The global companion animal medicine market size was valued at USD 19.5 billion in 2022 and it is expected to expand at a compound annual growth rate (CAGR) of 9.9% from 2023 to 2030. The increasing prevalence of diseases in pets, rising pet expenditure, humanization of pets, adoption of online channels for buying pet medicines, and initiatives by key companies are the main factors fueling the market growth.

According to a 2021 article in the BMC Veterinary Research Journal, the prevalence of dental disorders diagnosed in dogs in the U.K. was found to be 14.10% and skin disorders were found to be 12.6%. The increasing number of veterinary visits and rising adoption of pet insurance are boosting market growth. For instance, Trupanion, a pet insurance company, announced that pet insurance enrollments increased to 1.3 million as of June 2022. It observed 32% growth in the second quarter of 2021.

The COVID-19 outbreak notably impacted the market. Some of the adverse effects included low demand, supply chain disruptions, hurdles in research activities, and dampened sales. For instance, Elanco’s revenue dipped by 10.0% during the first quarter of 2020, mainly due to working capital pressures and reduced demand. Merck reported a USD 100 million negative impact of the pandemic on its animal health division revenue during Q2 2020.

Animal Type Insights

The dogs segment dominated the market and accounted for the largest revenue share of nearly 45% in 2022. On the other hand, the cats segment is anticipated to witness a lucrative CAGR of 10.3% in the coming years. This is owing to the high popularity of dogs and cats as pets, the rising prevalence of canine/feline diseases, and the availability of numerous medicines for pets.

By product

The pharmaceuticals segment dominated the market and accounted for a revenue share of over 59% in 2022. This is due to the availability of a large number of companion animal pharmaceuticals and the rising demand for parasiticides and other products for commonly occurring infections in pets. For instance, as per the Companion Animal Parasite Council (CAPC), the highest percent increase in Lyme disease and heartworm infections along with anaplasmosis and ehrlichiosis was widely reported among U.S. pets in 2022.

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Distribution Channel Insights

By distribution channel, the hospital pharmacy segment held the largest revenue share of about 48% in 2022. The large share of the segment can be attributed to pet parents opting for veterinary hospitals for the treatment of their pets thus making hospital pharmacies primary centers for buying the prescribed medications.

Regional Insights

In 2022, North America held the largest revenue share at about 36%. This was owing to initiatives by the government and private sector, the rising adoption of pet insurance, and the presence of key companies. North American Pet Health Insurance Association, Inc. reported that the pet insurance industry is growing at a notable rate of 23.4% over the last few years. In fact, as per North American Pet Health Insurance Association, about 3.45 million pets were insured across the U.S. and Canada at the end of 2021.

Key Companies & Market Share Insights

The market is intensely competitive in nature with the presence of many small and large companies. Market players are involved in deploying several strategic initiatives such as R&D, collaborations, product launches, product diversification, expansion of distribution network, and regional expansion. Key players are also involved in mergers and acquisitions and other sales and marketing activities. In August 2021, Elanco for instance acquired Kindred Biosciences for approximately USD 444 million. This supported the company’s access to the dermatology market, complemented its product pipeline, and enhanced R&D capabilities in biologics and monoclonal antibodies. Some prominent players in the global companion animal medicine market include:

• Merck & Co., Inc.
• Ceva
• Vetoquinol S.A.
• Zoetis
• Boehringer Ingelheim International GmbH
• Elanco
• Virbac
• Bimeda, Inc.
• Norbrook
• Calier

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