Global Veterinary Healthcare Market Outlook to 2028

Global Veterinary Healthcare Market Overview

• The global veterinary healthcare market is valued at USD 43.2 billion, based on a five-year historical analysis. The market is driven by the increasing pet ownership globally, growing awareness of animal health, and rising demand for preventive care services for pets and livestock. Advances in veterinary diagnostics and pharmaceuticals, coupled with increasing expenditure on pet healthcare, are significant drivers boosting market growth.
• Countries such as the United States, Germany, and Australia dominate the veterinary healthcare market due to their high pet ownership rates and well-established veterinary infrastructure. The U.S., for example, has a significant number of veterinary hospitals and clinics, supported by government initiatives that focus on improving animal health. In Germany, the rise in livestock farming and demand for veterinary services further fuels the market's dominance.
• Governments globally are strengthening animal welfare laws to protect livestock and companion animals. In 2023, the European Union revised its animal welfare regulations, mandating more stringent living conditions for livestock, such as larger enclosures and improved veterinary oversight. In the U.S., the Animal Welfare Act continues to enforce strict standards for animal care in research, exhibition, and transport. Such laws are essential for ensuring animal health, but they also place additional responsibilities on veterinary healthcare providers.

Global Veterinary Healthcare Market Segmentation

• By Product Type: The global veterinary healthcare market is segmented by product type into pharmaceuticals, diagnostics, and veterinary equipment. Recently, the pharmaceutical segment, including antibiotics, vaccines, and antiparasitic drugs, has taken the dominant share. This dominance is attributed to the increasing prevalence of zoonotic diseases and the growing focus on preventive veterinary care. Additionally, vaccines have witnessed a surge in demand due to regulatory emphasis on the prevention of diseases in livestock, which impacts both animal and human health.
• By Region: The market is also segmented by region, with North America, Europe, Asia Pacific, Latin America, and Middle East & Africa being the key regions. North America dominates the market, driven by a combination of factors such as the high prevalence of pet ownership, the existence of a sophisticated veterinary healthcare infrastructure, and the availability of advanced veterinary diagnostics. The U.S. remains a leader in veterinary pharmaceutical innovations and regulatory approvals, while Canada contributes significantly through livestock healthcare advancements.
• By Animal Type: The veterinary healthcare market is further segmented by animal type into companion animals and livestock animals. Companion animals, particularly dogs and cats, hold a significant share of the market. This dominance is driven by the rising trend of pet humanization, where owners view pets as family members and are willing to invest heavily in their health. The demand for companion animal healthcare is also fueled by increasing urbanization and rising disposable incomes, especially in developing economies.

Global Veterinary Healthcare Market Competitive Landscape

The global veterinary healthcare market is characterized by the presence of several key players. These companies engage in continuous product innovation and strategic mergers & acquisitions to strengthen their market position. The market is consolidated, with top companies contributing a major share of the overall revenue.

Global Veterinary Healthcare Industry Analysis

Growth Drivers

• Companion Animal Ownership: Companion animal ownership has seen significant growth worldwide, driven by changing lifestyles and an increased focus on animal welfare. The United States is a prime example, where over 90 million households own pets as of 2024, according to the American Pet Products Association. This trend is echoed in Europe and emerging markets like Brazil, where pet ownership is also rising due to increasing disposable incomes and urbanization. Additionally, China reported an increase in pet ownership to 54 million households in 2023, highlighting the global expansion of this trend. This increasing pet population drives demand for veterinary services.
• Rising Demand for Livestock Healthcare: The global livestock population is expanding to meet the increasing demand for animal protein. According to the FAO, in 2023, the worlds cattle population stood at 1.5 billion, while the number of pigs was approximately 1 billion. With the growth of livestock comes heightened demand for veterinary healthcare services to ensure animal welfare and production efficiency. In India, one of the largest livestock economies, the National Dairy Development Board reported 303 million cattle in 2022. This growing livestock population emphasizes the need for robust veterinary healthcare services globally.
• Advancements in Animal Health Diagnostics (Technological Adoption): The veterinary healthcare sector is benefiting from significant technological advancements in diagnostics. The use of molecular diagnostics, imaging technologies, and AI-driven diagnostic tools is improving the accuracy and efficiency of animal healthcare. In 2024, the FDA approved more than 45 new diagnostic tools that use AI and machine learning, enhancing disease detection and treatment outcomes in veterinary care. These innovations are primarily aimed at reducing diagnostic time and improving early detection rates in animals, further pushing the market towards more advanced and efficient healthcare solutions.

Market Restraints

• High Cost of Veterinary Diagnostics: One of the major challenges in veterinary healthcare is the rising cost of diagnostic procedures. According to data from the AVMA (American Veterinary Medical Association), the cost of advanced diagnostics like MRI scans for pets ranges between $1,500 and $3,000 per procedure in 2024. These high costs are a barrier to wider adoption, especially for lower-income pet owners and livestock farmers in developing countries. Even routine blood tests and X-rays, which cost around $200 to $500, can be prohibitively expensive for many. This cost challenge limits access to timely healthcare for animals globally.
• Stringent Regulatory Approvals: The veterinary pharmaceutical sector faces stringent regulatory requirements, which slows the introduction of new drugs and treatments. For instance, the European Medicines Agency (EMA) approved only 20 new veterinary medicinal products in 2023, reflecting the time-consuming nature of regulatory processes. These regulations are essential for ensuring animal safety but can delay access to vital treatments, particularly for emerging diseases. The U.S. FDA also reported a significant backlog of veterinary drug approvals in 2024, citing complex safety evaluations as a reason for delays.

Global Veterinary Healthcare Market Future Outlook

Over the next five years, the global veterinary healthcare market is expected to show significant growth, driven by advancements in animal diagnostics, growing awareness of zoonotic diseases, and the increasing integration of telemedicine in veterinary care. The adoption of digital tools for veterinary diagnostics, paired with emerging markets showing high demand for livestock healthcare, will likely further accelerate market expansion. Companies are also expected to focus on increasing access to veterinary care in underserved regions, enhancing both companion and livestock animal healthcare.

Market Opportunities

• Growth of Veterinary Telehealth Services: Telemedicine has emerged as a significant opportunity in the veterinary healthcare market, offering a solution to both high costs and access issues. In 2024, more than 12,000 veterinary clinics in the U.S. and Europe offer telehealth services, which have proven effective in diagnosing common ailments and reducing the need for in-person visits. Telehealth platforms, such as VetNow, reported a 30% increase in usage in 2023, as pet owners seek more affordable and convenient veterinary consultations. This trend is expected to improve access, especially in underserved areas.
• Expansion into Developing Markets: Developing markets in Asia, Africa, and Latin America represent untapped opportunities for veterinary healthcare providers. The African Union's 2024 veterinary report highlights the growing demand for animal healthcare in countries like Nigeria and Kenya, driven by expanding livestock populations and increasing investment in animal husbandry. In India, where the livestock population reached 536 million in 2022, government initiatives are driving the development of veterinary services. These emerging markets offer opportunities for companies to expand their presence and introduce advanced healthcare solutions.