Market Trends of China Companion Animal Health Industry
Vaccines Contributed the significant Market Share Share in Terms of Revenues in the Therapeutics Segment
Vaccines are a crucial part of preventive healthcare for companion animals. They are categorized as core vaccines and non-core vaccines. Core vaccines are compulsory for all companion animals, whereas non-core vaccines are indicated by companion animal lifestyle or based on geographical area. In China, new advanced vaccines contain genetically engineered components derived from those disease agents. In dogs, rabies, distemper, hepatitis/adenovirus, parvovirus, and parainfluenza are the core vaccines, while Bordetella, leptospirosis, Lyme disease, giardia, and canine influenza H3N8 are the non-core vaccines. In cats, FVRCP (distemper) is the vaccine to protect against rhinotracheitis (feline herpes), calicivirus, and panleukopenia. Also, Rabies FeLV (feline leukemia) vaccines are given to cats.
Rising public organization initiatives in China to educate people about adopting stray animals are expected to drive the growth of the China Veterinary Healthcare market. For instance, in June 2021, Animal rights organizations in China opened a new welfare center to educate the public about animals and encourage the adoption of stray animals, even though there are no laws to protect them. This will further drive growth in caring for homeless animals, boosting this market.
Moreover, the vaccine segment is expected to be driven by vaccine innovations, growing awareness of animal health, increasing investments by government bodies and associations, and increased expenditure on the healthcare of companion animals. In September 2021, ACTAsia, a WSAVA Educational Partner, conducted rabies immunization clinics in Chinese villages. Further, growing research and development activities for developing animal vaccines are expected to propel the market's growth. For instance, in October 2022, Scientists in China rushed to create a vaccine for the most significant animal illness outbreak in history, the African Swine Flu. Scientists hope to have a pig vaccine ready for use by late 2024.
Thus, the rising adoption of vaccines in treating animal diseases and product launches by market players are expected to boost the segment's growth.
Dogs Segment Hold Significant Share in the Market Over the Forecast Period
Companion animals, such as dogs, provide companionship to human beings. The rising prevalence of diseases among animals and increasing companion animal ownership drive market growth.
Dogs are becoming popular pet companions among the elderly population, and younger people who are childless or single think that dogs are a better option. The majority of Chinese households have pets, including dogs and cats. Pet owners are also becoming increasingly concerned about the food they feed their animals because some pet meals can lead to health allergies and impair their general health and fitness. According to the Global Pets Data published in February 2023, there were 112.3 million urban dogs in China in 2021, an 11.4% rise from the previous year. In China, dogs aged 1 to 5 years account for 50.3% of all dogs, while older dogs account for 37% and pups for 12.7%. Hence, the country's massive population of dogs and cats is expected to increase adoption, thereby boosting the segment's growth.
Moreover, technological advancements in pet health, especially for dogs in China, are further expected to drive the segment's growth in China. For instance, in October 2021, JD Health expanded its telemedicine services to include dogs. JD Health and JD Pet had started "JD Pet Hospital," an O2O healthcare service platform that spans the entire lifespan of dogs, from disease prevention and diagnosis to comprehensive health management. The rising telehealth initiatives in veterinary health, especially for dogs and cats, are further expected to drive the growth of this segment in China.
Furthermore, the growing number of dog and cat care product launches is expected to boost the segment's growth. For instance, in March 2022, ADM introduced Equilibrio, a new premium pet food brand, to the Chinese market. The company offers meals that target particular health concerns, such as hairball control and digestive wellness, for dogs of all sizes and life stages.
Therefore, factors such as the increasing adoption of dogs and initiatives such as telehealth in veterinary medicine are expected to drive the growth of this segment in China.
