Veterinary Active Pharmaceutical Ingredients (API) Market Size By Therapeutic Category (Anti-infectives, Anti-parasitic, NSAIDs, Biologics), By Synthesis (Chemical Based API, Biological API, Highly Potent API (HPAPI)), By Contract Outsourcing (CDMO, CMO), By Drug (Prescription, OTC), Industry Analysis Report, Regional Outlook, Application Potential, Competitive Market Share & Forecast, 2023 – 2032

Industry Statistics

Veterinary API Market size exceeded USD 38 billion in revenue in 2022. The industry is projected to grow at more than 6% CAGR from 2023 to 2032 on account of the upsurge in pet adoption globally.
 

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The veterinary active pharmaceutical ingredients industry is primarily driven by the surging awareness of animal health and wellbeing. Concerns related to disease prevention, control, diagnosis, and treatment are encouraging animal owners to adopt veterinary active pharmaceutical ingredients. Furthermore, government organizations from around the world are promoting animal health awareness campaigns and pet adoption.
 

Moreover, snowballing animal adoption is fueling the demand for animal products, such as protein, eggs, and meat, among others, which, in turn, is benefitting the market outlook. Most countries consider animal products as desirable foods because of their taste and nutritional benefits. The rising healthcare spending and soaring healthcare knowledge are also encouraging the consumption of animal products, which is projected to favor the overall business. The World Health Organization (WHO) anticipates that by 2030, the yearly meat production would amount to 376 million tons.
 

High prices of veterinary medicines may restrain veterinary API market progression

The high cost of veterinary medicines is a major factor restraining veterinary active pharmaceutical ingredients market growth. Veterinary medical services and drugs account for a significant portion of these costs. As a result, growing concerns regarding rising veterinary medication prices may hinder product penetration through the forecast period. According to the American Pet Products Association (APPA), pet care expenses in the United States are likely to reach USD 123 billion in 2021. Nonetheless, favorable government initiatives to reduce the cost of treatment for animals is speculated to help combat this issue.
 

Mounting usage for disease diagnosis to push anti-infectives segment demand

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In terms of therapeutic category, veterinary API market is bifurcated into anti-infectives, NSAIDs, anti-parasitic, biologics, and others. The veterinary active pharmaceutical ingredients industry share from the anti-infectives segment valuation is foreseen to exceed USD 13.5 billion by 2032. Drugs and medications that contain anti-infective veterinary APIs improve efficiency in treating clinically sick animals, lowering the incidences of infectious diseases and aiding in the diagnosis and treatment of these illnesses in livestock and companion animals, which is foreseen to fuel the demand for anti-infective drugs.
 

Soaring utilization in zoonotic disease management to shape highly potent API industry outlook

Veterinary API market is divided on the basis of synthesis into biological API, chemical-based API, and highly potent API (HPAPI). The highly potent API (HPAPI) segment is set to garner more than USD 11 billion by 2032. The segment is expected to grow rapidly due to the burgeoning demand and increased awareness of the numerous benefits provided by highly potent veterinary active pharmaceutical ingredients in the precise management of zoonotic diseases. These chemicals cause a biological reaction even at low doses, which is slated to drive segment demand.
 

Low cost of production to accelerate contract manufacturing outsourcing uptake

Based on contract outsourcing, the veterinary active pharmaceutical ingredients market is classified into CMO and CDMO. The contract manufacturing outsourcing (CMO) segment is anticipated to garner a valuation of more than USD 40.5 billion by 2032. The segment is expanding due to various benefits associated with the contract manufacturing of veterinary active pharmaceutical ingredients, including scalability, faster time to market, and so forth. It aids companies in saving capital expenses and reducing labor requirements as they do not have to pay for a facility and the equipment necessary for veterinary API manufacturing, which is speculated to augment segment revenues.
 

High demand among retailers to boost OTC drugs uptake

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In terms of drugs, the veterinary API market is segregated into OTC and prescription. The OTC segment held over 55% of the market share in 2022. The segment's expansion is attributed to a substantial rise in customer demand for over the counter (OTC) veterinary medications, which include, antibiotics, anti-fungal, and anti-inflammatory pharmaceuticals, among others. These drugs are widely bought at retail pharmacies because of the increasing need for preventing illnesses, such as tick-borne diseases, bacterial diseases, and so on.
 

Favorable R&D initiatives to accelerate Asia Pacific market expansion

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Regionally, the global veterinary API market is segmented into Europe, Asia Pacific, North America, the Middle East & Africa, and Latin America. The Asia Pacific region is forecast to be worth more than USD 22.5 billion by 2032. The region is growing due to ongoing investments and R&D efforts by industry players. In several nations across the region, mounting disease burden and an expanding veterinary population are further driving the demand for veterinary API, which is set to impel APAC industry progression.
 

Continuous product innovation to positively impact the industry outlook

Alivira Animal Health Ltd, Qilu Pharmaceutical (Inner Mongolia) Co., Ltd, Procyon Life Sciences, SUANFARMAOfichem Group, NGL Fine-Chem Ltd, Huvepharma, Jiangsu Lingyun Pharmaceutical Co., Ltd, Excel Veterinary HealthcareVetpharma (Insud Pharma), Menadiona, Indukern Group, and Lasa Supergenerics Ltd. are some of the key players in veterinary active pharmaceutical ingredients industry. These manufacturers engage in rigorous R&D projects and promising collaborations to remain ahead in the competitive landscape. For instance, in October 2022, Huvepharma, a pharmaceutical firm, announced the re-launch of the PoultrySulfa medication in the U.S. This initiative aided the company in broadening both its customer base and product line.
 

Impact of COVID-19 on veterinary API market trends

The COVID-19 outbreak adversely affected the revenue share of the veterinary active pharmaceutical ingredients industry. The pandemic witnessed a decline in the production of veterinary active medicinal components, necessitating careful preparation to lessen the socioeconomic burden. The market outlook was impacted by a number of variables, including changes in supply shortages, panic purchasing, overstocking, regulation, and the R&D process. However, the market expansion was driven by a decline in infection rates, novel strategies, rising veterinary API demand, and new methodologies.
 

Veterinary active pharmaceutical ingredients market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD Million from 2018 to 2032 for the following segments:

By Therapeutic Category

• Anti-infectives
• Anti-Parasitic
• NSAIDs
• Biologics
• Others

By Synthesis

• Chemical Based API
• Biological API
• Highly Potent API (HPAPI)

By Contract Outsourcing

• CDMO
• CMO

By Drug

• Prescription
• OTC

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

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Spain
  • Italy
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
• Latin America
  • Brazil
  • Mexico
  • Argentina
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE