U.S. Companion Animal Health Market Size, Share & Trends Analysis Report, By Animal Type (Dogs, Cats), By Product (Vaccines, Pharmaceuticals, Supplements), By Distribution Channel, By End Use, And Segment) - Industry Analysis, Size, Share, Growth, Trends, and Forecast 2024-2033

U.S. Companion Animal Health Market Size and Trends

The U.S. companion animal health market size was exhibited at USD 13.19 billion in 2023 and is projected to hit around USD 28.32 billion by 2033, growing at a CAGR of 7.94% during the forecast period 2024 to 2033.

Key Takeaways:

• The dogs segment accounted for the largest revenue share of 66.19% in 2023.
• The cat segment is expected to grow at the fastest CAGR over the forecast period.
• The pharmaceutical segment accounted for the largest revenue share of 44.09% in 2023.
• Hospital/ clinic pharmacies dominated the market with a share of 59.08% in 2023.
• The E-commerce segment is expected to register the fastest CAGR over the forecast period.
• Hospitals & clinics dominated the market with a share of 60.09% in 2023.

Report Scope of The U.S. Companion Animal Health Market

The market is primarily driven by the growing pet population and spending, increasing pet humanization, growing efforts by key market players, rising popularity of pet insurance, and the increasing rate of medical care for pets. For instance, According to the 2022 Pet Ownership & Demographic Sourcebook from the American Veterinary Medical Association (AVMA), more than 75% of dogs and over 60% of cats had veterinary visits the previous year. The expected increase in veterinary visits or medicalization rate is anticipated to drive the demand for the U.S. market during forecast period.

Diabetes mellitus is a chronic condition not just in humans but also in pet animals, leading to severe threats such as cataracts, urinary tract infections, seizures, kidney failure, and enlarged liver. Timely diagnosis and treatment for diabetes are required to prevent such potentially life-threatening conditions. The number of dogs and cats developing diabetes mellitus is estimated to be significantly higher in recent years, expected to drive demand for the U.S. companion animal health market. According to an article published in PetMD in April 2022, in 2020, it is estimated that, 1 in every 300 dogs and 1 in 230 cats develop diabetes during their lifetime. Similarly, in 2021, the Med Trust report stated that 3 out of 500 dogs and 6 out of 500 cats are prone to diabetes. In addition, Merck Animal Health reported in 2015 that the prevalence of diabetes among pets has tripled in the past 30 years. 

The pet population has been significantly growing over the years in various regions. Most common pet animals, such as dogs & cats, are valued for providing better companionship to humans. Pets have become a part of each household due to their various benefits, such as psychological comfort, reduction of stress & depression among adults, and helping humans overcome anxiety. Such factors have increased pet ownership and pet humanization in various countries. According to an article published in PetMD in April 2023, 1 in every 300 dogs and 1 in 230 cats develop diabetes during their lifetime. Similarly, in 2021, the Med Trust report stated that 3 out of 500 dogs and 6 out of 500 cats are prone to diabetes. In addition, Merck Animal Health reported in 2015 that the prevalence of diabetes among pets has tripled in the past 30 years.

U.S. Companion Animal Health Market By Animal Type Insights

The dogs segment accounted for the largest revenue share of 66.19% in 2023. Dogs are one of the most popular pets in the U.S. In 2023, 56% of Americans reported having a dog in their household, indicating a significant increase in dog ownership compared to previous years. Dogs often require more frequent veterinary care than other pets due to their susceptibility to various health issues such as infections, injuries, genetic disorders, and age-related ailments. According to the data published in December 2023 by the American Veterinary Medical Association (AVMA), respiratory illness affecting dogs in the U.S. is ongoing, with multiple states reporting cases and researchers working to identify the cause & potential treatments.

The cat segment is expected to grow at the fastest CAGR over the forecast period. Cats are frequently considered low-maintenance pets as they do not need special training for basic self-cleaning & hygiene. The significantly growing cat adoption rate with rising demand for feline-specific drugs are factors driving the key players to make significant investments in feline-related R&D. For instance, in Jan 2022, Zoetis, received FDA approval for its first breakthrough monoclonal antibody injection for feline species. This Solensia Mab injection is now intended to treat osteoarthritis pain in the cat population.

U.S. Companion Animal Health Market By Product Insights

The pharmaceutical segment accounted for the largest revenue share of 44.09% in 2023. Advancements in pet medicine, including new drugs and treatments, provide more options to manage health conditions and are expected to drive pharmaceutical demand. Positive FDA reviews for medications that extend pet lifespans, such as a recent dog lifespan extension drug, are likely to boost demand as owners seek to improve their animals' well-being and longevity. For instance, in December 2023, Loyal, a biotech company, received positive feedback from the FDA for its drug LOY-001, which aims to extend the lifespan of large dog breeds. The affordable, veterinarian-administered drug could be available by 2026 through a conditional approval process.

The other segment is the market's fastest-growing segment; its categories include telehealth software. The U.S. has seen a steady increase in pet ownership, leading to a more extensive customer base seeking companion animal services. Pet telehealth software provides a convenient option for pet owners to connect with veterinarians for advice, diagnosis, and treatment recommendations. For instance, In October 2023, Amazon offered veterinary telehealth services to compete with Walmart's recent launch of a similar service. This reflects the booming pet market, where pet health is a key growth driver. The competition between significant retailers is expected to drive innovation and expand service offerings in the expanding U.S. companion animal health market.

U.S. Companion Animal Health Market By Distribution Channel Insights

Hospital/ clinic pharmacies dominated the market with a share of 59.08% in 2023. This segment represents the revenue generated by veterinary hospitals & clinics, which directly provide medications, vaccines, customized therapies, and diagnostic test kits to pet owners. The expansion of vet pharmacy networks by crucial players, shown by Vets Pets' initiative in North Carolina, is expected to drive growth in the U.S. companion animal health market. For instance, in February 2024, Vets Pets, a cooperative network of veterinary hospitals in North Carolina, introduced its pharmacy initiative led by young pharmacists to enhance pharmacy-related patient care and client service for their 100+ veterinarians.

The E-commerce segment is expected to register the fastest CAGR over the forecast period. This growth can be attributed to the convenience of purchasing medications online, the wide variety of products available, the ability to compare prices, and the competitive pricing strategies employed by e-commerce platforms. For instance, in May 2023, Giant Eagle Inc. partnered with Allivet, a digital pet pharmacy, to integrate its PetRx platform into the grocery store's online options, offering customers quick delivery, discounts on pet healthcare products, and an AutoShip service for scheduled deliveries to pet owners.

U.S. Companion Animal Health Market By End-use Insights

Hospitals & clinics dominated the market with a share of 60.09% in 2023. Veterinary hospitals educate pet owners on the importance of medications and diagnostics for pet health, encouraging them to seek effective treatments. Advancements in companion animal medicine, including diagnostic tools and treatment techniques, contribute to the growth and sophistication of veterinary clinics. For instance, in March 2023, Zoetis expanded its Vetscan Imagyst platform with AI-powered dermatology diagnostics and equine fecal egg count assessment. These new tests complement existing AI fecal analysis, blood smear analysis, and digital cytology tools, providing comprehensive in-clinic diagnostics connected to cloud-based AI capabilities.

Point-of-care testing in veterinary medicine involves using various products to conduct preventive or diagnostic tests at the site where the pet receives care, such as a veterinary clinic or a pet’s home. Point-of-care testing allows tests to be performed at the site where the pet receives care, eliminating the need to visit a separate laboratory or clinic. For instance, in July 2023, the Vetster platform, in collaboration with MySimplePetLab, introduced veterinary rapid diagnostic tests for home use. This strategic move aims to create a seamless spectrum of veterinary care, especially for nonurgent cases, thereby reducing the stress associated with in-clinic visits.

Some of the prominent players in the U.S. companion animal health market include:

• Merck & Co., Inc.
• Elanco
• Boehringer Ingelheim GmbH
• Ceva Santé Animale
• Zoetis
• Virbac
• IDEXX Laboratories, Inc.
• Mars Inc.
• Dechra Pharmaceuticals Plc
• Vetoquinol S.A.

U.S. Companion Animal Health Market Recent Developments

• In January 2024, IDEXX Laboratories expanded its Fecal Dx antigen testing platform to include Cystoisospora, a common intestinal parasite in young dogs and cats. This provides early and accurate detection alongside other common parasites.
• In January 2024, Ceva Santé Animale acquired Scout Bio, a leading biotechnology firm specializing in advanced pet therapies. This acquisition marks a substantial advancement for Ceva, granting access to groundbreaking treatments such as monoclonal antibodies and gene therapy aimed to tackle chronic pet diseases.
• In November 2023, Antech introduced advanced diagnostic solutions such as KeyScreen and AIS RapidRead to enhance pet healthcare outcomes across the UK veterinary community.          

Segments Covered in the Report

This report forecasts revenue growth at country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Nova one advisor, Inc. has segmented the U.S. companion animal health market

By Animal Type 

• Dogs
• Cats

By Product 

• Vaccines
• Pharmaceuticals
  • OTC
  • Prescription
• Supplements
• Diagnostics
• Others

By Distribution Channel

• Retail
• E-commerce
• Hospital/ Clinic Pharmacies
  • Independent
  • Corporate

By End Use 

• Hospitals & Clinics
• Point-of-Care
• Others