Veterinary CRO and CDMO Market Trends Toward Outsourcing Non-Core Operations

In 2024, the global veterinary CRO (Contract Research Organization) and CDMO (Contract Development and Manufacturing Organization) market was valued at USD 6.79 billion and is projected to grow at a CAGR of 9.2% from 2025 to 2030. The demand for veterinary outsourcing services is being driven by the extensive therapeutic expertise of CROs and CDMOs. Additional key factors fueling market growth include strong technical capabilities, high reliability, cost and quality efficiency in product development outsourcing, and enhanced geographic accessibility through local partnerships. Timely development and delivery of final products, along with the efficient market introduction of new veterinary drugs and devices in compliance with regulatory standards, further support market expansion.

Outsourcing Trends
Major players in the animal health sector are increasingly turning to contract outsourcing over in-house production to capitalize on its benefits. For example, Zoetis, a prominent name in the veterinary industry, operates only 29 in-house manufacturing sites but collaborates with 132 third-party contract manufacturing organizations. Companies often delegate key stages of veterinary drug or device production to specialized CROs and CDMOs due to the complexity of manufacturing. Outsourcing helps reduce financial risks and fosters increased investment in research and development.

Animal Segment Insights
In 2024, the livestock animal segment led the veterinary CRO and CDMO market, accounting for 59.3% of revenue. This dominance is largely due to the high production of vaccines, pharmaceuticals, and diagnostic tools targeting infectious diseases in livestock. Outbreaks across various countries, including the U.S., have driven increased research and product development. For instance, in March 2024, a multi-state outbreak of bird flu HPAI A (H5N1) affected dairy cows in the U.S. According to the CDC, nearly 200 mammals have tested positive for HPAI A (H5N1) in the U.S. since 2022, as reported by APHIS. Investments in livestock health R&D continue to grow. Notably, in November 2024, Ceva expanded its Hungary facility to reinforce its commitment to vaccine manufacturing in Europe.

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Service Segment Insights
The development segment held the largest revenue share of the global veterinary CRO and CDMO market in 2024. This growth is driven by the increased focus of animal health companies on developing innovative vaccines and drugs for both livestock and companion animals. Development typically involves early-phase (preclinical) and late-phase (clinical) processes. Companies often outsource early-stage activities such as preformulation, pharmacology, and toxicology testing to CROs, and later stages—like clinical trials, NDA submissions, and medical device validation—to CDMOs.

Application Segment Insights
In 2024, the medicine segment dominated the global veterinary CRO and CDMO market. This segment includes pharmaceuticals, biologics, and other categories. The growing frequency of zoonotic disease outbreaks and rising concern for animal health are boosting the production of vaccines and drugs. These developments are prompting significant increases in veterinary research and spending on new drug innovations.

Regional Insights
North America led the global veterinary CRO and CDMO market in 2024, capturing 35.1% of total revenue. This regional leadership is supported by a well-established animal health industry, rising clinical trial activity, and greater expenditure on veterinary care. Increasing demand for advanced treatments and preventive solutions for livestock and companion animals is expected to further propel regional growth through 2030.

Leading Veterinary CRO and CDMO Companies
The following companies are recognized as key players in the veterinary CRO and CDMO market, collectively accounting for a major market share and influencing industry direction: