Animal Healthcare Market Size, Share, and Trends 2025 to 2034

Animal Healthcare Market Size and Forecast 2025 to 2034

The global animal healthcare market size is estimated at USD 67.03 billion in 2024 and is anticipated to reach around USD 159.56 billion by 2034, expanding at a CAGR of 9.06% from 2025 to 2034.

Animal Healthcare Market Key Takeaways

• North America dominated the animal healthcare market with the largest market share of 34% in 2024.
• Asia Pacific is expected to grow at a double digit CAGR of 12.4% during the forecast period. 
• By end-use, the veterinary reference laboratories segment contributed the highest market share of 81% in 2024.
• By end-use, the point of care testing/in-house testing segment is projected to grow at a solid CAGR during the forecast period.
• By distribution channel, the hospital/ clinic pharmacy segment generated the highest market share in 2024.
• By animal type, the production animal segment led the global market in 2024.
• By product, the pharmaceutical segment accounted for the largest market share of 44% in 2024.

Impact of Artificial Intelligence in Animal Healthcare Industry

The integration of AI in animal health (AH) helps manage complex concepts such as epidemiology and prediction, animal treatment, and host-pathogen interactions. Veterinarians are integrating AI into their applications primarily for diagnostic imaging and medical record management. AI-driven monitoring systems can analyze large amounts of data with high efficiency to detect animal health problems or abnormal behaviors early. 

This tool reduces the workload of farmers and veterinarians. The most successful AI applications use clinical data and deep learning to diagnose diseases. X-rays, CT scans, and MRIs are used to create AI-driven algorithms that can accurately analyze medical images. Real-time animal monitoring through AI-based analytics can help improve animal health and save lives. Remote monitoring allows veterinarians to detect early signs of stress and intervene quickly, contributing to the growth of the animal healthcare market.

• For Instance, In May 2024, Modern Animals announced the introduction of AI-powered development for its medical software Claude. Designed to simplify the management process for veterinarians, these new products will improve the quality of care for the approximately 60,000 pets and their families who rely on the Veterinary Health Network for care. 

U.S. Animal Healthcare Market Size and Growth 2025 to 2034

The U.S. animal healthcare market size was evaluated at USD 17.09 billion in 2024 and is predicted to be worth around USD 41.56 billion by 2034, rising at a CAGR of 9.29% from 2025 to 2034.

North America dominated the animal healthcare market with the largest market share of 34% in 2024. This is attributed to a wide range of concrete initiatives taken by government animal welfare organizations that are continually trying to enhance animal health. In addition, technological advances, an increase in the number of pet owners, and an increase in the frequency of zoonotic diseases are likely to drive the animal healthcare market expansion in this region.

Asia Pacific is expected to grow at a double digit CAGR of 12.4% during the forecast period. This region’s rapid growth is thought to be the result of constant research and development investments by major companies in the animal healthcare market as well as their efforts to sell branded and generic treatments at affordable rates.

The governments all across the world are focusing on enacting and enforcing stronger animal healthcare legislation and regulations. The animal healthcare market growth will be supported by animal adoption and protection, improved treatment facilities, emergency healthcare systems, vaccination drives, immunization programs for animal healthcare, and birth control. The financial support for animal shelters as well as funding for multiple veterinary research laboratories dedicated to containing advanced zoonotic and foodborne diseases, will help the animal healthcare market growth significantly.

Animal Healthcare Market Growth Factors

• The growth and adoption of various innovations, including smart collars and tracking devices, pet cameras, automated food and beverage systems, smart pets, and animal health technology, has revolutionized both small and large farms, leading to new growth in the animal healthcare market. 
• Pet humanization evolution has increased the demand for food, health, and services, increasing loneliness in the population and decreasing birth rates are increasing the demand for animals, leading to the growth of the animal healthcare market.
• Improvement in veterinary procedures will help veterinarians determine appropriate and recommended treatments for specific conditions, which will in turn lead to the growth of the animal healthcare market.
• Pet owners’ preference for vaccinations supported by screening has also led to growth in the field of pet testing.
• Strengthen the governance system, simplify the approval process, strengthen product inspection, and implement post-market surveillance to ensure product quality enters the market and support the growth of the animal healthcare market.
• For Instance,
• In October 2024, Minister of Fisheries, Animal Husbandry and Dairying Shri Rajiv Ranjan Singh, aka Lalan Singh, announced the Communicable Diseases Programme titled “Animal Health Security Strengthening in India for Pandemic Preparedness and Response” in New Delhi. The Pandemic Fund Project is a $25 million initiative funded by the Pandemic Fund. 

Market Scope

Product Insights

The pharmaceutical segment accounted for the largest market share of 44% in 2024. On the basis of continuing improvements in veterinary pharmaceuticals, it is expected to maintain its dominant position during the projection period. The anti-inflammatory medications, antibiotics, parasiticides, and other pharmaceuticals are among the most common.

The veterinary diagnostics segment, on the other hand, is predicted to develop at the quickest rate in the future years. The expanding number of veterinary practitioners and their incomes in industrialized nations, rising animal health expenditure, and increased zoonotic diseases incidence are all contributing to segment expansion.

Animal Type Insights

the production animal segment led the global market in 2024. The segment’s significant market share can be attributed to government healthcare organizations’ worldwide concern for food safety and sustainability.

The companion animal segment is the fastest growing segment of the animal healthcare market in 2023. The policymakers in numerous countries are aiming for overall food security, which encourages large scale food production and increases animal husbandry.

Distribution Channel Insights

The hospital/ clinic pharmacy segment generated the highest market share in 2024. The segment’s growth has been aided by an increase in the number of hospital pharmacies as well as a high procedural volume as a result of frequent readmission of pets for treatment.

The retail pharmacies segment is fastest growing segment of the animal healthcare market in 2024. For the distribution of drugs and vaccines, major producers rely solely on certified veterinarians and authorized wholesalers.

End Use Insights

The veterinary reference laboratories segment contributed the highest market share of 81% in 2024. The segment’s leading market share is due to a variety of applications including clinical pathology, toxicological tests, and therapy. In veterinary hospitals and clinics, the provision of a wide range of therapeutic and diagnostic solutions is a high impact rendering growth driver for this industry.

The point of care testing/in-house testing segment is projected to grow at a solid CAGR during the forecast period. The climatic change and globalization are predicted to increase the frequency of zoonotic illnesses, which will boost demand for diagnostic procedures which will drive the point of care testing/in-house testing segment in the next years.

Animal Healthcare Market Companies

• Elanco
• Bayer
• Dechra Pharmaceuticals
• Neogen
• Boehringer Ingelheim
• Merck & Co, Inc.
• Zoetis
• Nutreco N.V.
• Virbac
• Vetquinol S.A.

Recent Developments

• In April 2023, Minister of State for Fisheries, Livestock and Food, Mr. Parshottam Rupala, launched the Animal Health System Support Program (APPI) and the World Bank-funded Animal Health System Support Program Health (AHSSOH) project in New Delhi, India. Under the auspices of the National Joint Health Mission of the Ministry of Health.
• In December 2023, Zenex, India’s leading healthcare company, announced that it has acquired 100% of Ayurvet. Ayurvet is a company founded by Mr. Pradip Burman, who combines the ancient knowledge and wisdom of Ayurveda with modern technology to provide quality Ayurvedic and herbal medicines, nutritional supplements, and cosmetics for businesses operating in the agriculture and livestock sector.
• In July 2024,  Merck Animal Health, announced the acquisition of the aquaculture business of Elanco Animal Health Incorporated. The completion of this acquisition strengthens Merck Animal Health’s position in the aquaculture sector and is focused on supporting fish health, welfare, and sustainability in aquaculture, conservation, and fisheries.
• In October 2024, Phibro Animal Health Inc. announced the completion of the acquisition of Zoetis Inc.'s nutritional supplements and select water-soluble products portfolio. The acquisition is an important step in Phibro’s mission to improve animal health and nutrition for a better life and a more sustainable world.
• In March 2024, Boehringer Ingelheim announced the acquisition of Saiba Animal Health AG, a company focused on innovation for chronic animal diseases. As animal life expectancy increases, so does the need for effective treatment of debilitating diseases. 
• In April 2024, Zoetis Inc. and Phibro Animal Health Corporation today announced that they have entered into a definitive agreement under which Phibro Animal Health will acquire Zoetis™ Medicinal Feed Additive (MFA) products, certain water-soluble products, and assets for an amended value of $350 million.

Segments Covered in the Report

By Animal Type

• Production Animal
• Poultry
• Swine
• Cattle
• Fish
• Others
• Companion Animal
• Dogs
• Cats
• Horses
• Others

By Product

• Vaccines
• Live Attenuated Vaccines
• DNA Vaccines
• Recombinant Vaccines
• Inactivated Vaccines
• Others
• Pharmaceuticals
• Parasiticides
• Anti-infective
• Anti-inflammatory
• Analgesics
• Others
• Feed Additives
• Diagnostics
• Instruments
• Consumables
• Equipment and Disposables
• Critical Care Consumables
• Anesthesia Equipment
• Fluid Management Equipment
• Temperature Management Equipment
• Rescue & Resuscitation Equipment
• Research Equipment
• Patient Monitoring Equipment
• Others
• Veterinary Telehealth
• Veterinary Software
• Livestock Monitoring

By Distribution Channel

• Retail Pharmacy
• E-commerce
• Hospital Pharmacy

By End Use

• Reference Laboratories
• Point of care testing/ in-house testing
• Veterinary Hospitals & Clinics 
• Others

By Treatments

• Allergies
• Arthritis
• Difficult Dermatology Cases
• Gastrointestinal Disease
• Others

By Geography

• North America
• U.S.
• Canada
• Europe
• U.K.
• Germany
• France
• Asia-Pacific
• China
• India
• Japan
• South Korea
• Malaysia
• Philippines
• Latin America
• Brazil
• Rest of Latin America
• Middle East & Africa (MEA)
• GCC
• North Africa
• South Africa
• Rest of the Middle East & Africa