Veterinary Vaccines Market

The global veterinary vaccines market experienced substantial growth in recent years. In 2022, it reached a size of USD 10.24 billion, showing a rise from USD 10.73 billion in 2023. Experts predict that this growth trend will continue, and the market is anticipated to reach USD 16.13 billion by 2030, exhibiting a Compound Annual Growth Rate (CAGR) of 6.0% during 2023 to 2030.

The impact of COVID-19 on the veterinary vaccines market was significant, with a moderate negative demand shock observed across all regions during the pandemic. However, as the market's demand and growth return to pre-pandemic levels, the sudden rise in CAGR can be attributed to the rebound in demand once the pandemic subsides.

Today, the connection between animals and humans is undeniable due to various critical factors. Animals play a crucial role in our lives, but they are also exposed to disease-causing risks. Veterinary vaccines are vital tools for preventing diseases in animals, as they stimulate protective immune responses and prepare animals' immune systems to combat future infectious diseases.

Several positive factors are driving the growth of animal immunization in the current global animal vaccines market scenario. Increased awareness about animal healthcare and its consequences has led to a higher demand for veterinary vaccines. These vaccines play a vital role in protecting animal health by controlling and preventing serious diseases. The market's significant growth is also fueled by the rising adoption of pet animals worldwide, increased spending on pet care, and the growing popularity of efficient immunization methods. For example, Americans spent a staggering USD 69.51 billion on their pets in 2017, as reported at the Global Pet Expo in Orlando, Florida.

Postponement of Non-Essential Treatments amid COVID-19 Pandemic to Lead to Declining Revenue

The COVID-19 outbreak had a mixed impact on the vaccines market in 2020. While the market experienced moderate growth of 2.1%, it was comparatively lower than the growth seen in pre-pandemic years. The primary reason for this decline was the reduction in patient visits during the peak of the pandemic. For instance, a survey conducted by the American Veterinary Medical Association in April 2020 revealed that approximately 92% of veterinary professionals experienced a decline in client visits.

However, the situation improved after June 2020, as the market saw an increase in client visits, partially offsetting the earlier losses. Another survey by the American Veterinary Medical Association indicated that veterinary practices witnessed a substantial rise in client visits in June 2020, with around 59% of practices reporting an increase compared to June 2019. Moreover, 55% of practices saw client visits grow by 10% to 50%.

Comparatively, the impact of the COVID-19 pandemic on animal health companies was less severe than on human health companies. Companies like Merck and Boehringer Ingelheim reported growth in their animal health segments, with Merck's segment growing by 7% and Boehringer Ingelheim's by 2% in 2020. Zoetis also experienced only a 2% decline in revenue from the sales of immunization products in the same year. These factors collectively contributed to the moderate growth observed in the vaccines market during 2020.

Latest Trends

In recent years, the veterinary vaccination field has experienced significant technological progress. Among these advancements, the introduction of immunization products based on recombinant DNA technology, particularly DNA vaccines, stands out as a major breakthrough. These products have offered improved stability and ease of administration. Another noteworthy advancement is the utilization of nucleic acid technology, which lies between traditional live and killed approaches. This involves DNA cloning into a delivery plasmid or direct injection of messenger RNA to create innovative vaccination products.

Many key players in the industry are actively involved in continuously advancing product development tools to create more efficient and pioneering veterinary vaccines. These ongoing efforts are aimed at enhancing the effectiveness and accessibility of veterinary immunization methods.

Driving Factors

Increased Awareness and Innovation of New Inoculation Products to Propel Market

The rapid growth of the animal vaccines market can be attributed to several key drivers within the market dynamics. Firstly, there is a notable increase in awareness regarding veterinary healthcare, which has led to a rise in animal husbandry initiatives and an increase in animal ownerships. Modern animal owners are more conscientious about their pets' immunization needs and are keen on utilizing the latest veterinary vaccine launches to protect their health. This trend has been supported by both governmental and non-governmental agencies, like Bayer's global campaign focused on animal health and mitigating zoonotic diseases.

Rising Demand for Advanced and Effective Immunization Products to Drive Market Growth

Technological advancements play a crucial role as well, with continuous R&D innovations leading to the launch of new animal immunization products. Traditional animal immunization methods using attenuated or inactivated pathogens have significantly contributed to safeguarding animal and human health. However, certain drawbacks, such as complex immunogenicity of certain bacterial pathogens in inactivated vaccines, have prompted the development of recombinant vaccines, offering advantages like non-exposure to the pathogen during vaccination.

Another major driving factor behind the widespread adoption of animal vaccination products is the prevention of animal diseases that can be transmitted to humans, potentially leading to epidemics and public health concerns. Overall, these drivers have played a pivotal role in the remarkable growth of the animal vaccines market.

Restraining Factors

In the developing countries of Africa, Asia, and Latin America, there are an estimated 600-900 million smallholder farmers who own livestock. Unfortunately, the adoption of animal immunization among these farmers is limited, primarily due to several challenges. Firstly, many farmers lack awareness about the benefits of animal immunization. Additionally, they face issues of limited accessibility to immunization products as they cannot afford the associated costs. Moreover, the weak supply chain further hinders the availability of vaccines.

As a consequence, a significant number of livestock animals owned by smallholder farmers succumb to various diseases, leading to additional economic pressure on these farmers. In response to this situation, governments and agencies are implementing various strategies to improve the adoption of animal immunization among smallholder farmers. These strategies aim to address the issues of accessibility, availability, and affordability, thereby promoting better animal health and alleviating economic burdens on farmers.

Segmentation

By Product Analysis

The market can be categorized based on product types into inactivated, live attenuated, recombinant, and other vaccines.

In the forecast period, the inactivated and live attenuated segments are expected to dominate the market, despite being conventional products with certain limitations. On the other hand, the recombinant products are projected to exhibit the highest Compound Annual Growth Rate (CAGR) owing to their favorable attributes such as purity, safety, efficacy, and potency.

Several factors contribute to the significant growth of the recombinant segment. These include cost-effective production methods, enabling manufacturers to produce it at a higher quality. Additionally, the recombinant vaccines offer an advantage over conventional immunization products by allowing the immune system to focus its antibodies production specifically against the relevant antigens.

By Animal Analysis

The market can be classified based on animal types into companion and livestock. The companion animal vaccines market segment is projected to experience a rapid Compound Annual Growth Rate (CAGR). This growth is primarily attributed to the growing global ownership of pet animals. Additionally, the increasing trend of animal adoption, actively supported by various non-governmental agencies, further contributes to the expansion of the companion animal segment. Companion animal vaccination has become a widely adopted veterinary procedure worldwide, driven by the rising awareness and concern among animal owners.

The livestock segment also holds significant importance due to humans' heavy reliance on livestock animals for various needs, including meat and other animal-based products. This increased dependency has led to a focus on regulating livestock vaccines, especially as governments ban the use of antibiotics on livestock animals destined for food consumption. Consequently, timely vaccination becomes crucial for preventing the need for unnecessary veterinary drugs. These factors are expected to drive the growth of the livestock segment in the market.

By Route of Administration Analysis

The global market can be categorized based on the route of administration into parenteral, oral, and other methods. During the forecast period, the parenteral segment is expected to generate the highest revenue in this market. Parenteral animal immunization is a common and traditional method of vaccinations, and its usage is projected to expand further in the coming years. This segment includes subcutaneous, intramuscular, and intradermal routes. Technological advancements in immunization delivery devices are expected to drive growth in this segment during the forecast period, leading to significant market expansion by 2028.

Although the oral segment is expected to have lower revenues and a lower Compound Annual Growth Rate (CAGR) during the forecast period, it is likely to witness numerous Research and Development (R&D) initiatives. These initiatives are driven by increasing trials with new methods of vaccination delivery, particularly in the field of mucosal vaccination, which falls under the oral route of administration. However, the weak immune response of the oral segment remains a limiting factor in its growth potential.

By Distribution Channel Analysis

The animal vaccines market can be classified based on distribution channels into veterinary hospitals, veterinary clinics, pharmacies & drug stores, and others. The veterinary clinic segment currently holds the largest share, primarily because vaccinations are typically quick procedures that are commonly administered at these smaller institutions.

The veterinary hospital segment is expected to be the second most dominant share as these institutions can provide more advanced care facilities in cases of complications. Additionally, the pharmacies & drug stores segment is projected to experience growth opportunities for revenue increase. This is attributed to the rising trend of purchasing veterinary vaccines online, with these institutions playing a supporting role in facilitating such transactions.

Regional Insights

The veterinary vaccines market is geographically segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

In 2020, North America led the market with USD 4.43 billion in revenue and is projected to maintain its position as a leading region during the forecast period. The region's growth is supported by the increasing adoption of advanced animal immunization practices and the utilization of technologically advanced products. Additionally, the rising pet ownership in key countries like the United States, coupled with mandatory immunization guidelines for pets, is expected to drive North America's growth throughout the analysis period.

Europe, on the other hand, maintained significant revenue with a stable growth rate over the forecast years. The region is anticipated to hold the second leading position in terms of revenue due to the increasing adoption of pets, a rise in zoonotic diseases, an increasing number of veterinary clinics, and improvements in healthcare infrastructure across European countries.

Asia Pacific is expected to experience the highest growth in market value. The region's increasing disposable incomes have led to greater awareness of preventive animal healthcare. Countries like India, China, Japan, and others in Asia Pacific are actively implementing regular and timely vaccination for both companion and livestock animals, driving market growth in the region.

The Middle East & Africa, and Latin America regions are expected to witness stable growth rates throughout the forecast period, mainly due to the increasing adoption of pets in these areas.

Key Industry Key Players

• Elanco (Greenfield, U.S.)
• HIPRA (Girona, Spain)
• Boehringer Ingelheim International GmbH (Ingelheim am Rhein, Germany)
• Virbac (Carros, France)
• MSD Animal Health (New Jersey, U.S.)
• Zoetis (Parsippany, U.S)
• Ceva (Libourne, France)
• NEOGEN CORPORATION (Michigan, U.S.)
• Hester Biosciences Limited (Ahmedabad, India)
• Biogénesis Bagó (Buenos Aires, Argentina)
• Other Prominent Players

Key Industry Developments:

• In November 2020, HIPRA Indonesia introduced GUMBOHATCH's next-generation Infectious Bursal Disease immune complex immunization product for broiler chickens through a virtual launch.
• Hester Biosciences Limited made an announcement in September 2020 regarding the development of a Brucella vaccine, designed to provide lifelong immunity in calf-hood. The company also signed an agreement with the Indian Veterinary Research Institute (IVRI) and the Indian Council of Agriculture Research (ICAR) to acquire the indigenously developed technology for the Brucella Abortus S19 Delta Per dose.
• In February 2020, Zoetis received approval from the U.S. FDA for Simparica, a once-monthly chewable flea and tick medication for dogs that also treats heartworm disease.
• Also in February 2020, MSD Animal Health (Merck Animal Health) launched Nasalgen, an intranasal inoculation product designed to protect beef and dairy cattle from common pneumonia-causing viral pathogens.

Report Scope & Segmentation

By Product

• Inactivated
• Live Attenuated
• Recombinant
• Others

By Animal

• Companion
• Livestock

By Route of Administration

• Oral
• Parenteral
• Others

By Distribution Channel

• Veterinary Hospitals
• Veterinary Clinics
• Pharmacies & Drug Stores
• Others

By Geography

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa