Animal Healthcare Market Overview, 2025-30

The global animal healthcare market is experiencing substantial growth, driven by increasing pet ownership, rising demand for high-quality animal-derived food products, and growing awareness about zoonotic diseases and animal welfare. Demand is surging both from companion animal owners, especially in developed economies where pets are viewed as family members, and from the livestock industry in developing nations striving to meet the dietary needs of growing populations. This dual demand is fueling the need for advanced pharmaceuticals, vaccines, feed additives, and diagnostic tools.

Innovations are playing a pivotal role in reshaping the industry artificial intelligence is now used for diagnostics, predictive disease modeling, and drug development, while wearable sensors and IoT-based tools enable real-time monitoring of animal health and behavior. For instance, AI-enabled algorithms can detect subtle health changes in pets and livestock, enhancing early diagnosis and treatment. Furthermore, the utilization of AI has been on a very high rise in the past few years. In 2024, Zoetis expanded its R&D capabilities by forging the Automation & Data Sciences group.

Scientists & veterinarians collaborate in this platform to apply innovative technologies and also create digital analytical tools to generate data-driven insights, automate R&D processes as well as enhance data management. The development and manufacturing of medicines are strictly monitored by government agencies such as the FDA, while the regulations for veterinary diagnostics and other products are comparatively lax. Regulatory approval processes can be lengthy and complex, creating barriers to entry for new companies. This often results in established players holding notable animal health market share, as they have the resources and experience to navigate regulatory hurdles.

According to the research report, "Global Animal Healthcare Market Overview, 2030," the Global Animal Healthcare market was valued at more than USD 63.15 Billion in 2024, with the CAGR of 8.17% from 2025-2030. The integration of AI, big data, and IoT is transforming animal health diagnostics and treatment. Wearable devices for pets and livestock, remote monitoring systems, and smart collars are gaining popularity as they help in real-time health tracking, early disease detection, and improved management. In addition, AI-powered diagnostic platforms and predictive analytics tools are enhancing veterinarians' ability to detect conditions such as arthritis, heart issues, or parasitic infections more accurately.

These technologies are not only advancing in high-income countries but are also being gradually adopted in developing nations, supported by government and private investment. In January 2025, PetPace launched its Health 2.0 smart collar, an AI/ML-powered wearable that monitors vital signs, behavior, and stress levels in pets. It won the "IoT Wearable Device of the Year" award at CES 2025, highlighting its role in advancing pet health monitoring. Moreover, the emergence of telemedicine and e-commerce platforms in animal health is reshaping service delivery. With the rise of virtual veterinary consultations, especially post-COVID-19, pet owners are now able to access healthcare more conveniently.

Similarly, the growth of online pharmacies and pet product delivery platforms has widened access to preventive and therapeutic products. In January 2025, Absci and Invetech announced a partnership to utilize Absci's generative AI drug creation platform known as “Half-Life Extension (HLE)” for developing veterinary medicines. This collaboration is aimed at enhancing the development of novel therapeutics for veterinary applications and utilizing cutting-edge technology to streamline the drug discovery process. By combining their expertise, the two companies seek to improve treatment options for animals, ultimately benefiting both pet owners and the broader veterinary industry.

Market Drivers

• Rising Pet Ownership and Livestock Demand: One of the primary drivers of the global animal healthcare market is the significant rise in pet ownership worldwide, particularly in urban areas of North America, Europe, and parts of Asia. This trend is driven by changing lifestyles, increased disposable income, and the growing emotional bond between humans and companion animals. Pet parents are increasingly investing in preventive healthcare, regular veterinary check-ups, and advanced treatments. Simultaneously, the demand for livestock products like meat, dairy, and eggs is growing due to population growth and dietary changes in developing countries. This is encouraging livestock farmers to invest in veterinary care and health management, thereby driving the market forward.
• Technological Advancements in Veterinary Medicine: Another powerful growth driver is the advancement in veterinary technologies, including diagnostics, biologics, and precision medicine. Innovations such as wearable monitoring devices for pets, telemedicine platforms, AI-driven diagnostic tools, and next-generation vaccines are revolutionizing the way animal health is managed. These technologies enhance the accuracy of diagnosis, allow early detection of diseases, and improve treatment outcomes. As more companies invest in R&D, particularly in biologics and personalized treatments, the scope and effectiveness of animal healthcare are expanding globally.

Market Challenges

• High Cost of Veterinary Services and Medicines: Despite growing demand, the high cost of veterinary services and pharmaceutical products remains a major challenge. Advanced treatments, diagnostic imaging, and specialty care are often expensive, making them inaccessible for low- and middle-income pet owners and small-scale livestock farmers. This cost barrier is especially prominent in emerging markets, where healthcare spending is generally lower and insurance penetration is minimal. The lack of affordable healthcare alternatives limits the overall market potential in these regions.
• Regulatory and Supply Chain Barriers: Stringent regulatory frameworks and inconsistent global standards also pose a significant challenge to market growth. Animal healthcare products, especially pharmaceuticals and vaccines, must undergo rigorous testing and approval processes, which vary by region and can delay product launches. Furthermore, the global supply chain for veterinary products is vulnerable to disruptions from geopolitical tensions, pandemics, or trade restrictions. These issues can lead to drug shortages, delayed treatments, and increased operational costs for manufacturers and distributors.

Market Trends

• Shift Toward Preventive and Wellness Care: A growing trend in the industry is the shift from reactive treatment to preventive healthcare and wellness programs. Consumers are increasingly seeking nutritional supplements, routine vaccinations, deworming, and preventive diagnostics to ensure long-term animal health. Veterinary service providers are also promoting wellness plans and subscription-based models to encourage regular check-ups and monitoring. This trend not only improves animal well-being but also opens recurring revenue opportunities for companies in the market.
• Sustainability and Ethical Farming Practices: Sustainability is becoming a focal point in the animal healthcare market, especially in livestock farming. Consumers are demanding ethically sourced animal products, which is encouraging farms to adopt better animal welfare standards and minimize the use of antibiotics. This has led to a rise in organic feed additives, natural growth promoters, and vaccines that reduce dependency on traditional chemical treatments. In addition, environmental concerns are pushing companies to develop eco-friendly packaging and reduce carbon footprints in their production processes.

The growth of companion animals in the global animal healthcare industry is primarily driven by the rising humanization of pets, which significantly boosts demand for advanced veterinary care, preventive treatments, and wellness products.

The rapid growth of the companion animal segment in the global animal healthcare industry is largely fueled by the increasing humanization of pets, where owners treat their animals more like family members than just animals. This cultural shift is particularly prominent in developed nations such as the United States, Canada, Germany, Japan, and Australia, but is also gaining momentum in developing regions like China, India, Brazil, and South Africa. As urbanization continues to rise and household structures become more nuclear, more people are turning to pets for companionship, emotional support, and even psychological well-being.

This growing emotional bond between humans and their pets has translated into a surge in spending on pet healthcare, including routine veterinary visits, vaccinations, dental care, diagnostics, and chronic disease treatments. Owners are now more willing to invest in advanced healthcare solutions to ensure longer, healthier lives for their pets. This has led to increased demand for pharmaceuticals; pet diagnostics, preventive care such as vaccines and parasiticides, and even pet insurance.

Moreover, technological innovations like wearable health monitors for pets, AI-based diagnostic tools, and tele-veterinary services are becoming more widespread, allowing better health tracking and early diagnosis of diseases, which is further driving market growth. The rise of pet adoption during the COVID-19 pandemic has also contributed significantly to the growth of this sector, as millions of people adopted dogs, cats, and other small animals during lockdowns.

The vaccines product type is growing in the global animal healthcare industry due to the rising emphasis on preventive healthcare to control infectious diseases and minimize economic losses in both companion and livestock animals.

The accelerating growth of vaccines within the global animal healthcare industry is primarily driven by the increasing prioritization of preventive medicine as a cost-effective and essential tool to control the spread of infectious diseases in animals. Both livestock and companion animals are at risk of numerous viral and bacterial diseases that not only impact animal health and productivity but also pose threats to human health through zoonotic transmission. Vaccines are becoming a frontline defense in mitigating these risks.

In the livestock sector, the intensification of farming practices has raised disease transmission risks due to high-density animal populations, prompting governments and industry stakeholders to enforce or incentivize regular vaccination programs. These programs help protect the food supply chain by reducing disease outbreaks that could lead to massive economic losses from animal mortality, decreased productivity, and trade restrictions. In the companion animal segment, the growing pet population, coupled with the increasing trend of pet humanization, has heightened awareness among owners about disease prevention.

This has led to widespread demand for routine vaccinations against rabies, parvovirus, distemper, and other preventable diseases. Additionally, regulatory bodies across various regions are supporting the growth of animal vaccines by streamlining approval processes, encouraging research and development, and increasing public-private partnerships for veterinary health.

Parenteral delivery mode is growing in the global animal healthcare industry due to its high efficacy, rapid action, and suitability for delivering vaccines, antibiotics, and biologics in both livestock and companion animals.

Unlike oral or topical methods, parenteral delivery typically via injection (intramuscular, subcutaneous, or intravenous) allows for direct entry of the drug into the bloodstream or tissue, resulting in quicker onset of action, better bioavailability, and more predictable therapeutic outcomes. This is particularly important in managing acute infections, controlling disease outbreaks in livestock, and administering lifesaving treatments in emergency veterinary situations. In the livestock segment, large-scale vaccination campaigns often rely on injectable delivery due to its proven efficiency in mass immunization efforts, especially against diseases that threaten herd health and agricultural productivity.

Injectable antibiotics also play a vital role in managing infections in high-value animals, minimizing losses, and ensuring meat and dairy safety. Similarly, in the companion animal sector, parenteral routes are preferred for administering long-acting medications and precise dosages of anesthetics, anti-inflammatory drugs, and biologics. The growing demand for biologic drugs, such as monoclonal antibodies and recombinant vaccines, which often require injection for optimal absorption, further fuels this trend. Additionally, veterinary professionals prefer parenteral delivery for its reliability in animals that may resist oral medications or have gastrointestinal issues.

Online pharmacies are growing in the global animal healthcare industry due to increasing consumer demand for convenience, cost savings, and easy access to a wide range of veterinary products and medications.

The rapid growth of online pharmacies in the global animal healthcare industry is primarily fueled by the rising preference for convenience, affordability, and accessibility among pet owners and livestock managers. As digital adoption increases across the world, especially post-pandemic, consumers are shifting toward e-commerce platforms to fulfill healthcare needs for their animals - mirroring trends seen in human healthcare. Online veterinary pharmacies provide a one-stop solution for a broad array of animal health products, including prescription medications, over-the-counter drugs, supplements, vaccines, grooming items, and pet food.

This allows customers to bypass traditional in-store visits and instead order essential items from the comfort of their homes or farms, saving time and effort, particularly in rural or underserved areas where veterinary clinics or brick-and-mortar pharmacies may be limited. The cost-effectiveness of online pharmacies also plays a significant role in their growing popularity, with competitive pricing, subscription plans, and seasonal discounts making animal healthcare more affordable.

Furthermore, many platforms offer automated refill services and doorstep delivery, which enhances treatment adherence especially for chronic conditions in companion animals or preventive regimens in livestock. The COVID-19 pandemic significantly accelerated this shift, as lockdowns and social distancing increased reliance on digital platforms, establishing new consumer habits that continue to persist.

The Point-of-Care/In-House Testing end-user segment is growing in the global animal healthcare industry due to the increasing demand for rapid, accurate diagnostics that enable immediate treatment decisions and improved clinical outcomes.

The growing prominence of Point-of-Care (POC) or In-House Testing in the global animal healthcare industry is largely driven by the need for rapid and reliable diagnostic results that enable veterinarians to make timely treatment decisions, thereby improving animal health outcomes and operational efficiency. Unlike traditional laboratory testing, which often involves delays due to sample transport and processing, POC testing offers real-time diagnostics directly at the site of care, be it veterinary clinics, animal hospitals, or farms. This is particularly crucial in critical care scenarios, where delays in diagnosis can severely impact the prognosis of the animal.

In-house testing is especially valuable for managing chronic conditions, monitoring post-treatment progress, and diagnosing common infections, hormonal imbalances, or parasitic infestations. The growing prevalence of pet ownership, combined with the increasing trend of pet humanization, has led to rising expectations for high-quality, hospital-like care in veterinary settings. Veterinary clinics are investing in advanced diagnostic tools such as hematology analyzers, biochemistry systems, and portable imaging equipment that support rapid testing.

The livestock industry also benefits significantly from in-house testing, especially on large farms, where quick detection of disease outbreaks like mastitis, foot-and-mouth disease, or avian flu is essential to prevent widespread loss and ensure food safety. Technological advancements in miniaturized and user-friendly diagnostic equipment have made these tools more accessible and cost-effective, even for small to mid-sized veterinary practices.

The Asia Pacific animal healthcare industry is growing primarily due to the increasing demand for livestock products driven by population growth, rising incomes, and expanding urbanization.

The rapid expansion of the animal healthcare industry in the Asia Pacific region is predominantly fueled by the surging demand for livestock-derived products such as meat, milk, and eggs, spurred by rising population levels, growing disposable incomes, and accelerating urbanization. As countries like China, India, Indonesia, and Vietnam experience significant economic development, dietary habits are shifting away from plant-based foods toward protein-rich animal products, creating immense pressure on the livestock sector to boost productivity and ensure animal health.

This shift has necessitated large-scale adoption of preventive and therapeutic healthcare solutions for animals, ranging from vaccines and pharmaceuticals to diagnostics and nutritional supplements. With a burgeoning middle class increasingly concerned about food safety and quality, there is heightened awareness and investment in veterinary services and advanced farming practices, further amplifying the demand for animal healthcare products. Additionally, government initiatives supporting livestock health and production, particularly in rural and agrarian economies, have led to improved veterinary infrastructure and disease surveillance systems.

Countries are also aligning regulations with global standards, encouraging foreign investments and facilitating technology transfer. Moreover, the increasing prevalence of zoonotic diseases in densely populated areas has prompted public and private stakeholders to prioritize animal health as part of national health security, thus boosting funding and innovation in the field.

Companion animal ownership is also rising, particularly in urban centers, contributing to a parallel growth in pet care services and veterinary clinics. Major global players are expanding their footprint in the region, attracted by the untapped market potential, while local manufacturers are scaling up production of affordable healthcare solutions to cater to the vast rural livestock population.

• In October 2024, VMD Sciences launched Expanded Access Programs (EAPs) for pets and livestock, providing veterinarians with access to innovative, life-saving treatments that are often unavailable through standard channels. This initiative aims to address unmet medical needs in veterinary medicine by ensuring safe and compliant access to advanced therapies in collaboration with community veterinarians.
• In May 2024, USDA’s Animal and Plant Health Inspection Service (APHIS) announced funding of more than USD 22.2 million for enhancing early detection, preparedness, prevention, and rapid response towards leading livestock diseases in the U.S.
• In November 2023, Bimeda inaugurated a new manufacturing facility in China for sterile injections and parasite-control products, thus extending its capabilities.
• In October 2023, Zoetis commercially launched Librela- its anti-NGF monoclonal antibody treatment in the U.S. for control of canine osteoarthritis pain.

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.