Veterinary Pharmaceuticals Market Definition
The veterinary pharmaceuticals market consists of sales of veterinary pharmaceuticals by entities (organizations, sole traders and partnerships) that manufacture veterinary pharmaceuticals (or drugs) used to sedate, treat animal diseases and/or to improve animals’ performance and health. The veterinary pharmaceuticals industry includes establishments that manufacture veterinary pharmaceuticals such as veterinary vaccines, veterinary antibiotics, and other veterinary pharmaceuticals.
Veterinary Pharmaceuticals Market Size
The global veterinary pharmaceuticals market reached a value of nearly $33,762.4 million in 2018, having increased at a compound annual growth rate (CAGR) of 11.9% since 2014.
Growth in the historic period resulted from emerging markets growth, increased pet spending and increased disease prevalence. Factors that negatively affected growth in the historic period was a shortage of veterinarians, lack of awareness, and inappropriate use of medicines.
Going forward, increasing penetration of pet insurance, rise in pet ownership, and increase in government initiatives. Factors that could hinder the growth of the veterinary pharmaceuticals market in the future include rising threat of antibiotic resistance, consolidation of customers and distributors, and reductions in free trade.
Veterinary Pharmaceuticals Market Drivers
The key drivers of the veterinary pharmaceuticals market include:
Increasing Penetration of Pet Insurance
The increasing penetration of pet insurance is expected to drive the veterinary pharmaceuticals 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.
Veterinary Pharmaceuticals Market Restraints
The key restraints on the veterinary pharmaceuticals market include:
Increasing Influx Of Counterfeit Drugs
The growth of online business for drugs have increased the influx of counterfeit drugs in all nations across the globe. Counterfeit medicines are fake medicines which may contain wrong or no active ingredients or right ingredients at the wrong dose. These types of drugs are mostly distributed through illicit channels, including dodgy websites, social media, e-commerce sites such as Alibaba and street vendors. According to a 2018 report of global animal medicines association, HealthforAnimals indicates market for counterfeit veterinary medicines is between $1 to $2 billion. Illegal drugs market for veterinary pharmaceuticals creating huge loss for pharma companies and restraining the growth of the market.
Veterinary Pharmaceuticals Market Trends
Major trends influencing the veterinary pharmaceuticals market include:
Strategic Collaborations And Partnerships To Drive Innovations
Companies in the veterinary pharmaceuticals industry are increasingly collaborating and partnering with other players to drive product innovations. To succeed in the increasingly competitive veterinary pharmaceuticals 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.
Development Of Chewable Tablets
Chewable tablets are increasingly being used to prevent animals from being affected by ticks, worms, fleas and others. Such tablets are usually soft chew and are available in different flavors such as beef-flavored tablets. Treatments with these tablets are easier to administer than with regular tablets as they can be easily added to regular meals of animals. Many veterinary medicines manufacturers are constantly working towards producing effective and easy-to-give drugs to succeed in the highly consolidated veterinary pharmaceuticals market. For instance, in July 2018, the US FDA approved NexGard (afoxolaner), a chewable tick tablet market by Boehringer Ingelheim, a German pharmaceutical company. The tablet kills certain black-legged ticks, as well as American dog ticks, lone star ticks, and brown dog ticks to prevent flea infections in dogs.
Opportunities And Recommendations In The Veterinary Pharmaceuticals Market
Opportunities – The veterinary pharmaceuticals market size will gain the most in the USA at $7,412.5 million. Market-trend-based strategies for the veterinary pharmaceuticals market include strategic collaborations and partnerships with other market players to boost innovations and establish category leadership, the development of new chewable medicines for the treatment and prevention of veterinary diseases, and developing easy-to-give drugs such as oral liquid solutions to treat various veterinary diseases. Player-adopted strategies in the veterinary pharmaceuticals market include expanding through new acquisitions, and expanding through strategic collaborations.
Recommendations – To take advantage of these opportunities, The Business Research Company recommends the veterinary pharmaceuticals companies to offer standalone veterinary pharmaceuticals policies, produce easy-to-give medicines, collaborate to drive innovations, and produce generic drugs.
Veterinary Pharmaceuticals Market Segmentation
The veterinary pharmaceuticals market is segmented by type of pharmaceutical, by animal type, by route of administration, by end-use channel and by geography.
By Type Of Pharmaceutical-
The veterinary pharmaceuticals market can be segmented by type of pharmaceutical
The veterinary parasiticides market was the largest segment of the veterinary pharmaceuticals market, accounting for 29.4% of the total in 2019. It was followed by veterinary vaccines, veterinary pharmaceuticals, veterinary antibiotics. Going forward, veterinary vaccines segment is expected to be the fastest growing segment in the veterinary pharmaceuticals market.
- a) Veterinary Parasiticides
- b) Veterinary Vaccines
- i. Live Attenuated Vaccines
- ii. Inactivated Vaccines
- iii. Recombinant Vaccines
- iv. Others
- c) Others - Veterinary Pharmaceuticals
- d) Veterinary Antibiotics
By Animal Type -
The veterinary pharmaceuticals market can be segmented by animal type
The livestock market was the largest segment of the veterinary pharmaceuticals market, accounting for 54.2% of the total in 2019. It was followed by companion animal.
- a) Livestock
- b) Companion Animal
By Route of Administration -
The veterinary pharmaceuticals market can be segmented by route of administration
The oral market was the largest segment of the veterinary pharmaceuticals market, accounting for 55.3% of the total in 2019. It was followed by others. Going forward, others is expected to be the fastest growing segment in the veterinary pharmaceuticals market.
By End Use Channel-
The veterinary pharmaceuticals market can be segmented by end use channel-
The veterinary hospitals market was the largest segment of the veterinary pharmaceuticals market, accounting for 66.7% of the total in 2019. It was followed by pharmacies and drug stores and veterinary clinics. Going forward, veterinary clinics segment is expected to be the fastest growing segment in the veterinary pharmaceuticals market.
- a) Veterinary Hospitals
- b) Pharmacies And Drug Stores
- c) Veterinary Clinics
By Geography –
The veterinary pharmaceuticals market is segmented into
North America was the largest region in the global veterinary pharmaceuticals market, accounting for 46.8% of the total in 2019. It was followed by Western Europe, Asia Pacific, and then the other regions. Going forward, the fastest-growing regions in the veterinary pharmaceuticals market will be Asia Pacific and Africa.
- o North America
- o Western Europe
- o Asia Pacific
- South Korea
- o Eastern Europe
- o South America
- o Middle East
- o Africa
Veterinary Pharmaceuticals Competitive Landscape
Major Competitors are:
Other Competitors Include:
- • Zoetis Inc.
- • Boehringer Ingelheim International GmbH
- • Merck & Co., Inc.
- • Elanco Animal Health Inc.
- • Bayer AG
- • Ceva Santé Animale
- • Virbac Group
- • Phibro Animal Health Corporation
- • Vetoquinol S.A.
- • Kyoritsu Seiyaku Corporation
- • Century Pharmaceuticals Limited
- • Jurox Pty Ltd
- • Virbac (Australia) Pty Limited
- • Intervet Australia Pty Ltd
- • Merck/MSD Animal Health
- • Bimeda
- • China Animal Healthcare Ltd.
- • Zoetis India
- • Cargill India Pvt. Ltd
- • Bayer Animal Health Cadila Pharmaceuticals Ltd.
- • BASF India Ltd.
- • Animalcare
- • Ceva Sant Animale
- • Interfeed
- • Boehringer Ingelheim
- • Biotex Plus Ltd
- • BASF India Ltd
- • Cadila Pharmaceuticals Ltd
- • Fujita Pharmaceutical
- • DS Pharma Animal Health Co., Ltd
- • ZENOAQ
- • Nimrod Veterinary Products Ltd
- • Belfarmacom
- • IDT Biologika
- • Elanco Animal Health
- • Ceva Animal Health Inc
- • UCBVET
- • Syntec
- • Sauvet
- • Vetanco
- • Chemo Argentina
- • Brouwer
- • Agrovet Market Animal Health
- • Lemavet
- • Saudi Pharmaceutical Industries (SPI)
- • DBK Pharma S.A.E
- • Virbac RSA