North America Veterinary Healthcare Market Size

North America Veterinary Healthcare Market Analysis

The North American veterinary healthcare market is expected to register a CAGR of 5.7% over the forecast period.

The outbreak of the COVID-19 pandemic impacted the market. According to a research article published in the Canadian Veterinary Journal in April 2021, the pandemic took a toll on the veterinary healthcare industry. In 2021, there was an increase in the expenses for veterinary practices by 5%, requiring an even higher increase in professional fees. Furthermore, another article presented in the journal, Frontiers in Veterinary Science in February 2021 discussed dog owners' fears and concerns about veterinary care and obtainment of pet care products and food during the lockdown phase of the pandemic to be better prepared to address these concerns during the pandemic and in the future. The study indicated that, like many other professions, veterinarians were significantly impacted by the onset of COVID-19. Standard practices such as routine animal checkups and surgeries were disrupted, and veterinary clinics and hospitals had to quickly modify standard protocols to serve their clients and patients safely. However, with the ease of restrictions and declining cases of COVID-19, the market started to gain traction and is expected to maintain an upward trend over the forecast period.

The advanced technology leading to innovations in animal healthcare, increasing initiatives by governments and animal welfare associations, and increasing productivity at the risk of emerging zoonosis are the major drivers for the market. For instance, an article published by the Government of Canada on reportable diseases in terrestrial animals updated in February 2021 listed several diseases that affect the animals, including companion animals in the region. The large list of diseases includes equine infectious anemia, equine piroplasmosis, Newcastle disease, pullorum disease, and vesicular stomatitis among others. The increase in the occurrence of diseases among companion animals in the region and the requirement of associated medications will provide a lucrative growth of the North America veterinary healthcare market over the forecast period. In addition, the development of preventive diagnostic tools is also expected to contribute to market growth. For instance, in April 2021, AntechDiagnostics, part of Mars Veterinary Health, released new data that shows that all cats from a retrospective review of 730,000 veterinary visits received improved preventive care. The data shows that the predictive diagnostic tool increased veterinary visits by as much as 31.0%.

Increasing pet ownership and animal expenditure is also anticipated to drive market growth. For instance, according to the American Pet Products Association's 2021-2022 National Pet Owners Survey, around 69.0 million Americans owned a dog, 45.3 million owned cats, 11.8 owned freshwater fish, 9.9 million owned birds, 6.2 million owned small animals, 5.7 million owned reptiles, 3.5 million owned horses, and 2.9 million owned saltwater fish. Similarly, according to a report published by the American Pet Products Association's National Pet Owners Surveys in 2022, the United States pet industry expenditure accounted for USD 123.6 billion in 2021. Moreover, as per a 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 double over the past four years. It also reported 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 the year 2021 was 3.9 million, which is an increase of around 28% from 2020.

While growth is expected, the lack of veterinarians and the high costs associated with animal healthcare may hinder market growth over the forecast period.