Animal Healthcare Market To Generate Revenue worth $84.9 Billion by 2030
- Published: October 2023
The global animal healthcare market is projected to generate $84.9 billion revenue by 2030, advancing at a CAGR of 9.9% during 2024–2030. This will be due to the increasing consumption of milk and meat, rising adoption of companion animals, and surging prevalence of food-borne zoonotic diseases.
The changing lifestyles, growing population, and increasing per-capita income are leading to an increase in meat and milk consumption globally. Moreover, to meet the demand for protein-rich foods, such as, eggs, milk, and meat, farmers are focusing on increasing their animals’ production. Livestock production accounts for 40% of the gross value of agricultural production around the world. Further, due to the increasing risk of the transfer of animal diseases to humans, with the increasing demand for meat from countries such as the U.S., Japan, Brazil, and China, the demand for animal healthcare products is growing.
The number of public–private partnerships among veterinary laboratories, livestock producers, and public and private veterinary service providers, focused on improving animal health, is rising. Partnerships between veterinary laboratories and livestock producers are aimed at coming up with effective diagnostic and treatment procedures for various types of animal diseases, which would, ultimately, increase the demand for animal therapeutic products. Such partnerships would help improve productivity and reduce the frequency of animal diseases, to enhance overall food safety.
Farm Animals Held a Significant Share
The farm animals category held a significant share, over 38%, in 2023. This was primarily due to the increasing adoption of farm animals to fulfill the demand for animal-based products across the globe. According to Animal Matters, a volunteer-run organization promoting the welfare of animals, the number of animals reared for food each year across the globe is approximately 70 billion. Further, in the U.S., an estimated 2.2 million lambs and sheep and 1.5 million goats are killed for meat every year.
Moreover, the veterinary hospitals category held the second largest share in 2023. These places provide comprehensive animal healthcare services, including accommodation and nursing care, in contrast to the smaller veterinary clinics, which is why a large number of pet owners take their pets to the former kind of healthcare centers. Additionally, the growth in pet adoption, increase in the penetration of pet insurance, emergence of the pet humanization trend, increase in the awareness of animal welfare, and surge in the number of new veterinary hospitals with advanced technologies are driving the growth of the market.
The APAC animal healthcare market is expected to grow the fastest during the forecast period. This is mainly because of the large population of livestock in the emerging APAC economies, growing demand for animal-derived food products, and rising incidence of zoonotic diseases. Moreover, the Australian market is growing at a high rate, attributed to the increasing role of government organizations in maintaining the good health of animals, by providing vaccination and increasing the surveillance of diseases, and the rising investment by governments in animal pharmaceutical R&D.
China’s meat industry has experienced significant growth over the past few decades, driven by the rising incomes, urbanization, and changing dietary habits. In 2022, the country produced around 92.27 million tonnes of meat in total, a 3.8% increase from 2021. Moreover, pork production grew to over 55.41 million tonnes in 2022.
In LATAM, Brazil accounted for the largest share in the market on account of the rising beef exports from the country and increasing awareness on animal health. Further, Brazil is the world’s largest exporter of beef, exporting a total of 469,000 tons of fresh and frozen beef in Q1 2022, an increase of 37% (+126,000 tons) from Q1 2021. On account of this, the demand for healthcare-related products for farm animals is increasing in the region. Moreover, another key factor driving the growth of the market is the increasing adoption of pets.
The major players operating in the global animal healthcare market are Zoetis Inc., Merck & Co. Inc., C.H. Boehringer Sohn AG & Co. KG, Virbac Corporation, Phibro Animal Health Corporation, Intas Pharmaceuticals, Eco Animal Health GROUP PLC, Dechra Pharmaceuticals PLC, HESTER BIOSCIENCES LIMITED, and Mars Incorporated.