Animal Health Market Outlook

According to the report by Expert Market Research (EMR), the global animal health market attained a value of approximately USD 63.03 billion in 2025. Driven by increasing awareness regarding animal welfare, the rising prevalence of zoonotic and livestock diseases, and the growing demand for animal protein, the market is projected to grow at a robust compound annual growth rate (CAGR) of 6.40% between 2026 and 2035, reaching a value of around USD 117.21 billion by 2035.

Animal health encompasses veterinary pharmaceuticals, vaccines, diagnostics, feed additives, and other products aimed at preventing, managing, and treating diseases in livestock, companion animals, and aquaculture. The market’s growth is closely linked to the expansion of the livestock industry, rising pet ownership, and increasing investments in veterinary healthcare infrastructure. Additionally, innovations in biotechnology and the adoption of advanced animal care technologies are contributing significantly to market expansion.

Animal Health Market Trends

The global animal health market has witnessed several noteworthy trends in recent years. A prominent trend is the increasing adoption of biologics and vaccines over traditional antibiotics. With rising concerns about antimicrobial resistance (AMR), veterinarians and livestock owners are shifting towards vaccines, immunotherapies, and other preventive solutions to ensure animal health while reducing reliance on antibiotics.

Another trend shaping the market is the integration of digital technologies and data analytics into veterinary practice. Smart monitoring systems, wearable devices, and IoT-enabled livestock management platforms are enabling real-time tracking of animal health, feeding patterns, and reproductive cycles. These innovations enhance disease prevention, improve productivity, and reduce operational costs for livestock and poultry farmers.

Additionally, there is a notable increase in pet ownership globally, particularly in North America and Europe, which is driving demand for premium animal healthcare products, including specialty diets, nutritional supplements, and advanced veterinary treatments. The growing humanisation of pets is encouraging investments in preventive care, diagnostics, and personalised treatment solutions.

Get a Free Sample Report with Table of Contents

Drivers of Growth

Several factors are propelling the growth of the animal health market. First and foremost is the rising global demand for animal-derived food products. With the world population projected to surpass 9 billion by 2035, the demand for meat, milk, eggs, and other animal-based products is expected to surge. This has created a pressing need for effective disease management and productivity enhancement solutions in livestock, thereby boosting demand for animal health products.

Another key driver is the increasing prevalence of animal diseases, including infectious and parasitic diseases, which have significant economic implications for livestock producers. The threat of zoonotic diseases, which can transfer from animals to humans, has also heightened the focus on veterinary care and preventive measures.

Government initiatives and regulatory support are further supporting market growth. Various governments are investing in veterinary infrastructure, subsidising vaccines, and enforcing regulations for animal welfare, disease control, and food safety. These measures are encouraging the adoption of advanced animal healthcare solutions across regions.

Rising consumer awareness regarding animal welfare and the quality of animal-derived products is also contributing to market expansion. Consumers are increasingly demanding meat, dairy, and poultry products from animals raised under healthy conditions, which encourages the adoption of vaccination, feed additives, and regular veterinary care.

Challenges and Opportunities

Despite strong growth prospects, the animal health market faces several challenges. High research and development (R&D) costs for new veterinary pharmaceuticals and biologics can limit product innovation. Regulatory hurdles, including lengthy approval processes for vaccines and drugs, can delay market entry and increase operational costs.

Furthermore, the overuse of antibiotics in livestock has raised concerns about antimicrobial resistance, leading to stricter regulations in several countries. Compliance with these regulations may require significant investment in alternative therapies, diagnostics, and monitoring systems.

Nevertheless, the market offers substantial opportunities. The growing popularity of companion animals presents a promising segment for veterinary pharmaceuticals, diagnostics, and pet nutrition products. Emerging markets in Asia-Pacific, Latin America, and the Middle East are witnessing rapid urbanisation, increasing disposable incomes, and a growing interest in livestock farming, which is expected to fuel demand for animal health solutions.

Technological advancements, such as precision livestock farming, AI-powered disease detection, and tele-veterinary services, offer significant potential for market players to enhance service delivery and operational efficiency. Additionally, the development of plant-based feed additives, probiotics, and other natural health-promoting products is creating new revenue streams while addressing sustainability concerns.

Animal Health Market Forecast

The global animal health market is poised for steady growth over the forecast period from 2026 to 2035. The livestock segment, including cattle, poultry, swine, and aquaculture, is expected to remain the dominant contributor to market revenue due to the rising demand for protein-rich food products. Companion animals, driven by pet adoption and the humanisation trend, will continue to emerge as a key growth segment, particularly in developed regions such as North America and Europe.

Pharmaceuticals and vaccines are projected to account for a significant share of the market, supported by ongoing R&D, innovative formulations, and preventive healthcare initiatives. Diagnostics and feed additives are also expected to witness strong growth, particularly with the adoption of advanced monitoring systems and nutritional supplements to enhance animal productivity.

Regionally, North America remains a mature and high-value market, led by advanced veterinary infrastructure, high pet ownership, and robust regulatory frameworks. Europe is expected to demonstrate steady growth, with increasing investments in animal welfare and disease management. The Asia-Pacific region presents the highest growth potential, driven by expanding livestock farming, rising disposable incomes, and increasing awareness regarding animal health. Latin America and the Middle East & Africa are also expected to witness moderate growth, supported by government initiatives and improving veterinary healthcare facilities.

In conclusion, the global animal health market is set to witness robust expansion over the next decade, reaching an estimated value of USD 117.21 billion by 2035. The market growth is underpinned by rising demand for animal-derived food products, increasing pet ownership, innovations in veterinary healthcare, and growing awareness regarding animal welfare. While challenges such as regulatory constraints and antimicrobial resistance persist, emerging opportunities in companion animal care, digital veterinary solutions, and sustainable health-promoting products offer promising avenues for industry players to capitalise on the evolving market landscape.

FAQs

1. What is the current size of the global animal health market?

The global animal health market was valued at approximately USD 63.03 billion in 2025 and is projected to grow steadily over the next decade.

2. What is the expected growth rate of the animal health market?

The market is expected to grow at a CAGR of 6.40% between 2026 and 2035, reaching around USD 117.21 billion by 2035.

3. What are the main segments of the animal health market?

The market is segmented into:

Livestock (cattle, poultry, swine, aquaculture)

Companion animals (dogs, cats, and other pets)

Products including pharmaceuticals, vaccines, diagnostics, and feed additives

4. What are the key drivers of growth in the animal health market?

Increasing demand for animal-derived food products such as meat, milk, and eggs

Rising prevalence of animal and zoonotic diseases

Growing pet ownership and the humanisation of pets

Government initiatives and regulatory support for animal welfare

5. What are the emerging trends in the animal health market?

Shift from antibiotics to vaccines and biologics due to antimicrobial resistance concerns

Adoption of digital and IoT-based monitoring systems in livestock management

Increased focus on premium pet healthcare and nutritional supplements

6. Which regions dominate the animal health market?

North America is a mature market with advanced veterinary infrastructure and high pet ownership.

Europe shows steady growth driven by animal welfare initiatives.

Asia-Pacific is expected to see the fastest growth due to rising livestock farming and disposable incomes.