The continuing “humanization” of companion animals and their treatment as family members,
plus veterinary technology that adapts techniques from human health care, will spur demand.
US consumer spending to
exceed $30 billion in 2016
US consumer spending on pet health
products and services is expected to
reach $30.9 billion in 2016, with over
three-fifths of expenditures accounted for
by services. The overall pet population
is expected to approach 218 million
animals, with 62 percent of US households
owning pets. Advances in pet
health expenditures will be encouraged
by the continuing “humanization” of
companion animals and their treatment
as family members. Veterinary technology
will also continue to adapt diagnostic
and treatment techniques from human
health care, stimulating value gains for
newer, more costly procedures.
Pet insurance spending to
post double-digit growth
Pet health services comprise veterinary
care, non-veterinary care, and pet
insurance. The fastest gains in pet
health service spending will remain in
pet insurance, with revenues expected to
advance more than 11 percent annually
through 2016 to $680 million. While
penetration rates will remain low, rising
spending on veterinary procedures will
encourage more pet owners to select
insurance coverage to help mitigate
costs.
Surgical and non-surgical veterinary
care will continue to dominate pet
health services, accounting for close to
three-quarters of spending. Surgical
revenues will remain the larger segment,
as these more costly procedures increasingly
see technology transfer from
human medicine, such as in dialysis and
organ transplants. Newly available
services typically cost significantly more
than established procedures, adding to
revenue gains. However, non-veterinary
pet care, including boarding and grooming,
accounts for significant spending as
pet owners opt for services such as
“doggy day care” to tend to pets while
owners are away at work or on vacation.
Online pharmacies, large
retailers, pet superstores
to gain market share
At the retail level, consumers are forecast
to spend $11.5 billion on pet health
products in 2016, supporting $5.6 billion
in manufacturers’ level sales. Online
pharmacies, pet superstores, and large
retailers including Wal-Mart will continue
to gain market share over veterinary
practices due to significant cost savings,
and major retail centers will dedicate
more floor space to pet products. The
most rapid gains will continue to be in
demand for dietary supplements due to
an ongoing focus on preventive health
care. Further contributing to growth will
be increases in age- and weight-related
medical conditions among pets, such as
arthritis, diabetes, and obesity.
Pharmaceuticals and parasiticides will
continue to dominate spending on pet
health products, accounting for a combined
63 percent of the market in 2016.
While these two product categories will
see the largest gains in demand, they
will be outpaced by advances for less
mature preventive products such as
dietary supplements, diagnostics, and
prescription food.
Study Scope
This study analyzes the $24.6 billion US pet health industry. It presents historical demand data for the years 2001, 2006 and 2011, and forecasts for 2016 and 2021 by service (e.g., veterinary care, non-veterinary pet care, pet insurance), product (e.g., pharmaceuticals, parasiticides, prescription food, dietary supplements, vaccines, diagnostics), condition (e.g., skin, heart, gastrointestinal, renal, arthritis) and animal (e.g., dogs, cats, birds, small animals).
The study also considers market environment factors, details industry structure, evaluates company market share and profiles 27 industry players, including Pfizer, Merial and Bayer.
