Companion Animal Health Market Size, Share & Industry | 2032

Report Description

Companion Animal Health Market Outlook 2032

The global companion animal health market size was USD 22.8 Billion in 2023 and is projected to reach USD 51.1 Billion by 2032, expanding at a CAGR of 9.4% during 2024–2032. The market growth is attributed to the increasing awareness about pet health among pet owners.

Growing awareness among pet owners regarding preventive healthcare measures for companion animals is resulting in a high demand for veterinary healthcare services, which further boosts the market. Veterinarians are increasingly incorporating advanced veterinary healthcare solutions to ensure the health and well-being of pets. Moreover, the global rise in companion animal ownership is driving the demand for effective veterinary healthcare solutions.

• According to the report published by Forbes on January 25, 2024, approximately 29% of households across the US own cats.

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Impact of Artificial Intelligence (AI) on the Companion Animal Health Market

The emergence of artificial intelligence is likely to boost the companion animal health market. AI solutions facilitate early detection of diseases and personalized treatment plans, improving patient outcomes and enhancing the quality of care. Additionally, AI-powered imaging and diagnostic tools have enhanced diagnostic accuracy and efficiency, enabling rapid and precise identification of health conditions in companion animals.

Companion Animal Health Market Dynamics

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Major Drivers

Increasing pet ownership rates are anticipated to drive the market during the forecast period. Furthermore, the growing awareness of the importance of pet healthcare and preventive healthcare measures among pet owners is boosting the demand for companion animal healthcare products and services. The rising number of pet owners across the globe is expected to boost the market in the coming years.

• According to Pet Ownership Statistics 2024, the number of US households owning pets increased from 73 million in 2010 to 87 million in 2022.

Existing Restraints

Rising cost of veterinary services and medications hinders the market. The affordability of veterinary care is becoming a concern for pet owners, particularly those with limited financial resources. Moreover, the regulatory challenges associated with companion animal health product approvals further hamper the market.

Emerging Opportunities

­Increasing investments in research & development (R&D) within the veterinary healthcare sector create immense opportunities for players competing in the market. These investments enable the exploration of advanced technologies, such as genomics, biotechnology, and digital health solutions, to improve diagnostic accuracy, treatment efficacy, and overall patient outcomes. Furthermore, the rising demand for personalized and specialized veterinary healthcare services propels the market during the projected period.

Scope of the Companion Animal Health Market Report

The market report includes an assessment of the market trends, segments, and regional markets. Overview and dynamics are included in the report.

Regional Outlook

In terms of region, the global companion animal health market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America held a major market share in 2023, due to the high ownership of companion animals in the region. For instance, as per the Pet Ownership Statistics 2024, about 66% of households in the US, which means 86.9 million homes, have at least one pet. Moreover, the presence of major pharmaceutical companies specializing in veterinary medicine contributes to the market growth in the region.

The market in Asia Pacific is projected to grow at a significant pace in the coming years, owing to the increasing number of households owning pets. Furthermore, the growing awareness of pet health and wellness among pet owners and the rising availability of pet insurance and preventive healthcare services are projected to fuel the market during the forecast period.

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Companion Animal Health Market Segment Insights

Product Segment Analysis

Based on product, the market is divided into pharmaceuticals, vaccines, diagnostics, feed additives, and others. The pharmaceuticals segment held a major share of the market in 2023, due to the high prevalence of chronic and infectious diseases among companion animals.

Pharmaceuticals are important in managing various health conditions in companion animals, including arthritis, diabetes, cardiovascular diseases, and infectious diseases. Additionally, the easy availability of pharmaceutical products and specialty medications boosts the segment.

The vaccines segment is expected to expand at a significant growth rate in the coming years, owing to the increasing awareness of the importance of vaccination in preventing infectious diseases. Furthermore, the development of improved vaccines with enhanced efficacy, safety, and duration of immunity is expected to propel the segment in the coming years.

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Animal Type Segment Analysis

On the basis of animal type, the global market is segregated into cats, dogs, equine, and others. The dogs segment held a large market share in 2023, due to the increasing ownership of dogs as companion animals across the globe. Dogs are susceptible to a wide range of health conditions, including infectious diseases, orthopedic issues, and age-related ailments, which boost the demand for specialized veterinary treatments and medications. Additionally, the increasing trend of pet humanization, where dogs are regarded as family members, boosts the adoption of premium healthcare products and services.

The cats segment is anticipated to expand at a substantial CAGR during the forecast period, owing to the increasing popularity of cats as pets. This, in turn, boosts the demand for regular veterinary care and medical services. Moreover, the increasing awareness of the unique healthcare needs of cats and advancements in feline medicine and nutrition are boosting the segment.

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Distribution Channel Segment Analysis

Based on distribution channel, the companion animal health market is segmented into e-commerce, retail, and hospital pharmacies. The e-commerce segment is projected to register a robust growth rate during the assessment years, due to the increasing adoption of online platforms for purchasing branded pet products. E-commerce platforms offer pet owners the convenience of browsing and purchasing companion animal health products from the comfort of their homes. Moreover, e-commerce platforms offer personalized recommendations to tailor product offerings to individual pet owners, which boosts the segment.

End-user Segment Analysis

On the basis of end-user, the market is divided into hospitals, point-of-care/in-house testing, and others. The point-of-care segment is expected to dominate the market in terms of revenue generation during the projection period, owing to the increasing demand for quick and convenient diagnostic solutions. Point-of-care testing provides quick results, allowing veterinarians to make timely treatment decisions and improve patient outcomes. Additionally, the growing availability of portable and user-friendly diagnostic devices and expanding veterinary training programs on point-of-care testing techniques are further fueling the segment.