Animal Medicine Market Definition
The animal medicine market consists of sales of veterinary medicines and related services by entities (organizations, sole traders and partnerships) that manufacture veterinary medicines used to treat animal diseases and/or to improve animals’ performance and health. The animal medicine industry includes establishments that manufacture veterinary pharmaceuticals such as veterinary vaccines, veterinary antibiotics, and other veterinary pharmaceuticals, and establishments that manufacture medical feed additives and nutritional feed additives.
Animal Medicine Market Size
The global animal medicine market size reached a value of nearly $38.0 billion in 2019, having grown at a compound annual growth rate (CAGR) of 11.7% since 2015, and is expected to grow at a CAGR of 12.5% to nearly $61.0 billion by 2023.
Growth in the historic period resulted from the rise in corporate profit, availability of a low-cost talent pool in emerging economies and technological transformations in the retail and e-commerce verticals. Factors that negatively affected growth in the historic period were stringent government regulations and cybersecurity concerns.
Growth in the historic period resulted from strong economic growth in emerging markets driving pet care spending among the population, increased spending on pets globally, and increased disease prevalence among animals supporting the use of veterinary medicines, worldwide rise in meat consumption, and shortages of cheaper generic medicines in the animal medicine market. Factors that negatively affected growth in the historic period were shortages of veterinarians resulting in the low awareness levels of animal healthcare, the lack of awareness about animal healthcare in developed and developing market in general, and inappropriate use of medicines.
Going forward, economic growth supporting increased standards of living and strengthening middle class, increasing penetration of pet insurance, and rising meat production will drive growth. Factors that could hinder the growth of the animal medicine market in the future include rising threat of antibiotic resistance among animals, consolidation of customers and distributors resulting in the decline of veterinary medicines prices and reductions in free trade affecting end users of the animal medicine market.
Animal Medicine Market Drivers
The key drivers of the animal medicine market include:
Increasing Penetration Of Pet Insurance
The increasing penetration of pet insurance is expected to drive the animal medicine market. Globally, the pet insurance market is largely untapped with extremely low penetration rates 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 supporting the use of veterinary pharmaceuticals and feed additives in the treatment of different diseases.
Animal Medicine Market Restraints
The key restraints on the animal medicine market include:
Rising Threat Of Antibiotic Resistance
The rising threat of antibiotic resistance among animals is expected to restrain the veterinary pharmaceuticals market. Antibiotic resistance in animals is the ability of a microbe to withstand the impact of an antibiotic that once could successfully treat the infection from the same type of microbe. This can be a result of antibiotics overuse. To tackle the antibiotic resistance threat, in 2018, the European Union (EU) approved various restrictions on veterinary antibiotics including ban of antibiotics for animals and prohibiting the usage of antimicrobials in food , which are expected to restrict the growth of the veterinary antibiotics market and the animal medicine market overall.
Animal Medicine Market Trends
Major trends influencing the animal medicine market include:
Production Of Combination Medicated Feed Additives
Veterinary medicines manufacturers have started increasingly producing combination medicated feed additives to improve efficiencies of the end product. Medicated feed additives in general help maintain animal health and promote growth and feed efficiency. They are usually promoted as an extra nutrient or drug for livestock. Medicated feed additives include vitamins, amino acids, fatty acids, pharmaceuticals, minerals, growth hormones and fungus. Around 70% of companies in the medical feed additives market are introducing new medicated feed additives formed as a result of a combination of two or more medicated feed additives to improve the efficiency of the product. For instance, in November 2018, Zoetis, the world’s largest producer of veterinary medicines, received an approval from the US FDA (Food and Drug Administration) for Cyden and Lincomix, a combination feed additive proposed to be used as a medicated feed additive for poultry.
Strategic Collaborations And Partnerships To Drive Innovations
Companies in the animal medicine industry are increasingly collaborating and partnering with other players to drive product innovations. To succeed in the increasingly competitive animal medicine market, veterinary medicines companies are entering into new geographies and developing innovative products through sharing skills and expertise with other players. In April 2019, Bayer AG, a German pharmaceutical and life sciences company, collaborated with Adivo GmbH, a biotech company generating therapeutic antibodies for companion animals, to develop therapeutic antibodies for veterinary medicine. Similarly, in June 2018, Merck & Co.’s subsidiary, MSD Animal Health, announced a strategic partnership with Vinovo B.V., a division of Viscon Hatchery Automation, the leading hatchery automation company, to provide a new standard in safe and effective in ovo vaccination to improve bird welfare, reduce vaccine reactions and provide improved protection for the poultry.
Opportunities And Recommendations In The Animal Medicine Market
Opportunities – The top opportunities in the global animal medicine market will arise in the veterinary pharmaceuticals segment which will gain $20.7 billion of global annual sales by 2023. The top opportunities in the global veterinary pharmaceuticals market will arise in the veterinary parasiticides segment which will gain $6.6 billion of global annual sales by 2023. The top opportunities in the global feed additives market will arise in the medical feed additives segment which will gain $1.4 billion of global annual sales by 2023.The animal medicine market size will gain the most in the USA at $8.2 billion. Market-trend-based strategies for the animal medicine market include developing oral drug solutions, investing in nanotechnology treatment applications, developing new combination medicated feed additives and collaborating with academic and research institutions to develop new products. Player-adopted strategies in the veterinary medicines industry include reinforcing M&A strategies, developing new animal health products through collaborations and investments in research and development projects.
Recommendations – To take advantage of the opportunities, The Business Research Company recommends the animal medicine companies to consider produce easy-to-give medicines, drugs to combat skin cancer and generic drugs, collaborate to drive innovations, produce combination medicated feed additives and focus on individual customers.
Animal medicine Market Segmentation
The animal medicine market is segmented by type of medicine, type of animal and by geography.
By Type Of Medicine-
The animal medicine market can be segmented by type of medicine
The veterinary pharmaceuticals market is further segmented by type of pharmaceuticals into veterinary parasiticides, veterinary vaccines, veterinary antibiotics and others – veterinary pharmaceuticals. The veterinary parasiticides market was the largest segment of veterinary pharmaceuticals market, accounting for $9.9 billion or 29.4% of the total market in 2019. The veterinary vaccines segment is expected to be the fastest-growing segment going forward at a CAGR of 13.7%.
The feed additives market is further segmented by type of additive into medical feed additives and nutritional feed additives. The medical feed additives market was the largest segment of the feed additives market, accounting for $2.6 billion or 61.5% of the total in 2019 and this market is expected to be the fastest-growing segment going forward at a CAGR of 10.5%.
- a) Veterinary Pharmaceuticals
- i. veterinary parasiticides
- ii. veterinary vaccines
- iii. veterinary antibiotics
- iv. Others – veterinary pharmaceuticals
- b) Feed Additives
- i. medical feed additives
- ii. Nutritional feed additives
By Type Of Animal -
The animal medicine market can be segmented by type of animal
The animal medicine for livestock market was the largest segment of the animal medicine market by type of animal, accounting for $20.6 billion or 54.1% of the total in 2019. The animal medicine for companion animals market is expected to be the fastest-growing segment going forward at a CAGR of 16.1%.
- a) livestock
- b) companion animals
By Geography- The animal medicine market is segmented into
- o North America
- o Western Europe
- Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, UK
- o Asia Pacific
- China, Australia, Hong Kong, India, Indonesia, Japan, Malaysia, New Zealand, Philippines, Singapore, South Korea, Thailand, Vietnam
- o Eastern Europe
- Czech Republic, Poland, Romania, Russia
- o South America
- Argentina, Brazil, Chile, Colombia, Peru, Venezuela
- o Middle East
- Saudi Arabia, Israel, Turkey, UAE
- o Africa
- Egypt, Nigeria, South Africa
Animal medicine Competitive Landscape
Major Competitors are:
Other Competitors Include:
- • Zoetis, Inc.
- • Boehringer Ingelheim GmbH
- • Merck & Co
- • Elanco Animal Health Inc.
- • Bayer AG
- • Ceva Animal Health LLC – Biomune
- • Virbac Group
- • Phirbo Animal Health
- • Vetoquinol S.A.
- • Kyoritsu Seiyaku
- • Century Pharmaceuticals Limited
- • BASF India Ltd.
- • Bayer Animal Health Cadila Pharmaceuticals Ltd.
- • Cargill India Pvt. Ltd.
- • Zoetis India
- • China Animal Healthcare Ltd.
- • Ceva Sant Animale
- • Merck/MSD Animal Health
- • Intervet Australia Pty Ltd
- • Virbac (Australia) Pty Limited
- • Jurox Pty Ltd
- • Boehringer Ingelheim
- • Ceva Santé Animale
- • Boehringer Ingelheim
- • Nimrod Veterinary Products Ltd.
- • Bimeda
- • Animalcare
- • MSD Animal Health
- • Interfeed
- • Biotex Plus Ltd.
- • Belfarmacom
- • Zoetis
- • IDT Biologika
- • Elanco Animal Health
- • UCBVET
- • Syntec
- • Sauvet
- • Vetanco
- • Chemo Argentina
- • Brouwer
- • Agrovet Market Animal Health
- • Lemavet
- • Boehringer Ingelheim MENA
- • Saudi Pharmaceutical Industries (SPI)
- • DBK Pharma S.A.E.
- • MSD Animal Health South Africa
- • Ceva Animal Health (Pty) Ltd
- • Virbac RSA