US Animal Healthcare Market 2024–2033

Reports Description

As per the current market research conducted by Custom Market Insight Team, the US Animal Healthcare Market is expected to record a CAGR of 10.3% from 2023 to 2030. In 2023, the market size is projected to reach a valuation of USD 5.7 billion. By 2030, the valuation is anticipated to reach USD 11.3 billion

The US Animal Healthcare market refers to the market for various healthcare products and services designed to improve and maintain the health of animals, including pets and livestock. These products and services include veterinary pharmaceuticals, vaccines, diagnostics, medical devices, and nutritional supplements. The market is driven by the growing demand for animal health and the increasing awareness among pet owners and livestock farmers about the importance of animal health.

US Animal Healthcare Market – Significant Growth Factors

The US Animal Healthcare Market has several significant growth drivers. Some of the key drivers include:

• Increasing Companion Animal Ownership: The number of pet owners in the US is increasing rapidly, leading to a rise in demand for animal healthcare products and services. According to the American Pet Products Association, around 85 million families or 67% of US households own a pet.

• Growing Importance of Animal Health: There is a growing awareness about the importance of animal health, and pet owners are increasingly investing in preventive healthcare for their pets. This has resulted in a surge in demand for animal healthcare products and services.

• Technological Advancements: The animal healthcare industry has witnessed several technological advancements in recent years, which has led to the development of innovative products and services. For instance, digital healthcare solutions such as telemedicine, wearable technology, and remote monitoring systems are gaining popularity among pet owners.

• Rising Livestock Production: The US is one of the largest producers of livestock in the world. The increasing demand for meat and dairy products is driving the growth of the livestock sector, which in turn is boosting the demand for animal healthcare products and services.

• Government Initiatives: The US government has taken several initiatives to promote animal health and welfare. For instance, the Animal Drug Availability Act has been introduced to facilitate the availability of animal drugs, which has encouraged the development of new products and services in the animal healthcare industry.

Attributes	Value
US Animal Healthcare Market Expected Value (2023)	USD 5.7 billion
US Animal Healthcare Market Forecast Value (2030)	USD 11.3 billion
US Animal Healthcare Market Expected CAGR (2023 to 2030)	10.3%

US Animal Healthcare Market – Mergers and Acquisitions

The US animal healthcare market has witnessed several mergers and acquisitions in recent years. In January 2021, Elanco Animal Health completed the acquisition of Bayer Animal Health, making it the second-largest animal health company in the world. In 2019, Merck Animal Health acquired Antelliq Corporation, a leading provider of digital animal identification, traceability, and monitoring solutions.

In addition, in 2018, Zoetis acquired Abaxis, a leading provider of point-of-care diagnostic instruments and consumables for the veterinary market. This acquisition helped Zoetis expand its portfolio of diagnostics products and services for veterinarians.

The consolidation of the animal healthcare industry through mergers and acquisitions has allowed companies to expand their product portfolios, increase market share, and improve their research and development capabilities. These strategic moves have also helped companies better address the needs of the rapidly evolving animal healthcare market.

COMPARATIVE ANALYSIS OF THE RELATED MARKET

US Animal Healthcare Market	Pet Supplement Market	Global Animal Healthcare Market
CAGR 10.3% (Approx)	CAGR 6% (Approx)	10.7% (Approx)
US$ 11.3 billion by 2030	US$ 3.1 Billion by 2030	USD 94.8 Billion by 2030.

US Animal Healthcare Market – Significant Threats

• There are several significant threats to the US Animal Healthcare Market that could potentially impact its growth and profitability. One of the major threats is the high cost associated with animal healthcare products and services. This could lead to lower demand for these products, particularly among pet owners who may not have the financial resources to pay for expensive treatments.
• Another significant threat is the increasing popularity of alternative or natural remedies for animal health issues. This trend may impact the demand for traditional animal healthcare products and services and could result in a shift away from the use of pharmaceuticals and other conventional treatments.
• Additionally, the animal healthcare market is subject to regulatory scrutiny and oversight, which can create barriers to entry for new competitors and limit the growth potential of existing companies. The industry also faces increasing pressure from animal rights groups and environmental activists, who may push for more stringent regulations or restrictions on certain types of animal healthcare products and practices.
• Finally, the US Animal Healthcare Market may be impacted by global economic factors, such as currency fluctuations and trade policies, which could affect the availability and pricing of raw materials and finished products. These threats highlight the need for companies in the animal healthcare industry to remain vigilant and adapt to changing market conditions in order to remain competitive.

Report Scope

Feature of the Report	Details
Market Size in 2023	USD 5.7 Billion
Projected Market Size in 2030	USD 11.3 Billion
Market Size in 2022	USD 4.9 Billion
CAGR Growth Rate	10.3% CAGR (2022-2030)
Base Year	2023
Forecast Period	2024-2033
Key Segment	By Animal Type, Product, Distribution Channel, End-use, and Region
Report Coverage	Revenue Estimation and Forecast, Company Profile, Competitive Landscape, Growth Factors and Recent Trends
Regional Scope	North America, Europe, Asia Pacific, Middle East &amp, Africa, and South &amp, Central America
Buying Options	Request tailored purchasing options to fulfil your requirements for research.

Category-Wise Insights

Animal Type Insights

In 2022, the dog segment had the largest share of revenue, accounting for over 42%, mainly due to the increasing adoption of dogs. Dogs are known to provide various health benefits to their owners, including reducing stress, combating depression, and lowering blood pressure. Moreover, dogs are more susceptible to different forms of cancer compared to other companion animals like cats, which is the leading cause of death in 48% of dogs, especially those below 10 years, as per the Veterinary Cancer Society.

The cat segment was the second-largest animal type segment in 2022 and is expected to have the fastest growth rate during the forecast period. Cats are prone to infections and chronic health problems such as diabetes, cardiovascular disorders, and kidney issues. This segment is being given a significant boost by companies focusing on expanding their product portfolio. For instance, Ceva launched Amodip, a cardiology product for treating arterial hypertension in cats, to broaden its range of products.

Product Insights:

In 2022, the pharmaceuticals segment accounted for more than 50.0% of the US Animal Healthcare market revenue. The segment is being driven by the increasing use of pharmaceuticals in treating the rising prevalence of foodborne and zoonotic diseases that pose a threat to animal health.

The vaccines segment is expected to experience significant growth during the forecast period, as vaccination plays a crucial role in protecting companion animals from epidemics while also safeguarding their owners in case of animal bites. According to the Centers for Disease Control and Prevention (CDC), rabies vaccination has resulted in a 5.7% decrease in rabies cases in domestic animals since 2016.

The diagnostics segment is predicted to record the fastest growth rate during the forecast period. Advancements in radiology diagnostics technology such as AI, electronic data capture, and cloud-based storage are expected to drive the segment. For example, IBM is developing AI assistants for veterinarians that can quickly recognize a species and scan through a database of over 850 medical conditions to make a diagnosis. Furthermore, AI is giving rise to ‘smart farms’ that can diagnose affected animals without human intervention.

Distribution Channel Insights:

In 2022, hospital pharmacies accounted for the largest revenue share of over 55.0% due to their high accessibility and affordability and are expected to grow steadily. This growth is primarily driven by the increasing prevalence of epidemics and chronic health ailments among companion animals, along with the advanced treatment products available in hospitals. E-commerce is projected to be the fastest-growing segment, owing to the ease of availability, greater accessibility, and time efficiency it offers.

Online pharmacies eliminate intermediaries in the delivery channel, thereby reducing overall costs, which has driven customer preference over other channels. Moreover, the availability of home delivery services has given pet owners the option of having drugs delivered within an hour in many areas of the U.S. The OTC drug segment has also benefited significantly from the advent of e-commerce, with consumers increasingly moving towards digital platforms for speedy delivery and convenience.

US Animal Healthcare Market – Regional Analysis

The US animal healthcare market is analyzed on a regional basis, including the key regions of North-East, Midwest, South, and West. The South region held the largest revenue share in 2022 and is expected to continue its dominance throughout the forecast period. The high prevalence of chronic diseases, increasing pet ownership, and the presence of key market players in the region are some of the major factors driving the market growth.

The North-East region is also a significant contributor to the animal healthcare market due to the high demand for advanced veterinary care and increasing pet insurance coverage. The region is home to some of the major veterinary hospitals and research institutions, which are driving the growth of the market in this region.

The Midwest and West regions are expected to witness significant growth during the forecast period due to the increasing adoption of companion animals and the rising trend of animal welfare. The presence of key market players in these regions is also contributing to the growth of the animal healthcare market. Overall, the US animal healthcare market is expected to witness significant growth across all regions due to the increasing importance of animal health and the rising adoption of companion animals.

Competitive Landscape – US Animal Healthcare Market

• Zoetis
• Ceva Santé Animale
• Merck & Co. Inc.
• Vetoquinol S.A.
• Boehringer Ingelheim Gmbh
• Elanco
• Virbac
• Heska
• Dechra Pharmaceuticals Plc
• Idexx Laboratories Inc.
• Norbrook Inc.
• Others

To strengthen their product offering and increase their market presence, leading players in the US animal health market are adopting strategies such as extensive mergers and acquisitions, geographical expansions, and collaborative research initiatives. For instance, in July 2019, Zoetis and Colorado State University established a research lab for developing new immunotherapies for veterinary patients.

To expand their foothold in animal health monitoring and smart data management for both companion and livestock animals, established players are entering into alliances. For instance, in April 2019, Merck acquired Antelliq Corporation. The market is highly competitive, and the increasing adoption of advanced technologies in this sector is expected to present lucrative growth opportunities in the near future.

The US Animal Healthcare Market is segmented as follows:

Animal Type Outlook

• Dog
• Cat
• Equine
• Others

Product Outlook

• Vaccines
• Pharmaceuticals
  • OTC
  • Prescription
• Feed Additives
• Diagnostics
• Others

Distribution Channel Outlook

• Retail
• E-commerce
• Hospital Pharmacy

End-use Outlook

• Point-of-care testing/In-house testing
• Veterinary Hospitals & Clinics
• Others

By Region

North America

• The U.S.