Veterinary Healthcare Industry Overview

Veterinary Healthcare Market Definition

Veterinary Medical Equipment Market Characteristics

Animal Medicine Market Definition

The medical feed additives market consists of sales of medical feed additives and related services in order to prepare complete food for animals. Medical feed additives help improve the nutritional content and quality of feed, results in better productivity, and prevents animals from diseases. Medical feed additives industry includes companies that produce animal feed additives such as vitamins and probiotic, preservatives, antioxidants, digestibility enhancers, gut flora stabilizers and others. The global medical feed additives market was valued at about $13.01 billion in 2018 and is expected to grow to $16.3 billion at a CAGR of 5.8% through 2022. The medical feed additives market has been geographically segmented into North America, Western Europe, APAC, Eastern Europe, South America and Middle East & Africa. The North American market is the largest market for Medical Feed Additives and is expected to continue to be the largest market during the forecast period. Increase in prevalence of diseases among animals is driving the growth of the medicated feed additives market. According to the estimates from report by Defra, 2017, the prevalence rate of bovine tuberculosis (TB) in cattle increased in England from 5.7% in 2016 to 6% in 2017. Bovine tuberculosis is a chronic disease which usually affects animals such as cattle, but it can affect all mammals causing illness, coughing and eventual death. Also, in June 2017, the rate of new herd incidents per 100 herd years at risk stood at 10.7, compared with 10.1 in June 2016, indicating the level of risk of cattle. A new herd incident is a case of bovine TB that occurs as a result of a herd or individual animal test performed in an officially TB-free (OTF) herd during the study period. Moreover, according to the reports in The Pan African Medical Journal, 2018, Nigeria revealed the prevalence of bovine tuberculosis up to 15.1%. The additives help prevent animals from diseases alongside increasing the nutrition level of the feed thereby increasing demand for feed additives. The overuse and inappropriate use of antibiotics in medical feed additives impacts the health of individuals consuming the animal meat or other related products. Moreover, the health of the animal consuming the feed may also be adversely affected by the antibiotics added to the feed as the excess additive reduces the natural immunity of the animal and increases susceptibility of the livestock to infections. For instance, in 2016, the Chinese Ministry of Agriculture banned the use of the antibiotic Colistin as a feed additive for animals when the UK-China antimicrobial research found that Colistin, a drug used to treat pneumonia and malaria in humans, when consumed by humans through animal meat makes the drug less effective to treat pneumonia and malaria in humans. The ban resulted in the withdrawal of more than 8,000 tons of Colistin as a growth promoter from the Chinese medicated feed additive market sector and directing all the manufacturers to update the feed formulation. The negative effects of additives on human health will restrain the growth of the market. Companies in the medical feed additives market are introducing new feed medicated additives formed as a result of combination of two or more medicated feed additives. More than 70% of manufacturers are now using more than one feed additive in animal feed to increase the efficiency of the product. For instance, in 2018, Zoetis, a global health company got the approval for its Cyden and Lincomix combination feed additive from the FDA (Food and Drug Administration) and is proposed to be used as medicated feed additive for poultry. Also, in 2015, FDA approved combination of Zoetis’ feed additives ACTOGAIN 45 (ractopamine hydrochloride) and ENGAIN (ractopamine hydrochloride) that makes more lean muscle and less fat while optimizing feed efficiency. The medical feed additives market is regulated by government agencies which lay down regulations to be followed by all the manufacturers of veterinary medicines. For instance, the Veterinary Medicines Regulations (VMR) 2013 makes provision for the authorization, manufacturing and classification of veterinary products including medicated feed additives. The Schedule 5 under EU guidelines covers medicated feeding stuffs and specified feed additives which specifies guidance to both manufactures and suppliers of veterinary medicines for incorporating it into animal feed as well as to veterinary surgeons, animal keepers and other members involved in the use of veterinary medicines and SFAs(Specified Feed Additives)in animal feeding stuffs. In February 2019, Archer Daniels Midland Company (ADM), an American global food processing and commodities trading company acquired Neovia for $1.74 billion (€1.544 billion). This acquisition helps ADM to become a global leader in animal nutrition products and services with Neovia adding a wide range of products to the former company’s portfolio including pet care, additives, aquaculture, and livestock feed which would in turn boost the growth of the company. Neovia is headquartered in France was established in 1954 and manufactures and distributes various biologically degradable disinfectants along with feed additives for plants and animals. Major players in the market are Zoetis Inc., Cargill,, CHS Inc., Purina Animal Nutrition (Land O' Lakes) and Archer Daniels Midland Company.

The veterinary anesthesia equipment market consists of sales of veterinary anesthesia equipment and related services. Veterinary anesthesia equipment is used to deliver anesthetic agents into patients' bodies to prevent the pain or discomfort during surgical procedures. The global veterinary anesthesia equipment market was valued at about $0.25 billion in 2018 and is expected to grow to $0.38 billion at a CAGR of 10.3% through 2022. The veterinary anesthesia equipment market has been geographically segmented into North America, Western Europe, APAC, Eastern Europe, South America and Middle East & Africa. The North American market is the largest market for veterinary anesthesia equipment and is expected to continue to be the largest market during the forecast period. Rising prevalence of oral diseases in dogs and cats is driving the market for veterinary anesthesia equipment used during oral examinations. Diagnosis and treatment of oral diseases, dental cleaning requires pet animals to be under general anesthesia as it is difficult to handle animals when they are awake and conscious. According to the American Veterinary Dental College, periodontal disease is the most common clinical condition occurring in adult dogs and cats. Thus, rising prevalence of oral diseases in pet animals is increasing the demand for veterinary anesthesia equipment driving market growth. The high prices of veterinary anesthetic equipment is acting as a restraint on the market. It is expensive for small veterinary hospitals and clinics to buy and maintain anesthesia equipment, thereby limiting market penetration. High price of the equipment can be attributed to advanced technology used in the equipment. Manufacturers of veterinary anesthesia equipment are introducing products with advanced features to provide safe and reliable treatment. The new products being introduced offer solutions to problems like power failure, battery failure or exhaustion and failure of electronic components. Companies such as DRE veterinary and Supera have been investing in introducing anesthetic machines with safety features. Manufacturers of veterinary anesthesia equipment are required to adhere to stringent regulations set by various regulatory bodies. For instance, the US Food and Drug Administration’s (FDA) Center for Veterinary Medicine (CVM) regulates the market for veterinary devices in the USA. The FDA issues guidelines with respect to manufacturing, procuring, packaging, branding, selling and usage of medical devices. Also, the FDA encourages veterinarians and pet owners to report defects in veterinary medical equipment. Major players in the market are JD medical, Midmark Corporation, Smiths medical, Mindray Medical and Kent Scientific.

The veterinary patient monitoring equipment market consists of sale of veterinary patient monitoring equipment which are used to monitor animal's respiration, blood pressure, and other vital signs. Veterinary patient monitoring equipment are used to monitor the animals to detect diseases at early stages to prevent any risks. Veterinary patient monitoring equipment industry includes companies that manufacture monitoring devices to detect diseases which affect animals. The global veterinary patient monitoring equipment market was valued at about $0.28 billion in 2018 and is expected to grow to $0.51 billion at a CAGR of 16.3% through 2022. The veterinary patient equipment market has been geographically segmented into North America, Western Europe, APAC, Eastern Europe, South America and Middle East & Africa. The North American market is the largest market for Veterinary Patient Equipment and is expected to continue to be the largest market during the forecast period. Increase in the prevalence rate of diseases among animals serves as one of the major drivers for the veterinary patient monitoring equipment market. Increase in the incidence of diseases in livestock and companion animals will require monitoring equipment to diagnose the diseases among animals. For instance, according to Banfield State of Pet Health report 2016, the prevalence of diabetes in dogs has increased by 79.7% from 13.1 cases per 10,000 in 2006 to 23.6 cases in 2015 whereas the prevalence rate increased by 18% in cats from 2006 to 2015. The increase in prevalence rate of diseases for animals results in increases demand for enhanced veterinary patient monitoring equipment. The veterinary patient monitoring equipment is highly expensive. The price of an equipment will be the significant expense for a veterinary clinic or hospital. For instance, price of average wearable devices ranges from $50 to $100 and will likely have a recurring software as a service (SaaS) fee to store & retrieve an animal’s health data analytics. These expenses hinder the growth of the veterinary patient monitoring equipment market. Veterinarians and pet or cattle owners are shifting to wearable technology to keep track of the animal behavior. Wearable technology are smart electronic devices that are worn on the body or integrated in the clothing or accessories and monitor body temperature, behavior and movement. These wearable monitoring devices provide timely insights regarding the overall health of the animal and help veterinarian to provide appropriate diagnosis to the animal. For instance, Vetrax, a wearable sensor worn on a dog’s collar, enables clinicians and pet owners to monitor aspects of an animal’s behavior when they are unsupervised. According to a report by Veterinary Practice News in 2018, 83% of pet owners are satisfied with the use of wearable technology and 68% are finding it an effective way of monitoring weight and diabetes of their pets. The veterinary patient monitoring equipment market is regulated by government agencies such as European Medicines Agency (EMA), USFDA (the US food and drug ministration), and others. EMA should certify the medical devices before they are marketed. EMA verifies the safety and quality of the devices before they can be certified and approved for use throughout the European Union. The EMA requires all the devices to comply with the regulations stated under Directive 2001/82/EC and Regulation (EC) No 726/2004. American pharmaceutical company Merck & Co. headquartered at New Jersey, acquired Antelliq in April 2019 for $2.4 billion. Antelliq will now work in Merck's animal health division. This acquisition marks the beginning of the trend for pharmaceutical companies to give equal importance to their veterinary devices as well as their human healthcare equipment. Antelliq, a company in the field of animal identification and monitoring will not only re-establish and widely improve Merck's reach in the veterinary monitoring devices market but it will also enhance the quality of the devices. Antelliq is an American company established in 2013 and is headquartered in Dallas, Texas. Major players in the market are Smiths Group plc, Hallowell Engineering & Manufacturing Corporation, DRE Veterinary, Digicare Biomedical Technology Inc. and Midmark Corporation.

The veterinary diagnostic equipment market consists of sales of veterinary diagnostic equipment and related services. Veterinary diagnostic equipment assists the veterinary practitioners in determining and identifying various disorders in animals. Veterinary diagnostic equipment industry includes companies that manufacture diagnostic equipment such as clinical thermometers, diagnostic lights, X-ray equipment, and certain diagnostic test kits. The global veterinary diagnostic equipment market was valued at about $1.2 billion in 2018 and is expected to grow to $1.92 billion at a CAGR of 12.4% through 2022. The veterinary diagnostic equipment market has been geographically segmented into North America, Western Europe, APAC, Eastern Europe, South America and Middle East & Africa. The North American market is the largest market for veterinary diagnostic equipment and is expected to continue to be the largest market during the forecast period. Increase in the prevalence rate of diseases among animals serves as one of the major drivers of the veterinary diagnostic equipment market. Due to increase in the incidence of diseases in livestock and pets, the demand for enhanced diagnostic equipment increases. For instance, according to the Banfield State of Pet Health report 2016, the prevalence of diabetes in dogs has increased by 79.7 % in 2015 (23.6 cases per 10,000) from 2006 (13.1 cases per 10,000) whereas there has been an increase of 18% in the prevalence rate of diabetes in cats from 2006 to 2015. The increase in prevalence rate of diseases in animals, results in increase in demand for diagnostic equipment, driving the veterinary diagnostic equipment market. The veterinary diagnostic equipment is highly expensive. The price of an equipment will be the significant expense for a veterinary clinic or hospital. To run a test center with blood testing machines, physiological monitors such as ECGs, anesthetic monitors etc., diagnostic imaging technology such as x-rays, ultrasound and MRI scanners, is highly capital intensive. Some kind of veterinary diagnostic equipment may be available on a budget, but with less precise diagnoses and thus less efficient treatments with less beneficial results. The high price of equipment hinders the growth of the veterinary diagnostic equipment market. Veterinary diagnostic equipment manufacturers are introducing advanced technologies such as advance blood micro sampling techniques to enable enhanced precision, patient-centered specimen collection and diagnosis of diseases in animals. Blood micro sampling is a technique that allows the participants to draw blood samples from their livestock and companion animals with ease. The samples are then forwarded to labs for further diagnosis. This technique is an extension to dry blood sampling, which is a method of collecting blood. For instance, in 2017, Neoteryx launched the '3Rs-compliant Mitra' micro sampling device that works on the principle of Micro sampling. The device uses Neoteryx's trademark Volumetric Absorptive Micro Sampling (VAMS) technology to facilitate more convenient and accurate remote sampling. Other companies investing in the trend of micro sampling includes Diatron with its Diatron aquila hematology analyzer. The US Food and Drug Administration (FDA) defines regulations for veterinary diagnosis equipment and can take appropriate action if a veterinary equipment is found misbranded or adulterated. The conditions for misbranding a diagnostic equipment is listed under title 21 and set by the Food and Drugs administration (FDA). For instance, as per the regulations under title 21, U.S code 352(f)(1), any veterinary medical equipment is considered misbranded if the labelling on the equipment is indefinite or unclear. Whereas, 21 U.S.C. 352(j) states that a veterinary medical equipment is considered misbranded if it is dangerous to the animal even when it is used in the manner recommended, or suggested as per the label. In May 2018, Zoetis Inc., US-based leading animal health company which discovers, develops, manufactures and markets veterinary vaccines and medicines, acquired Abaxis, Inc. for $2.0 Billion. With this acquisition Zoetis enhances its presence in the veterinary diagnostics market by utilizing the already established global network of Abaxis and increasing its revenue. This deal will help Zoetis achieve their goal of establishing sale of devices to more than 100 countries by using Abaxis's well-established diagnostic instruments and consumables. Abaxis, Inc. is a US-based firm that holds a strong product portfolio with various veterinary diagnostic instruments and kits. Major players in the market are IDEXX Laboratories, ABAXIS, HESKA Corporation, Zoetis and Virbac.

The veterinary vaccines market consists of sales of vaccines and related services which are used for the treatment and prevention of diseases in animals. These veterinary vaccines reduce animal suffering and transmission of microorganisms in the animal population. Veterinary vaccines are used to enhance the immunity power of animals by improving the animal health, which also prevents transmission of diseases from animals to humans. Veterinary vaccines industry includes entities that produce veterinary vaccines like livestock vaccines and companion animal vaccines. The global veterinary vaccines market was valued at about $7.4 billion in 2018 and is expected to grow to $9.24 billion at a CAGR of 5.7% through 2022. North America was the largest region in the veterinary vaccines market in 2018. This region is expected to remain the largest during the next five years. The veterinary vaccines market in Asia Pacific is forecasted to register the highest CAGR during 2018-2023. The increase in the number of animals suffering from range of diseases is increasing the demand for vaccines to prevent and treat such diseases, thus driving the veterinary vaccines market. For instance, according to an article on Vetrecords published in BMJ journal in 2017, the prevalence and incidence of bovine tuberculosis in the UK increased from 5.7% in 2016 to 6% in 2017. Bovine tuberculosis is a chronic disease that usually affects animals such as cattle, but it can affect all mammals causing a general state of illness, coughing and eventually lead to death. However, the disease can be treated with specific antibiotics that kills the TB bacteria. This rising prevalence of diseases in animals is expected to drive the veterinary vaccines market during the forecast period. High storage costs are acting as a major restraint for the growth of the veterinary vaccine market. Improper storage conditions and delay in the shipping can cause vaccines to lose their desired immune properties. For example, during transportation, vaccines can undergo biodegradation, if they are not transported within the required temperature limits. Thus, special care is required for the transportation of the vaccines in order to maintain the efficiency of the vaccines, which increases the storage and transportation cost for the vaccines. In 2016, according to report published by National Institute of Standards and Technology (NIST), approximately 35% of vaccines lost their potencies during the shipment, as they were stored at abnormal temperatures. Thus, high storage costs for vaccines are expected to result in additional costs for manufacturing companies and limit the growth of the market. Companies in the veterinary vaccines market are increasingly looking for strategic partnerships and collaborations to enter into new geographies and to share the Research & Development projects. For example, In August 2018, PHARMAQ, a Norwegian firm, announced a long-term strategic collaboration with Vinh Hoan to improve their Research and Development activities. Vinh Hoan is leading producer and exporter of pangasius fish with headquarters in Vietnam. The collaboration involves large scale vaccination of pangasius and PHARMAQ will provide Vinh Hoan with fish health services, diagnostic testing, and the introduction of new technologies and R&D activities. Similarly, In June 2018, MSD Animal Health, a division of Merck & Co with headquarters in the US, made a strategic partnership with Vinovo. This partnership will help MSD Animal Health to combine its unique broad vaccine product line and Vinovo’s vaccine delivery system to vaccination process, thus improving bird welfare, and reducing vaccine reactions. In June 2018, Wageningen bio veterinary research made a strategic alliance Ceva with headquarters in Switzerland, to improve their Research on the global threat of emerging and reemerging diseases for animals. The veterinary vaccines market is regulated by authorities such as European Medical Agency and the US Center for Veterinary Biologics. For instance, veterinary vaccine companies in Europe are required to adhere to European technical requirements mentioned in Annex 1, Title II, to Directive 2001/82/EC, as amended by Directive 2009/9/EC, and the European Pharmacopoeia (Ph. Eur.). According to these regulations, veterinary vaccines are required to undergo safety test before getting the approval, where vaccines are classified into activated vaccines and inactivated Vaccines. In activated vaccines, each batch of vaccines should have a dose that is double the standard dose. In inactivated vaccines, each batch of vaccines should be ten times the standard dose for the active vaccines. Activated vaccines are usually tested by in vitro titration, while serological tests are commonly used for inactivated vaccines. Major players in the market are Boehringer Ingelheim GmbH, Merck Animal Health, Zoetis Inc., Eli Lilly and Company, and Bayer AG (Bayer Animal Health).