Veterinary Services Market Size
At roughly USD 86.8 billion in 2021, the size of veterinary services market is expected to rise at 6.7% CAGR between 2022 and 2030. Rising pet adoption rates and consequent increasing need for veterinary care would mostly help the whole business to grow.
To get key market trends
The increasing application of digital technology in the veterinary services sector enables veterinarians to effectively provide quality treatment for many kinds of animals. Digital transformation of a veterinary office guarantees effective treatment as well as easy access to patient records. For example, thanks to technology, veterinarians can conduct imaging tests, post the pictures on the cloud and distribute them to any pathology lab around the world. Furthermore improving the general quality of the veterinary imaging services is digitalization of clinical treatments.
Moreover, growing disposable income, combined with expanding market penetration of various pet insurance policies, and more affection between pet parents and their pets help them to voluntarily spend on offering quality medical treatments to their pet. Clinics are mostly using this chance to advertise auxiliary veterinary services such day-care, wellness programs, and pet boarding policies.
Among the other major elements driving the expansion of the veterinary services market are the rising pet-related problems, worries about their health, nutrition, as well as the emergency care the various animals demand.
Among other services, veterinary services comprise treatment of sick animals, regular healthcare monitoring, animal neutering, preventative treatments, diagnosis and dental work for pets, pet vaccination, artificial insemination, and animal health protection. Veterinary treatments also cover pet consulting services for the health and welfare of farm and companion animals as well as procedures.
The COVID-19 epidemic mostly impacted the activities of the whole healthcare industry. While their non-essential competitors experienced a downturn across regions, certain basic goods and services saw a multi-fold spike in demand. Veterinary services market growth was observed to have been somewhat hampered by the COVID-19 epidemic.
Strict limitations on the flow of people and products among the rising number of cases in the first months of the epidemic produced little patient influx in veterinary facilities. The lack of qualified medical professionals combined with postponed or delayed elective surgeries mostly interfered with veterinary institutions' operations, therefore affecting providers in the market.
On the plus side, though, pet adoption rate was seen to rise during this time as people adopted companion animals in response to stay-at- home orders. For example, almost 25% of pet owners who adopted a new pet during the epidemic said that their choice was mostly motivated by the limitations placed due to COVID-19, according a biennial poll carried out by American Pet Products Association (APPA).
Rising disposable income also allows pet owners to afford premium veterinarian treatments. As the constraints were observed to relax over the epidemic, veterinarians were also reported to start working under the required criteria. Pet owners as well as veterinarians adopted digital consultation services, therefore improving the general convenience of owning a pet by means of veterinary services provided in remote areas. Most people agree that these developments greatly raised the demand on the market.
| Report Attribute | Details |
|---|---|
| Base Year | 2021 |
| Veterinary Services Market Size in 2021 | 86,826.0 Million (USD) |
| Forecast Period | 2017 to 2021 |
| Forecast Period 2017 to 2021 CAGR | 6.7% |
| 2021 Value Projection | 160,976.1 Million (USD) |
| Historical Data for | 2022 to 2030 |
| No. of Pages | 130 |
| Tables, Charts & Figures | 126 |
| Segments covered | Service Type, Animal Type and Region |
| Growth Drivers |
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| Pitfalls & Challenges |
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What are the growth opportunities in this market?
The willingness of pet parents to spend more on pets can spur the market statistics
About 70% of American homes have minimum one pet, according the American Pet Products Association (APPA). In previous several years, the United States has seen rising general and per capita pet care expenditure. The U.S. pet insurance sector saw growth and had more than $1.99 billion in gross written premiums in 2020, claims The North American Pet Health Insurance Association (NAPHIA). By allowing the pet owners to effectively allocate excellent care services for their animals and offer them the best treatment choices, the pet insurance helps to reduce the out-of-pocket costs.
Moreover, it is seen that the rate of pet adoption has lately raised as well. APPA estimates that 14% of current and prospective pet owners choose a new pet for 2021. Therefore, the whole industry is predicted to develop greatly throughout the forecast period due to increasing pet adoption together with pet insurance programs.
Rising costs of veterinary services may hamper the market growth
Rising pet population, increasing demand for veterinary services alongside technological advancements in the clinical procedures is primarily leading to increasing costs for veterinary services. This is expected to hinder the market growth to certain extent.
For instance, as per American Veterinary Medical Association, in 2020, the pet population of companion animals in the U.S. involved over 38% dogs and over 40% cats. Further, according to a survey conducted by the American Pet Product Association, only 5 percent of cats and 10 percent of dogs are covered by pet insurance. While the pet insurance industry in the U.S. is expanding, it is still in its infancy.
Additionally, as per the Nationwide/Purdue University Veterinary Price Index, since 2015, the cost for veterinary services have increased more than 10% for clinical treatments and over 5% for routine check-ups. Similar trend is observed for prices associated with veterinary surgical procedures as well as medications. It is anticipated that the aforementioned factor will have moderate impact on the market over the long term as the penetration of pet insurance products increases.
Veterinary Services Market Analysis
The diagnostic tests and imaging services accounted for over USD 34 billion market revenue in 2021 and is anticipated to dominate throughout the forecast period, registering a significant market growth rate. Infectious diseases are life threatening for pets and very often reduce the productivity of farm animals. The globalized trade of animals and related products spur the threat of disease penetration.
Accurate and rapid diagnostic tests are an essential to detect, control, and eradicate such diseases. This has led to growth in the veterinary services such as diagnostics tests and imaging. The necessity of imaging and diagnostic testing has promoted advancement in equipment and supplementary tools for the rapid and easy detection of animal pathogens. The novel advanced technologies for customized human medicine facilitate the development of prototype diagnostic tests for a wide range of zoonotic diseases.
Radiology and imaging rooms in a veterinary clinic also use advanced imaging technology to diagnose and treat diseases in animals. Hence, owing to aforementioned factors, the veterinary services market is expected to remain driven throughout the forecast period.
Learn more about the key segments shaping this market
On the basis of animal type, the veterinary services market is mainly classified into companion animals and farm animals. Companion animals were noted to account for over 59.2% market proportion in 2021. The rising adoption rate of companion animals largely increases the demand for pet care services including veterinary services, among others. For instance, according to The American Pet Products Association (APPA), in 2021, pet owners annually spend an average of USD 1,480 on the basic expenses of a pet dog.
Similarly, there has been a significant increase in the incidence of various diseases among the pet animals. According to data published in the Nature Journal, in 2018, the annual period prevalence of osteoarthritis in dogs in the UK was estimated to be 2.5%. Furthermore, as per the results of the APPA 2017-2018 National Pet Owners Survey, nearly 8% of cats and 10% of dogs underwent surgical procedures. Thus, rising number of pets undergoing surgical procedures will spur the market demand for veterinary services.
Learn more about the key segments shaping this market
North America accounts for a significant proportion of the global veterinary services market, and it is expected to continue its market dominance throughout the forecast period. On the country-level, the U.S. accounts for a significant proportion, largely influenced by the increasing pet adoption rates and rising per capita healthcare expenditure on animals.
For instance, according to the according to the American Society for Prevention of Cruelty to Animals (ASPCA) report, approximately 3.2 million shelter animals are adopted every year in U.S. Among those shelter animals, 1.6 million are dogs and 1.6 million are cats. Thus, growing adoption of pets in various states of America will boost the regional market outlook.
Veterinary Services Market Share
Major players operating in the veterinary services industry include
- Mars Incorporated
- IDEXX Laboratories Inc
- CVS Group plc
- VetPartners
- Ethos Veterinary Health
- PetIQ, LLC.
- Kremer Veterinary Services
These market players opt for various inorganic growth strategies such as partnerships, collaborations, mergers, acquisitions, and the launch of innovative veterinary services to create a global footprint and industry competition.
Some of the recent industry developments
- In December 2021, VetPartners acquired Swissvet, a Switzerland-based company that owns and operates a chain of veterinary clinics offering practices such as dental, microchipping and cat spay. the acquisition was targeted at enhancing the company’s service offerings as well as expanding the geographical reach of the company.
- In January 2021, Davies Veterinary Specialists in Hitchin and Southfields Veterinary Specialists in Essex, launched two well-respected referral centers. These centers would offer advanced veterinary dentistry service and maxillofacial surgery service for pets across the UK market. This strategy expanded its services offering especially in dentistry sector and expanded its outreach to untapped economies.
The veterinary services market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2017 to 2030, for the following segments
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By Service Type
- Diagnostic tests and imaging
- Physical health monitoring
- Surgery
- Others
By Animal Type
- Farm animals
- Companion animals
The above information is provided for the following regions and countries
- North America
- U.S.
- Canada
- Europe
- Germany
- UK
- France
- Italy
- Spain
- Asia Pacific
- China
- India
- Japan
- Australia
- Latin America
- Brazil
- Mexico
- Middle East & Africa
- South Africa
- Saudi Arabia
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