The Europe veterinary pharmaceuticals market size was exhibited at USD 7.89 billion in 2022 and is projected to hit around USD 15.37 billion by 2032, growing at a CAGR of 6.9% during the forecast period 2023 to 2032.
Europe Veterinary Pharmaceuticals Market Report Scope
|Market Size in 2023||USD 8.43 Billion|
|Market Size by 2032||USD 15.37 Billion|
|Growth Rate From 2023 to 2032||CAGR of 6.9%|
|Forecast Period||2023 to 2032|
|Segments Covered||Animal type, Product, mode of administration, distribution channel, Country|
|Market Analysis (Terms Used)||Value (US$ Million/Billion) or (Volume/Units)|
|Report Coverage||Revenue forecast, company ranking, competitive landscape, growth factors, and trends|
|Key Companies Profiled||MSD; Ceva; Vetoquinol S.A.; Zoetis; Boehringer Ingelheim International GmbH; Elanco; Virbac; Calier; Bimeda, Inc.; Prodivet pharmaceuticals sa/nv|
The growing awareness about zoonoses, the humanization of pets, the availability of pet insurance, and R&D initiatives by market players are the key factors anticipated to fuel the market growth in the coming years. Boehringer Ingelheim, for instance, initiated over 450 clinical studies in 2020. The company received over 240 product authorizations that included approval for Aservo Equihaler in the EU for the alleviation of severe equine asthma. The impact of the COVID-19 pandemic on the European market was varied. The adverse effects include dampened demand, operational hurdles, and low sales. This was a result of movement restrictions, quarantine protocols implemented by governments, and deferred or canceled veterinary visits due to lockdowns. For instance, MSD’s (Merck) animal health division registered an estimated negative impact of about USD 100 million during 2020, whereas Elanco witnessed a 25% decline in revenue during Q2 2020. Elanco’s food animal products segment was the most affected due to pressured producer economics, processing plant closures, and reduced foodservice demand. Reduced demand for brands administered in veterinary clinics, notably vaccines, impacted the companion animal segment.
However, companies also recorded increased demand for pet medications and the adoption of telehealth. Boehringer Ingelheim, for instance, experienced a rise in product sales in the companion animal segment despite restricted access to veterinary clinics due to lockdown measures. However, the company reported a drastic decline in demand for its livestock products due to the closures of slaughterhouses and restaurants. In addition, the pandemic propelled the use of online channels, thus impacting customer buying patterns and promoting curb-side or virtual vet visits. As per Boehringer Ingelheim, therapeutic innovation is anticipated to boost the growth in the animal health business in the future.
Pharmaceutical drugs sold as prescription medications to treat pets may be needed for the short term or as a lifelong medication to improve the quality of life. As perAnimalhealthEurope, European households spent over EUR 2.7 billion on veterinary medicines in 2019. In order to help pet owners offset the high costs of veterinary medications and treatment, insurance companies have started offering custom or tiered pet insurance plans. Pet insurance policies provide a wide coverage including medication, tests, surgery, and diagnostics. For instance, Agria, the largest pet insurance provider in Sweden, provides coverage for several veterinary care procedures including prescription medicines as well as drugs purchased through online channels. The rising adoption of pet insurance is thus expected to fuel the market growth.
The availability and use of generic veterinary medicines are also growing as per the European Group for Generic Veterinary Products (EGGVP). This is owing to the expiry of patents and increasing R&D activities by small, medium, and large-sized market players to leverage the opportunity and increase their market share. The formulation patent for Draxxin (a product of Zoetis) containing the active ingredient tulathromycin expired in late 2020 in Europe and other key markets. Generic tulathromycin products are now marketed in several key markets such as Canada, Mexico, Europe, and Australia. Norbrook, based in the U.K., follows a product model that mainly involves using molecules already established in the pharmaceutical industry. The company’s R&D strategy focuses on offering its customers a balanced portfolio of veterinary pharmaceutical products by being the first generic to the market wherever possible.
Animal Type Insights
The companion animal segment dominated the market in 2022 with a share of over 54.0% owing to the rising prevalence of infections in pets and the rising awareness among pet parents. As per a 2021 study published in the BMC Veterinary Research Journal, the prevalence of common disorders diagnosed in dogs in the U.K. was found to be 14.13% for dental disorders and 12.59% for skin disorders. Despite the COVID-19 outbreak, Calier, part of the Indukern Group, reported a positive year for its companion animals segment. In fact, the company even launched an external parasiticide for dogs, cats, and ferrets- Dynacan Spot-On.
The demand for livestock pharmaceuticals is also anticipated to rise over the coming years due to demand for animal-based products, increasing meat consumption, and increasing global standards for quality and safety. In May 2021, Inovet, headquartered in Belgium, invested in new facilities in France, in response to the continued high demand for livestock medicines and to increase its production capacity. The new facilities include a sterile solution plant and new QC and R&D microbiology laboratories.
The anti-infectives segment held the largest share of over 38.0% in 2022. The segment is also estimated to witness the fastest growth in the coming years due to the increasing product developments and initiatives by market players. The parasiticides segment held the second-largest share in 2022. This was attributed to the high incidence of ectoparasitic and endoparasitic infections in animals and the wide availability of products.
In 2022, the anti-infectives and parasiticides segments of Zoetis together accounted for 37% of the company’s revenue. This was followed by the company’s dermatology segment and other pharmaceutical products. However, growing initiatives by key public health and regulatory agencies to regulate and reduce the use of antimicrobials in animals may restrict the market growth for certain product segments. The Committee for Medicinal Products for Veterinary Use (CVMP), for instance, is tasked with taking forward the EU’s One Health Action Plan against antimicrobial resistance by implementing the provisions of the Veterinary Medicines Regulation.
Mode Of Administration Insights
The parenteral segment held the largest share of over 40.9% in 2022. As per MSD Vet manual, the oral route of administration is frequently used in companion and food animals. The dosage forms include tablets, powders, capsules, boluses, granules, solutions, pastes, and suspensions. The oral route is also the most widely used in cattle, pigs, and poultry to administer pharmaceuticals. New oral administration methods for flea and tick control products are further improving pet care as these can offer a simpler and more convenient form of administration for pet owners.
The use of modified-release delivery systems such as intraruminal boluses is also gaining traction in ruminants to deliver parasiticides, antibloat agents, production enhancers, and nutritional supplements. Dipping livestock animals is one of the most popular modes of administration amongst farmers. This is owing to the method’s efficiency as a way to administer treatment such as those against ectoparasites. In addition, pour-on solutions and injectables help reduce the potential impact on the environment.
Distribution Channel Insights
The veterinary hospitals and clinics segment accounted for the largest share of over 52.0% in 2022 and is estimated to maintain its lead in the years to come as veterinary hospitals and clinics receive the most patients. In 2018, Mars Petcare- the largest operator of veterinary hospitals expanded into Europe with the acquisition of AniCura.AniCura is a chain of 200+ veterinary clinics and hospitals with operations in Norway, Denmark, Sweden, Austria, Switzerland, Germany, Spain, Italy, the Netherlands, France, Portugal, and Belgium.
The digital or e-commerce segment is estimated to witness the fastest growth over the forecast period. This is owing to the rising digitalization in the animal health industry, changing customer preferences, adoption of veterinary telehealth, and usage of e-commerce platforms as the preferred platform for purchases. Elanco reported a shift in the purchasing behavior of veterinarians, farmers, and pet parents to online channels. The company has thus identified continuous digital ecosystem enhancement as a key growth driver.
The U.K. held the largest share of more than 13.0% in 2022. The Netherlands is projected to expand at the highest CAGR during the forecast period. Some of the key factors contributing to the growth of the Netherlands market include the high awareness among pet owners regarding their pet’s health, high standards for securing food sources by safeguarding the health of livestock animals, and the presence of key companies such as Norbrook, Chanelle Pharma, and Boehringer Ingelheim.
In January 2021, the EU and the U.K. struck a provisional free-trade agreement. This ensured that the two sides could continue to trade goods without quotas or tariffs. Key details of the future relationship, however, remain uncertain, such as trade in services. This prevented a “no-deal” Brexit, which could have significantly damaged the country’s economy. The British Veterinary Association (BVA) too campaigned against a no-deal Brexit as it would leave the country with no time to transition and adjust. The BVA has also developed a set of key recommendations to secure the best possible outcome of Brexit for animal health that covers: animal welfare; veterinary medicines; veterinary workforce; food hygiene and safety; R&D; and trade.
Key Companies & Market Share Insights
The European market for veterinary medicines is competitive. Market players implement various strategic initiatives to expand their product portfolio, boost R&D, increase production capabilities, and widen their distribution network. Some of the strategic initiatives undertaken to achieve growth objectives include product development and launches, partnerships, mergers & acquisitions, and the expansion of the global footprint. According to Boehringer Ingelheim, the future of pet care is digital and is integrated. In May 2020, the company launched PetPro Tele+, in response to the COVID-19 pandemic as a standalone and telemedicine version of PetPro Connect. Large companies are thus investing in allied technologies and offerings to provide a comprehensive and integrated portfolio to their customers. Smaller market players are focused on developing and launching products from their key product lines. In July 2020, Calier launched Dynacan spot-on for ferrets, cats, and dogs. This added to the company’s antiparasitic products portfolio. Some prominent players in the Europe veterinary pharmaceuticals market include:
Segments Covered in the Report
This report forecasts revenue growth at country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2032. For this study, Nova one advisor, Inc. has segmented the Europe Veterinary Pharmaceuticals market.
By Animal Type
By Mode Of Administration
By Distribution Channel