Increasing Penetration Of Pet Insurance Along With Social Media Will Drive The Veterinary Healthcare Market
14 Jan, 2020
The global veterinary healthcare market is expected to grow from around $154 billion in 2019 to $234 billion in 2023 at an annual growth rate of 11%. The increasing penetration of pet insurance is expected to drive the animal veterinary healthcare market. Globally, the pet insurance market is largely untapped with extremely low penetration rates, thus providing a large market opportunity. In developed economies such as the USA, the pet insurance penetration rate is around 1%, although in Western European countries such as the UK the penetration rate is around 20%. During 2018-2022, the pet insurance market in the USA is expected to grow from $1 billion in 2018 to $2 billion in 2022, at a compound annual growth rate of 14%, mainly driven by the increasing consumer awareness and rising disposable income of companion animal owners. Increasing penetration of pet insurance will increase the number of visits at veterinary clinics, thereby driving the market for veterinary healthcare.
Despite increased penetration of pet insurance, in the USA this penetration is very low. In 2015, a survey was conducted by The Harris Polls, a USA-based market research firm, in the USA, among USA adults owning a pet. According to the survey, only 12% of pet owners took out health/medical insurance policies. 19% of millennials had taken out insurance policies, whereas 9% were Gen X, 8% were baby boomers and 9% were matures. In addition, 15% of men were more likely to take insurance policies for their pets, whereas only 9% of women took insurance policies for their pets.
Increasing social media penetration is also expected to contribute to the growth of the global veterinary healthcare market in the forecast period. Social media and digital media marketing are driving the veterinary services market and also help spread the pet culture to different parts of the world. There are many blogs and social media sites which publish articles on animal care and various diseases affecting livestock. This increases awareness of various diseases affecting livestock and pets, and leads to an increase in number of visits to veterinary clinics or callouts for veterinarians. For example, blogs such as Firstline and dvm360.com offer advice on pet and animal care to livestock farmers and pet owners.
NGOs and veterinary healthcare facilities are increasingly using social media to promote their brands and sensitize people about the importance of animal healthcare. Increased awareness on pet healthcare through social media is expected to lead to the growth of the veterinary healthcare market.
According to a survey by LifeLearn in 2015, a leading customized sales, marketing and training solutions provider to veterinary hospitals based in Canada, Facebook (87%), Google Plus (51%) and Instagram (23%) are the preferred platforms for promotion of veterinary services. Google Plus registered the highest increase in usage from 20% in 2013 to 51% in 2015.