Market Trends of Veterinary Reference Laboratory Industry
The Companion Animal Segment is Expected to Hold a Significant Market Share During the Forecast Period
The companion animal segment is expected to hold a significant share of the veterinary reference laboratory market due to the high prevalence of chronic and infectious diseases in companion animals, growing pet adoption, and increasing life expectancy, further increasing the risk of diseases. For instance, according to an article published by Cancer Letter Inc. in May 2024, around 6 million pet dogs are expected to be diagnosed with cancer in the United States in 2024. Thus, the huge prevalence of cancer in companion animals is expected to increase the usage of veterinary reference laboratories.
According to the data published by Animal Medicines Australia (AMA) in November 2022, Australia spends over USD 33 billion annually to keep pets healthy, nourished, and well-accessorized. Of the USD 33 billion spending, 14% is spent on veterinarians and 9% on healthcare products. According to the same source, the annual household spending for veterinarian services and healthcare products for dogs was USD 631 and USD 323, respectively, in Australia in 2022. Similarly, the annual household spending for veterinarian services and healthcare products for cats was USD 388 and USD 280, respectively, in Australia in 2022. Thus, the rising pet care expenditure is also expected to enhance the segment's growth.
According to Der Deutsche Heimtiermarkt data published in April 2024, 45% of the households in Germany had pets in 2023, including 34.3 million dogs, cats, small animals, and ornamental birds. Also, as per the same source, the number of cats adopted was higher in Germany compared to the adoption of dogs. About 15.7 million cats live in 25% of German households, compared to 10.5 million dogs in 21% of households in 2023. Thus, the rising pet adoption is also expected to boost segment growth.
Hence, factors such as the rising prevalence of various chronic and infectious diseases in companion animals and the growing pet adoption are expected to boost the segment's growth.
North America is Expected to Have a Significant Market Share During the Forecast Period
North America has held a significant share in the veterinary reference market. It is expected to show the same trend during the forecast period due to the large animal population (especially pets), increasing disease burden, better veterinary care and services, and increasing veterinary healthcare expenditure in the region.
According to the Canadian Animal Health Institute (CAHI) data in September 2022, more than half of Canadian households (60%) owned at least one dog or cat in 2022. The data also detailed that the dog population increased to 7.9 million while the cat population increased to 8.5 million in 2022. Thus, with a large population base of animals, the burden of cancer among animals is expected to be higher, which is anticipated to drive growth in the region.
In North America, the United States is expected to hold a significant share of the veterinary oncology market as the country has one of the highest numbers of animals in the region, coupled with high animal health expenditure and a high burden of animal cancer cases. For instance, according to the 2023-2024 American Pet Product Association (APPA) National Pet Owners Survey, in 2023, about 66% of the United States households owned a pet, i.e., about 86.9 million homes, and cats and dogs were the major pets with a total population of 46.5 million and 65.1 million, respectively. As per the same source, pet owners spent about USD 242 for dogs and USD 178 for cats for routine vet visits. Pet healthcare spending was expected to rise 3-4% annually in the United States. This data shows the presence of a large pet population in the country and spending on them, which is usually high compared to other regions.
The developments by key market players are also expected to boost the market's growth. For instance, in April 2023, Mars Inc. agreed to purchase the veterinary diagnostics business Heska for USD 1.3 billion to strengthen its position in pet care. This acquisition enabled the provision of point-of-care equipment from Heska to March Inc., which includes the largest veterinary reference laboratories. Thus, such initiatives are anticipated to drive market growth.
Hence, factors such as the rising prevalence of various animal diseases, the growing pet adoption, and the increasing developments by key market players are expected to boost the market's growth in the region.
