Veterinary CRO and CDMO Global Market Report 2024

The veterinary cro and cdmo market size has grown strongly in recent years. It will grow from $6.44 billion in 2023 to $7.03 billion in 2024 at a compound annual growth rate (CAGR) of 9.1%. The expansion observed in the historical period can be attributed to various factors, including the increasing regulatory compliance needs, the globalization of the animal health market, the growth in drug development for livestock, and the heightened outsourcing activities by pharmaceutical companies in the veterinary sector.

The veterinary cro and cdmo market size is expected to see strong growth in the next few years. It will grow to $9.87 billion in 2028 at a compound annual growth rate (CAGR) of 8.9%. The anticipated growth in the forecast period for veterinary CROs and CDMOs can be attributed to the increasing adoption of precision medicine in veterinary care, a heightened focus on preventive healthcare for animals, the importance of epidemiological surveillance, emergency preparedness measures, and the increasing complexity of veterinary therapeutics. Noteworthy trends expected during the forecast period include the outsourcing of research and development activities, the integration of technology in veterinary services, collaborative efforts and partnerships within the industry, an emphasis on sustainability in manufacturing practices, and the digitalization of veterinary services.

The anticipated increase in investments in animal healthcare is poised to drive the growth of the veterinary Contract Research Organization (CRO) and Contract Development and Manufacturing Organization (CDMO) market. The upward trend in animal healthcare investments is a result of heightened awareness regarding the significance of animal health and the growing demand for veterinary services and products, thereby contributing to the expansion of the veterinary CRO and CDMO market. For instance, in 2022, the American Pet Products Association (APPA) reported a notable rise in pet care expenditure in the U.S., increasing from USD 123.6 billion in 2021 to USD 136.8 billion in 2022. This surge underscores the escalating investments in animal healthcare, positioning the veterinary CRO and CDMO market for substantial growth.

The growth of the veterinary CRO and CDMO market is expected to be propelled by the increasing trend of pet ownership. The term 'pet ownership' pertains to the responsibility of caring for and providing a home for various pets, including animals, birds, or reptiles. Pet owners are increasingly seeking advanced and specialized medical care for their pets, prompting CROs and CDMOs to invest in research and development (R&D) for innovative veterinary medications and therapies addressing specific health conditions in companion animals. A report from the American Pet Products Association in April 2023 highlighted that millennials and Generation Z accounted for nearly half of the pet-owning population in the United States in 2022. This demographic shift is significant due to the strong attachment of millennials and Generation Z to their pets, coupled with their willingness to spend on pet care products and services. Consequently, the growing prevalence of pet ownership is expected to be a driving force behind the veterinary CRO and CDMO market.

A prominent trend gaining traction in the veterinary CRO and CDMO market is product innovation. Companies operating in this market are actively focusing on introducing innovative products to maintain their competitive positions. For example, in June 2022, Vetio, a U.S.-based Contract Development and Manufacturing Organization (CDMO) specializing in animal health, received an Intention to Grant from the European Patent Office (EPO) and a Notice of Allowance from the United States Patent Office (USPTO) for its Starch-Free Soft Chew designed for veterinary applications. Vetio's Soft Chew Technology platform, tailored for animal health, delivers one or more active ingredients in a high-quality dosage form suitable for veterinary pharmaceutical use. Notably, this innovative composition and manufacturing process are starch-free and water-free, making it highly suitable for moisture-sensitive active ingredients.

Companies in the veterinary CRO and CDMO market are leveraging artificial intelligence (AI) to enhance in-clinic diagnostic offerings, thereby ensuring optimal care for dogs and cats. AI, characterized by machine-based learning and human intelligence functionalities, facilitates insightful diagnostics and valuable information. For instance, Zoetis Inc., a U.S.-based drug company, introduced AI-based blood smear testing to its versatile platform, Vetscan Imagyst, in April 2022. This technology incorporates AI blood smear testing, AI fecal, and digital cytology image transfer into a single platform. It enables the identification and counting of polychromatophils (immature red blood cells) and provides complete blood count (CBC) results within minutes. The integration of AI with image recognition technology enhances diagnostic capabilities and provides rapid access to expert clinical pathologists within the Zoetis network.

In September 2021, Argenta, a Belgium-based global combined Contract Research Organization (CRO) and Contract Development and Manufacturing Organization (CDMO) dedicated to animal health, completed the acquisition of Klifovet Gmbh for an undisclosed amount. This strategic move positions Argenta to stimulate innovation and support companies in the animal health and nutrition sector. Klifovet, based in Germany, offers a range of services, including regulatory affairs, pre-clinical and clinical studies, GMP-compliant manufacturing, quality assurance, data management, and statistical analyses for the animal health and nutrition industry.

Major companies operating in the veterinary cro and cdmo market report are Labcorp Drug Development India Private Limited, Zoetis Inc., Eurofins Scientific SE, Pharmaceutical Product Development Inc., Syneos Health Inc., Charles River Laboratories Inc., IDEXX Laboratories Inc., Elanco India Private Limited., Inotiv Inc., Promega Corporation, Aenova Group, Sai Life Sciences Ltd., Taconic Bioscience Inc., Avid Bioservices Inc., Frontage Laboratories Inc., Angion Biomedica Corp., knoell Germany GmbH, ClinVet International Pty Ltd., VetPharm Inc., Vetio Animal Health Company, Ridgeway Research Ltd., Drayton Animal Health Ltd., KLIFOVET GmbH, Triveritas Ltd., Cebiphar, Ondax Scientific UK Ltd., Veterinary Research Management (VRM) Ltd., Vetspin Srl, STATKING Animal Health CRO, Arcoblu S.r.l.

North America was the largest region in the veterinary CRO and CDMO market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the veterinary cro and cdmo market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the veterinary cro and cdmo market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The main services provided by veterinary CROs and CDMOs include discovery, development, manufacturing, packaging and labeling, and market approval and post-marketing. Drug discovery in the context of veterinary CDMO and CMO (Contract Manufacturing Organization) typically refers to early-stage research and development activities related to the identification and optimization of potential drug candidates on behalf of their clients. These services cover a broad spectrum of applications, including medicines, medical devices, pharmaceuticals, biologics, and others, for both companion animals and livestock animals.

The veterinary CRO and CDMO market research report is one of a series of new reports that provides veterinary CRO and CDMO market statistics, including the veterinary CRO and CDMO industry's global market size, regional shares, competitors with a veterinary CRO and CDMO market share, detailed veterinary CRO and CDMO market segments, market trends, and opportunities, and any further data you may need to thrive in the veterinary CRO and CDMO industry. This veterinary CRO and CDMO market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The veterinary CRO and CDMO market includes revenues earned by entities through contract research, development, and manufacturing services. This encompasses the income generated by these entities for conducting preclinical studies, clinical trials, pharmacokinetics, and pharmacodynamics testing, toxicology studies, formulation development, process optimization, and manufacturing of veterinary drugs and healthcare products. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.