Veterinary services include a wide range of medical services for pets and other domestic animals, including examinations, vaccinations, surgeries and other treatments. With a growing number of pet owners globally and rising spending on pet care, veterinary services have become an important market. Veterinarians provide preventive care like annual check-ups, vaccinations and spaying/neutering to keep animals healthy. They also provide treatment for various diseases and injuries. With the emotional bond owners share with their pets, timely medical care is considered important to maximize pet well-being and longevity.
The global Veterinary Services Market is estimated to be valued at US$ 138.3 billion in 2023 and is expected to exhibit a CAGR of 5.0% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends in the Veterinary Services Market Growth is increasing adoption of pet insurance. With rising veterinary costs, more pet owners are opting for pet insurance to cover medical expenses. It reduces out-of-pocket costs associated with unexpected illnesses or injuries. Countries like the US, Canada, UK, France, Japan and Australia have seen significant growth in pet insurance adoption in recent years. For example, about 25-30% of dogs and 10-15% of cats in the US now have some kind of pet health insurance coverage. This trend is expected to further drive veterinary services market demand as more owners seek medical care for their insured pets.
Porter’s Analysis
Threat of new entrants: The threat of new entrants into the veterinary services market is moderate as the capital requirements and regulatory compliance needed to set up veterinary hospitals and clinics creates barriers. However, the growing demand for pet care provides opportunities for new Veterinary Services Market Analysis practitioners.
Bargaining power of buyers: The bargaining power of buyers is moderate. While individual pet owners have low bargaining power, large organizations that outsource veterinary services have higher negotiating power to demand lower prices.
Bargaining power of suppliers: The bargaining power of suppliers is low to moderate. This is because there are several suppliers for pharmaceuticals, medical devices and other equipment used in veterinary services.
Threat of new substitutes: The threat of substitutes is low as there are limited alternatives to veterinary services that can care for the health and well-being of pets. While over-the-counter pet medications are available, they cannot replace comprehensive medical care.
Competitive rivalry: The competition among existing players is high. Veterinary clinics and hospitals compete on factors like availability of specialized services, technology, location and customer service to gain higher market share.
Key Takeaways
The Global Veterinary Services Market is expected to witness high growth over the forecast period driven by rising pet adoption, increasing pet healthcare expenditure and growing awareness about animal health.
North America currently dominates the market owing to high pet ownership and growing animal welfare programs in the region. The Asia Pacific region is anticipated to be the fastest growing market facilitated by rising disposable incomes, changing lifestyles and an increase in nuclear families choosing to own pets.
Key players operating in the veterinary services market are IDEXX Laboratories, Inc., Mars, Incorporated, Henry Schein, Inc., Pets at Home Group PLC, Animart LLC, and CVS Group PLC. Major players are focusing on adopting advanced technologies like telehealth, expanding service portfolios and global footprint through mergers and acquisitions to strengthen their market position.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it