U.S. Animal Healthcare Market Overview
Growing adoption rate of companion animals, increasing consumption of meat and milk, and rising food-borne zoonotic diseases are the key factors driving U.S. animal healthcare market. Further, high disposable income of pet owners, and advancements in animal healthcare are some of the other factors contributing to growth of the U.S. market.
Based on product, U.S. animal healthcare market is categorized into parasiticides, feed additives, vaccines, anti-inflammatories, anti-infectives, and others, wherein ‘others’ include oncological and antiemetic products, drugs for reproductive problems, and sedatives for pain relief. Among these, feed additives held the largest share in the market, attributed to growing demand for animal-based food products.
On the basis of parasiticides, the U.S. animal healthcare market has been classified into ectoparasiticides, endoparasiticides, and endectocides. Of these, ectoparasiticides held the largest share in the market; owing to growing concern regarding animal health among the companion and farm animal owners.
In terms of animal type, U.S. animal healthcare market has been categorized into farm animals and companion animals. Companion animals held a larger share in the market; due to increased adoption of companion animals among the U.S. households. According to the American Pet Products Association (APPA) 2017-18 National Pet Owners Survey, 85 million families own a pet in the U.S., with dog pet category accounted for a majority share. Companion animals further been segmented into canine, feline, and equine, of which, canine held the largest share in the market.
Among farm animals, which include ruminants, poultry, swine, and fish, wherein ruminants category held the largest share in the market. This is attributed to high export of beef, and surging demand for animal derived products in the country. According to United States Department of Agriculture (USDA), U.S. is the world's largest beef producer and second largest beef exporter in the world. Hence, to supply nutritive animal source foods, demand for feed additives is increasing in the country.
Based on distribution channel, U.S. animal healthcare market is categorized into veterinary hospitals, veterinary clinics, and pharmacies & drug stores. Among these, veterinary hospitals category accounted for majority of share in market in 2017. This is attributed to increasing pet adoption, increasing awareness about animal welfare, and rising pet humanization trend in the country.
U.S. Animal Healthcare Market Dynamics
Growth Drivers
The growth in domestic consumption as well as large export of milk and meat, rising adoption rate of companion animals, and rising food borne-zoonotic diseases are the key factors driving the U.S. animal healthcare market. Moreover, factors such as increasing adoption of pets for security purposes, various human health benefits, and increasing pet humanization are the factors leading to increased adoption of companion animals.
The increasing prevalence of food-borne zoonotic diseases is another key factor contributing to growth of the U.S. animal healthcare market. Some transmissible diseases, such as tuberculosis, and bird flu in vertebrate animals can be transferred directly or indirectly to humans. If consumers digest worms through undercooked fish, they can get infected with anisakiasis, a human zoonotic disease caused by certain species of nematodes.
With rising food-borne zoonotic diseases, several concerns are being raised among animal farm owners and pet owners over animal health. Brucellosis (bacterial infection), which causes stillbirth, is rising in the U.S. Hence, for the management of food-borne zoonotic diseases, demand for animal healthcare products is increasing in the country.
Restraints
The major factor hindering the growth of the U.S. animal healthcare market include restrictions imposed by regulatory authorities on the use of antibiotics. Antibiotics are used for animals for therapeutic and non-therapeutic purposes. It has been observed that excessive amount of antibiotics given to animals affects the overall health of consumers.
In 2013, Food and Drug Administration (FDA) introduced a new policy, regarding the limited use of antibiotics in farm animals. As per the policy of Food and Drug Administration (FDA), animal food producers are required to get a prescription from the veterinarian, in order to use antibiotics for their animals. Since, the antibiotics hold a large share in animal pharmaceutical drugs, the policy acts as a restraint for the animal healthcare market.
U.S. Animal Healthcare Market Competitive Landscape
In the recent past, partnerships and mergers & acquisitions were the major activities observed in the U.S. animal healthcare market. The key players in the market are involved in mergers and acquisition to increase their market presence, globally. For instance, in May 2018, Zoetis Inc. agreed to acquire Abaxis Inc., a provider of veterinary point of care diagnostic instruments. This acquisition is expected to enable Zoetis Inc. to accelerate its growth in the U.S. and global market. The acquisition is also expected to enhance the veterinary diagnostics business of the company.
The key players operating in the market include Zoetis Inc., Merck & Co. Inc., C.H. Boehringer Sohn AG & Co. KG, Bayer AG, Virbac Group, Ceva Santé Animale, Elanco Animal Health, Vetoquinol S.A, HIPRA, Huvepharma, and Dechra pharmaceuticals plc.
