Cleveland 3/1/2013 5:52:23 AM
News / Business

Animal Health Product Demand to Exceed $12 Billion in 2016

Demand for animal health products in the US is forecast to increase 3.5 percent annually to $12.7 billion in 2016.  Animal health care is a relatively recession-resistant industry, as health care is regarded as a necessary expense of animal ownership or husbandry.  Preventive care will remain a driving factor in sales of animal health products as owners of commercial and companion animals alike recognize the need to maintain good health conditions for their animals.  These and other trends, including market share and product segmentation, are presented in Animal Health Products, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.  

The large nutritional chemical segment will account for over one-quarter of the growth seen during the forecast period, as these products -- which include amino acids, vitamins, minerals, enzymes, and other products -- remain vital as feed additives and dietary supplements.  Consumer interest in natural products will continue to favorably impact the nutritional chemical segment as products such as acidifiers, amino acids, carotenoids, enzymes, herbs, probiotics, and other ingredients with a more “natural” profile are used to replace more controversial additives.

The importance of preventive health care will support growth in parasiticides and vaccines.  Parasiticides will remain a prominent feature in the care of pets and livestock, as prevention of and treatment for existing fleas, ticks, and other pests will help reduce occurrences of pest-related health disorders.  Furthermore, fears about antibiotic resistance are leading to increased use of diagnostics to treat only animals requiring care, rather than medicating entire herds or flocks, driving above average gains in this product segment. 

Livestock and poultry will continue to account for the dominant share of animal health product sales through 2016 due to the sheer size and importance of the US commercial animal segment.  However, companion animal applications will remain the fastest growing and will continue to increase their share of demand.  Ownership trends favoring higher spending on pet health -- such as on preventive products including parasiticides, and on food and supplements featuring nutritional chemical content -- will encourage ongoing above average sales gains.

The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.