The companion animal drugs market, valued at approximately USD 16.1 billion in 2024, is projected to surpass USD 17.13 billion in 2025 and reach USD 31.26 billion by 2035. The companion animal drugs market is witnessing steady growth as pet ownership continues to rise and the demand for advanced veterinary care increases globally. The focus is shifting toward disease prevention, with the growing use of parasiticides to protect animals from various infections and infestations.
Innovations in drug formulations and the growing availability of specialized pet medications in veterinary hospitals are further supporting this trend. The growing demand for specialized healthcare services and disease prevention in companion animals is driving the need for parasiticides, while institutional sales through veterinary hospitals remain the largest distribution channel.
The companion animal pharmaceuticals market is experiencing significant growth, driven by pet owners' increasing willingness to invest in the health and well-being of their animals. As the demand for advanced treatments and medications rises, companies are expanding their product offerings to address a wide range of pet health concerns.
Kristin Peck, CEO of Zoetis, highlighted this trend, stating: “Pet owners are willing to pay whatever it takes on pet health.” This reflects a broader shift in consumer behavior, where pet health is becoming a priority, contributing to the expansion of the market for companion animal drugs.
Key players in the market include Zoetis Inc., Elanco Animal Health, Merck Animal Health, Bayer AG, Boehringer Ingelheim, Vetoquinol, Virbac S.A., Lilly (Elanco), and PetIQ, Inc. These companies are investing in the development of new treatments for parasitic diseases and expanding their product portfolios to meet the evolving needs of the companion animal healthcare market.
In 2024, Zoetis launched a new parasiticide product designed for both dogs and cats, offering long-lasting protection against a range of common parasites. This innovative product is expected to boost demand in the coming years, supporting the growth of the parasiticide segment.
Market Metrics
| Metrics | Values |
|---|---|
| Market Size in 2025 | USD 17.13 billion |
| Market Size in 2035 | USD 31.26 billion |
| CAGR (2025 to 2035) | 6.2% |
Comparative analysis of fluctuations in compound annual growth rate (CAGR) for the global companion animal drugs market between 2024 and 2034 on a six-month basis is shown below. By this examination, major variations in the performance of these markets are brought to light. Additionally, trends in revenue generation are captured, providing stakeholders with useful insights on how to continue the market’s growth path in any given year. January through June covers the first part of the year, called half 1 (H1), while half 2 (H2) represents July to December.
The table below presents the expected CAGR for the global companion animal drugs market over several semi-annual periods spanning from 2024 to 2034. In the first half (H1) of the decade from 2023 to 2033, the business is predicted to surge at a CAGR of 6.9% followed by a slight decline in the growth rate which will grow at 4.8% in the second half (H2) of the same decade.
| Particular | Value CAGR |
|---|---|
| H1 | 6.9% (2024 to 2034) |
| H2 | 6.6% (2024 to 2034) |
| H1 | 6.2% (2025 to 2035) |
| H2 | 5.7% (2025 to 2035) |
Moving into the subsequent period, from H1 2025 to H2 2035, the CAGR is projected to decrease slightly to 6.2% in the first half and remain relatively moderate at 5.7% in the second half. In the first half (H1) the market witnessed a decrease of 70 BPS similar with the second half (H2), the market witnessed a decrease of 90 BPS.
The companion animal drugs market is evolving to meet the growing demand for preventive care and specialized treatments. Parasiticides will continue to drive product growth, while institutional sales through veterinary hospitals will remain the leading distribution channel as pet owners seek more comprehensive care for their animals.
Parasiticides are expected to account for 28.7% of the companion animal drugs market in 2025. This category is expanding rapidly due to increasing awareness among pet owners about the risks associated with parasites such as fleas, ticks, and worms, which can cause significant health issues for animals.
The market for parasiticides is driven by the growing emphasis on disease prevention and the shift from reactive to preventive care. Medications for flea and tick control, as well as intestinal worm treatments, are among the most commonly prescribed drugs in veterinary practices. Additionally, oral medications and topical treatments are gaining popularity due to their ease of use and long-lasting effectiveness.
In 2024, Zoetis introduced a new, broad-spectrum parasiticide that protects for up to 12 weeks, offering significant convenience to pet owners and veterinarians. The demand for such innovative solutions is expected to continue growing, further bolstering the parasiticides market segment. As the pet care industry evolves, there will be increasing integration of parasiticide treatments into regular wellness checkups and veterinary visits, helping to improve the market share of parasiticides over the forecast period.
Institutional sales through veterinary hospitals are expected to dominate the distribution channel in 2025, accounting for 57.8% of the market. Veterinary hospitals provide the most comprehensive care for companion animals, offering specialized services, advanced diagnostic capabilities, and access to prescription-only medications.
The growing sophistication of veterinary services and the increasing willingness of pet owners to invest in their pets' health are key drivers behind the dominance of institutional sales. Veterinary hospitals are also becoming hubs for the sale of specialized drugs, including parasiticides, vaccines, and chronic condition management treatments.
In 2024, Merck Animal Health formed a partnership with veterinary hospitals in North America to enhance the availability of prescription-only pet medications, ensuring that veterinarians have access to the most up-to-date therapeutic solutions. This type of collaboration is set to continue growing as more hospitals focus on delivering comprehensive care for pets.
As veterinary hospitals increasingly adopt telemedicine services and offer more specialized care, institutional sales will continue to lead the distribution of companion animal drugs throughout the forecast period.
Increasing Pet Insurance Adoption Boosts the Need for Companion Drugs
The growing adoption of pet insurance is one of the most influential drivers for the companion animal drugs market, fostering the development of advanced precision healthcare solutions. According to NAPHIA's State of the Industry Report 2024, pet insurance premium volume reached USD 3.9 million in the USA in 2023, with insured pets increasing to nearly 5.7 million, thus an increase of 17% compared to 2022. Dogs accounted for 80% of insured pets, with accidents and illnesses, while cats made up 20%.
The increasing availability and adoption of pet insurance ensure that owners can afford advanced therapeutics, thereby driving demand for innovative drugs that address chronic and severe conditions. With insurance covering significant treatment costs, companion drugs designed to manage and treat these conditions become more accessible, encouraging the development of targeted therapies.
Overall, the increasing adoption of pet insurance enables broader access to the most advanced treatments, thereby influencing the development of more precise and effective companion drugs. This suggests that affordability, combined with advancements in veterinary medicine, is transforming the companion animal drugs market and driving innovation to enhance the quality of pet healthcare globally.
Collaboration between Small Market Players to Strengthen Product Portfolio
Collaborations between key industry players are emerging as a powerful trend in the companion animal drugs market, enabling smaller companies to expand their global reach and enhance their market position. By partnering with larger or complementary firms, these companies can access shared expertise, research capabilities, and resources to accelerate the development of innovative products that address emerging health needs in pets.
For example, in November 2023, Adopt a Pet and Zoetis, two prominent leaders in the US pet industry, partnered to enhance access to care for shelter pets. This initiative not only focuses on providing better veterinary services but also includes educational resources for veterinary healthcare teams in shelters and pet owners across the nation.
This type of collaboration demonstrates how shared goals and pooled resources can create a broader impact on the market, driving advancements in animal healthcare and opening doors for specialized companion animal drugs.
The increased access to joint expertise and shared resources supports the development of innovative companion animal drugs that cater to evolving consumer needs and address emerging health concerns. This trend of collaboration enables smaller companies to leverage the strengths of their partners, foster innovation, and build competitive advantage.
By tapping into new markets and aligning with established names, smaller players can ensure long-term growth and contribute to the overall success and expansion of the global companion animal drugs market.
Manufacturers Partner with Organizations to Raise Awareness of Pet Health Challenges
Raising awareness about chronic pain in pets is on the rise, on the back of creating trends in the companion animal drugs market. On September 20, 2024, Zoetis and the Arthritis Foundation announced a two-year partnership to educate owners of cats and dogs about osteoarthritis (OA) pain.
This collaborative effort aims to raise awareness about OA pain, as this condition often goes unnoticed in pets despite its growing recognition. The inaugural step aims to understand the growing demand for treatment solutions for this frequently underdiagnosed condition.
Such collaborations place an increasing emphasis on improving pets' quality of life through precision drug development. Emerging discoveries in this segment focus on the development of early OA biomarkers, enabling timely detection and effective management. In addition, awareness about chronic pain conditions affecting pets is increasing, driving the demand for advanced treatment solutions beyond traditional veterinary measures.
A parallel transition of veterinary health toward personalized solutions is the embodiment of this trend, being opportune for the companion animal drugs market to extend further influence and impact in animal health.
Lack of Awareness of Animal Vaccines Hampers Companion Animal Drugs Market Growth
A significant restraining factor for the companion animal drugs market is the large gap in understanding the epidemiological patterns of veterinary diseases, which vary greatly in endemic countries. A prime example of this is Newcastle disease in poultry; the lack of comprehensive epidemiological knowledge about this disease results in severe economic losses in international poultry trade.
In many developing countries, people lack awareness of certain serious companion animal diseases compared to livestock diseases, which are more regularly monitored. This is primarily true with regard to pet vaccinations, which are a mandatory requirement for up to three years. Additionally, parasitic medications for companion animals and livestock are different. Lack of awareness with regard to the differentiation of these medication varieties leads to adverse drug side effects and thus low administration of companion animal medications.
Marketplace discussions suggest that veterinary research institutes should maintain closer collaborations with vaccine manufacturers to gain deeper insights into antigen and immunogenic structures, vaccine mechanisms, and correlates of symptoms treatable by these vaccines. This collaboration is crucial for addressing knowledge gaps and improving vaccine development processes.
Overall, these challenges underscore the critical need for enhanced epidemiological research and closer industry collaboration to overcome barriers in vaccine development and effectively protect animal health.
Tier 1 includes companies that cumulatively hold around 44.4% of the total market revenue. Tier 1 players dominate the market due to their extensive and diverse product portfolios, which cover a wide range of therapeutic areas, including antibiotics, vaccines, parasiticides, and skin care products.
Tier 1 players operate on a global scale, with strong distribution networks and partnerships that enable their products to reach diverse markets, including emerging economies. The companies that comprise tier I are Zoetis Inc., Merck & Co., Ltd., Bayer AG, and Elanco.
Tier 2 includes companies that cumulatively hold around a 14.8% share of the total market revenue. The companies that comprise tier II are Boehringer Ingelheim GmbH (Merial), Virbac Animal Health, Ceva Santè Animale, and others. These companies' players often focus on providing cost-effective alternatives to Tier 1 products, catering to price-sensitive parents.
Unlike Tier 1 players, Tier 2 companies usually have a strong regional focus. They excel in catering to local markets, understanding regional regulatory frameworks, and addressing specific health issues prevalent in those areas.
An analysis of the companion animal drugs industry is provided in various countries. Several regions throughout the world are examined, including North America, Latin America, East Asia, South Asia and the Pacific, Western Europe, Eastern Europe, and the Middle East and Africa. India is forecast to remain the leader of South Asia & Pacific with an 8.1% CAGR through 2035. The United States is expected to exhibit a 6.9% compound annual growth rate (CAGR) by 2035.
| Countries | Value CAGR (2025 to 2035) |
|---|---|
| United States | 6.9% |
| Germany | 6.5% |
| France | 7.9% |
| China | 8.4% |
| India | 8.1% |
The United States leads the companion animal drugs market with a 6.9% CAGR. The serious health aspect of osteoarthritis (OA) is a problem of widespread recognition and concern among pet owners in the United States.
It is estimated that approximately 14 million adult dogs are affected by osteoarthritis, making it one of the most prevalent health issues encountered by pets. Such an alarming prevalence of osteoarthritis in aged animals has prompted the need for medicine and treatment as efficient means of controlling pain and improving mobility, which raises the question of what companion drugs could serve in OA management in the market.
Osteoarthritis remains a leading problem for pets, and this, in turn, has forced veterinary pharmaceutical establishments in the United States to devote the next few years to developing targeted drugs for treating it: pain relievers, anti-inflammatory drugs, and joint supplements that work toward alleviating the symptoms of OA and improving the quality of life for afflicted pets, indeed bringing to the surface a niche in the market for these companion drugs for OA management.
Germany leads the companion animal drugs market in Western Europe, with a compound annual growth rate (CAGR) of 6.5%. Germany is well established when it comes to veterinary healthcare. Medical advances have resulted in a growing demand for specialist treatment of pets, from chronic conditions like arthritis to acute infections. Consequently, high-quality medications for companion pets have never been more critical.
Germany is investing in veterinary science, with a focus on innovation in new developments in medicine for companion animals. Companies are embarking on the production of innovative drugs for the management of chronic ailments, developing increasingly sophisticated diagnostic techniques, and providing treatment tailored to specific patients. This is enhanced by the integration of cutting-edge technology in veterinary practice, ensuring every pet receives the best possible care.
Germany’s commitment to advancing veterinary healthcare and the demand for specialized treatments are key drivers of growth in the companion animal drugs market, making it one of the most developed markets in Europe.
China is leading the companion animal drugs market in East Asia, with a compound annual growth rate (CAGR) of 8.4%. In China, pet ownership has been growing rapidly, particularly in urban areas. According to the Pet Industry White Paper issued by Pethadoop in 2023, there are over 120 million pets in the country. While the number of dogs decreased by 9% compared to 2022, they still accounted for 44% of all pets. On the other hand, the number of cats increased by 6% annually, making up 70% of the total pet population.
As more pet owners pay attention to the advancements in pet healthcare, this means they require vaccines, anti-inflammatory drugs, and parasite control medications. With the increasing ownership of pets and urbanization, China's companion animal drugs market is expanding, driven by a significant demand for improved pet healthcare medicines. This trend is expected to linger as the middle classes in urban centers expand and preferential treatment towards pet health and well-being grows.
The companion animal drugs market is highly fragmented, with a large number of global, regional, and niche players actively competing across various therapeutic categories. This diverse and competitive landscape is primarily driven by continuous product development and regulatory approvals, as companies strive to meet the evolving demands of pet owners. Key players in the market are heavily focused on expanding their product portfolios to cater to a wide range of health concerns, including parasitic infections, pain management, and preventive care.
Recent Industry Developments in the Companion Animal Drugs Market:
| Report Attributes | Details |
|---|---|
| Current Total Market Size (2025) | USD 17.13 billion |
| Projected Market Size (2035) | USD 31.26 billion |
| CAGR (2025 to 2035) | 6.2% |
| Base Year for Estimation | 2024 |
| Historical Period | 2020 to 2024 |
| Projections Period | 2025 to 2035 |
| Quantitative Units | USD billion for value and million units for volume |
| Segments Analyzed - By Product Type | Anti-infective agents (antibiotics & antimicrobials, anti-fungal, anti-viral), Anti-inflammatory & analgesic agents (NSAIDs, corticosteroids, opioids, other), Parasiticides (endo-parasiticides, ecto-parasiticides, endectocides), Vaccines, Hormones & substitutes, Nutritional products, Other products |
| Segments Analyzed - By Animal Type | Cats, Dogs, Horses, Rabbits, Birds, Other animals |
| Segments Analyzed - By Route of Administration | Oral route (tablets/capsules, liquids, powders/premix, other oral route), Parenteral route (liquids, powder for injection), Topical route (solutions, creams & ointments), Others |
| Segments Analyzed - By Disease Indication | Allergy, Infectious disease, Diabetes, Oncology, Osteoarthritis, Metabolic diseases, Cardiac diseases, Reproductive disorders, Other indications |
| Segments Analyzed - By Distribution Channel | Institutional sales (veterinary hospitals, veterinary clinics), Retail sales (retail pharmacies, drug stores, online pharmacies, hypermarkets and supermarkets, pet shops) |
| Regions Covered | North America, Latin America, East Asia, South Asia & Pacific, Western Europe, Eastern Europe, Middle East & Africa |
| Countries Covered | United States, Canada, Mexico, Brazil, Argentina, Germany, France, United Kingdom, Italy, Spain, Netherlands, China, India, Japan, South Korea, ANZ (Australia & New Zealand), GCC Countries, South Africa |
| Key Players Influencing the Companion Animal Drugs Market | Zoetis, Inc., Merck Animal Health, Boehringer Ingelheim GmbH, Elanco (Eli Lilly and Company), Zydus Life Sciences (Zenex Animal Health Pvt. Ltd.), Ceva Santé Companion Animal, Virbac SA, Vetoquinol S.A., Hester Biosciences Limited, Dechra Pharmaceuticals PLC, Ayurvet, Vetpharma, Shennong Animal Health, Intas Pharmaceuticals Ltd., Alivira Animal Health Limited |
| Additional Attributes | Dollar sales by product type, animal type, and route of administration, growing demand for preventive health care and vaccinations, trends in pet humanization driving product innovation, rising awareness of pet health issues, adoption of online platforms for pet medication sales, impact of regulatory and quality standards in companion animal drugs. |
In terms of product type, the industry is segregated into anti-infective agents (antibiotics & antimicrobials, anti-fungal, anti-viral), anti-inflammatory & analgesic agents (non-steroidal anti-inflammatory drugs (NSAIDs), corticosteroids, opioids, other), parasiticides (endo-parasiticides, ecto-parasiticides, endectocides), vaccines, hormones & substitutes, nutritional products, other products.
In terms of animal type, the industry is segregated into cats, dogs, horse, rabbits, birds and other animals
In terms of route of administration, the industry is segregated into oral route (tablets/capsules, liquids, powders/premix, other oral route), parenteral route (liquids, powder for injection), topical route, (solutions, creams & ointments), others
In terms of disease indication, the industry is segregated into allergy, infectious disease, diabetes, oncology, osteoarthritis, metabolic diseases, cardiac diseases, reproductive disorders, and other indications
In terms of distribution channel, the industry is segregated into institutional sales (veterinary hospitals, veterinary clinics), retail sales (retail pharmacies, drug stores, online pharmacies, hypermarket and supermarkets, and pet shops)
Key countries of North America, Latin America, East Asia, South Asia & Pacific, Western Europe, Eastern Europe, and Middle East & Africa have been covered in the report.
The companion animal drugs market is expected to increase at a CAGR of 6.2% between 2025 and 2035.
Parasiticides segment is expected to occupy a 28.7% market share in 2024.
The market for companion animal drugs is expected to reach USD 31.26 billion by 2035.
The United States is forecast to see a CAGR of 6.9% during the assessment period.
The key players in the companion animal drugs industry include Zoetis, Inc., Merck Animal Health, Boehringer Ingelheim GmbH, Elanco (Eli Lilly and Company), Zydus Life Sciences (Zenex Animal Health Pvt. Ltd.), Ceva Santé Companion Animal, Virbac SA, Vetoquinol S.A., Hester Biosciences Limited, Dechra Pharmaceuticals PLC, Ayurvet, Vetpharma, Shennong Animal Health, Intas Pharmaceuticals Ltd., and Alivira Animal Health Limited
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Companion Animal Drugs Market
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