Companion Animal Health Market Size, Share, Industry, Forecast and outlook (2024-2031)

Report Overview

The Global Companion Animal Health Market is expected to grow at a high CAGR during the forecasting period (2024-2031).

• Companion animals are domesticated or domestic-bred animals whose physical, emotional, behavioral, and social needs can be readily met as companions in the home or close daily relationships with humans. Companion animals play an important role in the lives of many people by providing a sense of belonging and responsibility. The most popular pets are cats and dogs. In most economies, the disposable income of families has increased which has enabled people to adopt pet animals and spend on their healthcare. According to World Organization for Animal Health, the adoption of pets in India has risen from 8 million to 13 million from 2010 to 2018, and this trend is most likely to continue in the coming 6-7 years, resulting in continuous demand for various pet animal healthcare products and contribute to total animal healthcare industry size.
• Various types of diseases in animals and their transfer to humans via their product consumption and companionship are escalating all over the world. Pet owners insist that their pets should lead the same healthy lifestyles as them. Governments across the globe have initiated animal vaccination programs and made vaccination a mandate. The National Center for Emerging and Zoonotic Infectious Diseases (NCEZID) is engaged in preventing, tracking, detecting, and responding to outbreaks of infectious diseases in the U.S. and other countries. In animal health products, feeds are the most commonly used products for animal healthcare. It also includes pharmaceuticals and vaccines, which contribute significantly to the health and wellbeing of these animals. These products provide nutrition to animals.

Market Summary

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Market Dynamics

• The major drivers fueling the growth of the market are the growing human-animal bond, which defines consumers’ willingness to spend more money for their pets, increasing the prevalence of zoonotic diseases, and efforts undertaken by various animal welfare organizations at the country and regional levels.
• Over the last decade progress in biomedical research, virology and microbiology have also fueled the innovation of vaccine research, including a better understanding of the interaction between pathogens and the host immune system, the continuous improvement in the deciphering of the immune response and its components in domestic animals.
• Steps taken by many government and non-government organizations like International Cooperation on Harmonization of Technical Requirements for Registration of Veterinary Medicinal Products (VICH) that is a trilateral European Union-Japan-US program aimed at harmonizing technical requirements for veterinary product registration. The role of VICH is to harmonize technical requirements for data necessary for the marketing authorization of a veterinary medicinal product. This is achieved by developing harmonized guidelines on the studies to be submitted in a marketing authorization application.

Changes in distribution channels and the increasing cost of animal testing and veterinary services are going to restrain the market in the forecast period.

• Generally, companion animal owners purchase their animal health products directly from veterinarians and veterinarians recommend low-cost generic product subtitles. Even there are several restrictions and regulations on animal testing worldwide, which is hindering several healthcare companies from manufacturing newly advanced drugs. Also, because of the increasing regulations, animal testing is becoming expensive.

Market Segmentation Analysis

• The market is segmented by products as Vaccines, Anti-Infectives, Medicinal Feed Additives, Parasiticides, Diagnostics, and Others and by animals like cats, dogs, equines, and others.
• Parasiticides had a dominant market share in 2018 of more than 25% because of an increase in flea and tick-infested Lyme disease in dogs and cats. According to NCEZID, around 32% of the pets at some point in their life suffers from flea and ticks. Parasiticides are medicinal substances that prevent the spread of internal and external parasites in companion animals. These are effective against flea and tick infestations and internal parasites like heartworms inside companion animals. Companies are focused on product launch and development of existing parasiticides products. Vetoquinol has developed Flevox, a parasiticide for companion animals fighting against tick and flea infestation in pets.
• Dogs accounted for the largest share of the animal type segment of more than 60% owing to health benefits associated with the adoption of pets, an increase in awareness, and demand for efficient care for dogs. Healthcare problems in dogs include heartworm (parasitic worm in pulmonary arteries of dogs), kennel cough, parvovirus, Lyme disease, demodectic mange (an inflammatory disease that leads to skin lesions and hair loss), and ringworm. Complex diseases in canines can be identified early by diagnostics or prevented altogether by the application of vaccines. Increased awareness about healthcare products from the owners’ side has driven the canine healthcare market. Companies are focused on developing products that are easy to apply. For instance, in 2012, Bayer Healthcare developed Resultix, a spray-on formula that kills attached or crawling ticks on a dog’s body.
• The significant restraint to the canine healthcare market is the unwillingness on the part of the owners to spend a substantial amount of money on canines after a certain point in time. Companies are focused on developing products that are easy to apply.
• For instance, Bayer Healthcare developed Resultix, a spray-on formula that kills attached or crawling ticks on a dog’s body.

Market Geographical Share

• Geographically, the global Companion Animal Health market is divided into North America, Europe, South America, Asia-Pacific, and the Middle East and Africa.
• North America accounts for the highest market share of around 40% globally, because of the large adoption of animals and the growing incidence of zoonotic and food-borne diseases is a potential concern for the health of pet animals. In many countries such as the U.S., brucellosis is increasing and causes abortion in animals. Americans view pets as more than just companion animals. Almost all dog and cat owners view their pets as members of their family (95%), and about 12% have pet health insurance. According to Labor Statistics, 84.6 million households own pets and spend around $ 892 per year on pets.
• Europe has the second-largest market in the world with more than 25% of the market share. In Germany, animal health is secured by legislation and the veterinary administration. As animal diseases do not stop at national borders, the Federal Ministry works continuously with the veterinary authorities of the other Member States and third countries. Similarly, a new EU Animal Health Law, which is due to introduce will provide additional animal health requirements - including provisions on pet travel - across the EU from 2021.

Market Companies and Competitive Analysis

Some of the major key players are Merck Animal Health, Ceva Sante Animale, Vetaquinol SA, Nutreco N.V., Bayer Healthcare, Virbac, Boehringer Ingelheim, Zoetis, Elanco, and Ameri-Pac Inc.

Boehringer Ingelheim, Zoetis, Bayer Healthcare, Merck, and Virbac hold a major market share in the global companion animal health market that accounts for more than 40% of the market. Boehringer Ingelheim is the market leader with more than 20% of the total market followed by Zeotis, Bayer Healthcare, and Merck. Boehringer Ingelheim became a market leader with the acquisition of Sanofi’s animal-health business (Merial). The acquisition of Merial makes Boehringer Ingelheim the second-largest animal health company in the world. The U.S. animal-health market will be the largest for Boehringer Ingelheim, representing more than 40% of annual sales.

• In Aug 2018, Virbac launched new VeggieDent FR3SH Dental Chews to target the causes of halitosis in dogs.
• In Aug 2018, FDA approved NexGard® (afoxolaner) for the prevention of infections that cause Lyme disease in dogs.
• In June 2018, Wageningen Bioveterinary Research (WBVR) and Ceva Santé Animale (Ceva) announced a new collaboration to develop veterinary vaccines for the control of (re)emerging infectious animal diseases, such as Rift Valley fever and Influenza.
• In June 2018, Avivagen received approval from Health Canada for the use of OxC-beta™ in Companion Animal Supplements.
• In Jan 2018, Rhone Ma Holdings Bhd via its unit Rhone Ma Malaysia Sdn Bhd entered a joint venture with CEVA Sante Animale S.A. for the exclusive distribution of the latter's animal health products such as vaccines for companion animals, poultry, ruminant, and swine.