Veterinary Pharmaceuticals Are A Large And Fast-Growing Market
The animal medicine market is segmented by type of medicine into veterinary pharmaceuticals and feed additives. Of these, the global veterinary pharmaceuticals market was the largest segment in 2019, accounting for 88.8% of the total share. The global veterinary pharmaceuticals market grew from $21.56 billion in 2015 to $33.76 billion in 2019 at a compound annual growth rate (CAGR) of 11.9%. The largest market size can be attributed to the high prevalence of animal diseases in both developed and developing countries, supporting the demand for veterinary pharmaceuticals and vaccines. The fastest growth in the historic period can be attributed to the increased prevalence of animal diseases globally, leading to an increased demand for veterinary pharmaceuticals used to treat diseases such as zoonotic diseases and bird flu in pet animals and farm animals. The market is expected to grow to $54.47 billion in 2023 at a compound annual growth rate (CAGR) of 12.7%.
The veterinary pharmaceuticals industry includes establishments that manufacture veterinary medicines which are used for pet animals and farm animals. Veterinary pharmaceuticals are drugs mainly used by veterinarians in the treatment of animal diseases. Examples of veterinary pharmaceuticals include Vanguard® vaccine line, CORE EQ Innovator™, Apoquel® (oclacitinib tablet), and Fenbendazole.
The feed additives segment of the global animal medicine market was the smaller segment of the two in 2019, accounting for 11.2% of the total share. It will also grow at an annual rate of 11.2% to 2023. The feed additives market is supported by the presence of a large number of animal farms globally and high healthcare expenditure on animal production in farms.
The vet pharma market is further segmented based on type of pharmaceutical, into veterinary parasiticides, veterinary vaccines, veterinary antibiotics, and other veterinary pharmaceuticals. Of these, the fastest growing segment to 2023 will be the vet vaccines market, at 13.7% CAGR.
The market for veterinary pharmaceuticals is complex and fragmented. Many veterinary medicines are used in a variety of species. Target animal tests must be conducted for each species, while products must often be developed in a range of dosages and formulations to cater to the needs of individual species segments and the conditions under which medicines are administered. Antibiotics developed for veterinary use must undergo additional testing to ensure that they will not affect the development of microbial resistance to human drugs. Despite efforts to harmonize regional regulatory frameworks, requirements imposed on veterinary medicines still vary widely between individual markets. This further complicates the development of new products, and can significantly delay their availability in some countries. These factors support the need for the development and implementation of separate regulatory requirements for the veterinary pharmaceuticals industry.