Europe Animal Healthcare Market is Estimated to Witness High Growth Owing to Rising Pet Care Expenditure
Animal healthcare products provide veterinary care through preventing, diagnosing and treating various diseases in livestock and companion animals such as dogs, cats, horses and others. Animal healthcare products include biologics, pharmaceuticals, medicated feed additives and others. These products ensure the optimal health of livestock and companion animals by diagnosis and treatment of various diseases. Rising pet care expenditure and increasing awareness regarding animal welfare are significantly driving the demand for animal healthcare products in the Europe region.
The global Europe Animal Healthcare Market is estimated to be valued at US$ 14,096.3 Mn in 2023 and is expected to exhibit a CAGR of 4.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity
The rising pet care expenditure in Europe region is driving the growth of animal healthcare market. According to the American Pet Products Association, the total European pet industry expenditure was US$ 114.2 billion in 2020. Out of the total expenditure, pet food and treats accounted for 38% of total spending while veterinary care services accounted for 20% of total spending. The rising pet ownership and growing humanization of pets have led to increased spending on animal healthcare products and services in the region. This increasing pet care expenditure contributes to the growth of Europe animal healthcare market over the forecast period.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as the market is at the growth stage and requires significant investment in R&D, manufacturing facilities and brand recognition. However, new digital technologies may enable easier entry for new digital players.
Bargaining power of buyers: The bargaining power of buyers is moderate as the buyers have the option to choose from various animal healthcare product manufacturers. However, switching costs are low.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as the key raw materials include pharmaceutical ingredients which have few substitute options. However, the suppliers are fragmented.
Threat of new substitutes: The threat of new substitutes is low as animal healthcare products have limited substitutes. However, alternative treatment options may emerge.
Competitive rivalry: The competitive rivalry is high due to the presence of many global and local players competing on basis of product quality, pricing and innovation.
SWOT Analysis
Strength: Wide availability of vaccines and pharmaceuticals. Rising adoption of pet insurance heightens demand. Developing e-commerce channels aid faster access.
Weakness: Heavy R&D dependence slows product pipelines. High capital requirements pose entry barriers.
Opportunity: Growing pet humanization and expenditure. Untapped rural areas offer scope. Digital tools can enhance diagnostics and compliance.
Threats: Stringent regulations on drug approval. Economic slowdowns curb spending.
Key Takeaways
The European animal healthcare market is expected to witness steady growth over the forecast period supported by rising pet ownership, increasing per capita animal healthcare expenditure, growing animal food expenditures, rising demand for protein, and increasing meat consumption in the region.
Regional analysis: The European animal healthcare market is dominated by Western Europe led by Germany, France, UK, Italy, and Spain. These countries collectively account for over 70% of the total European animal healthcare market revenue. However, the Eastern European region is expected to be the fastest growing market during the forecast period led by Russia, Poland, and other countries.
Key players operating in the European animal healthcare market are Merck & Co., Inc., Virbac, Dechra Pharmaceuticals Plc., Vetoquinol S.A., Zoetis Inc., Ceva Santé Animale, Bayer AG, Elanco, Evonik Industries AG, and Archer Daniels Midland Company
