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April 2025
Principal Consultant
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The global companion animal health market size is calculated at US$ 25.28 in 2024, grew to US$ 27.64 billion in 2025, and is projected to reach around US$ 61.74 billion by 2034. The market is expanding at a CAGR of 9.34% between 2025 and 2034. The increasing number of people who own pets is contributing to a rise in the adoption of companion animals. This trend is expected to boost the market in the coming years.
Companion animal health involves closely monitoring the overall health of pets to detect diseases or conditions that, if left untreated, could threaten their lives. Consistent health monitoring of companion animals is carried out to identify illnesses and conditions that could endanger their lives if not addressed quickly. This includes the development of genomic diagnostics, digital tools, anti-cancer medications, therapeutic vaccines, and monoclonal antibody treatments. The progress in animal healthcare technology, including the creation of innovative diagnostic tools, treatments, and vaccines, and the growing prevalence of pet illness have significantly contributed to the expansion of the market. In October 2023, Zoetis’s Basepaws expanded its services to offer a comprehensive DNA test for dogs, using advanced Next-Generation Sequencing (NGS) technology to provide pet owners with insights into their dogs' health risks and breed traits.
AI integration in the market is revolutionizing how veterinarians diagnose and treat pets. By leveraging advanced artificial intelligence technologies, AI systems can analyze vast amounts of data quickly and accurately, helping to identify health issues that may be difficult to detect through traditional methods. AI-powered tools are being used for tasks such as medical imaging, diagnostics, treatment planning, and monitoring animal health in real time. This integration improves the speed, precision, and effectiveness of veterinary care, ultimately enhancing the overall well-being of companion animals.
Growing Companion Ownership
The increasing number of companion animal owners is a key factor driving the growth of the companion animal health market. As more people adopt pets, the demand for veterinary care, treatments, and health products naturally rises. Pet owners are becoming more aware of the importance of their pets’ health and are willing to invest in preventive care, treatments, and diagnostic services to ensure their pets live longer, healthier lives. This shift in attitudes toward pet healthcare has led to a surge in demand for advanced health solutions, such as specialized treatments, vaccines, and wellness monitoring technologies. The growing human-animal bond also plays a role, with pets increasingly viewed as family members, leading to higher spending on their health and well-being. For example, a report from the AVMA reveals that U.S. pet owners spent approximately USD 15.42 billion on veterinary surgeries in 2023.
High Cost Associated with Companion Animal Health
The high cost of companion animal medications limits market growth by making treatments less affordable for many pet owners. Expensive drugs and treatments can be a financial burden for many pet owners, especially for those with multiple pets or pets requiring long-term care. This can lead to lower adoption rates of certain treatments or medications, as some owners may be unable or unwilling to bear the high costs. This can reduce accessibility, especially in lower-income regions, and discourage the adoption of necessary health solutions.
Technological Advancement
Technological advancements present a significant opportunity for the companion animal health market by enabling more effective and efficient diagnostics, treatments, and care solutions. Innovations like AI-powered diagnostics, wearable health monitors, and advanced medical imaging improve the accuracy of pet health assessments and speed up treatment decisions. These technologies also make healthcare more accessible and affordable, driving market growth as pet owners seek better, more convenient ways to care for their animals. In October 2023, Zoetis’s Basepaws expanded its services to offer a comprehensive DNA test for dogs. Using advanced Next-Generation Sequencing (NGS) technology, the test provides pet owners with important insights into their dog's health risks and breed traits.
By animal, the dogs segment held the major share of the companion animal health market in 2024. They are the most commonly owned companion animals, leading to a higher demand for healthcare products and services. Additionally, dogs often require more frequent medical attention for issues like vaccinations, preventive care, and treatment of common conditions, driving continuous market growth in this segment. Their longer life expectancy and varying health needs also contribute to sustained demand for healthcare solutions.
In North America, 25% to 30% of dogs are obese, with 40% to 45% of dogs aged 5 to 11 being overweight. Additionally, a July 2024 article by the Morris Animal Foundation reports that 14 million adult dogs in the U.S. suffer from osteoarthritis, similar to the conditions seen in humans.
By animal, the cats segment is expected to grow at the fastest rate in the coming years, due to increasing pet ownership and rising awareness of feline health needs. As more people adopt cats, there is a growing demand for specialized care, including preventive treatments, diagnostics, and health monitoring. Additionally, cats are living longer, leading to an increased need for healthcare services and products tailored to their specific needs, such as dental care, obesity management, and chronic disease treatment.
By product, the pharmaceuticals segment was dominant in the companion animal health market in 2024 due to the essential role of medications in treating and preventing a wide range of animal health issues. Pharmaceutical products, including vaccines, antibiotics, pain management drugs, and treatments for chronic conditions, are critical for maintaining the well-being of companion animals. In August 2023, Boehringer Ingelheim launched NexGard SPECTRA in India, following approval from the Central Drugs Standard Control Organization (CDSCO). This product is designed for dogs aged two months and older, weighing at least two kilograms.
By product, the diagnostic segment is estimated to grow at a significant CAGR during the predicted timeframe, as increasing demand for early detection and preventive care in pets. Advancements in diagnostic technologies, such as AI-powered tools and advanced imaging, are making it easier and more accurate to identify health issues in companion animals. As pet owners become more focused on proactive health management, the need for reliable diagnostic solutions continues to rise, driving the growth of this segment. In June 2023, IDEXX Laboratories introduced the first veterinary diagnostic test for detecting kidney injury in cats and dogs, addressing the increasing demand for advanced diagnostic solutions in the market.
By distribution, the hospital pharmacies segment registered its dominance over the global companion animal health market in 2024 due to their central role in providing a wide range of specialized medications and treatments directly to pet owners. Veterinary hospitals offer a trusted, comprehensive care environment where pets can receive immediate diagnosis and treatment, leading to higher demand for pharmaceuticals and healthcare products. Additionally, the convenience and expertise provided by hospital pharmacies make them a preferred choice for pet owners seeking reliable and timely solutions.
By distribution, the e-commerce segment is expected to grow at a lucrative rate between 2025 and 2034. E-commerce platforms provide easy access to a wide variety of companion animal health products, including medications, supplements, and grooming supplies, often at competitive prices. Additionally, the rise in digital-savvy consumers and the ability to compare products, read reviews, and have items delivered directly to their doorsteps are fueling this growth. In October 2023, Amazon explored offering veterinary telehealth services to compete with Walmart, which provides free pet telehealth access to its subscribers, reflecting the rising demand for online pet care services.
By end-user, the hospitals & clinics segment held the largest share of the companion animal health market in 2024. Comprehensive services such as diagnostics, surgeries, vaccinations, and emergency care are essential for maintaining pet health. As pet owners increasingly prioritize professional healthcare for their animals, the demand for services from hospitals and clinics continues to grow, driving the segment’s dominance.
By end-user point-of-care/ in-house testing segment is projected to grow at a significant CAGR during the forecast period. With advancements in portable diagnostic tools and technologies, pet owners and veterinarians can now perform tests directly at the clinic or even at home, reducing wait times and enabling faster treatment decisions. This shift toward immediate testing aligns with the growing trend of proactive pet healthcare, driving growth in the segment. In October 2023, Fluxergy launched a rapid PCR test for detecting Streptococcus equi ss equi, the bacteria causing "strangles" in horses. This test provides quick, cost-effective results within an hour in a veterinary hospital lab.
North America led the companion animal health market share by 37% in 2024. The region also benefits from well-established infrastructure, access to cutting-edge healthcare products, and a growing focus on pet wellness, driving significant market growth. Additionally, higher disposable income and spending on pets in North America further supported the dominance of this market. For example, the North American Pet Health Insurance Association works to raise awareness about pet health insurance and is actively forming partnerships to tackle challenges within the companion animal health industry.
The U.S. market is growing due to increasing pet ownership, a higher focus on pet health and wellness, and rising spending on veterinary care. Additionally, advancements in veterinary technologies, along with the availability of specialized healthcare solutions, are driving market expansion. The rise in pet insurance and growing awareness of chronic conditions in pets also contribute to the market's growth.
The market has also become dominant in the U.S., for per ownership has jumped significantly over the past three decades.
The Canadian market is growing due to rising pet ownership, particularly among younger generations, and an increasing focus on pet wellness and preventive care. As more Canadians view pets as family members, there is a growing demand for veterinary services, health products, and specialized treatments. Additionally, the expansion of pet insurance and advancements in animal healthcare technologies are further driving market growth. Increased awareness of pet health issues, along with higher disposable income, is also contributing to the rising spending in Canada.
Asia Pacific is estimated to grow at the fastest rate in the market during the forecast period. Rising pet ownership, particularly among younger, urban populations, is driving demand for veterinary services and pet care products. Additionally, the region is witnessing improvements in veterinary infrastructure and the availability of advanced health technologies. As pet owners in the Asia Pacific become more focused on their pets' well-being, the demand for specialized treatments, preventive care, and health products is expected to surge.
The market in China is expanding due to a rising middle class, increasing pet ownership, and growing awareness of pet health. As more Chinese people view pets as family members, there is a greater demand for veterinary care, health products, and specialized treatments. Additionally, urbanization and changing lifestyles have led to more people adopting pets, while improvements in veterinary services and infrastructure support the market’s growth. Increasing disposable income, along with the growing popularity of pet insurance, is also contributing to the expansion of the market in China.
The market in India is growing due to rising pet ownership, particularly among urban populations, and an increasing focus on pet wellness. As more people adopt pets, especially dogs and cats, there is a growing demand for veterinary services, health products, and preventive care. Additionally, improving awareness of pet healthcare and the availability of better veterinary infrastructure are key drivers. Rising disposable incomes, a shift toward viewing pets as family members, and the growing popularity of pet insurance are also contributing to the expansion of the market in India.
Europe is expected to see significant growth in the companion animal health market during the forecast period due to several factors, due to several factors, including high levels of pet ownership, increasing awareness about pet health, and the growing trend of treating pets as family members. The region also benefits from a well-established veterinary care system, with advanced medical technologies and services readily available. The growing popularity of pet insurance and the increasing demand for specialized care further contribute to the market's expansion. Launched in January 2024, the European Partnership on Animal Health and Welfare (EUPAHW), led by the University of Ghent, is a €360 million initiative aimed at combating animal diseases and improving welfare through enhanced research and collaboration.
The German market is growing due to a strong pet culture, rising demand for advanced veterinary care, and increasing pet owners' focus on long-term health. Innovations in treatments, the rise of pet insurance, and greater awareness of pet wellness also contribute to the market’s expansion.
The UK market is expanding due to rising pet ownership, increased focus on pet wellness, and higher demand for advanced veterinary care. Growing awareness of pet insurance and better access to veterinary services also drive market growth. In April 2024, the University of Surrey's Vet School launched the UK's first animal healthcare start-up incubator. This initiative supports early-stage companies focused on improving animal health and welfare.
On March 24, 2025, Privo Technologies announced the launch of BeneVet Oncology, a new subsidiary focused on advancing companion animal health. Using Privo’s advanced drug delivery technology, BeneVet will improve veterinary treatments, starting with cancer care. Dr. Manijeh Goldberg, CEO, stated, Pets are family, and they deserve the same innovation in care. BeneVet will revolutionize veterinary medicine with groundbreaking treatments.
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