North America Animal Healthcare Market size exceeded USD 52.8 billion in 2020 and anticipated to expand at a CAGR of 4.2% from 2021 to 2027.
The surging prevalence of animal diseases and soaring demand to produce livestock animals will propel the market growth. This significant rise in the demand has triggered the market players to produce vaccines and therapeutics to curb pathogen contamination risks and the incidence of food-borne diseases that will fuel the market expansion.
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The surging adoption of pets along with growing disposable income and pet care will drive the market growth. The number of pet adoptions across the North American region has been steadily rising in recent years. Moreover, the number of pet adoptions witnessed a tremendous rise since the onset of the COVID-19 pandemic in Canada.
As per a research article, in 2020, since the onset of the pandemic, around 18% of the Canadians adopted a new pet. COVID-19 pandemic skyrocketed the pet adoptions throughout the region, majorly for companionship. Pets are regarded as a perfect companion for elderly people as they do not mandate exceptional nutrition and care. Pet adoption is also perceived to be beneficial in loneliness, depression, and low blood pressure. The increasing societal acceptance of pets and the soaring number of pet adoption are set to render a positive impact on the market revenue.
North America Market, By Product
The pharmaceuticals segment will register healthy growth of over 4.1% through 2027, owing to the increasing prevalence of multiple foodborne, zoonotic, and infectious diseases. Diseases such as cysticercosis, tuberculosis, anthrax, echinococcosis, and bovine brucellosis among other zoonoses are increasingly prevalent among the livestock animals.
According to the National Center for Biotechnology Information, around 60% of total known infectious diseases and more than 75% of emerging infectious diseases are zoonotic in origin. There has been a significant surge in the incidence of zoonotic diseases including SARS, rabies, and influenza among others. These diseases are increasingly fatal and inflict substantial animal mortality, further incurring losses in livestock.
North America Market, By Distribution Channel
The online distribution channel held substantial North America animal healthcare market share in 2020 and was valued at USD 16.5 billion. This substantial segment size is attributed to surging preference for e-commerce portals for purchasing animal healthcare products among pet owners.
As per a research article, the number of online pet product sales has grown significantly from 8% in 2015 to 30% in 2020. This accelerated growth is majorly due to changing pet owner preferences and the COVID-19 pandemic in 2020. Furthermore, the research highlighted the pet owners that reported their purchasing data through e-commerce segment, with around 59% orders from Amazon, 41% order from Chewy, and 33% order from Walmart. As the consumers get more convenient services and broad spectrum of choices, the preference for e-commerce is anticipated to proliferate in near future.
North America Market, By Animal Type
Companion animals segment size crossed USD 34 billion in 2020, due to the increasing pet adoption across the region, especially during the COVID-19 pandemic. For instance, according to the SPCA, in 2020, the cat adoption rose by 23% coupled with the dog adoption rising by 7% during the same period in Canada. As per the Frontiers in Veterinary Medicine, as compared to 2019, the pet popularity for both dog and cat adoption experienced exponential surge of up to 250% in 2020. Further, certain clinical studies have suggested the companion animal and human relationship is optimal for good mental health and may assist people suffering with depression and anxiety.
North America Market, By Country
U.S. animal healthcare market revenue was more than USD 47 billion in 2020. This dominant market size is pertaining to the increasing animal healthcare expenditure and the rising adoption of pets in the country.
According to the North American Pet Health Insurance Association (NAPHIA) reported that the pet health insurance premiums in the U.S. rose from USD 1.56 billion in 2019 to USD 1.99 billion in 2020. Moreover, this expenditure has been growing consistently at an average growth rate of 24.2% from 2016 to 2020. As per the American Pet Products Association (APPA) survey, from 2019-2020, approximately 67% of the U.S. households (around 85 million families) own a pet, up from 56% in 1988. Thus, the significant rise in pet population in the U.S is set to promote the demand for animal healthcare. Moreover, presence of well-established players in the market is contributing positively to the market growth.
Competitive Industry Landscape
Some of the major players involved in the industry include Elanco Animal Health, Bayer AG, Boehringer Ingelheim, Merck & Co., Inc., Zoetis, Inc., Dechra Pharmaceuticals, and Neogen Corporation among others. These companies are implementing several organic and inorganic strategies such as product launches and partnerships for garnering maximum market share and strengthening their industrial presence.