Companion Animal Healthcare Market Size and Share
Market Overview
| Study Period | 2019 - 2030 |
|---|---|
| Market Size (2025) | USD 19.52 Billion |
| Market Size (2030) | USD 30.07 Billion |
| Growth Rate (2025 - 2030) | 9.03% CAGR |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
|
Companion Animal Healthcare Market Analysis by Mordor Intelligence
The companion animal healthcare market size reached USD 19.52 billion in 2025 and is forecast to advance to USD 30.07 billion by 2030, reflecting a 9.03% CAGR. Rising pet humanization, steady roll-outs of AI-enabled diagnostics, and the diffusion of subscription wellness plans have broadened both demand and access to veterinary services. Breakthrough monoclonal antibodies are strengthening the therapeutics portfolio, while point-of-care (POC) analyzers shorten diagnostic turn-around times and improve clinical decision-making. Digital commerce channels continue to scale, complementing the traditional clinic model by linking teleconsultation, pharmacy fulfillment, and home delivery. Geographically, North America retains the largest revenue pool, yet Asia-Pacific represents the fastest-growing arena as urbanization and disposable incomes climb.
Key Report Takeaways
- By product type, therapeutics led with 42.78% of companion animal healthcare market share in 2024, whereas diagnostics are projected to post the quickest expansion at a 12.58% CAGR through 2030.
- By animal type, dogs accounted for 46.82% of the companion animal healthcare market size in 2024; cats are forecast to register an 11.24% CAGR to 2030.
- By distribution channel, veterinary hospitals and clinics held 54.82% of the 2024 revenue base, while online and e-commerce platforms are set to rise at a 10.67% CAGR over the same horizon.
- By geography, North America contributed 42.32% of global revenue in 2024; Asia-Pacific is anticipated to record the highest 10.31% CAGR through 2030.
Global Companion Animal Healthcare Market Trends and Insights
Driver Impact Analysis
| Driver | % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Increase in pet adoption & “humanization” of animals | +2.1% | Global, strongest in North America & Europe | Long term (≥ 4 years) |
| Expanding penetration of pet insurance | +1.8% | North America & EU core, expanding to Asia-Pacific | Medium term (2-4 years) |
| Rapid uptake of advanced in-clinic & POC diagnostics | +1.5% | Global, led by developed markets | Short term (≤ 2 years) |
| Boom in chronic-care monoclonal antibodies for OA & dermatology | +1.2% | North America & Europe, expanding globally | Medium term (2-4 years) |
| Commercialisation of microbiome-based therapeutics | +0.8% | Global, early adoption in premium markets | Long term (≥ 4 years) |
| Subscription-based wellness plans by vet-clinic chains | +0.9% | North America core, selective global expansion | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
Increase in Pet Adoption & “Humanization” of Animals
Pet humanization has shifted spending priorities; 66% of owners are willing to consider life-extending medicines, and median monthly outlays rose to USD 260 in 2024. Chinese surveys show 55% of owners now view pets as children, spurring premium-care purchases. Wellness budgets increasingly favor quality-of-life drugs, advanced imaging, and tailored nutrition. Insurance uptake echoes this change, with 45% of dog parents and 36% of cat parents holding policies, embedding veterinary care into household financial planning.
Expanding Penetration of Pet Insurance
Premiums reached USD 4.5 billion in 2024, more than double 2019 levels. The top 10 carriers control 90% of the market, sharpening product design and underwriting efficiency. Regulatory clarity arrived via the 2024 NAIC Pet Insurance Model Act, which separates preventive wellness add-ons from true risk-transfer products. However, medical inflation prompted Nationwide to exit 100,000 contracts, illustrating cost-containment pressures even as distribution partnerships—such as Petco plus Nationwide—seek scale advantages[1]National Association of Insurance Commissioners, “Pet Insurance Model Act,” naic.org.
Rapid Uptake of Advanced In-Clinic & POC Diagnostics
AI-driven systems, typified by Zoetis’ Vetscan Imagyst, now evaluate 1,000 microscopic fields within minutes. The cartridge-based OptiCell hematology analyzer brings reference-lab precision to clinics, minimizing external lab dependence. COVID-19 disruptions accelerated adoption by spotlighting the operational value of onsite diagnostics. New entrants like Indical Bioscience’s OvaCyte automate fecal analysis, further integrating machine learning into routine workflows.
Boom in Chronic-Care Monoclonal Antibodies (MAbs)
Bedinvetmab (Librela) surpassed 25 million doses distributed, with clinical response rates exceeding 71% and simplified monthly dosing enhancing compliance. Ongoing surveillance flags musculoskeletal events, underscoring the need for vigilant pharmacovigilance. Pipeline activity now spans kidney disease, oncology, and feline osteoarthritis, positioning MAbs as a long-term growth pillar. Veterinarian surveys across five EU nations report high satisfaction, validating continual investment in antibody platforms[2]Frontiers Editorial Office, “Safety Signal Analysis for Bedinvetmab,” frontiersin.org.
Restraints Impact Analysis
| Restraints Impact Analysis | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Escalating veterinary service & drug costs | -1.4% | Global, most acute in developed markets | Short term (≤ 2 years) |
| Proliferation of counterfeit / grey-market medicines | -0.8% | Global, concentrated in online channels | Medium term (2-4 years) |
| Global shortage of skilled veterinarians & vet techs | -1.1% | Global, critical in rural & emerging markets | Long term (≥ 4 years) |
| Regulatory lag for gene-editing & cell-therapy products | -0.6% | Global, stringent in EU & North America | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
Escalating Veterinary Service & Drug Costs
Care costs climbed 60% since 2014, outpacing overall inflation. Corporate groups wield pricing power; Mars Veterinary Health controls nearly half of corporate-owned clinics. Higher bills reduced 2024 visit volumes by 2.3% and lengthened intervals between check-ups by 48%. Legislators are responding: the proposed PAW Act would allow HSA/FSA disbursement up to USD 1,000, while the Department of Defense now reimburses military families USD 2,000 for pet relocation, partially softening affordability barriers.
Proliferation of Counterfeit/Grey-Market Medicines
The FDA issued multiple 2024 warning letters to firms marketing unapproved seizure drugs for pets. Enhanced online monitoring targets e-commerce suppliers bypassing veterinary oversight. Compounding policy updates, including removal of Vetmedin Solution from bulk lists, reveal tension between supply flexibility and patient safety. FDA pharmacovigilance data logged 38,756 adverse events tied to 21 veterinary drugs, heightening stakeholder focus on legitimate sourcing[3]Source: U.S. Food and Drug Administration, “FDA Animal and Veterinary Innovation Agenda,” fda.gov.
Segment Analysis
By Product Type: Therapeutics Lead While Diagnostics Accelerate
The therapeutics segment commanded 42.78% of the companion animal healthcare market in 2024, buoyed by vaccines, parasiticides, and rapid monoclonal antibody uptake. Bedinvetmab’s performance helped Zoetis push its companion portfolio 18% higher in Q3 2024. Preventive vaccines maintain an essential role, though parasiticide revenue is leaking to retail channels. Generic competition curbs anti-infective growth, and antimicrobial resistance keeps regulatory scrutiny intense.
Diagnostics post the fastest 12.58% CAGR through 2030, signaling structural change toward precision medicine. AI-enabled analyzers combine hematology, urinalysis, and imaging in unified platforms, reducing diagnostic turnaround from days to minutes. Clinics using POC devices report improved client adherence and incremental revenue gains. The companion animal healthcare market size for diagnostics is projected to scale materially as machine learning cuts interpretation variability and drives evidence-based care models.
Note: Segment shares of all individual segments available upon report purchase
By Animal Type: Dogs Dominate Yet Cats Drive Growth
Dogs held 46.82% of global revenue in 2024, supported by a well-established care infrastructure and a broad preventive product mix. However, cats deliver the quickest 11.24% CAGR, reflecting urban living trends and heightened awareness of feline-specific conditions. The FDA’s 2025 conditional approval of Felycin-CA1, the first therapy for feline hypertrophic cardiomyopathy, underscores rising innovation dedicated to cats. As longevity increases, chronic disease management widens the companion animal healthcare market size for both species.
Demographics reinforce momentum: Millennials and Generation Z prioritize pet wellbeing, often over other discretionary spending. An aging pet population amplifies demand for pain management, joint support, and renal therapies. Microbiome research already guides species-specific probiotic regimens, while frunevetmab (Solensia) brings antibody-based pain relief to feline osteoarthritis. These advances enhance the companion animal healthcare market share captured by feline products and services.
Note: Segment shares of all individual segments available upon report purchase
By Distribution Channel: Traditional Clinics Evolve Amid Digital Disruption
Veterinary hospitals and clinics retained 54.82% of 2024 revenue, yet their role is pivoting from product resale to comprehensive care orchestration. Workforce investment is now a competitive differentiator; Mars Veterinary Health earmarked USD 500 million for training and retention. Corporate group restructuring, such as National Veterinary Associates’ split into Ethos Veterinary Health and NVA, positions networks for future public offerings and specialized service lines.
Online and e-commerce platforms are on track for a 10.67% CAGR through 2030, driven by telehealth integration and frictionless pharmacy fulfillment. Airvet’s USD 11 million Series B-2 extension supports its expansion into employee benefit packages at multinationals like PepsiCo. Mobile-first pharmacies such as Koala Health offer same-day shipping and link more than 25,000 independent practices to digital inventory, broadening the companion animal healthcare market without expanding brick-and-mortar footprints.
Geography Analysis
North America generated 42.32% of 2024 global revenue as mature insurance penetration, advanced practice infrastructure, and loyalty programs like Banfield’s preventive plans underpin sustained spend. Consolidation reshaped the landscape when Chubb combined Healthy Paws and a USD 8.6 billion multi-clinic merger to form a 750-location network. Despite scale, veterinarian shortages threaten access; projections warn that 75 million pets could lack care by 2030, prompting regulatory push for incentives.
Asia-Pacific is the fastest-growing territory at a 10.31% CAGR, spurred by rising urban middle-class households. China’s pet healthcare sector touched 1,062 billion yuan in 2022 after a 17.7% compound climb since 2015, yet clinic density lags the United States. In South Korea, lifestyle surveys reveal younger adults preferring pets over children, channeling discretionary funds into premium care. Australia demonstrates a mature sub-market, with Zoetis’ USD 484 million 2023 sales and its Melbourne manufacturing acquisition signaling long-term regional anchoring.
Europe records steady expansion aided by robust veterinary curricula and harmonized medicine regulation. Bedinvetmab’s simultaneous roll-out across France, Germany, Italy, Spain, and the UK validates appetite for advanced biologics. Sustainability imperatives influence treatment choices, favoring products with reduced carbon footprints and animal welfare credentials. Cross-border investment remains active as EQT acquired VetPartners, adding 267 clinics to its network and illustrating the continent’s integrated service ambitions.
Competitive Landscape
Moderate consolidation defines the companion animal healthcare market as conglomerates, innovators, and digital disruptors jostle for mindshare. Mars Veterinary Health uses Banfield and VCA to blanket the clinic segment while channeling USD 500 million into staff development to mitigate labor gaps. Zoetis sustains R&D leadership through AI-enabled diagnostics and monoclonal antibodies; Q1 2025 revenue reached USD 2.2 billion, a testament to continued demand for Simparica Trio, Apoquel, and Cytopoint. Regulatory initiatives like the FDA’s Animal and Veterinary Innovation Agenda expedite approvals for firms with embedded research depth.
Digital natives create alternative access points: Airvet’s on-demand video consults integrate with employer benefits, and Koala Health’s mobile pharmacy links directly to practice management software to automate prescription shipping. White-space opportunities include microbiome-based therapeutics; biotech start-ups such as MicroHarvest are developing microbial proteins for hypoallergenic diets. Longevity science gains traction after Loyal secured FDA alignment for LOY-002, aimed at extending canine lifespan. M&A remains vibrant—Boehringer Ingelheim’s purchase of Saiba Animal Health adds therapeutic vaccines, while Phibro’s USD 350 million pick-up of Zoetis’ feed additive line sharpens focus on core competencies.
Companion Animal Healthcare Industry Leaders
-
Zoetis Inc.
-
Boehringer Ingelheim Animal Health
-
Elanco Animal Health
-
Virbac
-
Merck Animal Health (MSD)
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- June 2025: Zoetis opened its largest U.S. reference laboratory in Louisville, Kentucky, expanding national diagnostic capacity.
- May 2025: Koala Health raised USD 20 million in Series B funding led by Valspring Capital to broaden its mobile pharmacy for 25,000 independent clinics.
- April 2025: Airvet closed an USD 11 million Series B-2 round to scale telehealth services and corporate benefit programs with PepsiCo and Adobe.
- March 2025: The FDA conditionally approved Felycin-CA1 for cats with subclinical hypertrophic cardiomyopathy, the first therapy for this indication.
- February 2025: National Veterinary Associates split into Ethos Veterinary Health and NVA, setting up each unit for potential IPOs within two to three years.
Research Methodology Framework and Report Scope
Market Definitions and Key Coverage
Our study defines the companion animal healthcare market as the total revenue generated worldwide from therapeutics, diagnostics, and digital-health services used to prevent, diagnose, or treat diseases in dogs, cats, and other household pets. Revenues are captured at manufacturer selling price and include prescription as well as over-the-counter products, imaging systems, point-of-care devices, and practice-management platforms.
(Scope exclusion) Products and services aimed solely at livestock, pet food, accessories, or grooming are kept outside this analysis.
Segmentation Overview
- By Product Type
- Therapeutics
- Vaccines
- Parasiticides
- Anti-infectives
- NSAIDs & Pain Management
- Monoclonal Antibodies
- Medical Feed Additives
- Other Therapeutics
- Diagnostics
- Immunodiagnostic Tests
- Molecular Diagnostics
- Diagnostic Imaging
- Point-of-care Testing Devices
- Other Diagnostics
- Digital Health & Services
- Tele-medicine Platforms
- Practice-management Software
- Wearable Monitoring Devices
- Therapeutics
- By Animal Type
- Dogs
- Cats
- Other Animal Types
- By Distribution Channel
- Veterinary hospitals & clinics
- Retail pharmacies
- Online / e-commerce platforms
- Geography
- North America
- United States
- Canada
- Mexico
- Europe
- Germany
- United Kingdom
- France
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Rest of Asia-Pacific
- Middle East & Africa
- GCC
- South Africa
- Rest of Middle East & Africa
- South America
- Brazil
- Argentina
- Rest of South America
- North America
Detailed Research Methodology and Data Validation
Primary Research
Structured interviews with small-animal veterinarians, companion-animal pharma managers, pet-insurance actuaries, and procurement heads across North America, Europe, and key Asian economies help us validate utilization rates, average selling prices, and emerging demand triggers. Panel surveys with pet owners and clinic staff further sharpen adoption curves for tele-veterinary platforms.
Desk Research
Mordor analysts begin by mapping the universe through trusted, non-paywalled datasets such as USDA pet population surveys, Eurostat trade files, APPA spending reports, OIE disease notifications, and peer-reviewed journals that track vaccine efficacy or antimicrobial resistance. Company 10-Ks and veterinary hospital filings clarify pricing bands and channel splits, while D&B Hoovers and Dow Jones Factiva enrich company financials and deal flows. We also mine patent families on Questel to spot pipeline biologics and device upgrades. The desk-research list is illustrative; many additional sources are consulted to cross-check figures and definitions.
Market-Sizing & Forecasting
We reconstruct 2024 demand through a top-down pet population × medicalization-rate build, followed by selective bottom-up supplier roll-ups and clinic channel checks that fine-tune averages. Key market fingerprints include vaccination coverage, chronic-disease prevalence, pet-insurance penetration, average vet visit cost, regulatory approval cadence, and e-commerce share. A multivariate regression relates these drivers to historical spend; the model is projected with scenario analysis that flexes GDP-per-capita and insurance uptake. Data gaps in bottom-up counts are bridged by regional proxies adjusted with primary insights.
Data Validation & Update Cycle
Outputs pass three filters: variance check against independent spend benchmarks, peer review by a second analyst, and senior sign-off. Models refresh annually, with interim updates triggered by material events such as major product recalls or pandemics. Before delivery, we rerun the latest quarter's indicators.
Why Mordor's Companion Animal Healthcare Baseline Earns Trust
Published estimates often diverge because firms bucket dissimilar products, apply different base years, or smooth currency swings in unique ways.
Key gap drivers include the inclusion of veterinary service revenue by some publishers, differing cut-offs for production-animal drugs, and variations in assumed ASP inflation. Mordor Intelligence sticks to a clearly defined bundle of goods, applies constant-currency conversions, and refreshes its model every twelve months, which keeps our 2025 baseline of USD 19.52 billion current and comparable.
Benchmark comparison
| Market Size | Anonymized source | Primary gap driver |
|---|---|---|
| USD 19.52 B (2025) | Mordor Intelligence | - |
| USD 19.20 B (2022) | Global Consultancy A | Older base year and narrower digital-health coverage |
| USD 23.08 B (2023) | Regional Consultancy B | Uses retail prices rather than manufacturer prices, inflating totals |
| USD 124.80 B (2024) | Industry Tracker C | Adds veterinary services and certain livestock drugs, greatly widening scope |
The comparison shows that when scope, pricing tiers, and refresh cadence are aligned, Mordor's disciplined framework yields a balanced figure that decision-makers can trace back to transparent variables and reproducible steps.
Key Questions Answered in the Report
What is the current size of the companion animal healthcare market?
The companion animal healthcare market size stood at USD 19.52 billion in 2025 and is projected to reach USD 30.07 billion by 2030.
Which product category leads sales today?
Therapeutics remain dominant, accounting for 42.78% of 2024 revenue, thanks to vaccines, parasiticides, and fast-adopting monoclonal antibodies.
Why are diagnostics growing faster than other segments?
Elanco, Boehringer Ingelheim Animal Health, Virbac, Zoetis Animal Healthcare and Ceva Sante Animale are the major companies operating in the Companion Animal Healthcare Market.
Which region is expanding the quickest?
Asia-Pacific posts the highest 10.31% CAGR, propelled by rising urban income levels, shifting cultural attitudes, and under-served clinic density.
How is telemedicine influencing market dynamics?
Telehealth platforms integrate video consults, e-pharmacy fulfillment, and wellness subscriptions, enabling clinics and employers to extend care beyond physical locations while capturing new revenue channels.
What regulatory changes could improve affordability?
The proposed PAW Act would let owners use HSA/FSA funds for up to USD 1,000 of veterinary bills annually, potentially reducing out-of-pocket barriers and stimulating additional service uptake.
Page last updated on:
