U.S. animal healthcare industry to witness unparalleled gains over 2017-2024, global market valuation to surpass USD 36 billion by 2024

Worldwide animal healthcare industry continues to traverse an exponential growth trajectory, significantly powered by the popularity of pet ownerships and globally surging demand for meat and dairy products. Animal healthcare market, having been consistently led by established pharmaceutical giants, over time, has evolved rapidly in terms of covering a broader range of animals. During its nascent stages of development, animal healthcare industry encompassed a trifle more than a handful of corporate divisions, until Zoetis went public in 2013 at USD 2.2 billion, the largest IPO (initial public offering) after Facebook. For the record, Zoetis is the largest global animal health company that conveniently seized the attention of the financial community, making animal healthcare industry a rather promising long and short-term investment ground. Since then, many new firms have penetrated animal healthcare market and have flexibly evolved to offer treatments for a wide range of diseases associated with animals. Moreover, the growing developments in the drug and injectables sector for both livestock and pets will play a significant role in augmenting animal healthcare industry share.

animal healthcare industry

The substantial upsurge in pet ownership and rising global population’s demand for meat and dairy products are two of the most crucial factors that have been drawing the attention of potential investors to animal healthcare industry. It wouldn’t be incorrect to state that the animal healthcare market is chiefly driven by two sectors, livestock and pets. Mentioned below is a brief outline of these flourishing sectors that are influencing the dynamics of animal healthcare industry.

Livestock sector: Escalating population to sketch a lucrative growth map for animal healthcare market

The ever-increasing population vividly demonstrates the globally growing demand for meat and dairy products. Reportedly, the worldwide population totaling to 7.4 billion in 2016, is estimated to cross 8.5 billion by 2030. Thus, in order to resolve the food demand that may plausibly turn out to be a crisis by 2030, animal protein production will have to increase by at least 30% from its existing level. In consequence, it is quite important to address effective disease prevention and health management strategies that will potentially combat loss of meat and dairy animals due to lack of animal healthcare.

It is needless to say that with the global population expanding at an alarming rate, animal farming and husbandry business will witness a positive spin in the coming years. The animal health companies are thus prominently embracing the demand for animal medicines and vaccinations, which, for the record, have traversed a long way from antibiotics to therapeutics and biologics. India and China, on account of their intensive animal husbandry practices and rich livestock base, have been evolving into profound investment destinations for animal healthcare industry players. As per estimates, India is home to more than 10% of the worldwide livestock population and holds the position of the largest producer of chicken, fish and cattle. Despite being heavily regulated and dominated by a few consolidated players, animal healthcare market share from the livestock sector is evolving rapidly across key geographies. Rising consumer concerns over antibiotics used in raising livestock have now turned out to be a mainstream issue, with major companies such as Perdue and Tyson taking significant steps to respond to this demand.

The increasing demand for animal meat and dairy products is not only directing the need to gear up food production but is also indicating the rising demand for diet that is more focused on animal meat as a source of protein. It is expected that the demand for animal source protein will continue to grow as the economic growth of developing countries witnesses an incline. Thus, with the growing efforts to meet the projected demands, animal healthcare market is expected to attain lucrative gains in the years ahead.

Pet sector: Rising pet ownership and increased spending on pet healthcare to push industry growth

If the livestock sector of animal healthcare industry is being driven by the pressing need to meet the global food challenges, the pet segment is responding to a demand that may be technically considered fluffier, as per experts. In the United States, 65% of households own a pet currently, and this number is on the verge of witnessing a significant rise in the coming years. According to a 2015 survey, more than 95% of the U.S. pet owners consider pets to be a part of their family. This is an indication that pet owners are also likely to spend more to ensure their pet’s longer life and health. However, increasing pet population has also increased the risk for developing cancer and other age-related disorders in animals. Such developing disorders related to their growing age are poised to provide niche market opportunities for animal healthcare industry.

In 2016, U.S. animal healthcare market accounted for largest share, subject to increasing pet population in the region, growing awareness about animal health, high disposable incomes of pet owners, and availability of advanced infrastructure and medicines for animal health. The region also boasts of the presence of a large number of established companies, that are bringing forth commendable advancements in personalized pet medicines, animal pharmaceuticals, and biologicals. This opportunity is leading to the development of novel new business models and new companies that are focusing on pet products.

How animal healthcare industry has embraced technological advancements

The 21st century has created pivotal opportunities for technology to penetrate both in the livestock and pet sectors of the animal health ecosystem. In 2016, Merial collaborated with the Georgia Institute of Technology’s Center for the development and application of the Internet of Things to develop possible ways that can prolong animal health and wellness. The animal healthcare industry has already witnessed the launch of a plethora of apps for poultry and dairy farmers – right from dairy cows connected to mobiles to wearables for pets that have brought forth high value solutions at greater convenience. The advent of digital technologies in animal healthcare market has thus promoted better disease surveillance and early detection.

Having recognized the potential of digital technologies, Zoetis is participating in a U.K. based project to develop visual imaging methods and devices that will assist farmers to improve the health and wellness of farm animals.

Based on the aforementioned facts, it is quite evident that animal healthcare industry is rapidly evolving with developments in technology and biological sciences. These advancements are demanding more innovation from start-ups across the globe, which have rapidly made inroads in animal healthcare industry. The global market is further likely to witness even more strategic collaborations and increased communication in the value chain that would fulfill the projected targets of providing high quality protein. This would also yield better opportunities for the investors, inherently resulting in the expansion of animal healthcare industry size, which was pegged at USD 26 billion in 2016. According to comprehensive research study provided by Global Market Insights, Inc., animal healthcare market is estimated to exceed USD 36 billion by 2024 at a CAGR of 4% over 2017-2024. In all likelihood, animal healthcare industry will continue to evolve for developing enhanced products for livestock and for better understanding the interaction between animal genetics and animal health.

Global Market Insights, Inc. has a report titled “Animal Healthcare Market Size By Pharmaceuticals (Ectoparasiticides, Endoparasiticides, Anti-inflammatories, Anti-infectives), By Vaccines (Poultry, Cattle, Swine, Equine, Dogs, Cats, Horses), By Medicated Feed Additives( Antibiotics, Vitamins, Amino acids, Enzymes, Antioxidants, Prebiotics and Probiotics, Minerals), By Animal Type ( Farm Animal And Companion Animal), Regional Outlook (U.S., Canada, Germany, UK, Spain, Italy, France, Poland, Netherlands, China, Japan, India, South Korea, Australia, Brazil, Mexico, South Africa, Saudi Arabia), Technology Development, Competitive Landscape & Forecast, 2017 – 2024” available at https://www.gminsights.com/industry-analysis/animal-healthcare-market