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Veterinary Services Market Size By Service Type (Diagnostic Tests And Imaging, Physical Health Monitoring, Surgery), By Animal Type (Companion Animal, Farm Animal), Industry Analysis Report, Regional Outlook, Covid-19 Impact Analysis, Application Potential, Competitive Market Share & Forecast, 2022 – 2030

  • Report ID: GMI5280
  • Published Date: Jun 2022
  • Report Format: PDF

Industry Overview

Veterinary Services Market size accounted for about USD 86.8 billion in 2021 and is estimated to grow at 6.7% CAGR between 2022 and 2030. The rising pet adoption rate and subsequently rising demand for veterinary services will largely facilitates overall industry growth.
 

Veterinary Services Market

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The rising implementation of digital solutions in veterinary services industry is allowing veterinarians to efficiently offer quality care to different types of animals. Digital transformation of a veterinary facility enables smooth access to patient records as well as efficient care. For instance, technological advancements allow veterinarians to perform imaging tests, upload the images on cloud and share with any pathology lab globally. Digitalization of clinical treatments also enhances the overall quality of the veterinary imaging services.
 

Furthermore, increasing affection between pet parents and their pets coupled with rising disposable income as well as surging market penetration of different pet insurance schemes enable pet parents to willingly spend on providing quality veterinary services to their pet. Clinics are largely tapping this opportunity to promote ancillary veterinary services such as wellness plans, day-care, and boarding plans for pets.
 

The increasing pet-related issues, and concerns about their health, nutrition, as well as the emergency care that the different animals need are some of the other prominent factors contributing to the veterinary services market growth.
 

Veterinary services involve treatment of diseased animals, periodic healthcare monitoring, animal neutering, preventive services, diagnostic and dental services for pets, pet vaccination, artificial insemination, and animal health protection, among other services. Veterinary services also include surgeries and pet consulting services the health & wellbeing of companion and farm animals.
 

The emergence of COVID-19 pandemic largely affected the operations of the overall healthcare sector. Several essential products & services witnessed a multi-fold increase in its demand while their non-essential counterparts registered a slump across geographies. The COVID-19 pandemic was noted to have slightly slowed veterinary services market growth.
 

Amid the increasing number of cases in the initial months of the pandemic, stringent restrictions on the movement of humans and goods resulted in limited patient influx in veterinary facilities. The shortage of skilled healthcare professionals coupled with suspended/postponed elective procedures largely disrupted the operations of veterinary facilities, resulting into a negative impact on providers in the market.
 

However, on the upside, pet adoption rate was observed to increase during this period as individuals responded to the stay-at-home orders by adoption companion animals. For instance, according to a biennial survey conducted by American Pet Products Association (APPA), over 25% of pet owners who adopted new pet during the pandemic stated that their decision was primarily influenced by the restrictions imposed due to COVID-19.
 

The rising disposable income also enables pet parents to spend on quality veterinary services. Over the course of the pandemic, as the restrictions were noted to ease down, veterinarians were also noted to resume operations while abiding by the mandatory guidelines. Adoption of digital consultation services by both, pet parents as well as veterinarians, allowed veterinary services being offered in remote locations, enhancing the overall convenience of owning a pet. These advancements are largely noted to have surged the market demand significantly.
 

The willingness of pet parents to spend more on pets can spur the market statistics

According to American Pet Products Association (APPA), in 2021, about 70% of U.S. households have minimum one pet. The U.S. has witnessed an increased overall and per capita spending on pet care in past few decades. According to The North American Pet Health Insurance Association (NAPHIA) The U.S. pet insurance market witnessed a rise and had more than $1.99 billion in gross written premiums in 2020. The pet insurance enables the pet owners to efficiently spend quality care services for their pets and provide them with optimal treatment options, minimising the out-of-pocket expenses.
 

Further, the pet adoption rate is also observed to have increased in the recent years. According to APPA, 14% of new and existing pet owners adopted a new pet in 2021. Hence, owing to rising pet adoption coupled with pet insurance schemes, the overall market is expected to grow significantly throughout the forecast period.
 

Rising costs of veterinary services may hamper the market growth

Rising pet population, increasing demand for veterinary services alongside technological advancements in the clinical procedures is primarily leading to increasing costs for veterinary services. This is expected to hinder the market growth to certain extent.
 

For instance, as per American Veterinary Medical Association, in 2020, the pet population of companion animals in the U.S. involved over 38% dogs and over 40% cats. Further, according to a survey conducted by the American Pet Product Association, only 5 percent of cats and 10 percent of dogs are covered by pet insurance. While the pet insurance industry in the U.S. is expanding, it is still in its infancy.
 

Additionally, as per the Nationwide/Purdue University Veterinary Price Index, since 2015, the cost for veterinary services have increased more than 10% for clinical treatments and over 5% for routine check-ups. Similar trend is observed for prices associated with veterinary surgical procedures as well as medications. It is anticipated that the aforementioned factor will have moderate impact on the market over the long term as the penetration of pet insurance products increases.
 

Advancements in diagnostics and imaging technologies for veterinary services is expected to fuel the segmental revenue

The diagnostic tests and imaging services accounted for over USD 34 billion market revenue in 2021 and is anticipated to dominate throughout the forecast period, registering a significant market growth rate. Infectious diseases are life threatening for pets and very often reduce the productivity of farm animals. The globalized trade of animals and related products spur the threat of disease penetration.
 

Accurate and rapid diagnostic tests are an essential to detect, control, and eradicate such diseases. This has led to growth in the veterinary services such as diagnostics tests and imaging. The necessity of imaging and diagnostic testing has promoted advancement in equipment and supplementary tools for the rapid and easy detection of animal pathogens. The novel advanced technologies for customized human medicine facilitate the development of prototype diagnostic tests for a wide range of zoonotic diseases.
 

Radiology and imaging rooms in a veterinary clinic also use advanced imaging technology to diagnose and treat diseases in animals. Hence, owing to aforementioned factors, the veterinary services market is expected to remain driven throughout the forecast period.
 

High adoption rate of companion animals will foster the market expansion

Veterinary Services Market Share By Service Type

 

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On the basis of animal type, the veterinary services market is mainly classified into companion animals and farm animals. Companion animals were noted to account for over 59.2% market proportion in 2021. The rising adoption rate of companion animals largely increases the demand for pet care services including veterinary services, among others. For instance, according to The American Pet Products Association (APPA), in 2021, pet owners annually spend an average of USD 1,480 on the basic expenses of a pet dog.
 

Similarly, there has been a significant increase in the incidence of various diseases among the pet animals. According to data published in the Nature Journal, in 2018, the annual period prevalence of osteoarthritis in dogs in the UK was estimated to be 2.5%. Furthermore, as per the results of the APPA 2017-2018 National Pet Owners Survey, nearly 8% of cats and 10% of dogs underwent surgical procedures. Thus, rising number of pets undergoing surgical procedures will spur the market demand for veterinary services.
 

Growing number of pets and adoption of digitalized services in the North America region will fuel the business landscape

Veterinary Service Market By Region

 

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North America accounts for a significant proportion of the global veterinary services market, and it is expected to continue its market dominance throughout the forecast period. On the country-level, the U.S. accounts for a significant proportion, largely influenced by the increasing pet adoption rates and rising per capita healthcare expenditure on animals.
 

For instance, according to the according to the American Society for Prevention of Cruelty to Animals (ASPCA) report, approximately 3.2 million shelter animals are adopted every year in U.S. Among those shelter animals, 1.6 million are dogs and 1.6 million are cats. Thus, growing adoption of pets in various states of America will boost the regional market outlook.
 

Adoption of inorganic growth strategies to create a global footprint will pave growth opportunities for companies operating in the business

Major players operating in the veterinary services industry include Mars Incorporated, IDEXX Laboratories Inc, CVS Group plc, VetPartners, Ethos Veterinary Health, PetIQ, LLC., and Kremer Veterinary Services, among others. These market players opt for various inorganic growth strategies such as partnerships, collaborations, mergers, acquisitions, and the launch of innovative veterinary services to create a global footprint and industry competition.
 

Some of the recent industry developments:

  • In December 2021, VetPartners acquired Swissvet, a Switzerland-based company that owns and operates a chain of veterinary clinics offering practices such as dental, microchipping and cat spay. the acquisition was targeted at enhancing the company’s service offerings as well as expanding the geographical reach of the company.
     
  • In January 2021, Davies Veterinary Specialists in Hitchin and Southfields Veterinary Specialists in Essex, launched two well-respected referral centers. These centers would offer advanced veterinary dentistry service and maxillofacial surgery service for pets across the UK market. This strategy expanded its services offering especially in dentistry sector and expanded its outreach to untapped economies.
     

The veterinary services market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2017 to 2030, for the following segments:

By Service Type

  • Diagnostic tests and imaging
  • Physical health monitoring
  • Surgery
  • Others

By Animal Type

  • Farm animals
  • Companion animals

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

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

 

Authors: Sumant Ugalmugle, Rupali Swain

Frequently Asked Questions (FAQ) :

Global market for veterinary services exceeded USD 86.8 billion in 2021 and is poised to expand at a CAGR of 6.7% from 2022 to 2030 considering the rising rate of pet adoption and the surging demand for veterinary services.

The market share from diagnostic tests and imaging services surpassed USD 34 billion in 2021 and is slated to register substantial growth through 2030 owing to the increasing demand for advanced imaging technology for the diagnosis and treatment of diseases in animals.

North American market size for veterinary services is expected to grow driven by the increasing rates of pet adoption and the surging per capita healthcare expenditure.

Prominent participants in the veterinary services business comprise Ethos Veterinary Health, IDEXX Laboratories Inc., Kremer Veterinary Services, CVS Group plc., Mars Incorporated, and others.

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Premium Report Details

  • Base Year: 2021
  • Companies covered: 11
  • Tables & Figures: 126
  • Countries covered: 15
  • Pages: 130

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