Animal Parasiticides Market by Type (Ectoparasiticides (Pour-ons & Spot-ons, Tablets, Sprays), Endoparasiticides (Oral Solids, Injectables, Feed Additives), Endectocides), Animal (Companion Animals, Livestock), End User- Global Industry Analysis, Share, Growth, Regional Outlook and Forecasts, 2022-2030

According to Nova one advisor, the global Animal Parasiticides market size is expected to hit around USD 20.7 billion by 2030 from valued at USD 9.8 billion in 2021 and growing at a CAGR of 11.2% from 2022 to 2030.

Factors such as the rising demand for animal-derived food products, increasing investments by private players, growing concerns of zoonotic diseases, regulations for preventing the spread of animal diseases, growing companion animal ownership rates, and rising animal health expenditure are driving the growth of the animal parasiticides market. However, a shift toward vegetarianism and restrictions on the use of parasiticides in food-producing animals are expected to restrain the growth of this market during the forecast period.

Report Scope of the Animal Parasiticides Market

Animal Parasiticides Market Dynamics:

DRIVERS

Rising demand for animal-derived food products

The livestock sector is a highly dynamic and significant global asset. The volume production of meat has increased from 318.2 million metric tons in 2016 to 3310.5 million metric tons in 2018 worldwide. Livestock products contribute 18% to kilocalorie consumption and 34% to protein consumption globally; however, this varies across developed and developing countries.

The demand for meat has grown over the last 50 years, while production has more than quadrupled globally. The world now produces more than 320 million tons of meat and 800 million tons of milk each year. This is mainly attributed to the rising demand for livestock products in developing countries. While high-income countries have shown a steady and consistent rise, the rising populations of emerging and developing markets have supported similar and explosive growth. Africa’s demand for livestock-derived foods is projected to increase by a remarkable 80% in just two decades (from 2010 to 2030), mostly due to its increasing population. In addition, the demand for livestock food products is expected to increase from 200 kcal per person per day in 2000 to around 400 kcal per person per day by 2050 in sub-Saharan Africa and South Asia.

Since diseases caused by endoparasites may prove fatal to animals, resulting in lower meat and milk production, there is a need to prevent the spread and infection caused by endoparasites among food-producing animals. This, coupled with the growing demand for animal protein worldwide, is expected to drive the growth of the parasiticides market in the coming years.

Increasing investments by private players

The animal health market has grown modestly in the past few years, largely driven by growing awareness and rising concerns over zoonotic diseases. This industry has attracted huge investments from leading market players, mainly due to the growing demand in the animal parasiticides market for effective drugs. This is one of the major drivers increasing R&D efforts in the animal health industry. At present, many leading market players are focusing on R&D to develop new drugs. Globally, spending on R&D in animal healthcare is about 7–8% of the total revenue of individual market players. According to the European International Federation of Animal Health, major players spend 13% of their annual sales on R&D activities, while 7% of annual sales are invested in R&D activities by small and medium players. Of the total R&D expenditure, around 36% is spent on defensive R&D to keep existing products in the market. For instance, Zoetis’ R&D expenditure on animal health has increased from USD 432 million in 2018 to USD 4 million in 2021.

Currently, many leading players in the animal health industry are broadening their research facilities to offer innovative solutions in the veterinary pharmaceutical market, including antiparasitics for animal welfare. Major market players are focusing on expanding their global footprints by establishing R&D centers and production facilities, acquiring regional market players, and agreements and partnerships in these high-growth markets. For instance, in August 2019, Elanco acquired Bayer’s Animal Health Business at USD 8.6 billion. This acquisition doubled Elanco’s companion animal business and advanced its portfolio mix by creating a balance between its food animal and companion animal segments.

RESTRAINTS:

Regulations restricting the use of parasiticides for food-producing animals

The use of parasiticides in livestock animals is subject to various federal regulations in many countries. The extra-label use of these topical parasiticides could leave residues that may, on consumption by human beings, have side effects. As a result, the use of these parasiticides, especially endoparasiticides, needs to be regulated; safe residue concentrations and withdrawal periods for antiparasitics used in food-producing animals must be standardized, and slaughtered animals need to be monitored for possible unsafe residues.

In the US, parasiticides given to food-producing animals have precise FDA-regulated withdrawal times (the time taken post drug administration for drug residues to reach limits set by the FDA) to prevent the presence of harmful drug residues. Similarly, according to the National Organic Program, parasiticides are banned for all organic slaughter stock. In the UK, the Veterinary Medicines Directorate’s non-statutory program, in cooperation with the National Surveillance Scheme, carries out residue analysis on imported and processed animal foods to ensure that authorized medicines, including parasiticides, are not present above the permitted level (known as the maximum residue limit) in food. In Canada, the Canadian Food Inspection Agency sets guidelines regarding withdrawal times for animal drugs, including parasiticides.

Shift towards vegetarianism

Globally, there is a significant rise in the prevalence of obesity and other chronic disorders. Owing to this, many people are shifting toward a vegetarian diet from a predominantly non-vegetarian diet. According to Google Trends, interest in veganism increased sevenfold between 2014 and 2021. The US Department of Agriculture releases dietary guidelines on a timely basis. These guidelines influence nutrition education, public policy, and food programs and provide guidance on food choices with recommendations for weight management and physical activity. In addition, these guidelines encourage the consumption of fruits and vegetables, whole grains, and low-fat milk and equivalents.

The vegan business is booming in the US, with plant-based food product sales totaling almost USD 4.5 billion, a 32.3% growth from 2017 to 2019. According to The Vegan Society reports, as of 2018, there were about 600,000 vegans in the UK (1.16% of the population)—a 300% jump from 2014 (150,000, or 0.25% of the population). Changing eating habits and increasing exposure to global cuisines are also driving the shift to vegetarian diets. This shift has reduced the demand for meat, animal proteins, and eggs, which directly hampers the growth of the livestock industry. In addition, the increasing number of bird flu and infections caused due to meat consumption, such as swine flu and COVID-19, has led to a decrease in meat consumption. This is expected to restrain the growth of dependent industries, such as the animal parasiticides industry, to a certain extent.

OPPORTUNITY:

Lucrative opportunities in emerging markets

Over the last few years, companion animal ownership has witnessed a steady increase, especially in emerging countries such as India, China, Brazil, and other APAC and Latin American countries. Rapid urbanization and growing disposable incomes are driving pet ownership in these countries. Many pet owners in these countries are now willing to spend more on pet care.

On the other hand, emerging countries like India and China have robust livestock markets. According to the National Dairy Development Board, milk production in India has increased every year—from 147.3 million tons in 2015 to 166.4 million tons in 2017 and 187.7 million tons in 2019. Moreover, India is the world’s largest milk producer, accounting for 19% of the global market. As of January 2020, China is the world’s largest pork producer, producing about 55 million metric tons of pork each year. Milk production and consumption in China are also increasing at a rapid pace.

The large poultry and dairy animal populations in emerging markets are expected to drive the growth of the veterinary health market, as poultry animals are more prone to parasitic diseases. This will also attract investments from global players to these markets. However, historically, the adoption of animal parasiticides in veterinary practices, livestock farms, and pet owners in these countries has been comparatively less than that in developed markets. According to the Food and Agriculture Organization, the livestock sector in Latin America has grown at an annual rate (3.7%) higher than the average global growth rate (2.9%). The number of pet animals in the region has increased from 165.9 million in 2018 to 182.3 million in 2021. With the surge in companion animal population, the growing demand for animal food products, the huge population of livestock animals, and the increasing animal health expenditure in emerging countries across the APAC and Latin America, these regions showcase high-growth opportunities for players in the animal parasiticides market.

CHALLENGES:

The stringent regulatory approval process for drugs

To ensure that animal parasiticides have no side effects on animal health and are of sufficient quality and efficacy, authorities have set stringent regulations to approve animal parasiticides.

The US FDA; Canadian Food Agency; European Medical Agency; Ministry of Agriculture, Forestry, and Fisheries (MAFF); and Australian Pesticides and Veterinary Medicines Authority (APVMA) are some major regulatory bodies that approve medicines used for veterinary purposes. The Veterinary International Committee for Harmonization (VICH) also plays a significant role in bringing together regulatory authorities in the US, Europe, and Japan; it also harmonizes guidelines and technical requirements to register veterinary products. These regulatory bodies have set stringent regulations to approve veterinary pharmaceutical products. Regulatory standards for the approval of new veterinary pharmaceutical products, including antimicrobials, antibiotics, vaccines, parasiticides, and other pharmaceutical products, are also very stringent in Australia, Japan, and China.

Typically, the approval of veterinary pharmaceuticals in the US and European markets may take up to 5–11 years (from product development to commercialization). Considering the time-consuming and expensive nature of the development and approval process of new veterinary pharmaceutical products, many market players are reluctant to invest in developing new variants of veterinary pharmaceuticals for emerging microorganisms and parasites.

Diversity in parasite species

The diversity of parasite species is a major concern while diagnosing the cause of illness in animals. The identification of the species is followed by developing a new drug for treating ailments caused by the same; this is a time-consuming process. Sometimes, an animal may be administered with an endoparasiticide that differs from the one designed for the diagnosed causative endoparasite. In such cases, the causative agent may develop immunity against the endoparasiticide. Therefore, manufacturers of parasiticides must conduct different tests on animals to prove the efficiency of the drug developed. This is a time-consuming and expensive task, which may lead to the disapproval of new drugs developed as parasiticides.

The vast diversity of parasite species is a challenge for this market because it becomes difficult for manufacturers to design a parasiticide to fight different parasites. This is compounded by the fact that each parasiticide takes 5–10 years to come into existence.

Ectoparasiticides segment accounted for the largest share in the animal parasiticides market.

Based on type, the animal parasiticides market is segmented into endoparasiticides, ectoparasiticides, and endectocides. The ectoparasiticides segment accounted for the largest share of 58.4% of the global animal parasiticides market in 2020. This segment is projected to reach USD 8,583.1 million by 2030 from USD 5,704.9 million in 2021, at a CAGR of 8.20%. The large share of this segment can be attributed to the higher adoption of ectoparasiticides as compared to other products. The increasing population of companion animals and rising pet ownership in developed countries are also expected to support the growth of this market during the forecast period.

Companion Animals segment is expected to witness the fastest growth in the forecast period.

Based on animal type, the animal parasiticides market is segmented into companion animals and livestock animals. In 2020, companion animals accounted for the largest share of 53.2% of the global animal parasiticides market. This segment is projected to reach USD 7,638.2 million by 2030 from USD 5,132.2 million in 2021, at a CAGR of 9.3%. The large share of this segment is primarily attributed to the increasing expenditure on pet animals and increasing companion animal ownership in developed countries.

Veterinary Clinics & Hospitals accounted for the largest share of animal parasiticides market in 2021”

Based on end users, the animal parasiticides market is segmented into veterinary clinics & hospitals, animal farms, and home care settings. Veterinary clinics & hospitals accounted for the largest share of 62.4% of the animal parasiticides market in 2020. This segment is projected to reach USD 8,255.7 million by 2030 from USD 5,956.6 million in 2021, at a CAGR of 7.8%. The large share of this segment can be attributed to the higher adoption of animal parasiticides in hospital settings, the increasing incidence of parasitic diseases, and growing awareness about animal health in developing countries.

North America accounted for the largest share of the animal parasiticides market in 2021

On the basis of region, the animal parasiticides market is segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. North America accounted for the largest share of 42.3% of the global animal parasiticides market in 2021. This market is projected to reach USD 5,180.1 million by 2026 from USD 3,880.4 million in 2021, at a CAGR of 7.9%. The large share of North America is due to its well-established base of the animal health industry, the high adoption of companion animals, and the growing expenditure on animal health. The market in Latin America is expected to grow at the highest CAGR of 9.8% during the forecast period. This can be attributed to the growing population of livestock animals, increasing consumption of animal-derived food products, and growing adoption of pets.

Some of the prominent players in the Animal Parasiticides Market include:

Zoetis Inc. (US), Elanco Animal Health Incorporated (US), Virbac (France), Merck & Co., Inc. (US), Boehringer Ingelheim GmbH (Germany), Ceva Santé Animale (France), Vetoquinol S.A. (France), PetIQ, Inc. (US), Norbrook (Ireland), and Bimeda Animal Health (Ireland).

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Nova one advisor, Inc. has segmented the global Animal Parasiticides market

By Type

• Ectoparasiticides
• Endoparasiticides
• Endectocides

By Animal Type

• Companion Animals
• Livestock Animals

By End User

• Veterinary Clinics & Hospitals
• Animal Farms
• Home Care Settings

By Regional Outlook

North America

• U.S.
• Canada

Europe

• Germany
• France
• United Kingdom
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Southeast Asia
• Rest of Asia Pacific

Latin America

• Brazil
• Rest of Latin America

Middle East & Africa (MEA)

• GCC
• North Africa
• South Africa
• Rest of Middle East & Africa

Key Benefits for Stakeholders

• This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the global Animal Parasiticides industry analysis from 2022 to 2030 to identify the prevailing Animal Parasiticides industry opportunity.
• The market research is offered along with information related to key drivers, restraints, and opportunities.
• Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
• In-depth analysis of the global Animal Parasiticides industry segmentation assists to determine the prevailing market opportunities.
• Major countries in each region are mapped according to their revenue contribution to the global market.
• Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
• The report includes the analysis of the regional as well as global Animal Parasiticides industry trends, key players, market segments, application areas, and market growth strategies.