Companion Animal Diagnostic Market Size

Companion Animal Diagnostic Market Analysis

The Companion Animal Diagnostic Market size is estimated at USD 3.11 billion in 2024, and is expected to reach USD 5.02 billion by 2029, growing at a CAGR of 10% during the forecast period (2024-2029).

The COVID-19 pandemic reduced the demand for animal care. Due to infection control measures and statewide lockdowns, the pandemic impacted the number of visits to veterinary hospitals and clinics. For instance, an article published by the JAAWS in February 2022 reported that COVID-19 led to the shutting down of 70% of veterinary clinics in Canada and the US during the pandemic. Thus, initially, the studied market's growth was hampered by suspending veterinary diagnostic services to minimize the COVID-19 infection. However, according to the People's Dispensary for Sick Animals (PDSA) PAW report published in June 2021, 2.0 million people in the United Kingdom owned pets between March 2020 and May 2021. However, in the current scenario, it is anticipated that the decreasing COVID-19 cases leading to the resumption of veterinary diagnostic services and a significant increase in pet adoption reported after the lockdown will lead to the stable growth of the studied market over the forecast period.

Rising veterinary healthcare expenditure, growing demand for pet insurance, and a growing companion animal population are the major factors propelling the market's growth. According to the American Pet Products Association (APPA) for 2023-2024, there is an increase in expenditure on the pet industry in the United States. Pet industry expenditures in the United States will total USD 143.6 billion in 2023, compared to USD 136.8 billion in 2018. Thus, the rise in pet expenditure increases the demand for care products. Similarly, as per the report published by the North American Pet Health Insurance Association (NAPHIA) in 2021, the pet insurance sector of North America exceeded USD 2.83 billion by the end of 2021, and the industry witnessed a growth of more than doubled over the past four years (2018-2021). It also reported that the total premium volume for pet insurance in the United States was around USD 2.6 billion in 2021. The total number of pets insured in the United States at the end of 2021 was 3.9 million, around a 28.0% increase from 2020. Therefore, such instances indicate significant market growth over the forecast period.

Further, an increase in the pet population is expected to propel the market's growth, as companion animals are more prone to infectious and chronic diseases that need an early diagnosis. For instance, according to the Pet Food Manufacturers Association, as of 2021, 3.2 million households in the United Kingdom had acquired a pet since the outbreak began. There are currently 34 million pets in the United Kingdom, including 12 million cats, 12 million dogs, 3.2 million small mammals such as guinea pigs and hamsters, 3 million birds, and 1.5 million reptiles. Moreover, product launches by the market players are expected to boost the market over the forecast period. For instance, in August 2021, HORIBA UK Limited launched several new pathogen PCR tests for its POCKIT Central. It is an in-house veterinary PCR analyzer with the potential for fast, accurate PCR testing in every veterinary lab. Such launches are also propelling the growth of the market.

However, the rising burden of pet care globally is anticipated to hinder market growth over the forecast period.