The global Veterinary Services market is estimated to be worth c.$148.8 billion in 2024 and is expected to grow at a CAGR of 6.9% to reach c.$194.3 billion by 2028.1
A number of market drivers are setting the scene for further consolidation activity, despite greater oversight from regulatory bodies both in the UK and internationally. As the sector continues to be transformed by groundbreaking advancements in tech-enabled veterinary care, this will underpin further dealmaking in the near term.
Key growth factors include:
- Rising pet ownership increasing demand for veterinary care: In the US (70%), UK (60%) and Europe (nearly 50%) of households' own pets, with covid-19 lockdowns increasing uptake2
- Increased Spending on Pet Care: Working from home has led to owners spending more time with their pets, leading to increased spending on products and veterinary services to extend lifespans.
- Technological Advancements in Veterinary Medicine: Technologies used in human healthcare, such as MRI, wearable devices, AI diagnostics and record management are now being adopted.
- Rising veterinary costs prompts pet insurance growth:North America saw 16.7% annual growth in pet insurance, with 6.3 million insured pets in 2023, whilst the global pet insurance remains untapped and offers significant growth potential.3
With regulatory bodies focusing on market consolidation, numerous opportunities are still emerging in this still highly fragmented market.
To learn more about the key M&A trends taking shape this year in the Veterinary space, read our latest paper.
Footnotes
1. The BRC – Global Veterinary Services Market Report 2024
2. IBISWorld – Veterinary Services Market Report 2024
3. North American Pet Health Insurance Association Market Report 2024
Originally published 29 July 2024
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