Key Developments and Drivers of the Animal Drugs and Supplements Market

Published: Feb 2023

Veterinary medications are used to establish immunity in animals against numerous viral illnesses such as equine influenza (EIV) and parainfluenza 3-respiratory syncytial. The animal drugs and supplements market also contains medicated feed additives, which are blended with animal feed to produce medicinal benefits in animals. These medications and supplements are utilized in a variety of animals, including livestock such as cattle, pigs, and poultry as well as companion animals such as cats, dogs, and others.

Market Demand and Stats 

According to the FDA's (Food and Drug Administration) report published in 2021, there were over 1,600 FDA-approved animal drug products. In 2021, there will be 2,961 FDA-registered facilities in the United States, with 1,858 being domestic and 1,103 being international. Moreover, animal drugs and feeds regulation operations accounted for 4% of the FDA's budget ($6.1 billion) in 2021, with industry user fees covering 22% of this cost.

According to FEDIAF’s European pet food industry report of 2021, in the EU, 90 million families (46% of households) own a pet, including 113 million cat pets and 92 million dog pets. Birds, small animals, aquaria, and reptiles are among the remaining pets.

According to the Food and Agriculture Organization of the United Nations, the worldwide market for cattle commodities would increase by more than 200% from 2022 levels by 2050. This suggests that demand for animal medications and supplements will increase as well.

Recent Developments

The key companies in the market, such as Merck & Co., Inc., Elanco Animal Health, ADM Animal Nutrition, Boehringer Ingelheim International GmbH, Nutramax Laboratories, Inc., and others, are providing animal health-related foods, feeds, and drugs to help the market grow further. These companies are also following various market development activities such as mergers and acquisitions, new product launches, partnerships, and others. For instance-

In October 2022, Merck Animal Health, a division of Merck & Co., Inc., announced that the dry cow medication ORBENIN-DC (cloxacillin benzathine intramammary infusion) is now available in 144-syringe pails. ORBENIN-DC targets gram-positive bacteria successfully at dry-off with no milk withholding post-calving.

In September 2022, Elanco Animal Health introduced Hemicell XT, a nutrient-sparing enzyme for pig and poultry farmers. Hemicell XT is a supplement that improves gut health by promoting nutrient absorption in pigs, which has the potential to lower total feed costs by enhancing animal energy utilization. Since the enzyme concentration in the XT is 2.25 times higher than in Elanco's original Hemicell HT formulation, it may be used in a variety of ways, including whole feeds, premixes, and specialty mixes. 

Due to these market developments and innovations, according to OMR Research, the market will grow significantly in the near future.

Key Drivers of the Market

Increasing Animal Diseases

Some of the primary drivers leading to market expansion include the increasing need to treat, reduce, or prevent illnesses in livestock and companion animals. Farm animals can spread diseases such as Brucellosis, anthrax, campylobacter, the ORF virus, HIV, influenza, cryptosporidiosis, and others, and humans can contract these diseases from them. Swine flu, MERS, SARS, Zika, Ebola, avian flu, and COVID-19 are the majority of illnesses that have produced pandemics or epidemics in recent years. And, according to authoritative agencies such as the World Health Organization's department, pandemics are unavoidable as long as human food intake is based on animal products. As a result, animal medications and supplements are critical in reducing the spread of such illnesses.

Growing Pet Adoptions

Pet adoption has increased considerably in recent years all across the world. According to the American Veterinary Medical Foundation's 2020 forecast, the number of dogs and cats in the US is predicted to climb significantly during the next ten years. The dog population is expected to expand from 85 million in 2020 to more than 100 million by 2030. The cat population is anticipated to grow even faster, from 65 million to more than 82 million.

Growing Trend of Pets Humanization 

According to 2017 reports by the Royal Veterinary College (RVC) in the UK regarding Animal Welfare and Behaviour, practically all owners (99%) considered their pet to be "part of the family.”

Pets are increasingly being treated as part of the family by their owners. This trend in pet humanization has boosted pet expenditure while increasing demand for safe and nutritious pet health products. To enhance market share, several corporations are adding new goods to their portfolios or increasing their geographical reach. For instance, Nutramax introduced Cosequin ASU pellets in July 2020, expanding its joint health veterinary dietary supplement range for horses. 

Pet owners are also becoming more interested in innovative goods and substances like CBD supplements, and they want greater detail in product claims. This opens the door for veterinary dietary supplement producers to offer products containing functional substances that have been demonstrated to be safe and supported by proper research.