet health is fueling the growth of this segment.
Regional Insights of Veterinary Medicine Market
North America accounted for the largest revenue share in the market for veterinary medicine in 2018 owing to favorable healthcare structure and rising government initiatives in this region. Moreover, U.S. topped the list of highest meat consumption in 2018, which is further increasing the need to prevent foodborne and zoonotic diseases in livestock animals.North America has a strong presence of major animal health companies. Increasing pet healthcare expenditure is another major factor contributing to the growth of this region.
Favorable reimbursement programs in the U.S. is also propelling market growth. For instance, the North American Pet Health Insurance Association is aimed at promoting awareness pertaining to pet health insurance coverage and developing and exploring partnerships to address the challenges affecting the animal health industry.Moreover, in July 2017, VitusVet partnered with Nationwide to provide mobile app-based claim submission functionality for pet owners.
The Asia Pacific region is growing at a rapid pace and is expected to register the fastest growth rate during the forecasted period. This growth can be attributed to emerging economies such as China and India, which is leading to rapid expansion of manufacturing facilities in the region. Moreover, Asia Pacific held around 40 to 50% of the global meat production as of 2018. According to a report by the Australian Bureau of Agriculture and Resources Economics and Sciences, China will represent around 40% of the increase in meat demand by 2050, which will further propel demand for vaccination in livestock animals.
Market Share Insights of Veterinary Medicine Market
The industry is marked by the presence of various small and large companies and is highly fragmented. Leading market participants include Elanco, Boehringer Ingelheim GmbH, Bayer AG, Zoetis, and Merck. Players are constantly involved in strategic initiatives such as regional expansion, new product launch, technological advancements, and mergers and acquisitions to gain deeper penetration.
For instance, in August 2019, Elanco acquired the animal health unit of Bayer in order to strengthen its product portfolio and pipeline. In June 2018, Merck entered into a partnership with Vinovo B.V., a division of Viscon Hatchery Automation. This has helped the company expand its portfolio of poultry vaccines. In August 2019, Zoetis acquired Platinum Performance to extend its nutritional feed product portfolio.
Segmentations, Sub Segmentations, CAGR, & High-Level Analysis overview of Veterinary Medicine Market Research Report
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of latest industry trends in each of the sub-segments from 2019 to 2029. For the purpose of this study, this market research report has segmented the global veterinary medicine market report on the basis of product, animal type, mode of delivery, end use, and region:
Product Outlook (Revenue, USD Million, 2020 – 2029)
- Live attenuated vaccines
- DNA Vaccines
- Recombinant Vaccines
- Inactivated Vaccines
- Medicated Feed Additives
Animal Type Outlook (Revenue, USD Million, 2019 – 2029)
- Sheep & Goats
Mode of Delivery Outlook (Revenue, USD Million, 2020 – 2029)
- Others (Topical, carrier)
End-use Outlook (Revenue, USD Million, 2020 – 2029
- Reference Laboratories
- Point-of-care testing/In-house testing
- Veterinary Hospitals & Clinics
In Aug 2020, Merck Animal Health Completed the Acquisition of Worldwide Rights to VECOXANÂ® Brand of Parasiticides for Ruminant Portfolio. The acquisition Broadens Merck Animal Healths Position with Enhanced Parasite Protection in Calves and Lambs. Merck Animal Health, known as MSD Animal Health outside the United States and Canada, a division of Merck & Co., Inc., Kenilworth, N.J., USA (NYSE:MRK), today announced the completion of its previously announced acquisition of the worldwide rights to VECOXANÂ® (diclazuril), an oral suspension for the prevention of coccidiosis in calves and lambs, from Elanco Animal Health.
VECOXAN is efficacious, in lambs, against the prevention of coccidiosis caused by Eimeria crandallis and Eimeria ovinoidalis, and in calves, against coccidiosis caused by Eimeria bovis and Eimeria zuernii. VECOXAN is available in Europe, South Africa, South Korea and Japan.
Coccidiosis causes significant economic loss to farmers and producers due to reduced feed conversion, reduced growth rates, reduced performance or death, and by increased susceptibility to other infections, such as intestinal disease or Bovine Respiratory Disease.
Elanco Animal Health Inc. agreed to sell the worldwide rights for Vecoxan to Merck & Co. Inc. unit Merck Animal Health for $55 million in an all-cash deal. Elanco is divesting the rights in a bid to address antitrust concerns regarding its $7.6 billion acquisition of Bayers animal health business, which is expected to close in mid-2020.
The Vecoxan deal brings the total divestitures between $120 million and $140 million in revenue, which Elanco previously stated it would need to divest across both organizations to achieve any required clearances globally. In total, Elanco has generated about $425 million in pretax proceeds from the divestitures, and the company plans to use these funds to pay down debt associated with the Bayer animal health deal.
Elanco has received antitrust clearance for the acquisition in China, Turkey and Ukraine. The company noted that it is in advanced discussions with the required regulatory authorities, which are progressing as expected. Vecoxan joins Elancos previously announced OsurniaÂ® and CapstarÂ® divestitures, and divestiture of European Economic Area and U.K. rights for DrontalÂ® and ProfenderÂ® from the Bayer portfolio.
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