Animal Pharmaceuticals Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2025 - 2032)

Animal Pharmaceuticals Market Size

Animal Pharmaceuticals Market Trends and Growth Drivers

Growing Preference for OTC Veterinary Drugs Is Key Market Trend

• Most of the branded animal pharmaceuticals have been in the market for decades, and there has been very low rate of new product launches.
• The animal pharmaceuticals market is characterized by the dominance of branded pharmaceuticals.
• However, in the past few years, there has been growth in the consumption of geriatric and OTC drugs for animal care.
• With the expiring patents of animal pharmaceuticals, manufacturers are developing and marketing generic brands.
• Moreover, the decline in NCE approvals is also pushing animal pharmaceutical manufacturers to develop generics of the products of other companies.
• Among the most-common veterinary drugs available over the counter are diphenhydramine (Benadryl), loratadine (Claritin), cetirizine (Zyrtec), bismuth subsalicylate (Pepto-Bismol), loperamide (Imodium), Kaopectate, cimetidine (Tagamet), famotidine (Pepcid AC), an array of steroidal gels, sprays, and creams, Neosporin, cimetidine (Tagamet), lubricating eye drops, and hydrogen peroxide.
• All these factors are increasing the intensity of rivalry among competitors in the global animal pharmaceuticals market.
• Similarly, other small manufacturers in the market are also investing in the development of generic animal pharmaceuticals.
• This would further intensify competition among key manufacturers of the animal pharmaceuticals.

Increasing Prevalence of Zoonotic Diseases Drives Market

• The rising occurrence of zoonotic illnesses and diseases in animals themselves, such as eastern equine encephalitis, a lethal infection affecting the brain, is expected to propel the growth of the market.
• Other serious zoonotic illnesses, which pass on to humans from animals, are rabies, salmonellosis, Taeniasis, cysticercosis, echinococcosis, chagas, toxoplasmosis, bird flu, COVID-19, tick paralysis, psittacosis, tularemia, plague, brucellosis, and Lyme disease.
• The World Health Organization says that each year, 1 billion cases of such diseases are detected globally.
• The most-recent of the outbreaks was COVID-19, which is widely speculated to have originated in Chinese markets that sold fresh meats.
• As of mid-April 2024, the disease carried a global prevalence of over 704 million and a death rate of over 7 million.
• Animals are susceptible to many illnesses and environmental risks, and they can act as an early warning system for possible human infections.
• The global prevalence of zoonotic illnesses has grown during the last two decades as a result of the rising pet population in the emerging economies.

Concerns and Regulations over Antibiotic Usage Could Hamper Market Growth

• Antibiotics are used in animals for non-therapeutic and therapeutic purposes, including their growth promotion.
• However, the health of consumers using the products of the animals, on which excessive antibiotics have been used, is being affected.
• This has led to severe concerns within regulatory authorities, which have started imposing restrictions on the use of antibiotics in production animals.
• The Food and Drug Administration (FDA) introduced a new policy in 2013 regarding the limited use of antibiotics in production animals.
• According to The New York Times, approximately 23,000 Americans die and around 2 million fall sick due to antibiotic-resistant infections because of the consumption of animal products in which excessive amounts of antibiotics are used.
• As per the policy of Food and Drug Administration, animal food producers are required to get a prescription from a veterinarian in order to use antibiotics on their animals.
• Since antibiotics hold a large share in animal pharmaceutical drugs, the policy acts as a restraint for the animal pharmaceuticals market.
• In Germany, a glycopeptide antibiotic known as avoparcin, has been completely banned since 1996.
• Germany enforced a policy under its National Antibiotic Resistance Strategy in 2008 that includes improved data sharing on resistance issues, antimicrobial resistance (AMR) monitoring and reducing antibiotic use through other environmental alternatives.
• In 2011, the German government started monitoring the actual quantity of antibiotic consumed by animals and quality prescribed by veterinarians.
• The German government passed a bill under the German Medicinal Products Act (GMPA), under which the livestock producers are required to report regularly about the quantity of antibiotics used on their animals to the respective state governments.

Animal Pharmaceuticals Market Analysis

Animal Type Analysis

The production animals category held the larger share, of 55%, in 2024, and it is expected to grow at a significant CAGR in the forecast period, due to the rising demand for protein-rich meals across the world. Production animals are reared for their skin (leather and fur), milk, wool, and meat. As per the Food and Agriculture Organization of the UN, per capita milk and dairy product consumption could increase from 83 kg in 2015 to 90 kg by 2030. Similarly, per capita meat consumption will rise to 45 kg by 2030 from 41.3 kg in 2015.

The companion animals category is expected to grow at the higher CAGR over the forecast period, due to the growing incidence of chronic diseases in animals. Moreover, companion animals receive more-specialized care and medical attention from their owners than production animals, which is a major factor boosting the market revenue of this category.

The demand for better treatment choices for companion animals is being driven by a rise in the number of pet owners, which is leading to an increase in the expenditure on pet healthcare. The American Pet Products Association reports that the overall spending on pets in the U.S. increased from USD 97.1 billion in 2019 to USD 103.6 billion in 2020, USD 109.6 billion in 2022, and USD 147 billion in 2023.

These animal types are covered:

• Companion (Faster-Growing Category)
• Production (Larger Category)

Route of Administration Analysis

The parenteral category held the largest revenue share in 2024, owing to the easy availability of parenterally administered drugs and their rapid onset of action, usually within an hour of administration. Further, immunization and vaccination are mainly done via injections, which is a key factor behind the category’s dominance. As per the World Organisation for Animal Health, 188 million peste des petits ruminants (PPR) vaccine doses were distributed globally between 2016 and 2022, and 32.2 million doses were given in 2022 alone. Moreover, between 2005 and 2022, 70% of the animals affected by PPR were vaccinated.

The oral category is projected to grow at the highest CAGR, of 7.5%, owing to the developments in the oral veterinary medicine field, such as chewable tablets. The oral route is most commonly utilized to provide medication to cattle, pigs, and poultry, as well as to companion animals. New oral delivery methods for flea and tick control medications are enhancing pet care, by making administration easier and more convenient for pet owners. Such drugs are available in the form of powders, tablets, capsules, boluses, granules, pastes, suspensions, and solutions.

The report offers insights into the below-mentioned routes of administration:

• Oral (Fastest-Growing Category)
• Parenteral (Largest Category)
• Topical
• Others

Product Analysis

The anti-infectives category is expected to grow with the fastest CAGR during the forecast period. This is owing to the increasing occurrence of bacterial illnesses in production and companion animals, particularly dogs. Moreover, the increasing pressure on animal owners to maintain veterinary health standards, in order to fulfill the demand for dairy products, fresh meat, and animal-derived nutritional supplements, is expected to escalate the use of veterinary anti-infectives in the coming years.

In addition, key anti-bacterial, agents such as cephalosporins, tetracyclines, penicillin, macrolides, quinolones, sulphonamides, and polymyxins, are widely prescribed for animals. The World Health Organization (WHO) is involved in a variety of programs aimed at addressing health hazards in the human–animal ecosystem, such as antibiotic resistance and food-borne zoonoses. Furthermore, the increasing rate of pet adoption, along with the rising concerns about pet health, is expected to drive the growth of the market over the forecast period.

Parasiticides holds largest share in the market owing to the increasing incidence of tick-borne diseases and other parasitic infections, many of which easily transfer to humans through animal products. Giardia intestinalis, Cryptosporidium, and Toxocara canis are some common parasites that spread to humans from animals. Additionally, several of these pathogens have become resistant to traditional parasiticides, which drives the development of more-effective ones, in turn, driving the market in this category.

We have studied these products:

• Parasiticides (Largest Category)
• Anti-Infectives (Fastest-Growing Category)
• Anti-Inflammatory
• Analgesics
• Others

Distribution Channel Analysis

Veterinary hospitals & clinics dominated the market in 2024. This dominance is owed to the advancements in diagnostic imaging, therapeutics, nuclear and regenerative medicine, laser diagnostics, and surgeries offered in vet hospitals & clinics. Veterinary hospitals provide day-to-day care, immunization & therapeutic vaccination, artificial insemination, surgical interventions, and other services to cattle, birds, and small animals.

Some of the other factors driving the growth of this category are the increasing use of animal antibiotics in hospital settings due to the rising incidence of infectious diseases, surging number of veterinary hospitals, growing ownership of companion animals, ballooning veterinary expenditure, and booming awareness about animal health in developing countries.

The e-commerce category will advance at the highest CAGR, of 8%, during the forecast period. This will be due to the increasing rate of digitization in the animal health business, shifting consumers preference toward online shopping, growing acceptance of veterinary telemedicine, and growing usage of e-commerce platforms as the preferred platform for buying goods. The COVID-19 pandemic has played a major role in accelerating the shift to online stores over fears of contracting the infection at crowded physical pharmacies. The emergence of telemedicine and e-prescriptions further allay consumers’ fear over the wrong drug being delivered.

Here are the distribution channels analyzed:

• Veterinary Hospitals & Clinics (Largest Category)
• Pharmacies & Retail Stores
• E-Commerce (Fastest-Growing Category)

Animal Pharmaceuticals Market Geographical Outlook

North America dominated the market with a revenue share of 40% in 2024, owing to the growing pet ownership and high standards of living across the region. According to Health for Animals, a worldwide animal health association, the U.S. was the largest country in 2022 in terms of pet population, with 85 million dogs and 65 million cats.

Furthermore, the rising awareness about veterinary diseases, coupled with the increase in the population of production and companion animals and the existence of major industry players in this region, will support the growth of the North American animal pharmaceuticals market during the forecast period. According to the Food and Agriculture Organization of the UN, the U.S. consumes the highest amount of meat per capita, around 327.8 lbs/149 kg. Moreover, the U.S. Department of Agriculture says that an average American consumes 22.46 lbs of meat a year. Furthermore, the increasing spending on animal health, particularly in industrialized nations, is due to the widespread adoption of production animals.

Moreover, the well-established animal health sector, rising occurrence of parasitic infections, and presence of a large number of hospitals and clinics across the region boost the growth of the market. Additionally, the increasing research & development funding and surging public awareness of animal health will play a key role in this regard.

Asia-Pacific is set to grow at the highest CAGR, of 8%, during the forecast period. The region is seeing a surge in the export of animal goods, which is putting pressure on farm owners and workers to keep the animals healthy, owing to the rigorous testing of animal products throughout the export process.

Moreover, the rising living standards and changing lifestyles in nations such as India and China are contributing to an increase in the number of companion animals. As per studies, China had 74 million dogs and 67 million cats as pets in 2022, while the numbers in India stood at 10 million each. Similarly, Japan had 9.6 million pet cats and 8.5 million pet dogs, while Thailand had 8.9 million pet dogs and 3.3 million pet cats.

As per studies, families in India already spend up to INR 5,000 a month on their pets. Further, basic vaccination in the country costs up to INR 1,500 per shot, with drugs that prevent tick and flea infections costing INR 1,000. To mitigate these expenses, many people in the country are buying pet insurance, which ranges from INR 500 to INR 3,000 in premium.

The geographical breakdown of the market is as follows:

• North America (Largest Regional Market)
  • U.S. (Larger and Faster-Growing Country Market)
  • Canada
• Europe
  • Germany (Largest Country Market)
  • France
  • U.K.
  • Italy (Fastest-Growing Country Market)
  • Spain
  • Rest of Europe
• Asia-Pacific (APAC) (Fastest-Growing Regional Market)
  • China (Largest Country Market)
  • India (Fastest-Growing Country Market)
  • Japan
  • South Korea
  • Australia
  • Rest of APAC
• Latin America (LATAM)
  • Brazil (Largest Country Market)
  • Mexico (Fastest-Growing Country Market)
  • Rest of LATAM
• Middle East and Africa (MEA)
  • Saudi Arabia (Largest Country Market)
  • South Africa
  • U.A.E. (Fastest-Growing Country Market)
  • Rest of MEA

Animal Pharmaceuticals Market Share

• The market is fragmented because a huge variety of drugs are available for different diseases, species, and routes of administration.
• Unlike humans, different animal species cannot often be given the same drug for the same condition, while not all diseases affect all animals.
• The diversity of regulations across the world means that established players hold sway in developed countries, while local players have a substantial presence in emerging economies.
• Further, low-income and rural households in developing countries often lack the finances to buy branded drugs produced by Big Pharma, which is why they often purchase cheap OTC generics by local firms.

Animal Pharmaceuticals Market News

• In September 2024, animal health company SeQuent Scientific announced plans to merge with Viyash Life Sciences and form an INR 8,000-crore platform for animal pharmaceuticals in India.
• In September 2024, two complementary animal health companies—Altro Pharmaceuticals and Amici Pharmaceuticals—announced a platform investment from RF Investment Partners.
• In July 2024, Dechra Pharmaceuticals Limited announced plans to acquire Invetx Inc., which develops protein-based animal pharmaceuticals, for USD 520 million.
• In November 2024, Polaris Private Equity announced that it will acquire a majority stake in Salfarm Danmark A/S, an animal medication company with operations in Denmark, Sweden, and Norway.