Veterinary CRO and CDMO Market (By Animal Type: Companion Animals, Livestock Animals; By Service Type: Discovery, Development, Manufacturing, Packaging & Labeling, Market Approval & Post-marketing; By Application: Medicines, Medical Devices) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2023-2032


The global veterinary CRO and CDMO market size reached USD 6.1 billion in 2022 and is expected to hit around USD 13.60 billion by 2032, expanding at a CAGR of 8.4% during the forecast period from 2023 to 2032.

Veterinary CRO and CDMO Market Size 2023 To 2032

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Key Takeaways

  • North America contributed more than 35% of revenue share in 2022.
  • Asia-Pacific region is estimated to observe the fastest expansion.
  • By Animal Type, the livestock animal segment has held the highest market share of 47% in 2022.
  • By Animal Type, the companion animal segment is expected to expand at the fastest CAGR of 11.8% between 2023 and 2032.
  • By Service Type, the development segment contributed more than 32% in 2022.
  • By Service Type, the discovery segment is expected to grow at the fastest CAGR over the projected period.
  • By Application, the medicine segment had the highest market share of 71% in 2022.
  • By Application, the medical devices segment is anticipated to expand at the fastest CAGR over the projected period.

Veterinary CRO and CDMO Market in the U.S. 2023-2032

The U.S. veterinary CRO and CDMO market size accounted for USD 1.28 billion in 2022 and is estimated to reach around USD 2.86 billion by 2032, growing at a CAGR of 8.4% from 2023 to 2032.

U.S. Veterinary CRO and CDMO Market Size 2023 To 2032

North America has held the largest revenue share 35% in 2022. In North America, the veterinary CRO and CDMO market exhibit several trends. The region sees a growing focus on personalized medicine for pets, driving the development of specialized veterinary pharmaceuticals and services. The emphasis on regulatory compliance and pharmacovigilance is increasing, ensuring the safety of veterinary drugs. Additionally, collaborations between academic institutions and industry players foster innovation, and the adoption of advanced technologies, such as AI and data analytics, is enhancing research and development efficiency. North America remains a leading hub for animal health innovation, with a strong emphasis on providing cutting-edge solutions for veterinary medicine.

Veterinary CRO and CDMO Market Share, By Region, 2022 (%)

Asia-Pacific is estimated to observe the fastest expansion. In Europe, the veterinary CRO and CDMO market are witnessing notable trends. The region places a strong emphasis on animal welfare and stringent regulatory compliance, driving demand for high-quality veterinary pharmaceuticals. Collaborations between European pharmaceutical companies and CRO/CDMO service providers are fostering innovation. Additionally, the increasing pet ownership and awareness of animal health contribute to market growth, particularly in Western European countries. The market is also embracing digitalization, with advanced technologies like telemedicine and digital health records becoming integral to veterinary research and development processes, ensuring efficient services and product delivery.

Veterinary CRO and CDMO Market Overview

  • The Veterinary Contract Research Organization (CRO) and Contract Development and Manufacturing Organization (CDMO) market pertains to the sector focused on outsourced research, development, and manufacturing services for veterinary pharmaceuticals and biotechnology products.
  • Its nature involves comprehensive support for veterinary drug discovery, preclinical and clinical trials, and manufacturing processes, enabling pharmaceutical companies to expedite product development while ensuring compliance with regulatory standards.
  • The market addresses the demand for cost-effective and specialized solutions in the veterinary healthcare industry, offering a range of services, from formulation development to regulatory submission, to meet the unique needs of animal health product developers.

Growth Factors

  • Numerous factors fuel the growth of the veterinary CRO and CDMO market, including the growing global pet population, creating an increased demand for companion animal health products. Additionally, livestock production intensification drives the development of veterinary medicines and vaccines. Furthermore, expanding regulatory requirements necessitate comprehensive testing and compliance, increasing the reliance on CRO and CDMO services.
  • Collaborations between industry players and contract organizations also contribute to innovation and market expansion. Lastly, the pursuit of novel therapies, including gene therapies and biologics, presents opportunities for service providers to offer specialized expertise.
  • This market is experiencing notable trends and growth drivers, including the increasing demand for specialized veterinary medicines and biologics to cater to diverse animal species drives the need for CRO and CDMO services. Moreover, as animal health regulations become more stringent, outsourcing to experienced partners ensures compliance, making these services indispensable. Thirdly, the surge in zoonotic diseases and the One Health approach emphasize the importance of veterinary pharmaceuticals, boosting research and development efforts. Additionally, the adoption of advanced technologies such as pharmacovigilance and real-world evidence generation further propel the market growth.
  • The industry faces several challenges, including the need for continuous investment in advanced infrastructure and technology to remain competitive. Quality control and regulatory compliance are paramount, requiring strict adherence to evolving animal health regulations globally. Intellectual property concerns and data security issues in drug development pose challenges. Moreover, navigating the complexities of clinical trials in veterinary medicine, such as patient recruitment and regulatory harmonization, can be demanding. Additionally, competition among CRO and CDMO service providers requires differentiation and expertise to stand out in the market.
  • Despite these challenges, The veterinary CRO and CDMO market offer promising business opportunities. Service providers can focus on expanding their global presence to meet the growing demand for veterinary pharmaceuticals and vaccines worldwide. Emphasizing sustainable and eco-friendly practices in drug development aligns with environmental concerns. Collaborations with academic institutions and research centers drive innovation. Leveraging artificial intelligence and big data analytics can enhance research and development efficiency.
  • Furthermore, tapping into the burgeoning market for personalized veterinary medicine presents a unique avenue for growth. Overall, the market's evolution reflects the critical role of CRO and CDMO services in advancing animal health and improving the well-being of both companion animals and livestock.

Veterinary CRO and CDMO Market Scope

Report Coverage Details
Growth Rate from 2023 to 2032 CAGR of 8.4%
Market Size in 2023 USD 6.58 Billion
Market Size by 2032 USD 13.6 Billion
Largest Market North America
Base Year 2022
Forecast Period 2023 to 2032
Segments Covered By Animal Type, By Service Type, and By Application
Regions Covered North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa


Veterinary CRO and CDMO Market Dynamics

Driver

Growing global pet population and intensified livestock production

The expanding global pet population is a significant driver of surging market demand for the veterinary CRO And CDMO market. With more people embracing pets as companions, there is a heightened need for specialized veterinary medicines and treatments. This surge in demand necessitates the expertise and services of CRO and CDMO providers to develop and manufacture innovative pharmaceuticals, vaccines, and therapeutic solutions tailored to the diverse health needs of companion animals, fostering substantial growth in the veterinary pharmaceutical industry.

Moreover, intensified livestock production significantly surges the market demand for the veterinary CRO and CDMO market. As livestock farming operations expand and become more intensive, there is a heightened need for veterinary pharmaceuticals, vaccines, and innovative treatments to ensure the health and productivity of animals. This demand drives increased research and development activities, and veterinary companies increasingly turn to CRO and CDMO services for expertise and support in developing, testing and manufacturing these essential products. Consequently, intensified livestock production propels the growth of the veterinary CRO and CDMO market.

Restraints

Quality control and regulatory hurdles

Quality control is a critical restraint on market demand for the veterinary CRO and CDMO markets. Ensuring consistent product quality and safety in the production of veterinary pharmaceuticals is resource-intensive and time-consuming. The need for rigorous quality control measures can lead to extended timelines and increased costs, affecting the affordability and accessibility of these vital products.

Manufacturers and service providers must navigate complex quality assurance processes to meet regulatory standards, potentially impacting market competitiveness and hindering overall growth in the industry. Moreover, regulatory hurdles represent a significant restraint on the market demand for the veterinary CRO and CDMO market.

Adherence to stringent and ever-evolving animal health regulations globally demands substantial resources and a deep understanding of regulatory complexities. Navigating these hurdles often leads to delays in product development and increased compliance costs, impacting the overall timeline and cost-effectiveness of outsourcing services. Consequently, regulatory challenges can hinder market growth, making it essential for service providers to invest significantly in navigating these complexities to ensure market accessibility and compliance.

Opportunities

Technological integration and pharmacovigilance services

Technological integration significantly surges the market demand for the veterinary CRO and CDMO markets. The integration of advanced technologies, including artificial intelligence, data analytics, and digital platforms, significantly enhances research and development efficiency within the veterinary CRO and CDMO markets. These technologies streamline drug development processes, improve data management, and enable real-time monitoring.

As a result, the delivery of safe and effective veterinary pharmaceuticals is expedited, ensuring that innovative solutions reach the market more efficiently, benefiting both animal health and the industry as a whole. As the industry embraces technological advancements, service providers offering integrated technological solutions become increasingly sought after, driving higher demand for their specialized services in the veterinary healthcare sector. Moreover, Pharmacovigilance services play a crucial role in surging the market demand for the veterinary CRO and CDMO market.

These services ensure the safety and monitoring of veterinary pharmaceuticals in the market, addressing regulatory compliance and consumer safety concerns. As animal health regulations become more stringent, the need for robust pharmacovigilance support grows. Veterinary companies increasingly rely on CRO and CDMO service providers offering pharmacovigilance expertise to navigate complex safety reporting requirements, thereby fostering trust, compliance, and market demand for their products and services.

Impact of COVID-19

  • The COVID-19 pandemic has had a multifaceted impact on the veterinary CRO and CDMO industry.
  • Initially, disruptions in supply chains and logistics affected the availability of veterinary pharmaceuticals and contract services. However, the pandemic underscored the importance of animal health, leading to increased research and development activities related to zoonotic diseases.
  • The adoption of telehealth and digital platforms surged, facilitating remote consultations and data exchange with CRO and CDMO service providers. This digital transformation improved accessibility and collaboration within the industry. Additionally, the pandemic highlighted the significance of pharmacovigilance services for monitoring animal drug safety.
  • While challenges persisted, the veterinary CRO and CDMO market adapted, emphasizing the importance of resilient supply chains, innovative solutions, and digitalization in ensuring the continued development of essential veterinary pharmaceuticals.

Animal Type Insights

According to the animal type, the livestock animal segment has held a 47% revenue share in 2022. Livestock animals in the veterinary CRO and CDMO market refer to animals raised for various purposes, including meat, milk, and other agricultural products. Trends in this sector highlight the increasing demand for specialized veterinary pharmaceuticals and vaccines for livestock health and productivity. With the intensification of livestock production, there is a growing need for research and development services to ensure the safety and efficacy of animal health products.

Furthermore, the growing emphasis on sustainable and eco-friendly practices in livestock farming is serving as a catalyst for innovation within the veterinary CRO and CDMO markets. This focus on sustainability is propelling the development of novel veterinary solutions tailored specifically for livestock animals, aligning with the industry's commitment to responsible and environmentally-friendly agricultural practices.

The companion animal segment is anticipated to expand at a significantly CAGR of 11.8% during the projected period. In the veterinary CRO and CDMO market, companion animals refer to pets, such as dogs, cats, and small mammals, which share close bonds with humans. The trend in this segment shows a growing focus on personalized healthcare solutions for companion animals. This includes the development of specialty drugs, advanced diagnostics, and tailored treatments, mirroring the increasing importance of pets in people's lives. Additionally, the demand for telehealth services for companion animals has surged, enabling remote consultations and monitoring, further emphasizing the trend toward more personalized and accessible veterinary care.

Service Type Insights

By service type, the development segment held the largest market share of 32% in 2022. In the veterinary CRO and CDMO market, the development service type pertains to research and development activities for veterinary pharmaceuticals and biologics. This includes formulation development, preclinical and clinical trials, and regulatory support. Emerging trends in the veterinary CRO and CDMO Market encompass a heightened focus on personalized veterinary medicine, the rapid advancement of gene therapies and biologics, and the integration of cutting-edge technologies like artificial intelligence and real-world evidence generation. These dynamic trends underscore the industry's commitment to innovation, emphasizing the creation of bespoke, safe, and highly effective solutions tailored to meet the specific healthcare needs of animals.

On the other hand, the Discovery segment is projected to grow at the fastest rate over the projected period. In the veterinary CRO and CDMO market, the "Discovery" service type refers to the initial phase of research and development, where novel compounds and treatment approaches are identified and evaluated for their potential in veterinary pharmaceuticals. This phase involves target identification, lead optimization, and preclinical testing. Trends in the Discovery services segment include a focus on innovative drug candidates, especially in areas such as zoonotic disease prevention and personalized medicine for animals. Advancements in genomics and bioinformatics have also accelerated the discovery process, allowing for the identification of new drug targets and the development of more effective veterinary therapies.

Application Insights

In 2022, the medicine segment had the highest market share of 71% on the basis of the application. In the veterinary CRO and CDMO market, the application of medicine refers to the development and manufacturing of pharmaceuticals, vaccines, and therapeutic solutions for animal health. A prominent trend in this sector includes a growing focus on personalized and species-specific medicines, aligning with the increasing awareness of tailored treatments for diverse animal species. Furthermore, innovations in gene therapies and biologics are gaining traction, offering novel approaches to address various veterinary healthcare needs. These trends reflect the industry's commitment to advancing veterinary medicine to enhance the well-being of animals worldwide.

Veterinary CRO and CDMO Market Share, By Application, 2022 (%)

The medical devices is anticipated to expand at the fastest rate over the projected period. In the veterinary CRO and CDMO market, the application of medical devices refers to the development and manufacturing of veterinary medical equipment and diagnostic devices. This encompasses a wide range of products, including imaging systems, surgical instruments, monitoring devices, and diagnostic tools tailored for animal healthcare. Trends in this segment include the increasing demand for advanced veterinary medical devices, driven by the growing focus on animal health and the rise in specialized treatments. Additionally, innovations in telemedicine and remote monitoring devices are shaping the future of veterinary diagnostics and care, offering convenience and accessibility to veterinarians and pet owners.

Recent Developments

  • In 2021, Vetio, a prominent player in Animal Health, has expanded its FlavorPal line by introducing new palatants. This strategic move aims to address evolving market demands and enhance the appeal of veterinary pharmaceuticals and pet products.
  • In 2021, Thompson Street Capital Partners, a private equity firm, announced the sale of Vetio Animal Health, a Contract Development and Manufacturing Organization (CDMO) specializing in animal health, to Swedencare. This transaction reflects the dynamic nature of the CDMO sector within the animal health industry.
  • In 2019, LabCorp and Envigo entered into an innovative agreement to expand Covance's nonclinical drug development capabilities. This collaboration also aims to establish an independent research models provider, showcasing the strategic evolution within the nonclinical research and CDMO sector.

Veterinary CRO And CDMO Market Players

  • Covance Inc. (a LabCorp Company)
  • Charles River Laboratories International, Inc.
  • PAREXEL International Corporation
  • ICON plc
  • Pharmaceutical Product Development, LLC (PPD)
  • Syneos Health
  • WuXi AppTec
  • Medpace
  • Envigo
  • Vetio Animal Health
  • Clinipace
  • MPI Research
  • Veterinary Research Management (VRM)
  • VetPharm, Inc.
  • Merck Animal Health

Segments Covered in the Report:

By Animal Type

  • Companion Animals
  • Livestock Animals

By Service Type

  • Discovery
  • Development
  • Manufacturing
  • Packaging & Labeling
  • Market Approval & Post-marketing

By Application

  • Medicines
  • Medical Devices

By Geography

  • North America
  • Europe
  • Asia-Pacific
  • Latin America
  • Middle East and Africa

Frequently Asked Questions

What is the veterinary CRO and CDMO market size?
The global veterinary CRO and CDMO market size is expected to increase USD 13.6 billion by 2032 from USD 6.1 billion in 2022.
What will be the CAGR of global veterinary CRO and CDMO market?
The global veterinary CRO and CDMO market will register growth rate of 8.4% between 2023 and 2032.
Who are the prominent players operating in the veterinary CRO and CDMO market?
The major players operating in the veterinary CRO and CDMO market are Covance Inc. (a LabCorp Company), Charles River Laboratories International, Inc., PAREXEL International Corporation, ICON plc, Pharmaceutical Product Development, LLC (PPD), Syneos Health, WuXi AppTec, Medpace, Envigo, Vetio Animal Health, Clinipace, MPI Research, Veterinary Research Management (VRM), VetPharm, Inc., Merck Animal Health, and Others.
Which are the driving factors of the veterinary CRO and CDMO market?
The driving factors of the veterinary CRO and CDMO market are the growing global pet population and intensified livestock production.
Which region will lead the global veterinary CRO and CDMO market?
North America region will lead the global veterinary CRO and CDMO market during the forecast period 2023 to 2032.

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