Veterinary Report

Topics: Veterinary medicine, Pet, Veterinarian Pages: 5 (1283 words) Published: October 27, 2014
September 2014
54194 - Veterinary Services in the US

54194 - Veterinary Services in
the US

Market Share

VCA Antech Inc. 5.5%

Key External Drivers
Number of pets (cats and
Per capita disposable
Per capita meat
Threat of disease in
Technological change for
the Generic Pharmaceutical
Manufacturing industry
National unemployment rate

Life Cycle Stage
Revenue Volatility
Capital Intensity
Industry Assistance
Concentration Level


Regulation Level
Technology Change
Barriers to Entry
Industry Globalization
Competition Level


This iExpert report presents only a fraction of the data available in IBISWorld’s full-length industry reports. For full reports, visit

54194 - Veterinary Services in the US

This chart shows the size of the markets
that buy the industry’s products or use its

September 2014 – IBISWorld iExpert

It is based on the proportion of revenue each
buying segment contributes to total industry

This chart represents the latest cost structure of
the industry. It shows the proportion of revenue
each cost item absorbs, with the remainder
representing profit.
The comparison to all other industries in the
sector provides a benchmark that shows how the
industry differs from its peers. | 1-800-330-3772 |

54194 - Veterinary Services in the US

September 2014 – IBISWorld iExpert

The Veterinary Services industry remained
resilient over the past five years largely
due to many pet owners regarding their
pet expenditures as vital, thereby boosting
revenue. For example, according to data
from the American Pet Products
Association (APPA), 68.0% of US
households owned a pet in 2014, up from
62.0% in 2012, thus spurring demand for
routine veterinary care. As the advent of
new medical technologies has shaped the
healthcare sector for humans, this trend
has also equipped veterinarians with more
diagnostic tools. Due to this trend,
veterinarians have increasingly specialized
their practice by offering ophthalmology,
internal medicine, surgery and dentistry,
among other specialties. Nevertheless, the
industry has grappled with some hurdles,
particularly due to many pet owners
having poor awareness of how frequently
their pet should receive routine care from
As a result, the number of pet owners
that did not visit a veterinarian increased
8.0% and 24.0% for dog and cat owners
from 2006 to 2011 (latest data available),
according to data from the American
Veterinary Medical Association (AVMA).
Still, dog and cat owners visited
veterinarians 2.6 and 1.6 times per year on

average, according to data from the
AVMA, which has buoyed industry
revenue. However, the industry has
grappled with intensifying competition
from alternative retailers, including online
and brick-and-mortar retailers that also
offer pet care products and medications.
Nevertheless, during the five years to
2014, industry revenue is expected to
increase at an annualized rate of 3.1% to
$33.9 billion, including an estimated 2.8%
rise in 2014. Profit is expected to rise from
10.2% of revenue in 2009 to 12.9% in
2014, as the industry has consolidated to
form larger, group practices that offer
more services in-house, such as surgery
and internal medicine, which enables
veterinarians to garner higher profit
During the five years to 2019, industry
revenue is forecast to grow at an
annualized rate of 4.5% to $42.2 billion.
Thanks to more pet owners purchasing pet
health insurance, more pet owners will be
able to afford high-cost procedures, such
as surgery. Furthermore, in line with pets
living longer, which can be partly
attributed to studies that have indicated
that neutered pets have longer lifespans,
demand for veterinary services will...
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