From the period of 2022 to 2028, the Global Animal Healthcare Market is expected to reach USD 181.7 Billion in terms of revenue, growing at a Compound Annual Growth Rate (CAGR) of 4.3%.
The rising prevalence of zoonotic diseases, as well as the increasing penetration of e-commerce platforms promoting online pharmacies, are expected to drive market growth. Various developed countries around the world are acting as the focal point for the rapid growth of online pharmacies due to numerous benefits such as convenience and lower prices for ordered medications. Investing in Research and Development (R&D) activities to improve product offerings and key players' acceptance of advanced technologies to transform the Animal Healthcare sector will result in market expansion. The COVID-19 pandemic has impacted the entire healthcare sector, including animal healthcare. Initially, there was a high risk of animals becoming infected as a result of close contact with humans.
Governments all over the world are working hard to pass and enforce stricter laws governing animal healthcare. Animal adoption and protection, emergency healthcare systems, improved treatment facilities, and vaccination drives, birth control, and immunization programs for Animal Healthcare will all help to boost market value. Providing financial assistance to animal shelters, as well as funding for several veterinary research laboratories for the containment of advanced zoonotic and food-borne diseases, will significantly aid in the industry's growth. Over the forecast period, rising consumption of meat, milk, and other animal byproducts is expected to drive growth in the Global Animal Healthcare Market. A lack of zoonotic disease surveillance and diagnostics in developing economies is expected to stifle growth in the Global Animal Healthcare Market.
Key Highlights from the Report
- Based on distribution channel, the market is segmented into Retail, E-commerce and Veterinary Hospitals & Clinics. During the forecast period, the veterinary hospital & clinics segment dominated the market. The growing number of hospital pharmacies, combined with high procedural volume as a result of pets being readmitted for treatment on a regular basis, has fueled segment growth. Retail channels and e-commerce platforms also contributed significantly to the overall market. During the forecast period, the e-commerce segment is expected to grow at an exponential rate. This can be attributed to a variety of benefits, including increased convenience for patients who do not wish to purchase medications from retail or hospital pharmacies. Furthermore, because medications can be preordered, these facilitate a consistent supply of drugs. Benefits like these are expected to boost e-commerce demand throughout the forecast period.
- Based on end-use, the market is segmented into Reference Laboratories, Point-of-care Testing/In-house Testing, Veterinary Hospitals & Clinics and Others. The market is dominated by veterinary hospitals and clinics. This segment's dominant share is due to various applications such as clinical pathology, toxicology tests, and therapy. The availability of a diverse range of treatment and diagnostic options in veterinary hospitals and clinics is a significant growth driver for this segment. Increased zoonotic disease incidence due to globalization and climate change is expected to drive demand for diagnostic procedures, which is expected to drive the point-of-care testing/in-house testing segment in the coming years. One of the key contributing factors to in-house testing in animal health is an increase in initiatives to raise awareness among companion animal owners about the benefits and value of preventive care in pets.
- Asia Pacific is the fastest regional segment in terms of growth. The animal health market in Asia Pacific is predicted to grow at a healthy rate in the future years. This region's rapid growth is thought to be the result of constant Research and Development (R&D) investments by major players in the animal health industry, as well as their efforts to sell branded and generic treatments at a low cost. The exponential expansion is due to increased understanding of pet nutrition and supplies, as well as increased disposable income.
Increasing Veterinary Medicine R&D Activities to Provide Lucrative Growth Opportunities
Animals play an important role in the development of healthcare products by serving as test subjects for drug and medical device testing. The use of animals in drug discovery is important because research on many genetic and chronic diseases in humans cannot be approved for testing on humans. Each year, thousands of mice and monkeys are used as test subjects in research laboratories in the United States alone. Animal studies are used to develop new surgical techniques (e.g., organ transplants), test new drugs for safety, and conduct nutritional research. Animals are primarily valuable in research involving long-term deteriorating diseases because such diseases can be persuaded in animals with relative ease, thereby promoting overall market expansion.
Increasing Zoonotic Disease Incidence to Drive Market
The veterinary healthcare market is likely to be driven by an increase in the incidence of zoonotic diseases. The increased adoption of pets for companionship is resulting in increased contact with disease-spreading animal-borne diseases around the world. Increased awareness of preventive measures, as well as the increasing availability of treatment options, are expected to drive demand for animal care products during the forecast period. Thousands of Americans become ill each year because of disease transmission from animals, according to the Centers for Disease Control (CDC).
North America dominated the animal health market, owing to a wide range of definitive measures implemented by government animal welfare organizations that are consistently working to improve overall animal health. Furthermore, technological advancements, rising zoonotic disease incidence and an increasing number of pet owners are expected to drive market growth in this country. Several collaborative efforts by major companies to improve Research and Development (R&D) capabilities and ensure high-quality standards are expected to drive demand even higher in this region. Furthermore, the majority share can be attributed to the region's high disease burden.