U.S. Companion Animal Health Market: Veterinary Hospitals And Clinics End-Use Segment Held The Largest Revenue Share

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Apr 21

U.S. Companion Animal Health Industry Overview

The U.S. companion animal health market size is expected to reach USD 11.3 billion by 2030, according to a new report by Grand View Research, Inc. It is expected to expand at a CAGR of 10.3% from 2023 to 2030. The rising number of pet owners seeking better healthcare services, healthier quality foods, and high-end grooming and training services for their companion animals is a major driver for this market. According to theNational Pet Owners Survey, 90.5 million families in the U.S. own a pet, out of which 69.0 million own a dog. Moreover, high-income families amounted to approximately 60% of the total spending. In recent years, pet adoption has shown immense growth. This is primarily attributed to the fact that people are healthier and happier in the presence of pets, as found by the Human-Animal Bond Research Initiative Foundation (HABRI).

With the rising adoption of companion animals and growing concerns over their health, there comes a direct association with pet insurance. Presently, pet insurance accounts for a small segment in the insurance industry. The Covid-19 pandemic positively impacted the market growth in the U.S. Key players such as Boehringer Ingelheim Animal Health, Chewy, Elanco, MWI Animal Health, Covetrus, and PetIQ focused on expanding their telemedicine solutions into the market as governments relaxed governance to enable more flexible veterinary examinations during the coronavirus pandemic.

Approval of novel therapeutics and companion animal vaccines continues to present this market with lucrative growth opportunities. Ongoing trends for the adoption of e-commerce, pet insurance, veterinary telemedicine, point of care diagnostic testing, and digitalization of veterinary practices are further accelerated by the crisis of COVID-19.

Groundbreaking technological advances are rapidly transforming the pet health industry. These expansions are maximizing the potential for growth. Companies are taking strategic initiatives in pet health, such as the adoption of big data, wearable technologies to monitor pet health, and the inclusion of stem cell therapy. Moreover, established players are focusing on expanding their portfolios. For instance, Elanco acquired Bayer AG's animal health business unit in August 2019.

The U.S. captured a substantial share of the market. The share attained by this country is primarily a consequence of the presence of prominent market players undertaking extensive expansion strategies. Moreover, the increasing number of R&D investments initiated by the companies is one of the key potential growth factors presumed to be responsible for the sizeable share garnered by the U.S.

U.S. Companion Animal Health Market Segmentation

Grand View Research has segmented the U.S. companion animal health market on the basis of animal type, product, distribution channel, and end use:

Based on the Animal Type, the market is segmented into Dog, Cat, Equine, and Others.

The dog segment held the largest revenue share of over 40.0% in 2022 majorly owing to the rising adoption of dogs. Dogs are known to provide numerous health benefits to their owners such as combating depression, reducing stress, and lowering blood pressure.
The cat segment emerged as the second-largest animal type segment in 2022 and is expected to register the fastest growth rate over the forecast period. Cats are highly prone to infections and chronic health issues, such as cardiovascular disorders, diabetes, and kidney problems.

Based on the Product, the market is segmented into Vaccines, Pharmaceuticals, Feed Additives, Diagnostics, and Others.

The vaccines segment is anticipated to grow at a lucrative rate during the forecast period. Vaccination is important for companion animals as it not only safeguards them from epidemics but also protects owners in case of any animal bites.
The diagnostics segment is expected to register the fastest growth rate during the forecast period. Technological advancements in the field of radiology diagnostics such as electronic data capture, the inclusion of AI, and cloud-based storage are anticipated to drive the segment.

Based on the Distribution Channel, the market is segmented into Retail, E-commerce, and Hospital Pharmacy.

Hospital pharmacy held the largest revenue share of over 55.0% in 2022 due to the high accessibility and affordability. The segment is expected to grow at a steady pace owing to the increasing prevalence of epidemics and chronic health ailments among companion animals.
E-commerce is estimated to be the fastest-growing segment owing to the ease of availability, greater accessibility, and less time consumption. E-commerce or online pharmacies eliminate other market intermediaries of the delivery channel, thereby reducing overall costs.

Based on the End-use, the market is segmented into Point-of-care testing/In-house testing, Veterinary Hospitals & Clinics, and Others.

veterinary hospitals and clinics, and pet insurance companies have been collaborating efforts for better and fast reimbursement options, leading to better treatment and increased footfall.
The point-of-care or in-house testing segment is anticipated to register the fastest growth rate over the forecast period owing to the improved access to healthcare services and the ability to provide quick and accurate results.

Key Companies & Market Share Insights

Extensive mergers and acquisitions, product portfolios, geographical expansions, and collaborative research initiatives are strategies undertaken by the leading players. For instance, in July 2019, Zoetis and Colorado State University entered into an agreement for establishing a research lab for the development of new immunotherapies for veterinary patients.

Established players, in an attempt to increase their market presence and strengthen their product offering, are entering into alliances. For example, in April 2019, Merck acquired Antelliq Corporation in order to increase its foothold in animal health monitoring and smart data management for both companion and livestock animals. The market is competitive and the rising penetration of advanced technologies in this space is further anticipated to present this market with promising growth opportunities in the near future. Some prominent players in the U.S. companion animal health market include:

Zoetis
Ceva Santé Animale
Merck & Co., Inc.
Vetoquinol S.A.
Boehringer Ingelheim Gmbh
Elanco
Virbac
Heska
Dechra Pharmaceuticals Plc
Idexx Laboratories, Inc.
Norbrook Inc.

Order a free sample PDF of the U.S. Companion Animal Health Market Intelligence Study, published by Grand View Research.

About Grand View Research

Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.

Contact:

Sherry James

Corporate Sales Specialist, USA

Grand View Research, Inc.

Phone: 1-415-349-0058

Toll Free: 1-888-202-9519

Email: sales@grandviewresearch.com

Web: https://www.grandviewresearch.com

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