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Animal Healthcare Market Overview
The global animal healthcare market generated revenue of $31,637.0 million in 2017 and is projected to advance at a CAGR of 5.1% during the forecast period. Increasing adoption of companion animals, growing consumption of meat and milk, and rising incidence of food-borne zoonotic diseases are the key factors driving the market.
APAC ANIMAL HEALTHCARE MARKET, BY ANIMAL TYPE, $M (2013 - 2023)
Based on product, the market is categorized into feed additives, vaccines, anti-infectives, anti-inflammatories, parasiticides, and others, wherein “others” include oncological and antiemetic products, drugs for reproductive problems, and sedatives for pain relief. Among these categories, feed additives held the largest share in the animal healthcare market, accounting for over 40% revenue in 2017. The category is expected to continue holding the largest market share in the coming years, on the account of the increasing consumption of animal-derived products and the rising feed production, globally.
The market is categorized into farm and companion animals on the basis of animal type. Farm animals contributed larger revenue to the animal healthcare market in 2017, primarily because of the increase in the adoption of farm animals to meet the global demand for animal-based products.
Among farm animals, which include ruminants, poultry, swine, and fish, ruminants held a revenue share of over 44% in the farm animal healthcare market in 2017, owing to the increasing demand for meat and dairy products, globally. The U.S. produced 11.5 million tons of beef in 2016, followed by Brazil and the European Union. Additionally, in 2017, the U.S. imported and exported about 2.8 billion pounds of veal and beef, respectively. According to the Food and Agriculture Organization (FAO), milk production of five key dairy exporters in the world will increase by 1.5% in 2018, thereby bringing the global supply to 289 billion liters.
Among companion animals, which are further categorized into canine, feline, and equine, the canine category accounted for over 50% share in the companion animal healthcare market in 2017. This can be majorly attributed to the increasing adoption of companion animals (especially dogs) and the rising expenditure on their health across the world.
Based on distribution channel, the animal healthcare market is classified into veterinary hospitals, veterinary clinics, pharmacies and drug stores, and others, wherein “others” include online and retail stores. Veterinary hospitals held the largest share, of around 39%, in the market in 2017, on the account of the increasing preference of pet owners for veterinary hospitals, as unlike other veterinary facilities, these hospitals offer complete healthcare solutions for pets.
North America was the largest animal healthcare market, globally, in 2017. The major factors driving the market in the region are increasing spending on animal healthcare by farm animal owners, rising demand for animal-based products, and growing trend of pet humanization in the region.
Animal Healthcare Market Dynamics
One of the key trends observed in the animal healthcare market is the increasing number of public–private sector collaborations. The number of public and private partnerships (PPP) has increased over the years between veterinary laboratories and livestock producers; veterinary service providers and private veterinarians; and veterinary service providers and private companies focusing on animal healthcare. Partnerships between veterinary laboratories and livestock producers help in understanding the diagnostic and treatment procedures for the management of various types of animal diseases, which, in turn, result in the increased demand for animal therapeutic products.
Another key trend observed in the animal healthcare market is the increasing application of the Internet of Things (IoT) for animal health monitoring. Nowadays, farmers are using various kinds of mobile sensors on farm animals for monitoring the health of these animals in order to increase their productivity. These sensors are incorporated in the wearables to gather information about animal behavior, injury, health, and other statistics related to fertility and lactation.
Also, with the rise in the number of farm animals, the demand for proper animal health monitoring solutions has increased, globally. According to the FAO, livestock accounts for approximately 40% of the global agricultural output. Hence, IoT is increasingly being used to improve animal productivity with the better monitoring and management of their health.
Changing lifestyle, growing population, and increase in per capita income level are the major factors leading to the increase in meat and milk consumption, globally. Moreover, to fulfill the demand for protein-rich food, such as eggs, milk, and meat, emphasis is being laid on increasing the production of farm animals across the globe. Further, due to increasing risk of transfer of animal diseases to humans and the growing demand for meat from countries such as the U.S., Japan, Brazil, and China, the demand for animal healthcare products is on the rise at the global level.
Besides, the increasing adoption of companion animals is a key factor driving the animal healthcare market. Various human health benefits of keeping pets and growing trend of pet humanization are the key factors leading to the increasing adoption of companion animals. According to an American Pet Products Association 2008 survey, dog and cat owners in the U.S. were observed to be healthier and happier, as compared to non-pet owners. Moreover, Americans spent over $69.5 billion on their pets in 2017.
With the growth in animal population and rise in incidence of diseases in animals, there has been an increased focus on the development of medicines for animal care. A number of animal diseases emerge every year, which offer opportunities to medicine-manufacturing companies to introduce advanced animal health products. Thus, companies in the animal healthcare market are actively spending on research and development activities for the treatment of prevailing and new animal diseases. Diseases such as the Nipah virus (NiV) infection, melioidosis, bluetongue, and porcine reproductive and respiratory syndromes are widespread these days and are, thus, offering lucrative opportunities to the market players.
Animal Healthcare Market Competitive Landscape
The intensity of rivalry among players in the animal healthcare market is moderate. Most of the major players are actively focusing on partnerships, and mergers and acquisitions to meet the growing demand in the emerging market. For instance, in June 2018, Zoetis Inc., a key player in the market, and Regeneron Pharmaceuticals Inc., a biotechnology company that develops medicines for critical animal diseases, announced a five-year collaboration to study the use of monoclonal antibody therapeutics in animals.
Some of the other key players operating in the global animal healthcare market are Merck & Co. Inc., C.H. Boehringer Sohn AG & Co. KG, Bayer AG, Virbac Group, Ceva Santé Animale, Elanco Animal Health, and Vetoquinol S.A.