U.S. Animal Healthcare Market Overview
The U.S. animal healthcare market will be observing a consistent growth in the coming years due to increasing pet adoption, consumption of meat and milk, and zoonotic and food borne diseases. Out of the three product types in the U.S animal healthcare market, pharmaceuticals held the largest share in 2016. The high consumption of animal products in the U.S. has led to increased investment in animals’ feed and health. In terms of animal population for both production and companion animals, the U.S. is one of the largest countries globally. In 2016, the companion animal segment held the largest share in the U.S. animal healthcare market. The segment is also expected to grow at a faster rate in coming years.
U.S. Animal Healthcare Market Dynamics
According to the American Pet Products Association (APPA), during 2017-2018, 139.3 million freshwater fishes and 94.2 million cats will be owned by the U.S. nationals. The APPA also claims that total expenditures on the pet industry in U.S. will grow from $55.7 million in 2013 to around $69.2 million by the end of 2017. The surgical vet cost for cats and dogs will account to be $245 and $474 respectively.
The U.S. animal healthcare market is expected to grow in coming years due to growth in research activities for certain new diseases. The growth of the U.S. animal healthcare market is also attributed to the growth in domestic consumption and export of milk and meat. Veterinary service is becoming one of the recognized professions in the U.S. and the number of veterinarians has been increasing in the country. According to the Employment Projection Programme of the U.S. Bureau of Labor Statistics, the number of employed veterinarians is expected to grow from 70,300 in 2012 to 78,700 by 2022.
Low return on investments in veterinary education is a challenge for the growth of U.S. animal healthcare market. As compared to regular doctors in the country, the return on investments in veterinary education is low. According to the American Veterinary Medical Association (AVMA), as compared to regular doctors, the average ratio of debt load to salary is much higher for veterinarians. This may affect the animal healthcare market indirectly in the country, if it is not properly addressed by the government.
Use of antibiotics for speeding up the growth of animals is another challenge in the U.S. animal healthcare market. According to the guidelines issued by the United States Department of Agriculture (USDA), the usage of antibiotics should be minimized in meat producing animals, as it causes antibiotic and antimicrobial resistance in the human population that consumes that meat.
U.S. Animal Healthcare Market Competitive Landscape
Some of the key players of the U.S. animal healthcare market include Zoetis, Elanco, Merial, Dechra Pharmaceuticals, Bayer Animal Heath, Virbac, Merck, Ceva Animal Health, Phirbo Animal Health, Boehringer Ingelheim GmbH and Vetoquinol.
Zoetis bagged the highest revenue share among the companies operating in the U.S. animal healthcare market in 2016. For generating higher revenues and taking hold on the market, the company launched its two products, Hoof-Tec for dairy wellness, and Rotecc, for poultry health, in 2015. AgraQuest, a U.S. based supplier of innovative biological pest management solutions, was acquired by Bayer in 2013. The transaction helped Bayer to expand business, have a strong distribution channel and increase its market share. Virbac acquired Pfizer’s Fort Dodge (Australia) in 2010, and Stockguard (New Zealand) and Centrovet (Chile) in 2012. In 2013, Boehringer opened a veterinary vaccines plant in Taizhou China Medical City, which is expected to strengthen its market in the Asian subcontinent.