Companion Animal Medicine Market Trends
The size of the global companion animal medicine market was calculated at USD 23.45 billion in 2024 and is anticipated to increase at a CAGR of 11.14% from 2025 to 2034.
The market is dominated by reasons such as speedy development in companion animal medicine, growing humanization of pets & spending on pets, favorable initiatives, and shifting pet demographics across the world.
Key Highlights
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North American companion animal medicine market accounted for the largest share of 36.04% in 2024 and is led by growing pet ownership and the strengthening human-animal bond.
The United States has the largest share of the North America Companion Animal Medicine Market, mainly because of growing pet ownership and rising awareness regarding pet health and wellness.
The segment of pharmaceuticals accounted for the highest market share of 59.53% in 2024 by product.
By Indication, the segment of infectious diseases led the global companion animal medicine in 2024 due to the rising incidence of transmissible diseases and increased emphasis on preventive care.
By Distribution Channel, hospital/clinic pharmacy had the biggest share in the distribution channel segment in 2024.
Progress in veterinary drugs has resulted in the production of more efficient and specific medicines for treating a number of animal diseases and health issues. New therapies and drugs present higher efficacy, decreased side effects, and improved outcomes in animals, which lead to an increasing demand for new veterinary medications.More product approvals, growing interest in precision medicine, higher adoption of single- or multi-pay pet insurance, higher animal health spending, the advent of regenerative medicine methods, and higher demand for single- or multi-pay advanced animal care are likely to fuel veterinary medicine advancements in the near term. For example, a February 25, 2025, dvm360 article states that the FDA could grant conditional approval in March 2025 for a targeted medication called rapamycin that is undergoing clinical trials to find out if it will work in reversing hypertrophic cardiomyopathy (HCM) in cats.
At the same time, in March and April 2025, two new veterinary medicines were approved by the US FDA for cats and ornamental pet fish. In March 2025, Felycin-CA1 (sirolimus delayed-release tablets) received conditional approval by the U.S. (FDA) as the first approved therapy for cats with subclinical hypertrophic cardiomyopathy (HCM). The TriviumVet product, an Ireland-based business, is designed to control cat ventricular hypertrophy without immunosuppression.
These developments emphasize a trend towards more accurate, efficient, and safer pet treatments. With advancing veterinary science, the creation of targeted therapies and new drug delivery systems will improve disease control and overall animal health. This increased emphasis on innovation, fueled by rising awareness in pet health, growing expenditures on veterinary care, and increased use of pet insurance, is fueling demand for sophisticated veterinary solutions. These drivers are likely to boost the growth of the sector and redefine the future of companion animal medicine.
Market Characteristics & Concentration
The market has a high to moderate level of innovation. Advances in AI and machine learning revolutionize veterinary drug development by accelerating the development of targeted drugs. The technologies enhance convenience and enable new delivery formats like transdermal patches and oral vaccines. Such innovation increases compliance and convenience. Telemedicine also increases access to veterinary care, and thus more demand for digitally prescribed medication.
The market shows a medium to high level of mergers and acquisitions among the players in the market from various spectrums, such as investment firms, leaders, future players, etc. For example, in February 2025, Custom Veterinary Services (CVS) took over Green Mountain Animal LLC (GMA) in order to venture into the production and distribution of veterinary soft chew and powder-formulated supplements.
Regulations are a key influencer of the industry, with organizations like the FDA and EMA having strict standards on drug approval, manufacture, and labeling. The regulations ensure product safety and efficacy, while political stability and animal welfare policies influence market forces. Legal considerations, such as the use of gene therapies, may influence regulatory reforms or create controversies. Further, policy changes in healthcare, for instance, in pricing controls, impinge on product availability as well as cost structures.
The industry is subjected to intense competition from major players like Zoetis, Elanco, Boehringer, and Merck, compelling innovation as well as aggressive pricing strategies. Ongoing price wars between generics and preventive care reflect efforts to capture cost-sensitive consumers. Firms pursue mergers and acquisitions to expand market coverage and concentrate assets to enhance competitiveness. Concurrently, growing popularity of herbal medicines, alternative medicines, and over-the-counter medications poses an increasingly powerful threat of substitution. Preventive care measures like vaccinations and wellness programs further reduce dependence on traditional veterinary medicines, exerting pressure on established pharmaceutical products.
The industry has a robust and expanding pipeline of products, driven by a number of simultaneous clinical trials focused on treating different diseases in dogs, cats, and horses. The trials are focused on new therapies like monoclonal antibodies, gene therapies like CAR T cells, cancer treatments, and novel preparations of drugs for long-term conditions. Universities like Colorado State University and large veterinary schools are leaders in pioneering cutting-edge research programs in areas like brain cancer, aging, and immunotherapy. Positive outcomes of these clinical trials will drive regulatory approvals and drive market expansion. Such intense levels of R&D activity depict the commitment of the industry towards innovation and improved animal health results.
Report Coverage & Deliverables
- Competitive benchmarking
- Historical data & forecasts
- Company revenue shares
- Regional opportunities
- Latest trends & dynamics
Product Insights
Pharmaceuticals was the largest market share at 59.53% in 2024. Pharmaceutical companion animal products consist of multiple products for managing numerous health issues. These products include categories such as parasiticides, anti-infectives, anti-inflammatory medicines, analgesics, and other therapeutic solutions to make pets better. Anti-inflammatory medicines and analgesics are crucial in treating chronic pain, particularly in older pets experiencing arthritis or other chronic conditions. With increasing awareness of pet health, the requirements for effective and safe pain management products are gaining momentum, driving growth in this segment.
The biologics segment is anticipated to register the highest CAGR of 11.56% over the forecast period. The growth is due to the increasing demand for targeted treatment approaches in companion animals for conditions like allergies, arthritis, and immune system-related diseases. Biologics like vaccines, monoclonal antibodies, and immune modulators are increasingly popular as they help treat effectively with less risk of adverse effects. Furthermore, increased awareness among veterinarians and pet owners regarding newer therapies has been expanding the indications for biologics in veterinary healthcare. The market is also facilitated by expedited approval and abbreviated development timelines for veterinary biologics, which enable new products to enter the market rapidly. Advances in biotechnology and manufacturing capabilities are increasing accessibility and affordability of biologics.
Animal Insights
The dog segment of the companion animal medicine market is going through strong growth due to widespread pet ownership, rising veterinary healthcare expenditure, and the expanding availability of medicines targeted at canine ailments. As reported by The American Pet Products Association (APPA) 2025 State of the Industry Report, 94 million U.S. households keep at least one pet, and 51% of U.S. households (68 million) keep a dog. This suggests the major cultural and economic significance of dogs as companions. Dogs are considered members of families in many cases, which creates a strong demand for preventive care and therapeutic goods in mature markets. Moreover, deep penetration of diagnostics, vaccines, and medications for dogs and growing awareness regarding pet hygiene and chronic disease treatment drive the segment's growth. The cat category is projected to expand most rapidly, driven by increasing pet adoption as well as enhanced demand for feline-specific healthcare products.
Cats are gaining popularity, particularly in nations such as Canada, where they are increasingly being liked over dogs. Pet keeping is gaining traction once again, and based on the American Pet Products Association's 2025 report, 49 million U.S. homes-about 37%-keep a cat. The increased prevalence of infectious disease in cats is broadening the requirement for focused pharmaceuticals and vaccines. Furthermore, long-term conditions including kidney disease, endocrine disorders, hyperthyroidism, and diabetes are driving demand for long-term treatments, which is boosting growth throughout the.
Indication Insights
The infectious diseases category led the global companion animal medicine in 2024, fueled by the increased incidence of transmissible diseases and increased emphasis on disease prevention. One key factor fueling this trend was redesignating the leptospirosis vaccine as a core dog vaccine. In March 2024, the American Veterinary Medical Association (AVMA) urged annual vaccination with leptospirosis in all dogs, independent of geography and lifestyle. This choice was backed by major veterinary organizations like the American Animal Hospital Association (AAHA), the World Small Animal Veterinary Association (WSAVA), and the American College of Veterinary Internal Medicine (ACVIM), reflecting increasing focus on disease prevention.
The other indications segment deals with conditions in companion animals like injuries, accidents, genetic defects, dental problems, and cardiovascular diseases.
These conditions frequently necessitate immediate or chronic pharmaceutical care, especially in geriatric animals or those with breed-related predispositions. Dental conditions are particularly prevalent in dogs and cats, typically resulting in secondary complications if not treated. Likewise, genetic and congenital diseases like hip dysplasia or heart anomalies require ongoing medication and care, fostering demand in this segment. Major veterinary pharmaceutical players are researching and supplying drugs against these indications. For example, Elanco and Boehringer Ingelheim supply cardiac medication such as Vetmedin (pimobendan) to treat congestive heart failure in canines.
Distribution Channel Insights
Hospital/Clinic pharmacy accounted for the highest share in the channel segment during 2024. This is largely attributed to its easy accessibility and affordability, with hospitals taking a primary position in offering sophisticated treatment products for pet animals. As more animals are adopted globally, the veterinary treatment demand keeps growing, contributing to increased visits and readmissions for treatments. This has led to increased demand for veterinary medicines, also boosting the use of animal health products in Hospital/Clinic Pharmacies. Also, efforts to enhance safety and minimize side effects are significant drivers of the expansion of this segment.
E-commerce will also grow at the highest CAGR of 14.39% over the forecast period. The move to e-shopping for pet healthcare products has been driven by greater convenience, greater availability, and the increased use of digital platforms. Pet owners have easy access to medicines, supplements, and other pet health necessities, with the added advantage of features such as auto-ship, e-prescription, and price competitiveness. One of the best examples of this trend is Walmart's collaboration with Pawp, initiated in October 2024. The program offers free, 24/7, unrestricted access to Pawp's virtual veterinary care team for unlimited virtual consultations to Walmart+ members, increasing access to veterinary services.
Regional Insights
The North American companion animal pharmaceutical market was dominated by 36.04% in 2024 and is supported by rising pet ownership and the strengthening human-animal bond. Dog-owning and cat-owning households in the U.S. have grown from 31.3 million and 27 million in 1996 to 59.8 million and 42.1 million in 2024, respectively, as per the 2024 AVMA Pet Ownership and Demographic Sourcebook. Almost 89% of cat owners and 85% of dog owners now view pets as family members, thereby driving demand for routine checkups, preventive healthcare, and vaccinations. This emotional bonding is evidenced in expenditure, with total average per-household pet-related spending hitting $1,516 in 2024.
In addition, increasing innovation of companion animal medicines and the process of developing sophisticated, safer, and more efficient medicines fuels the growth of the market. For example, in June 2024, Merck Animal Health introduced NOBIVAC NXT Rabies, the initial RNA-particle-based rabies vaccine for dogs and cats, now commercialized in countries such as Canada. The vaccines are preservative- and adjuvant-free, providing cutting-edge, safe protection against rabies. This action strengthens Canada's pet vaccine market and contributes to efforts toward a rabies-free world, as part of Merck's tradition of commitment to animal health and disease prevention.
U.S. Companion Animal Medicine Market Trends
The U.S. is the market leader in the North America Companion Animal Medicine Market, driven mainly by increasing pet ownership and a growth in awareness regarding pet health and wellness. Pet ownership in the United States has grown considerably, with 94 million households owning a pet or more than in 2023, a total of 92 million households, as estimated by the American Pet Products Association (APPA). The pet market hit $152 billion in spending in 2024 and is expected to reach $157 billion in 2025. More impressively, 51% of households have dogs and 37% have cats. The pet ownership and spending boom creates growth for the U.S. Companion Animal Medicine Market. In addition, the use of veterinary services and pet products such as calming products and preventive care is increasing since pets are considered family members.
Europe Companion Animal Medicine Market Trends
Europe's pet companion animal medicine market will register steady growth during the forecast period as a result of rising pet ownership and pet care spending. For example, as per the report 2024 published by FEDIAF, pet ownership is increasing, with 166 million of Europe's 352 million pets belonging to 50% of European homes. Nevertheless, consistent growth in the number of dogs is poised to fuel demand for associated products and services and spur the market. Besides, the European Medicines Agency (EMA) approval of veterinary medicines serves to drive the European region's companion animal medicine market.
For example, in a piece written by the European Medicines Agency, EMA approved 25 veterinary medicines for marketing authorization in 2024 in January 2025, a record number of recommendations made in one year. Two of them contained a new active ingredient never approved in an EU veterinary medicine. Fourteen vaccines were approved, seven of which were created with the aid of biotechnology. Eleven drugs were proposed to be marketed in 2024 for companion animals such as dogs and cats.
The UK companion animal medicine market is expected to grow tremendously during the forecast period, due mainly to the large pet population, rising pet ownership, and growing incidence of chronic pet diseases. According to the PDSA PAW Report 2024, 51% of UK adults own a pet, of which 28% of UK adults have a dog (estimated population of 10.6 million pet dogs), 24% have a cat (estimated population of 10.8 million pet cats), and 2% have a rabbit (estimated population of 800,000 pet rabbits). Rising product launches & collaborations by major players in the country are estimated to boost market growth. For example, in July 2024, Dechra Pharmaceuticals bought US firm Invetx for as much as $520 million, acquiring its innovative monoclonal antibody (mAb) platform for chronic companion animal diseases.
Growth of the Germany companion animal medicine market is driven by rising pet keeping, pet insurance availability, and product innovation. For example, based on a Swedish Board of Agriculture study, approximately 60% of Swedish households keep at least one pet, with dogs and cats being the most prevalent. The study further revealed that the number of pet owners has grown by approximately 25% within the last ten years, reflecting a remarkable growth in the demand for the companion animal medicine market. Furthermore, Sweden's focus on research and development, especially from acquisitions, is anticipated to fuel market growth. For example, in March 2025, Swedencare purchased UK-domiciled Summit Veterinary Pharmaceutical for £30 (USD 40.20) million, moving into the specialty veterinary pharmaceuticals segment. Summit supplies more than 5,500 clinics and brings an enhanced portfolio that targets small animals and equines, with scope for further EU market growth.
Asia Pacific Companion Animal Medicine Market Trends
The Asia Pacific region has been developing at a high rate and is expected to develop extensively throughout the forecast period. Key factors expected to drive the regional market are the growth of middle-class households, the increasing trend of companion animals, rising pet spending, humanization of pets, the extensive presence of market players, and positive government policies. Apart from this, nations like China & India are expected to witness robust growth prospects with the growing number of regional centers. Further, increased pet surgery & treatment and pet insurance awareness among consumers is bound to support the market in the future. The region contains several market participants engaged in strategic collaborations, expansions, product innovations, and other activities to serve the increasing market demand. For example, in July 2024, DotBio and Protect Animal Health (PAH) entered into a strategic alliance to create innovative antibody-based therapies for dogs and cats using DotBio's DOTBODY technology to treat chronic illnesses such as cancer and autoimmune diseases.
The Indian companion animal medicine market is likely to increase at a high rate during the forecast period driven mainly by the increase in pet ownership, pet insurance, increasing hospital expansion, and various funding schemes by national & state agencies. Pet ownership in India is also likely to increase. All these factors, coupled with individuals altering their mindsets towards pets and inviting them into the family fold, have contributed to India's burgeoning pet market. In the last ten years, demand for good pet care has been on the rise in terms of treatment as well as operations. For example, in February 2024, Tata Trusts opened India's first small animal hospital in Mumbai. It is the first of its kind, covers an area of 98,000 sq ft over five floors, and has a bed capacity of 200+. The center would offer services with a mission to save lives. The small animal hospital was expected to be rolled out in March 2024. All these factors are likely to propel the market during the forecast period.
Latin America Companion Animal Medicine Market Trends
The Latin American pet medicine industry is experiencing consistent growth, underpinned by various socio-economic and healthcare-related drivers. One of the greatest drivers is growing pet ownership, particularly in urban areas throughout Brazil and Argentina. Brazil alone has more than 149 million pets, including canines, felines, birds, and other animals, as per the Brazilian Institute of Geography and Statistics (IBGE). This increase is primarily the result of urbanization, lifestyle, and increased emotional attachment between humans and pets, commonly referred to as the "humanization of pets." With more families considering pets as members of their families, veterinary care, preventive, and treatment have increasingly been in demand.
The second key driver is growth in veterinary infrastructure and services. Throughout the region, there has been a significant rise in veterinary clinics, pet hospitals, and specialized pet pharmacies. According to the Federal Council of Veterinary Medicine, Brazil is ahead of the pack, with more than 50,000 registered veterinarians. This growth is matched by increasing pet health and wellness consciousness, backed by government and private health promotion campaigns on regular vaccinations, deworming, and disease diagnosis.
The companion animal medicines market in Argentina is growing steadily, led mainly by the increasing rate of pet ownership. As estimated by the Argentina Pet Food Manufacturers Association, about 78% of homes have at least one pet, with dogs being the favorite (63%), followed by cats (26%). Such a high rate of ownership leads to massive demand for veterinary pharmaceuticals and preventive medicines. Increased disposable incomes among Argentine consumers have raised expenditure on pet healthcare. This economic factor allows pet owners to spend money on high-tech veterinary care and premium pet care products, driving growth in the companion animal medicine market further. Urbanization and shifting social dynamics have played a major role in driving the growth of the market. With increasing Argentinians residing in urban areas and family sizes shrinking, pets are playing increasingly important emotional companionship roles. This "humanization" trend has made pet owners invest more in high-quality healthcare solutions, with mean annual veterinary spending being around 15,000-20,000 Argentine pesos per pet in urban areas such as Buenos Aires, Córdoba, and Rosario.
MEA Companion Animal Medicine Market Trends
South Africa, Saudi Arabia, the UAE, and Kuwait are the most important nations in the MEA market. The Middle East and Africa (MEA) market for companion animal medicine is growing substantially on account of a number of driving forces such as the trend in increasing pet ownership, growing disposable incomes, and greater awareness of animal health. Pet keeping in the region, and specifically in nations such as the UAE, Saudi Arabia, and South Africa, is expanding considerably, with an ever-increasing number of households bringing home pets as a result of shifting social patterns and urbanization. This development has raised demand for veterinary services, drugs, and specialized pet therapies. In the UAE, the pet population is likely to increase by 9.5% every year, catalyzing the demand for sophisticated veterinary services and animal health products.
The market for companion animal medicine in South Africa is propelled by increasing animal health issues, advanced infrastructure, and increasing needs for veterinary care propel the animal medicine in South Africa. The market is bound to experience growth because of a multicultural population, the presence of established infrastructure, and having veterinarians available. Pet ownership is growing, with 59% of South African homes having pets, and dogs being the favorite, owned by 78% of pet owners. This has resulted in higher demand for veterinary services and products. South African pet owners spend between USD 1,800 and USD 4,000 per year on their pets, evidence of increased spending on pet health and wellbeing. Increased disposable income among South Africa's middle class has also seen a major increase in spending on pet healthcare, with veterinary spending per annum growing by 12% from 2019 to 2023.
Key Companion Animal Medicine Company Insights
The industry is competitively intense, with rising consolidation fueled by strategic actions by firms of every size. Firms concentrate on mergers and acquisitions, alliances, R&D, and new product launches to build market share. Entry barriers in the sector are moderate, mainly as a result of high R&D expenses and strict regulatory standards. Established firms such as Zoetis and Merck dominate the market with strong brand recognition and deter new entry opportunities. New entrants struggle to capture market share but can do so through innovation or serving unserved needs. In general, a heavy investment is required for market entry and competitiveness. For instance, in April 2025, Virbac entered into a partnership with MabGenesis to license new therapeutic monoclonal antibodies, with the goal of developing and marketing innovative canine disease treatments leveraging MabGenesis' state-of-the-art antibody technology.
Key Companion Animal Medicine Companies
The following are the leading companies in the companion animal medicine market. These companies collectively hold the largest market share and dictate industry trends.
- Merck & Co., Inc.
- Ceva
- Vetoquinol
- Zoetis
- Boehringer Ingelheim International GmbH
- Elanco Animal Health Incorporated
- Ourofino Animal Health
- Virbac
- Phibro Animal Health Corporation
- Dechra Pharmaceuticals Plc
- Bimeda Inc.
Recent Developments
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In February 2025, Vetanco incorporated access to its Colombia site into its international corporate website, with a view to merging its different regional sites from nations such as Argentina, Brazil, Mexico, and Colombia.
In February 2025, investment house BC Partners invested in a majority stake in PetLab Co. Ltd, a pet supplement company.
In February 2025, Loyal, a clinical-stage animal health firm working to create longevity medicines for dogs, reported that the FDA's Center for Veterinary Medicine accepted the Reasonable Expectation of Effectiveness (RXE) component of its conditional approval request for LOY-002.
Ceva Sante Animale in January 2025 partnered with Touchlight to use its dBDNA technology for developing DNA-based vaccines for animals.
In October 2024, Panav Biotech introduced Maropitine injection, which is a medicine used to treat nausea and vomiting in dogs.
Companion Animal Medicine Market Report Scope
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Report Attribute |
Details |
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Market size value in 2025 |
USD 25.88 billion |
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Revenue forecast in 2034 |
USD 66.96 billion |
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Growth Rate |
CAGR of 11.14% from 2025 to 2034 |
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Actual data |
2018 - 2024 |
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Forecast period |
2025 - 2034 |
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Quantitative units |
Revenue in USD million and CAGR from 2025 to 2034 |
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Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, trends, clinical trials outlook, and volume analysis |
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Segments covered |
Product, animal, indication, distribution channel, region |
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Regional scope |
North America; Europe; Asia Pacific; Latin America; Middle East & Africa |
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Country Scope |
U.S.; Canada; Mexico; UK; Germany; Italy; France; Spain; Denmark; Sweden; Norway; Japan; China; India; Australia; South Korea; Thailand; Brazil; Argentina; South Africa; Saudi Arabia; Kuwait; UAE |
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Key companies profiled |
Merck & Co., Inc.; Ceva; Vetoquinol; Zoetis; Boehringer Ingelheim International GmbH; Elanco Animal Health Incorporated; Ourofino Animal Health; Virbac; Phibro Animal Health Corporation; Dechra Pharmaceuticals Plc; Bimeda Inc. |
|
Customization scope |
Free report customization (equivalent up to 8 analyst’s working days) with purchase. Addition or alteration to country, & segment scope. |
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Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
Global Companion Animal Medicine Market Report Segmentation
Product Outlook (Revenue, USD million, 2018 - 2034)
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Biologics
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Vaccines
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Modified/ Attenuated Live
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Inactivated (Killed)
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Other Vaccines
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Other Biologics
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Monoclonal Antibody (mAb)
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Dogs
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Cats
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Other Biologics (excluding mAb)
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Pharmaceuticals
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Parasiticides
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Anti-infectives
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Anti-inflammatory
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Analgesics
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Other Pharmaceuticals
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Medicated Feed Additives
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Animal Outlook (Revenue, USD Million, 2018 - 2034)
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Dogs
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Cats
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Horses
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Other Animals
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Indication Outlook (Revenue, USD Million, 2018 - 2034)
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Infectious Diseases
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Dermatologic Diseases
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Pain
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Orthopedic Diseases
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Behavioral Diseases
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Other Indications
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Distribution Channel Outlook (Revenue, USD Million, 2018 - 2034)
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Retail
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E-commerce
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Hospitals/Clinics
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Regional Outlook (Revenue, USD Million, 2018 - 2034)
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North America
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U.S.
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Canada
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Mexico
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Europe
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UK
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Germany
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France
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Italy
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Spain
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Denmark
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Sweden
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Norway
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Asia Pacific
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Japan
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China
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India
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Australia
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South Korea
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Thailand
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Latin America
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Brazil
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Argentina
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Middle East & Africa (MEA)
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South Africa
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Saudi Arabia
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UAE
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Kuwait
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