U.S. Companion Animal Health Market Size to Reach USD 28.32 Billion By 2033

U.S. Companion Animal Health Market Size to Reach USD 28.32 Billion By 2033

The U.S. companion animal health market size was valued at USD 13.19 Billion in 2023 and is poised to grow from USD 14.24? Billion in 2024 to USD 28.32 Billion by 2033, at a CAGR of 7.94% during the forecast period (2024-2033).

Key Takeaways:

  • The dogs segment accounted for the largest revenue share of 66.19% in 2023.
  • The cat segment is expected to grow at the fastest CAGR over the forecast period.
  • The pharmaceutical segment accounted for the largest revenue share of 44.09% in 2023.
  • Hospital/ clinic pharmacies dominated the market with a share of 59.08% in 2023.
  • The E-commerce segment is expected to register the fastest CAGR over the forecast period.
  • Hospitals & clinics dominated the market with a share of 60.09% in 2023.

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The market is driven by various factors such as the increasing rate of medical care for pets, increasing pet humanization, and growing spending and pet population. More than 60% of cats and 75% of dogs had veterinary visits in 2022, according to the Pet Ownership & Demographic Sourcebook. The expected growth in medicalization rate and veterinary visits is expected to drive the market growth during the forecast period.

?The U.S. companion animal health market revolves around the distribution and production of medications designed especially for pets, such as dogs, birds, cats, and other domesticated animals kept primarily for companionship instead of commercial objectives. Companion animal drug development has improved in tandem with innovations in human medicine enabling pets to obtain prescriptions and therapies that can efficiently treat medical issues, increase their longevity, and accelerate their well-being.

Preventative measures for protection against potentially fatal heartworm disease, vaccination against infectious diseases, and parasite control are just a few of the various medications used for companion animals further anticipated to drive the growth of the U.S. companion animal health market. Pets may have age-related diseases such as cognitive decline, arthritis, and organ malfunction as they age. In addition, drugs for companion animals can help to deal with these problems and enhance the quality of life and geriatric dog’s comfort.

Diabetes mellitus is a chronic disease that also occurs in pet animals, owing to various threats such as enlarged liver, kidney failure, seizures, urinary tract infections, and cataracts. Furthermore, the increasing focus on animal health monitoring solutions, increasing number of animals, expanding activities by various governments, increasing interest in veterinary vaccinations, rising disposable income, and changing lifestyles are expected to enhance the market growth during the forecast period.?

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The U.S. Companion Animal Health Market Trends

  • The rising demand for pet insurance and increasing health spending are expected to drive the market growth.
  • The growing number of veterinary practitioners and their increasing income level in emerging countries are contributed to propel the market growth.
  • The increasing focus on zoonotic diseases, rising advancements in veterinary healthcare, and increasing rates of pet ownership are further anticipated to drive market growth.

The U.S. Companion Animal Health Market Segment Insights

By Animal Type Insights

The dogs segment accounted for the largest revenue share of 66.19% in 2023. In the U.S., dogs are the most popular pets. For instance, 56% of Americans reported indicating a significant growth in dog ownership and having a dog in their household in 2023. Due to the susceptibility to various health issues such as age-related diseases, genetic diseases, injuries, and infections, dogs often need more frequent veterinary care. Respiratory illness affecting dogs in the U.S. is ongoing, with multiple states reporting researchers and cases working to identify the potential treatments and causes, according to the American Veterinary Medical Association (AVMA) in 2023.?

The cat segment is expected to grow fastest during the forecast period. Cats do not need special training for basic hygiene and self-cleaning because cats are considered low maintenance. The notably increasing cat adoption rate with increasing demand for feline-specific drugs is driving the major players to make research and development investments.

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By Product Types

The pharmaceutical segment accounted for the largest revenue share of 44.09% in 2023. The rising advancements in pet medicine such as new treatments and drugs, offer more options to maintain health diseases and are estimated to drive the demand for pharmaceuticals. FDA reviews for medications that increase pet life durations, such as dog lifespan extension drugs as expected to drive the demand as owners search to improve their longevity and the well-being of animals. For instance, in December 2023, a biotech company, Loyal received positive feedback from the FDA for its drug LOY-001. The aim behind this launch was to extend the lifespan of large dog breeds. The veterinarian-administered and affordable drug could be available as a conditional approval procedure.

By Distribution Channel Types

Hospital/ clinic pharmacies dominated the market with a share of 59.08% in 2023. This segment generates revenue from veterinary clinics and hospitals, which directly provide diagnostic test kits, customized therapies, vaccines, and medications to pet owners. The growth of vet pharmacy networks by major players is anticipated to drive the growth of the U.S. companion animal health market. For instance, in February 2024, a cooperative network of veterinary hospitals in North Carolina, Vets Pets announced its pharmacy initiative led by young pharmacists to improve pharmacy-associated client service and patient care for their more than 100 veterinarians.?

The e-commerce segment is expected to grow fastest during the forecast period. The segment growth is attributed to the competitive pricing strategies employed, the ability to compare prices, the wide variety of products available, and the convenience of purchasing medications online via e-commerce platforms.

?By End Use Types

Hospitals & clinics dominated the market with a share of 60.09% in 2023. Veterinary hospitals help pet owners by educating them on the presence of diagnostics and medications for pet health and encouraging them to search for effective treatments. The rising advancements in companion animal medicine such as treatment techniques and diagnostic tools contributed to the growth of the hospitals and clinics segment. For instance, in March 2023, the world leader in animal health, Zoetis announced the expansion of its diagnostics and multipurpose platform, Vetscan Imagist to include two new applications one for AI equine FEC analysis and the other for AI dermatology.

Point-of-care testing in veterinary medicine involves using various products to conduct preventive or diagnostic tests at the site where the pet receives care, such as a veterinary clinic or a pet’s home. Point-of-care testing allows tests to be performed at the site where the pet receives care, eliminating the need to visit a separate laboratory or clinic. For instance, in July 2023, the Vetster platform, in collaboration with MySimplePetLab, introduced veterinary rapid diagnostic tests for home use. This strategic move aims to create a seamless spectrum of veterinary care, especially for nonurgent cases, thereby reducing the stress associated with in-clinic visits.

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The U.S. Companion Animal Health Market Company Insights?

Some of the major players in the companion animal health market in the U.S. such as IDEXX Laboratories, Inc., Dechra Pharmaceuticals Plc, Ceva Santé Animale, Boehringer Ingelheim GmbH, Merck & Co., Inc., Elanco and others. These major players undertake extensive collaborative research initiatives, geographical expansions, product portfolios, and mergers and acquisitions.?

  • For instance, in July 2022, Dechra Pharmaceuticals Plc announced it had agreed to acquire Piedmont specializing in developing differentiated and novel products such as Piedmont Animal Health, Inc. for the companion animal market.?
  • For instance, in September 2023, global animal health company, Ceva Santé Animale (Ceva) announced the launch of its highly anticipated 2024 “Call for Projects”. The aim behind this launch was to support and discover new innovative solutions for the well-being and care of companion animals and their pet parents.

Some of the prominent players in the U.S. companion animal health market include:

  • Merck & Co., Inc.
  • Elanco
  • Boehringer Ingelheim GmbH
  • Ceva Santé Animale
  • Zoetis
  • Virbac
  • IDEXX Laboratories, Inc.
  • Mars Inc.
  • Dechra Pharmaceuticals Plc
  • Vetoquinol S.A.

U.S. Companion Animal Health Market Recent Developments

  • In January 2024, IDEXX Laboratories expanded its Fecal Dx antigen testing platform to include Cystoisospora, a common intestinal parasite in young dogs and cats. This provides early and accurate detection alongside other common parasites.
  • In January 2024, Ceva Santé Animale acquired Scout Bio, a leading biotechnology firm specializing in advanced pet therapies. This acquisition marks a substantial advancement for Ceva, granting access to groundbreaking treatments such as monoclonal antibodies and gene therapy aimed to tackle chronic pet diseases.
  • In November 2023, Antech introduced advanced diagnostic solutions such as KeyScreen and AIS RapidRead to enhance pet healthcare outcomes across the UK veterinary community.? ? ?
  • In October 2023, a leading player in the companion animal health industry, Scientific Remedies launched Affinity Advance, in India, the flagship brand of the 6th largest manufacturer of pet food in the world, Affinity Petcare. Affinity Advance offers a broad range of super premium therapeutic, wellness, and specialty nutrition for pets, which is popular and recommended by pet parents and vets worldwide.
  • In October 2023, Incorporated and Digitalis Ventures, Mars announced the launch of Companion Fund II.? This 300 million venture capital fund backs founders with companies that are leveraging breakthrough design, technology, and science to improve the lives of veterinarians, pet owners, and pets.

?Segments Covered in the Report

This report forecasts revenue growth at country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Nova one advisor, Inc. has segmented the U.S. companion animal health market

By Animal Type?

  • Dogs
  • Cats

By Product?

  • Vaccines
  • Pharmaceuticals OTC Prescription
  • Supplements
  • Diagnostics
  • Others

By Distribution Channel

  • Retail
  • E-commerce
  • Hospital/ Clinic Pharmacies Independent Corporate

By End Use?

  • Hospitals & Clinics
  • Point-of-Care
  • Others

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