Companion Animals Drug Market Report

The rising prevalence of pet obesity is a major factor driving market expansion. Globally, there is an increasing tendency of overfeeding pets, which contributes to their increased obesity. This has had a detrimental impact on pet health, making them more susceptible to disease, which is expected to boost demand for companion animal drugs. According to the Association for Pet Obesity Prevention, over 59% of dogs and 61% of cats were overweight or obese by 2023. Diabetes mellitus is a frequent endocrine condition in dogs and cats, affecting around one out of every 300 patients, according to the Merck Veterinary Manual. Effective January 2024, Senate Bill 5319 enhances pet insurance regulations in Washington by mandating increased transparency, protections, and licensing for insurers and sellers. Thus, the rising number of veterinarian visits and pet insurance adoption are driving market expansion.

Parasiticides are projected to hold the largest market share. Animal health companies have begun to invest in advanced diagnostic treatment as well as to conventional drugs to assist stop diseases before they start. Parasiticides are used to kill parasites that afflict dogs, cat and other animals. In small animal medicine, parasiticides are widely used to treat parasites such as fleas, worms, and insects. In addition to minimising issues with animal health and welfare, zoonotic concerns that might threaten human health must be considered. Parasiticides are an important part of companion animal preventative care. The increased demand for parasiticides is driving up the expense of pharmaceutical research and development for companion animals.

High companion animal drug costs and stringent laws and regulations for prescription approval are some of the obstacles limiting industry development. If a drug is not suitable or is taken in excessive doses, there is a risk of side effects such as mild vomiting. This is a substantial barrier to the market for companion animal drugs. The lack of pet insurance and a lack of awareness about animal diseases are expected to restrict the demand for companion animal drugs.

In addition, the companion animals drugs market may face restraints due to the raised fee structure under the ADUFA V and AGDUFA IV for FY 2024. For instance, the FDA has set application fees for new animal drugs at US$683,673 and for supplemental applications at US$341,837. Additionally, generic new animal drug applications face fees of up to US$126,582. These high costs may deter smaller companies from entering the market, potentially slowing innovation and limiting market expansion.

Major industry leaders utilize strategies that focus on launching new products, merging with competitors, and purchasing companies to grow their customer base and enhance their range of products. In May 2023, Merck Animal Health, a division of Merck & Co., Inc. USA, and ByoPlanet, a fully owned subsidiary of Plandai Biotechnology, Inc., announced a ground-breaking collaboration with The United States Equestrian Federation (USEF) to improve animal health through cutting-edge products and technologies.

However, in March 2023, the initiative in the consumer health sector emerged with a focus on advancing drug development. Supported by esqLABS, Dynamic42, Placenta Lab of Jena University Hospital, and Bayer’s Consumer Health Division, this pilot project utilizes "organ-on-chip" (OoC) technology and digital simulations to assess drug interactions across the blood-placenta barrier. This innovative platform aims to reduce reliance on animal testing by providing clinically relevant data for evaluating new drugs, potentially lowering costs and enhancing patient safety while addressing the unique challenges of researching pregnant populations.

Furthermore, in August 2023, Boehringer Ingelheim launched SENVELGO, a velagliflozin oral solution initial FDA-approved daily liquid treatment for controlling feline diabetes mellitus. This new treatment makes it easier to manage blood sugar levels in pets without requiring injections, providing a more convenient choice for pet parents. SENVELGO is expected to enhance treatment adherence and improve outcomes for diabetic cats, addressing a critical gap in the companion animal drug market. The product will be available in U.S. veterinary clinics by mid-October, with plans for global expansion.

In 2023, the market in North America accounted for the largest market share. This is due to the increase in the number of companion animals and pets in the United States and Canada, as well as increasing funding and launches by major companies in terms of the development of different types of companion animal drugs, particularly in the United States. In accordance with the APPA National Pet Owners Survey 2023-2024, 66% of U.S. households, or 86.9 million households, own a pet. Additionally, other nations nearby, including Canada and Mexico, have also seen a surge in pet ownership. According to Pet Keen, released in May 2023, over 38% of Canadian households own a cat and 35% own a dog. According to APPA research, Americans are continuing to spend more money on their pets annually. According to the American Pet Products Association, in 2023, more than US$136.8 billion had been spent on pets in the United States. Furthermore, the Companion Animal Health, a division of DJO and a US-based animal health company that specialises in laser and rehabilitation treatments as well as on-site pharmaceuticals in veterinary markets globally, announced a collaboration with HT BioImaging which involves an equity investment to co-brand and offer the HTVet product exclusively in the United States and Canada. HTVet provides a non-invasive, rapid diagnosis of suspected cutaneous and subcutaneous masses at the point of service. HTVet produces accurate results in a few minutes, allowing for in-clinic testing to be swift and accurate without having to perform time-consuming, intrusive treatments or the use of external labs as a first resort. These factors are propelling the market's revenue expansion in this region.