Animal Drugs Market Size By Product (Drugs {Antiparasitic, Anti-inflammatory, Anti-infectives}, Vaccines {Modified Live Vaccines [MLV], Killed Inactivated Vaccines}, Medicated Feed Additives {Antibiotics, Vitamins, Amino Acids, Enzymes, Antioxidants, Prebiotics and Probiotics, Minerals}, By Animal Type (Livestock Animals {Poultry, Swine, Cattle, Fish}, Companion Animals {Dogs, Cats, Horses}), By Route of Administration (Oral, Injectable, Topical), By Distribution Channel (Veterinary Hospitals, Veterinary Clinics, Pharmacy and Drug Stores, E-commerce), COVID-19 Impact Analysis, Regional Outlook, Application Development Potential, Competitive Market Share & Forecast, 2021 – 2027

Industry trends

Animal Drugs Market size surpass USD 32.2 billion in 2020 and is estimated to grow at a CAGR of over 5.4% between 2021 and 2027. The growing incidence of pet diseases, increasing adoption of pet animals, and rising expenditure on veterinary care is anticipated to drive the market growth in the coming years. Moreover, rising awareness regarding animal health, availability of advanced veterinary services for pets, and the emergence of pet insurance will positively impact the market expansion.
 

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However, high cost of animal drugs, and low animal health expenditure in developing countries may negatively impact the market progression. High cost associated with animal drugs limits the acceptance of veterinary drugs and vaccines. A major component of these expenses was associated with veterinary medical services and drugs. Additionally, dearth of awareness concerning animal drugs & health in developing regions and lack of knowledge regarding several zoonotic diseases may limit the industry growth.
 

The U.S. FDA approves the animal drugs and these drugs have to follow a pre-set approval procedure. The animal drug has to go through the New Animal Drug Application (NADA) process in case of branded approval and the Abbreviated New Animal Drug Application (ANADA) process for generic approval. The U.S. FDA approves these drugs only if the regulatory requirements are met. In addition, it also ensures that the drug formulation, quality, and purity are consistent in all batches, and that the drug’s labelling is optimal.
 

The COVID-19 pandemic arose as an unparalled public health concern that has impacted the global economy. The coronavirus outbreak has affected over millions of people across the globe causing significant mortalities. The pandemic affected the healthcare industry by financial adversities and by impacting production capacity on the firms. Although, the market experienced slight surge in the growth and followed growth trajectory despite the closure of certain veterinary services and clinics.
 

The impact of COVID-19 peaked during 2020 wherein, the customers opted for animal drugs for ensuring the well-being of the owned animals. Several global animal welfare organizations invested in the collaborated efforts to facilitate seamless operations and uplift the market. The U.S. FDA’s Veterinary Medicine that regulates the drugs, food, and devices for animals published supportive guideline documents for helping the veterinarians to opt for optimal veterinary drugs and vaccines. Other public organizations including the World Organization for Animal Health (OIE), American Veterinary Medical Organization, etc. focused on animal welfare, health, & veterinary public health and have collaborated with numerous firms that support animal health.
 

Growing demand for pet insurance policies to amplify the animal drugs market value

The rising adoption of pet health insurance in developed countries to pay for veterinary services is set to foster the industry expansion. Countries including Canada, UK, and Sweden have a robust pet health insurance industry. China has also witnessed substantial growth in pet health insurance usage. The rising awareness & understanding of pet health and growing usage of pets are the major impact rendering factors that have facilitated the rapid pet healthcare insurance adoption rates.
 

Furthermore, the increasing use of veterinary services and substantial costs associated with the use of services promoted the demand for pet health insurance. A research survey conducted by the NAPHIA, in 2016, showcased that majority of pet owners were willing purchase pet health insurance, with recommendation of their regular veterinarian. The increasing acceptance of pet health insurance would offer more purchasing power to the pet owners. This development to drive the usage of animal drugs, for ensuring better animal health. Also, substantial rise in the disposable and surging incidence of zoonoses among animals has propelled animal healthcare spending. Significant proportion of pet owners assume their pet as one of the family members and incorporate notable efforts to ensure their optimal health.
 

Rising prevalence of bacterial parasitic infections among animals will stimulate the business growth

The drugs segment in the animal drugs market valued at USD 19.2 billion in 2020 led by the increasing prevalence of zoonotic diseases, brucellosis, bacterial parasites, and food-borne diseases across the globe. Parasitic infections are amongst major restrains that inflict considerable socio-economic burden on the livestock business in tropical and subtropical countries. Gastrointestinal (GI) parasites account for substantial economic losses causing digestive disturbance, reduced production, impaired reproduction, and mortality in infected livestock animals.
 

Higher incidence of zoonotic diseases among livestock animals will promote the demand for animal drugs

The livestock animals segment dominated more than 63% of the animal drugs market share in 2020 impelled by the rising incidence and financial burden of zoonotic diseases among livestock animals. Bacterial parasites survive by majorly attacking farm animals and leads to substantial disease & financial burden.
 

Numerous benefits offered by injectable route of administration to promote the market revenue

The injectable segment held for 44% of revenue share in 2020 propelled by the high efficiency and efficacy offered by injectable drugs. Injection is the dominant route of drug administration in animals and is preferred by the veterinarians for diseases mandating systemic immunity. This route of intervention promotes the drug efficacy and minimizes any potential adverse reactions at the injection site. Certain clinical studies have highlighted the immunological benefits of the injectable vaccines with nominal adverse effects. Administering injectable drugs also aids in ensuring the optimal dosage.
 

Rising preference for e-commerce portals to spur the segment growth

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The e-commerce segment accounted for USD 4.6 billion in 2020 owing to the increasing preference for e-commerce portals for animal drugs, especially OTC drugs among pet owners. As consumers get more convenient services and multiple choices, the preference for e-commerce to grow in the coming years. Additionally, various market players are focusing on marketing products via e-commerce websites that increases salability of these products, thus leading to segment expansion.
 

High pet care expenditure in the North America region will fuel the regional growth

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U.S. animal drugs market is poised to reach USD 14.9 billion by 2027. This dominant industry share is attributable to several factors such as surging animal health expenditure, rise in awareness regarding animal health, and growing adoption of pets across the country. Furthermore, the estimates suggest that the spending will grow steadily in the coming years, owing to millennial pet owners. The APPA also estimated that the demand for pet health insurance will grow with rise in the popularity as the number of pets requiring more complex and extended medical care is on the rise. The rise in the animal health expenditure is set to promote the acceptance of animal drugs.
 

Strategies adopted by major players will stimulate the industry progression

Some of the major companies operating in the market are Elanco Animal Health, Boehringer Ingelheim International GmbH, Ceva Sante Animale, Dechra Pharmaceuticals Ltd, Virbac S.A., and Merck Animal Health. These prominent leaders focus on strategic partnerships, new product launches & commercialization for business expansion. In addition, these players are heavily investing in research that allows them to introduce innovative products and garner maximum revenue in the business.
 

Animal drugs market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2016 to 2027, for the following segments:

Market, By Product, 2016 - 2027 (USD Million)

• Drugs
  • Antiparasitic
  • Anti-inflammatory
  • Anti-infectives
  • Others
• Vaccines
  • Modified live vaccines (MLV)
  • Killed inactivated vaccines
  • Others
• Medicated feed additives
  • Antibiotics
  • Vitamins
  • Amino acids
  • Enzymes
  • Antioxidants
  • Prebiotics and probiotics
  • Minerals
  • Others

Market, By Animal Type, 2016 - 2027 (USD Million)

• Livestock animals
  • Poultry
  • Swine
  • Cattle
  • Fish
  • Others
• Companion animals
  • Dogs
  • Cats
  • Horses
  • Others

Market, By Route of Administration, 2016 - 2027 (USD Million)

• Oral
• Injectable
• Topical
• Others

Market, By Distribution Channel, 2016 - 2027 (USD Million)

• Veterinary Hospitals
• Veterinary Clinics
• Pharmacy and Drug Stores
• e-commerce

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Spain
  • Italy
  • Poland
  • The Netherlands
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
  • Taiwan 
• Latin America
  • Brazil
  • Mexico
  • Argentina 
• Middle East & Africa
  • South Africa
  • GCC Countries
  • Israel