Companion Animal Healthcare Market Size

Companion Animal Healthcare Market Analysis

The Companion Animal Healthcare Market size is estimated at USD 17.90 billion in 2024, and is expected to reach USD 27.57 billion by 2029, growing at a CAGR of 9.03% during the forecast period (2024-2029).

The outbreak of the COVID-19 pandemic impacted the animal healthcare market by increasing the costs of animal testing and veterinary care. Supply chain disruptions and shortages of veterinary medicines were observed in several countries, primarily due to the temporary lockdowns of manufacturing sites, export restrictions, and increased demand for medicine for the treatment of COVID-19. For instance, in July 2020, CDC recommended certain guidelines to veterinary professionals for the treatment of companion animals during the COVID-19 pandemic. However, the increasing investment in research and development activities for launching new and innovative products in the animal healthcare market is driving the market. For instance, in July 2021, Merck Animal Health doubled its animal vaccine production capacity in its Kansas manufacturing facility by USD 100 million. This is expected to help the companion animal healthcare market growth over the forecast period.

Certain factors that are contributing to the market growth are the increase in pet adoption, the rise in the number of initiatives by government and animal welfare, as well as advanced technology in animal healthcare.

With the COVID-19 pandemic and the increasing number of work-from-home scenarios, several people have been diagnosed with depression and anxiety because of the social distancing norms, which have increased the adoption of pet animals. For instance, according to the data published by the European Pet Food Industry: Facts and Figures 2022 report, 10,300,000 dogs and 16,700,000 cats were reportedly adopted in Germany in 2021. As per the same source, the percentage of German households owning at least one cat was 21% and one dog was 19% in 2021. This shows that the adoption of cats was higher among the population as compared to dogs.

The rising incidence of cancer, especially in dogs, is anticipated to provide a growth platform for the market. As per the Animal Cancer Foundation, 65 million dogs and 32 million cats are suffering from cancer in the United States as of 2022. Dogs are more prone to suffer from malignant neoplasia (tumor) and lymphoma, as per the American Veterinary Medical Association. The market is supported by numerous health initiatives, especially for cancer treatment, by both government and private organizations.

Furthermore, the growing pet ownership led to the development of some pet monitoring and pet tracking products, that monitor pet activities and take care of animals' health, thereby driving the growth of the studied market. For instance, in January 2022, Tractive, a GPS-based tracking device company launched an LTE GPS tracker for cats. Also, in June 2022, Petlibro launched a new 5L Camera Monitoring Automatic Pet Feeder in its Granary Series. Such developments are expected to further create demand for pet monitoring devices, driving the studied market growth.

However, the use of counterfeit medicines and increasing costs of animal testing and veterinary care are expected to hinder the growth of the companion animal healthcare market over the forecast period.