The Growing Veterinary Services Industry is driven by Companion Animal Care

The veterinary services industry encompasses a variety of medical care services for animals including disease diagnosis, surgical procedures like spaying/neutering and dental cleaning. Veterinarians also provide preventive care like vaccinations and wellness exams. With rising pet ownership globally, demand for veterinary consultations, immunizations, prescription pet diets and other associated services has increased tremendously. According to the American Pet Products Association, U.S. pet industry expenditures grew by over 5% and totalled nearly $100 billion in 2021. Veterinary offices provide care for a wide range of mammals from horses to household pets like dogs and cats. They are equipped with surgery and examination rooms, digital X-ray machines, laboratory facilities and specialized equipment. Veterinary staff includes vets, vet technicians and assistants who work together to ensure animal health.

The Global Veterinary Services Market is estimated to be valued at US$ 130.16 Bn in 2024 and is expected to exhibit a CAGR of 5.0% over the forecast period 2024 to 2030.

Key Takeaways
Key players operating in the Veterinary Services are Fagron Sterile Services US, New Drug Loft & VLS Pharmacy, Nora Apothecary, Lifecare Pharmacy, Avella Specialty Pharmacy, Triangle Compounding Pharmacy, O€TMBrien Pharmacy, Tache Pharmacy, Northmark Pharmacy, Edge Pharma, and ImprimisRx. The major players are focusing on strengthening their market presence through the adoption of strategies including partnerships, expansions, mergers and acquisitions. For instance, in April 2021, ImprimisRx partnered with Animal Health Intelligence (AHI), a leader in cloud-based data and analytics for animal health companies and veterinarians to develop and commercialize combination drug products for both companion animals and production animals.

The growing demand for pet adoption and increasing pet humanization are the key factors driving the growth of the Veterinary Services Market. According to the American Pet Products Association, U.S. pet industry expenditures grew by over 5% in 2021 as more people adopted companion animals during the pandemic. Moreover, growing disposable incomes in developing countries are allowing pet owners to spend more on animal health and wellness.

Globally, rising livestock and companion animal populations alongside growing pet owner inclinations towards animal health and wellness will support market expansion through 2030. According to the Food and Agriculture Organization of the United Nations, global livestock population grew by 60 percent between 2000 and 2018 to over 26 billion head. This is creating the demand for veterinary services and expertise in infectious diseases and production animals across major emerging markets.

Market Drivers
Growing companion animal ownership worldwide is a major driver of demand for veterinary services. According to the APPA National Pet Owners Survey, U.S. pet ownership grew to 94.2 million homes with a pet in 2021 with a majority owing companion animals like dogs and cats. Preventive animal healthcare requires routine check-ups, vaccinations, spaying/neutering and microchipping driving high recurrent spending at vet clinics. Companion animals are increasingly treated like family members promoting greater expenditures on nutrition, wellness and advanced treatments. The growing human-animal bond ensures the veterinary services industry remains well-supported over the long term.

The current geopolitical instability across many parts of the world is impacting the growth of the veterinary services market. The rising conflicts and economic challenges have made it difficult for pet owners to prioritize and spend on veterinary care for their animals in affected regions. This is negatively impacting the demand for various veterinary services like pet medical check-ups, vaccinations, surgeries etc. The service providers are witnessing lower footfalls and revenues. However, some parts of the world where economic and political conditions are stable continue to offer opportunities. Looking ahead, service providers would need to focus on cost control measures, online services, preventive healthcare programs and targeting developing markets for sustainable growth in this dynamic environment.

North America currently accounts for the largest share of the global veterinary services market in terms of value. This can be attributed to factors like high pet adoption rates, growing awareness about animal health, rising per capita pet care expenditure, and well-established veterinary infrastructure in countries like the US and Canada. Meanwhile, Asia Pacific is expected to witness the fastest growth during the forecast period owing to increasing pet ownership, rising income levels, growing focus on pet health, and expansion of veterinary facilities in emerging nations such as China, India and South East Asian countries. Overall, adoption of best practices from developed regions along with aggressive marketing campaigns by service providers can help tap into growth opportunities across developing geographies.