Companion Animal Health Market Size, Share, and Growth Forecast for 2025 - 2032

Companion Animal Health Market Size and Trends

The global companion animal health market size is anticipated to reach US$ 27.7 Bn in 2025. It is predicted to exhibit a CAGR of 10.5% from 2025 to 2032 to attain a size of US$ 55.7 Bn by 2032.

Urban households are witnessing an increased adoption of companion animals. Growing awareness regarding pet health has facilitated higher spending on preventive care, regular check-ups, and wellness products. For example,

• By 2030, 45% of global households are predicted to own a pet with annual veterinary visits in the U.S. estimated to increase by 20% by 2030.

The industry is witnessing innovations in technology with the introduction of AI-powered diagnostic tools and wearable health monitoring devices for pets. Enhanced digital health platforms further enable remote consultations.

Key Highlights of the Companion Animal Health Market

• Rising incidence of obesity, diabetes, and cancer in pets is leading to a high demand for specialized treatments.
• Owners are increasingly treating pets as family members, boosting demand for premium health services and products.
• Adoption of wearable devices that monitor heart rate, activity levels, and sleep patterns of pets is anticipated to skyrocket.
• North America is estimated to witness a CAGR of 4.3% through 2032 owing to high pet population in the region.
• Increasing use of stem cell therapy and precision medicine for companion animals is projected to create new avenues.
• By distribution channel, the hospital pharmacies segment is predicted to hold a share of 49% in 2025 as these have specialized staff with expertise in veterinary care.

Global Market Attributes	Key Insights
Market Size (2025E)	US$ 27.7 Bn
Market Value Forecast (2032F)	US$ 55.7 Bn
Projected Growth (CAGR 2025 to 2032)	10.5%
Historical Market Growth (CAGR 2019 to 2024)	9.7%

Historical Growth and Course Ahead

Study Reveals Significant Impact of Pandemic on Pet Health and Veterinary Service Accessibility

The global companion animal health market growth was steady at a CAGR of 9.7% in the historical period from 2019 to 2024. This period witnessed a rise in pet ownership, increased focus on preventive healthcare, and innovation in veterinary diagnostics. There was a growth in demand for oral and topical pharmaceuticals to treat infections and chronic diseases among pets.

The COVID-19 pandemic caused initial disruptions in supply chains and veterinary visits, yet the industry rebounded with increased pet adoption during lockdowns. Telehealth services for pets saw significant adoption as social distancing norms limited physical veterinary consultations. For example,

• According to a survey by the American Veterinary Medical Association (AVMA), about 60% of pet owners reported delays in seeking veterinary care for chronic health issues during the pandemic.
• About 35% of pet owners indicated that their pets' health had worsened during the pandemic due to reduced access to veterinary services.

Rising Demand for Personalized Nutrition and Genetic Testing Solutions to Boost Sales through 2032

The companion animal health industry is predicted to showcase a CAGR of 10.5% through 2032. The forecast period is anticipated to witness continued adoption of digital veterinary services and wearable devices.

Rising demand for personalized nutrition and genetic testing solutions for pets is predicted to augment sales. Emerging markets are likely to see growth in veterinary clinics and diagnostic labs, as well as high spending by millennials in pet healthcare. For instance,

• Gen Z and millennial pet owners (ages 18 to 34) are spending the most on their pets, averaging £936 annually, while older owners (45+) spend £623 per year.
• Key expenses include toys for younger owners (17%) and food, with 47% of all owners prioritizing quality meals.

Market Dynamics

Growth Drivers

Predictive AI Models to Enable Early Intervention and Reduce Long-term Healthcare Costs

AI algorithms analyze X-rays, CT scans, and MRIs to detect abnormalities like fractures, tumors, and organ dysfunction. Faster and more accurate diagnostics reduce the time required for veterinary evaluations. For example,

• Studies show that AI-driven imaging systems can improve diagnostic accuracy by up to 25% compared to traditional methods.
• Antech Diagnostics' AI-based platform assists veterinarians in detecting cardiac and pulmonary conditions in pets through advanced imaging analytics.

AI models analyze health records, genetic data, and lifestyle factors to predict potential health issues. Early identification of diseases allows preventive interventions, reducing long-term healthcare costs.

AI-driven algorithms customize treatment protocols based on an individual pet’s health history, genetics, and response to previous treatments. This approach optimizes medication dosages and minimizes side effects. Some veterinary platforms use machine learning to recommend tailored nutritional and medical regimens.

Market Restraining Factors

Financial Constraints to Compel Pet Owners to Delay or Avoid Vital Medical Treatments

Despite the increasing pet adoption rates and awareness of veterinary advancements, insurance coverage for pets remains underutilized globally. Without insurance, pet owners face significant financial burdens for routine and emergency care. For instance,

• Veterinary care costs have risen by 10% annually in developed markets, owing to advancements in diagnostics and treatments.

Pet owners without insurance are less likely to opt for innovative procedures or preventive care.

• Studies show that 25% to 30% of pet owners delay or avoid seeking care due to financial constraints.

Key Market Opportunities

Increasing Adoption of Fitness Tracking for Pets to Spur Developments in Wearable Technology

Wearable devices help in tracking key physiological metrics, including heart rate, body temperature, and respiratory rate, for early detection of health issues. They are also useful in managing chronic conditions like heart disease and respiratory disorders. For instance,

• PetPace Smart Collar monitors vital signs and sends alerts if abnormalities are detected.

Wearable pet health monitoring devices track daily activity levels, steps, and calorie expenditure to promote healthy lifestyles in pets. They also assist in identifying changes in activity patterns that may indicate underlying health problems.

• Over 65% of pet owners reported using activity tracking features on wearables to maintain their pets' fitness.

These devices also assist in real-time location tracking to prevent pet loss. Geofencing features alert owners if pets wander beyond a designated area. For instance,

• Whistle Go Explore combines health monitoring with GPS tracking.

Companion Animal Health Market Insights and Trends

Animal Type Insights

Increasing Emotional Support Role of Dogs Strengthens their Position in the Market

Based on animal type, dogs are predicted to hold a share of 43% in 2025. Dogs are the most common companion animal across all regions, with an estimated around 470 million dogs globally in 2023. In Europe, Germany and France have some of the highest dog ownership rates in the world. For instance,

• Number of households owning dogs has increased steadily, with 60% of U.S. households owning at least one dog.
• According to the American Pet Products Association (APPA), 85 million families in the U.S. own a pet dog.

Dogs are widely seen as emotional support animals as they provide companionship, reduce stress, and offer emotional well-being benefits, making them integral to the family unit in several cultures. Dogs typically require more frequent and specialized veterinary care compared to other companion animals. They are more likely to experience a variety of health issues, such as joint problems, obesity, and cancer, which drive higher spending on health services. For instance,

• The average annual veterinary expenditure per dog in the U.S. is around US$ 500 to US$ 1,200, depending on their age, health condition, and treatment needs.

Product Type Insights

Surging Cases of Canine Cancer and Age-related Illnesses to Propel Pharmaceutical Demand

In terms of product type, pharmaceuticals are anticipated to hold a share of 47% in 2025. Companion animals are susceptible to chronic diseases like arthritis, obesity, diabetes, and cancer along with infectious diseases like leptospirosis and parvovirus. For instance,

• A study published by the AVMA (American Veterinary Medical Association) revealed that 20% of dogs and 25% of cats suffer from arthritis by the age of 7.
• Canine cancer cases have seen a steady increase, affecting around 1 in 3 dogs at some point in their lives.

Increasing awareness of preventive care has led to the rising administration of vaccines, deworming agents, and parasitic control medications. Routine vaccination for rabies, distemper, and leptospirosis has become a standard practice in developed and emerging markets.

Regional Insights and Trends

Demand for Innovative Pet Healthcare Solutions Grows in North America as Owners Seek Better Treatment Options

North America companion animal health market is projected to hold a share of 39% in 2025. The region has one of the highest pet ownership rates worldwide. Companion animals are integral parts of households in North America. High pet ownership rate directly drives demand for veterinary care, pharmaceuticals, diagnostics, and wellness products. For example,

• As of 2023, 70% of U.S. households (about 90.5 million homes) own at least one pet, according to the American Pet Products Association whereas 60% of households in Canada have pets.

The region leads in pet healthcare expenditure, driven by high disposable income and pet owners' willingness to spend on innovative veterinary treatments. Higher spending capabilities enable pet owners to access premium healthcare services and innovative treatments for their pets.

• Average annual veterinary expenditure per household for dogs in the U.S. ranges from US$ 500 to US$ 1,200, compared to US$ 350 to US$ 800 for cats.

Surging Number of Veterinary Clinics across Europe Enhances Availability of Comprehensive Pet Care

Europe companion animal health market will likely generate a share of 25% in 2025. The region has a culturally established pet-keeping tradition, with millions of households owning dogs, cats, and other companion animals. The large pet population drives demand for veterinary services, pharmaceuticals, and preventive care products. For instance,

• As of 2023, 88 million households across Europe owned at least one pet, according to the European Pet Food Federation (FEDIAF).
• Germany and France have the highest pet ownership rates, with over 40% of households having a companion animal.

Europe has a robust veterinary healthcare network, including specialty hospitals, diagnostic labs, and veterinary clinics. Availability of innovative veterinary services supports the adoption of innovative healthcare solutions for pets.

• There are over 50,000 veterinary clinics across Europe, with countries like the U.K. and Germany leading in specialty services.

Increasing Pet Insurance Adoption in Asia Pacific Encourages High Spending on Novel Treatments

Asia Pacific companion animal health market is estimated to account for a share of 23% in 2025. Growing middle-class population and changing societal norms in the region have led to a surge in pet ownership, particularly dogs and cats. The rising pet population directly increases the demand for veterinary care, pharmaceuticals, and wellness products. For instance,

• China's pet ownership market grew by 20% CAGR from 2018 to 2023, with over 100 million households owning pets.

As economies in the region experience rapid growth, disposable incomes have risen, enabling pet owners to spend more on healthcare and wellness for their animals. Higher disposable incomes drive demand for premium veterinary services, pharmaceuticals, and diagnostic products.

Pet insurance adoption is gradually increasing in Asia Pacific as companies enter the market and offer tailored insurance plans for companion animals. Pet insurance helps offset the costs of advanced treatments, encouraging pet owners to seek comprehensive healthcare services.

• Japan leads the region in pet insurance, with nearly 10% of pets insured as of 2023.

Companion Animal Health Market Competitive Landscape

Companies in the companion animal health industry are investing in research and development activities to develop new and innovative veterinary pharmaceuticals, vaccines, diagnostics, and treatment options. Boehringer Ingelheim launched NexGard COMBO, a broad-spectrum parasiticide for cats, in 2022.

Businesses are diversifying their offerings, including pharmaceuticals, diagnostic kits, wellness products, and speciality diets to capture a broader market. A diverse product portfolio enables companies to cater to different customer needs and capture various market segments. Merck Animal Health extended its product line in 2023 by introducing the Bravecto Plus range for cats, a long-lasting flea and tick treatment.

Mergers and acquisitions enable companies to access new technologies, broaden market reach, and enhance operational efficiencies.  They help companies to access innovative solutions and penetrate new geographical markets. Zoetis acquired Basepaws, a pet genetics company, in 2022 to strengthen its position in diagnostics and precision health.

Key Industry Developments

• In November 2024, New Jersey’s first veterinary school presented Community Engagement Mobile Unit at Merck Animal Health headquarters.
• In November 2024, Boehringer Ingelheim launched VETMEDIN Solution, the first oral solution approved by the FDA for congestive heart failure in dogs.
• In October 2024, VCA Animal Hospitals launched a 3D printing lab for pet orthopedic surgeries.
• In October 2024, Grey Wolf Animal health announced the launch of SILEO in veterinary clinics throughout Canada.
• In June 2024, ADM launched seven turnkey pet product formulas in Europe.

Companion Animal Health Industry Report Scope

Report Attributes	Details
Historical Data/Actuals	2019 – 2024
Forecast Period	2025 – 2032
Market Analysis Units	Value: US$ Bn/Mn, Volume: As applicable
Geographical Coverage	North America Europe East Asia South Asia and Oceania Middle East and Africa Latin America
Segmental Coverage	Animal Type Product Type Distribution Channel End Use Region
Competitive Analysis	Agrolabo S.p.A. Boehringer Ingelheim International GmbH Ceva Elanco IDEXX Laboratories, Inc. Indian Immunologicals Ltd. Merck & Co., Inc. Norbrook Vetoquinol Virbac Zoetis Services LLC
Report Highlights	Market Forecast and Trends Competitive Intelligence & Share Analysis Growth Factors and Challenges Strategic Growth Initiatives Pricing Analysis & Technology Roadmap Future Opportunities and Revenue Pockets Industry Market Analysis Tools
Customization and Pricing	Available upon request

Companion Animal Health Industry Segmentation

By Animal Type

• Dogs
• Equine
• Cats
• Others

By Product Type

• Vaccines
• Pharmaceuticals
• Feed Additives
• Diagnostics
• Others

By Distribution Channel

• Retail
• E-commerce
• Hospital Pharmacies

By End Use

• PoC/In-housing Testing
• Veterinary Hospitals and Clinics
• Others

By Region

• North America
• Europe
• East Asia
• South Asia and Oceania
• Middle East and Africa
• Latin America

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