North America Animal Healthcare Market Outlook, 2030

The North America animal healthcare market is experiencing significant growth, driven by increasing pet ownership, heightened awareness regarding animal well-being, and the modernization of livestock practices. With the United States and Canada being home to a large population of pets and a well-established animal farming sector, the demand for advanced veterinary services and healthcare products continues to surge. The trend in this market is the humanization of pets, where animals are treated as family members, thereby fueling a rise in expenditure on companion animal care including vaccinations, grooming, diagnostics, and surgical procedures.

Moreover, livestock health is gaining priority due to growing concerns about food safety, productivity, and zoonotic diseases, prompting widespread adoption of preventive measures, including vaccines and feed additives. The North American animal healthcare market is its strong infrastructure, with a wide network of veterinary hospitals, clinics, diagnostic labs, and research institutions. Innovations play a critical role in shaping this landscape, particularly with the integration of artificial intelligence in diagnostics, the use of wearable health monitors for pets, and telemedicine platforms that provide remote consultations and monitoring.

The market also benefits from increasing investment in animal genomics, precision livestock farming, and digital health tools, making healthcare more personalized and efficient. However, this innovation is balanced by stringent regulatory frameworks governed by authorities such as the U.S. Food and Drug Administration (FDA) and the United States Department of Agriculture (USDA), which ensure the safety and efficacy of veterinary medicines and biologics.

According to the research report "North America Animal Healthcare Market Outlook, 2030," the North America Animal Healthcare market was valued at USD 17.96 Billion in 2019. The adoption of artificial intelligence and machine learning in diagnostic tools allows for early detection of diseases, image-based diagnostics, and personalized treatment plans based on genetic profiling. Telemedicine and virtual veterinary services are becoming increasingly popular, especially after the COVID-19 pandemic, allowing pet owners to access expert consultations without leaving their homes.

The emergence of wearable health monitoring devices for pets, such as GPS trackers and biometric collars, has added a new dimension to pet care by enabling real-time tracking of vital signs, behavior, and activity levels. These innovations have not only enhanced the quality of animal healthcare but have also reduced the burden on veterinary clinics. In addition, in October 2024, researchers from the University of Cambridge developed an AI algorithm to efficiently detect and grade heart murmurs in dogs using audio recordings from digital stethoscopes, achieving a sensitivity of 90%.

This technology is crucial for early detection of mitral valve disease, a common heart condition in dogs, allowing for timely treatment that can extend their lives. Moreover, the increasing prevalence of pet insurance in North America is encouraging pet owners to seek timely and advanced medical treatments, contributing to market growth. According to the North American Pet Health Insurance Association, the pet insurance sector is growing at a double-digit rate annually, making expensive treatments more accessible.

In May 2023, Zoetis received the U.S. Food and Drug Administration (FDA) approval for Librela (bedinvetmab injection) for the control of pain associated with osteoarthritis (OA) in dogs. Librela is the first and only once-monthly, anti-NGF monoclonal antibody treatment for canine OA pain and is approved as safe and effective in providing long-term control of OA pain symptoms in dogs.

Market Drivers

• High Pet Ownership and Humanization of Pets: A major driver in the North American animal healthcare market is the high rate of pet ownership, particularly in the United States and Canada. According to the American Pet Products Association, nearly 70% of U.S. households own a pet. The increasing humanization of pets, where animals are considered family members, has led to greater demand for high-quality veterinary care, wellness services, and advanced treatments. This trend is fueling the growth of companion animal healthcare, including diagnostics, surgery, specialized care, and pet insurance. Owners are more willing than ever to spend on their pets’ health, making the sector one of the fastest-growing within the broader healthcare landscape.
• Strong Veterinary Infrastructure and Technological Innovation:North America benefits from a highly developed veterinary care ecosystem, including state-of-the-art clinics, research centers, and leading pharmaceutical companies. The region is at the forefront of adopting innovations such as digital health records, telemedicine, AI-based diagnostic tools, and advanced biologics for disease prevention. The presence of major industry players like Zoetis, Elanco, and Merck Animal Health fosters continuous R&D and product innovation. This advanced infrastructure not only ensures high-quality care but also supports the rapid commercialization of cutting-edge animal health technologies.

Market Challenges

• Rising Veterinary Costs and Workforce Shortages: One of the most pressing challenges in North America is the rising cost of veterinary care. While the quality of care is high, the costs associated with diagnostics, surgeries, medications, and specialized treatments are increasing. This can discourage some pet owners, especially those without pet insurance, from seeking regular or preventive care. Additionally, the region is experiencing a shortage of qualified veterinarians and veterinary technicians, particularly in rural areas. This labor gap puts strain on existing clinics and limits access to timely care, creating bottlenecks in service delivery.
• Antibiotic Resistance and Regulatory Compliance: North America faces growing concerns over antimicrobial resistance (AMR), especially in livestock production. The overuse of antibiotics has prompted strict regulations from agencies like the FDA and Health Canada. Compliance with these regulations often requires significant investment in alternative treatments and biosecurity measures. Furthermore, the regulatory landscape for approving new veterinary drugs and biologics is complex and time-consuming. This slows down innovation and limits the availability of new products, especially for emerging diseases and conditions.

Market Trends

• Growth of Pet Insurance and Preventive Care Plans: An important trend in the North American animal healthcare market is the growing adoption of pet insurance and preventive wellness plans. As veterinary costs rise, more pet owners are turning to insurance providers to manage expenses. Preventive care plans, which offer bundled services like vaccinations, dental checkups, and routine screenings, are also gaining traction. These models not only reduce the financial burden on pet owners but also encourage regular veterinary visits, improving long-term animal health outcomes.
• Focus on Sustainable and Ethical Livestock Practices: There is increasing emphasis on sustainability and ethical farming practices in North American livestock production. Consumers are demanding antibiotic-free, humanely raised meat and dairy products, prompting producers to adopt healthier feeding strategies, vaccination programs, and better living conditions for animals. This trend has led to a shift toward natural feed additives, probiotics, and vaccines that reduce the need for chemical treatments. Additionally, there's a growing investment in environmentally friendly waste management and packaging solutions in the animal health supply chain.

The Companion Animals segment is leading in the North America animal healthcare industry due to rising pet ownership combined with increased humanization of pets, driving demand for advanced healthcare services and products.

Households across the U.S. and Canada are increasingly prioritizing the physical and emotional well-being of their pets, fueling the demand for veterinary care, preventive healthcare, diagnostics, therapeutic products, specialized nutrition, and even mental health support. With more than two-thirds of American households reportedly owning at least one pet, expenditures on animal health have climbed steadily, supported by rising disposable incomes and a strong emotional bond between pet owners and their animals. Moreover, the proliferation of pet insurance plans has also played a crucial role, making high-quality veterinary services more accessible and affordable to the masses.

The North American market has responded with rapid advancements in technologies such as wearable pet health devices, tele-veterinary platforms, and AI-enabled diagnostic tools making it easier for pet owners to monitor and manage their animals’ health. Furthermore, the booming e-commerce sector and digital veterinary pharmacies have facilitated easy access to healthcare products like prescription medications, supplements, vaccines, and flea or tick treatments. Companion animals now benefit from wellness programs that closely mirror human healthcare systems, including regular check-ups, early diagnostics, and chronic disease management plans.

Pet food manufacturers and pharmaceutical companies are also investing heavily in R&D to create more personalized, breed-specific, and condition-focused solutions. Additionally, demographic changes especially among millennials and baby boomers are shaping spending patterns, with many consumers willing to invest significantly in their pets’ longevity and comfort.

Feed additives are moderately growing in the North America animal healthcare industry due to increasing focus on livestock productivity and disease prevention, balanced by stringent regulations and growing consumer demand for antibiotic-free meat.

The feed additives segment in the North American animal healthcare industry is witnessing moderate growth, primarily driven by the region’s ongoing efforts to enhance livestock productivity, improve feed efficiency, and promote animal health while adhering to rising consumer and regulatory demands for safer and more sustainable animal products. Farmers and producers are increasingly incorporating feed additives such as probiotics, prebiotics, enzymes, amino acids, and minerals to support better digestion, immunity, and overall animal performance. These additives are particularly valuable in intensive animal farming systems where disease risk, stress, and nutrient deficiencies are common.

As North America continues to be a major exporter and consumer of meat and dairy products, optimizing animal growth and minimizing losses due to illness is crucial for maintaining profitability. However, while the functional benefits of feed additives are well-recognized, the growth of this segment remains moderate rather than explosive due to the tightening regulations around antibiotic growth promoters and synthetic additives. Regulatory agencies such as the FDA and Health Canada have implemented stringent policies to ensure food safety, requiring comprehensive testing and approval processes that can slow down the introduction of new additives into the market.

Additionally, shifting consumer preferences toward organic and “clean-label” animal products have prompted producers to limit or eliminate certain additives, especially antibiotic-based ones, out of concern for antimicrobial resistance and potential residues in meat. These market dynamics have caused many producers to seek natural or plant-based alternatives, which are often more costly and less standardized, further tempering rapid adoption.

Oral delivery mode is leading in the North America animal healthcare industry due to its ease of administration, cost-effectiveness, and high acceptance among both pet owners and livestock producers.

The oral delivery mode has established itself as the leading method of drug administration in the North America animal healthcare industry, primarily because of its convenience, affordability, and broad applicability across both companion animals and livestock. In a region where pet ownership is high and livestock production is technologically advanced, oral formulations such as tablets, capsules, powders, pastes, and medicated feed offer a practical and non-invasive way to ensure consistent treatment and health maintenance. Pet owners often prefer oral medications because they can be administered at home without the need for veterinary supervision, reducing stress for both the animal and the owner.

Palatable formulations, including flavored chews and liquid suspensions, have further improved compliance, especially in dogs and cats. For livestock producers, oral delivery through feed or water is highly scalable and enables simultaneous treatment or prevention of disease in large animal groups, making it ideal for commercial operations. It also helps in the routine administration of essential supplements, dewormers, antibiotics, and growth promoters, thus playing a key role in improving animal productivity and food safety.

Furthermore, the oral route significantly lowers the costs associated with veterinary care, such as labor and equipment needed for injections or specialized handling, which is particularly important in large-scale operations. The pharmaceutical and nutraceutical industries have responded by continuously developing innovative oral formulations that are not only effective but also tailored to specific species and needs. Advances in drug delivery technologies, such as microencapsulation and slow-release matrices, have enhanced bioavailability and dosing convenience.

Veterinary hospitals and clinics are leading in the North America animal healthcare industry due to the growing demand for advanced, comprehensive, and specialized veterinary services supported by high pet ownership and increasing expenditure on animal health.

The region’s high rate of pet ownership especially in the United States and Canada combined with the deep emotional bond that pet owners share with their animals, has significantly boosted the demand for professional veterinary care. Pet parents today are more informed and proactive than ever before, seeking regular checkups, vaccinations, dental care, diagnostics, chronic disease management, and even specialty treatments such as dermatology, cardiology, orthopedics, and oncology for their pets. Veterinary hospitals and clinics are uniquely positioned to meet this broad spectrum of needs under one roof, making them a preferred and trusted destination for comprehensive animal healthcare.

The growing trend of pet humanization has translated into greater willingness among owners to spend on high-quality medical services, leading to the expansion and modernization of veterinary facilities across urban and suburban North America. In addition, the rise in chronic conditions such as obesity, arthritis, diabetes, and cancer in companion animals has further necessitated regular, professional veterinary attention, often only available in fully equipped clinics and hospitals. Technological advancements in diagnostic imaging, laboratory testing, and minimally invasive surgery have also been rapidly adopted in these settings, enhancing their capabilities and appeal.

Veterinary clinics are not only centers for curative care but also vital in promoting preventive healthcare through wellness programs, early disease detection, and client education. Moreover, the availability of emergency and 24/7 critical care in many veterinary hospitals has improved access to life-saving services, contributing to their leading role. Even in rural areas, mixed-animal or large-animal clinics continue to support livestock health, ensuring food safety and productivity.

Point-of-Care/In-House Testing is growing in the North America animal healthcare industry due to the increasing demand for rapid, accurate, and on-site diagnostics that enable immediate treatment decisions and improved clinical outcomes.

The Point-of-Care (PoC) or In-House Testing segment is experiencing strong growth within the North America animal healthcare industry, driven by the need for faster diagnostic results, improved patient care, and operational efficiency in veterinary practices. As the veterinary landscape evolves to mirror human healthcare in terms of sophistication and responsiveness, veterinarians and clinics are adopting in-house diagnostic tools that allow for immediate analysis of samples such as blood, urine, feces, and tissue. The ability to deliver real-time results within minutes rather than waiting for external laboratory turnaround times often ranging from days to over a week enables veterinarians to make quick and informed treatment decisions.

This speed is crucial in emergency cases, acute conditions, and early disease detection, where delays in diagnosis can lead to complications or even fatal outcomes. With the rising prevalence of chronic diseases such as diabetes, kidney disorders, and infectious diseases in pets, the demand for frequent and accurate monitoring has increased significantly. In-house testing technologies such as chemistry analyzers, hematology systems, rapid test kits, and digital imaging solutions are now widely integrated into veterinary clinics and hospitals, enhancing their diagnostic capabilities and client service quality.

Additionally, the North American pet owner community is increasingly seeking high-quality, prompt, and convenient care for their animals, pushing clinics to adopt technologies that minimize wait times and maximize accuracy. From a business perspective, in-house testing also supports veterinary practice growth by generating additional revenue streams and strengthening client loyalty through better engagement and faster results.

The United States leads the North American animal healthcare industry due to its highly developed veterinary infrastructure, advanced R&D capabilities, and large-scale commercial livestock and pet markets.

The United States holds a dominant position in the North American animal healthcare industry, primarily because of its well-established veterinary infrastructure, robust research and development ecosystem, and expansive commercial livestock and companion animal markets. The country’s advanced healthcare systems for animals are supported by a strong network of veterinary clinics, hospitals, diagnostic labs, and academic institutions that foster continuous innovation in animal medicine, vaccines, diagnostics, and feed additives. The presence of leading global animal health companies such as Zoetis, Merck Animal Health, and Elanco headquartered or heavily invested in the U.S.

has further cemented its leadership by enabling constant innovation, high production capacity, and extensive distribution networks. Additionally, the U.S. has a massive commercial livestock sector, particularly in beef, poultry, and dairy production, which demands consistent disease prevention, productivity enhancement, and compliance with stringent animal welfare standards.

These industries heavily rely on sophisticated veterinary solutions to minimize losses, ensure food safety, and meet domestic and international export requirements. Companion animal ownership is also notably high in the U.S., with a growing cultural emphasis on pet health and wellness, driving demand for premium veterinary care, pet insurance, and therapeutic treatments.

Pet parents in the U.S. are increasingly willing to spend on advanced diagnostics, surgical procedures, and specialty diets, creating a lucrative market for animal health providers. Moreover, the U.S. government's support through regulatory frameworks, such as the FDA's Center for Veterinary Medicine, provides a streamlined environment for drug approvals and safety monitoring, encouraging innovation while safeguarding public health.

Considered in this report

• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report

• Animal healthcare Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Animal type

• Companion Animals
• Livestock Animals / Production Animals

By Product type

• Pharmaceuticals
• Vaccines
• Feed Additives
• Diagnostics
• Other Products

By Delivery Mode

• Oral
• Parenteral
• Others

By Distribution Channel

• Veterinary Hospitals & Clinics
• Retail Pharmacies
• Online Pharmacies

The approach of the report:

This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases.

After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to this industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.