PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1576978
PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1576978
Global veterinary API market is projected to witness a CAGR of 7.01% during the forecast period 2024-2031, growing from USD 8.37 billion in 2023 to USD 14.39 billion in 2031. The market's growth is supported by rising prevalence of zoonotic diseases, increasing demand for animal products, growing pet adoption, and rising emphasis on the development of vaccines. In February 2024, a Europe-led international collaboration was set up to develop an effective and safe vaccine for pigs to combat the African swine fever. The project is led by HIPRA S.A., a biotech pharmaceutical company based in Spain and supported by the European Union. Such initiatives and efforts are expected to boost the global veterinary API market size.
The growing pet ownership and increasing awareness about animal health among the general public are also providing lucrative growth opportunities to the market. This growth can be attributed to the changing lifestyle and increasing disposable incomes. Pets are also known to reduce anxiety and stress and provide loyalty and companionship to their owner, who in turn become invested in their health and well-being and ensure they receive proper vaccinations and treatments. Some of the common diseases against which these companion animals receive vaccination include infectious canine hepatitis, parvovirus, kennel cough, rabies, and leptospirosis.
Additionally, the increasing consumption of animal-based products is one of the major global veterinary API market trends. According to the estimates of the India Brand Equity Foundation (IBEF), India's milk production capacity is expected to reach 330 million tons in 2024.
Government Investments Support Market Expansion
The rising investments by various governments towards the development of different vaccines against animal diseases is propelling the growth of the market. In August 2024, the government of Saudi Arabia announced an investment of USD 46 million (SR 175 million) towards the construction of a cutting-edge veterinary laboratory for developing vaccines to combat veterinary diseases. The laboratory is part of the country's initiative for producing and developing veterinary vaccines for local disease strains and will serve as a hub for controlling and monitoring the spread of diseases among animals by identifying causes of various diseases through DNA sequencing and conducting specialized laboratory tests. The research is expected to boost the production of local vaccines, bolstering the requirement for veterinary APIs. This laboratory is also expected to allow scientists to update the standard methods of animal disease detection and align them with the standards of the World Organization for Animal Health.
Increasing Prevalence of Zoonotic Diseases Boosts Market Demand
The rising cases of zoonotic diseases can be attributed to the increasing wildlife exploration, urbanization, climate change, and tourism. According to the estimates of the Council on Foreign Relations, approximately 75% of emerging or new infectious diseases and 60% of the known infectious diseases are zoonotic in origin. Zoonotic diseases have the potential to cause harm to both humans and animals. Zoonoses responsible for 2.7 million human deaths every year, across the globe. The requirement for effective therapeutic solutions that allow the recovery of the diseased animal by reducing the severity of the symptoms and targeting specific pathogens is rising which in turn is propelling the global veterinary API market growth. Additionally, various countries, companies and research institutes are increasingly collaborating to support the development of the required therapeutic solutions and vaccines and implementing disease control programs.
Vaccines Hold Significant Market Share
Due to the increasing requirement for animal products, various academic and research institutions, companies, and government institutions are actively investing in the development of veterinary vaccines. The efforts of extended partnerships among the global companies are tailored towards a wide range of animals including sheep, pigs, goats, cattle, and pets and are expected to safeguard livestock and improve animal health. In 2022, Indian Immunologicals Limited announced that they were expanding their operations in New Zealand through their subsidiary Pristine Biologicals Inzi Limited. They also announced an investment of USD 83.37 million (INR 700 crore) for setting up a new veterinary vaccine manufacturing facility in Hyderabad, India and create employment for approximately 750 individuals. Additionally, the rising research efforts of various institutes across the globe are also supporting the development of novel vaccines. In July 2024, the Marconi Laboratory of the Virginia Commonwealth University School of Medicine announced that their researchers are in the final stage of developing a vaccine and new diagnostic tests for leptospirosis, a potentially deadly zoonotic infection. Such developments and investments are expected to bolster the global veterinary API market demand.
North America Accounts for Significant Market Share
The growth of the veterinary API market in North America is supported by the increasing prevalence of zoonotic diseases, strong presence of key market players, and growing adoption of pets in the country. As per the estimates of the World Animal Foundation, over 4 million pets that are surrendered to animal shelters are adopted every year in the United States. Due to this trend, the demand for veterinary APIs is significantly increasing in the United States as pet parents are known to invest heavily in the health and well-being of their companion Animals. The American Pet Products Association (APPA) projects that USD 150.6 billion worth of sales will occur in pet industry in the Unites States in 2024, of which USD 32 billion worth of sales will occur for supplies, live animals, and over the counter medicines, augmenting the demand for veterinary APIs. Additionally, the number of veterinarians practicing in the country is also increasing, the US Bureau of Labor Statistics estimates that the employment of veterinarians is estimated to grow 20% in the United States from 2022 to 2032. This increase is expected to provide lucrative growth opportunities to the market by propelling the requirement for veterinary APIs.
Future Market Scenario (2024-2031F)
As per the global veterinary API market analysis, increasing efforts of various institutions to boost the development of veterinary vaccines are expected to positively influence the market's expansion. Furthermore, the rising consumption of animal products is also anticipated to propel the requirement for veterinary APIs. According to the estimates of the Organization for Economic Co-operation and Development, the world per capita consumption of fresh dairy products is estimated to witness an increase of 1.2% per annum in the coming decade.
Due to the growing incidence of zoonotic diseases and increasing consumer awareness about the welfare of animals, various organizations are increasingly investing towards the health and well-being of the animals and introducing measures to prevent the outbreak of diseases. Such measures are expected to propel the requirement for different pharmaceuticals, which in turn will increase the global veterinary API market demand.
Key Players Landscape and Outlook
Rising collaborations between the key players of the market to ensure the development of different products to expand their customer base is supporting the growth of the market. In October 2023, SUAN FARMA S.A.U. announced that they had collaborated with Reyoung Pharmaceutical Co., Ltd. to expand their existing portfolio of antibacterial and anti-infective products. The bilateral agreement between the two companies is expected to support the production of the APIs. The former is committed to producing accessible raw materials that are produced in accordance with the requirements of the different regulatory bodies.
In October 2023, SUAN FARMA S.A.U and Willow Biosciences Inc. announced collaboration for a cell line productivity optimization development program to manufacture large quantities of APIs through precision fermentation. With this partnership, SAUN FARMA now has access to Willow's strain optimization techniques, this will allow them to increase the cost efficiency of their production processes.
All segments will be provided for all regions and countries covered
Companies mentioned above DO NOT hold any order as per market share and can be changed as per information available during research work.