Veterinary API Market Size, Share, Industry, Forecast and Outlook (2024-2031)

Report Overview

The Global Veterinary API Market reached US$ 6.84 billion in 2023 and is expected to reach US$ 12.29 billion by 2031 growing with a CAGR of 7.6% during the forecast period 2024-2031.

A veterinary active pharmaceutical ingredient (veterinary API) refers to the active substance in a pharmaceutical product designed for animal health. It is the primary component responsible for delivering the desired therapeutic effect in animals. Veterinary APIs are crucial for the formulation and production of medications aimed at treating, preventing, or managing a range of diseases and health conditions in animals.

Veterinary Active Pharmaceutical Ingredients (APIs) are essential components of finished pharmaceutical products, serving as the primary ingredients in these formulations. Most APIs are derived from chemical synthesis, biotechnological processes, or the extraction of natural substances by raw material manufacturers. Veterinary APIs are the foundational chemicals used in the production of final drug products, and the quality of these finished veterinary medications is directly influenced by the quality of the APIs used.

Market Scope

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Market Dynamics: Drivers

Increasing animal population and pet ownership

The demand for the global veterinary API market is driven by multiple factors. One of the primary factors is the increasing animal population & pet ownership. The growing animal population has led to an increase in demand for surgical procedures, including orthopedic, neurosurgical, and cardiovascular surgeries. All these factors driving the veterinary API market.

The rising number of pets has led to an increase in the adoption of advanced veterinary API drugs. The overall population of pet dogs in India was over 33 million in 2023. The population is likely to reach more than 51 million by 2028.  According to the global state of pet care stats, in September 2022, a growing pet population means a greater need for veterinary care and veterinary API drugs to cure pet care requirements.

Moreover, the growing pet ownership trend is driving the demand for veterinary care, including surgical procedures. As more people treat their pets as family members, they are willing to invest in high-quality veterinary care, including advanced surgical procedures and invest more in veterinary API drugs to provide better treatment for veterinary health.

Moreover, key players in the industry have innovative launches and technological advancements in veterinary healthcare that would drive this market growth. For instance, in December 2023, eVerse.AI introduced CowGPT, the first Generative AI application specifically designed for the dairy and animal care sectors. This innovative tool has generated significant interest in the industry, which has been rapidly evolving due to advancements in Generative AI over the past year. 

The company is also in talks with the National Dairy Development Board (NDDB) in India to establish an API-based integration with the ConnectedCow platform and the INAPH/NDLM systems. Once this integration is completed, it could potentially provide access to data on over 250 million animals through the ConnectedCow platform. 

Similarly, in June 2021, Lasa Supergenerics Limited, a leader in the production of Veterinary and Human APIs in India, expanded its product range by introducing Oxyclozanide. This addition leverages the company's expertise in catalyst chemistry and its fully integrated manufacturing capabilities.

 Oxyclozanide is an anthelmintic used for treating fascioliasis, a type of worm infection primarily affecting livestock such as cattle, sheep, and goats. The company plans to initiate production at its Chiplun facility in August 2021, aiming to serve both domestic and international markets.

Restraints

Factors such as the high cost of animal care, lack of awareness, difficulties in the synthesis of large molecular weight API synthesis, limited approved animal therapies, increasing costs for veterinary research, and stringent government regulations, are expected to hamper the market.

Market Segment Analysis

The global veterinary API market is segmented based on API type, synthesis type, route of administration, animal type, service type, and region.

The vaccines segment accounted for approximately 56.5% of the global veterinary API market share

The vaccines segment is expected to hold the largest market share over the forecast period. The growing prevalence of chronic diseases in animals is leading to a demand for vaccines. This need is further driven by rising livestock populations and the commercialization of animal products, which necessitate effective disease management strategies.

Vaccines such as those for rabies, equine influenza, and foot-and-mouth disease are widely administered to inhibit the transmission of infectious pathogens by mimicking naturally acquired immunity. The effectiveness of these vaccines contributes to the high demand for veterinary vaccines in the market.

Moreover, key players in the industry invested in veterinary healthcare and introduced innovative vaccines that would drive this segment's growth in this market. For instance, in December 2023, Indian Immunologicals Limited (IIL) commenced construction of a Rs. 700 crore state-of-the-art veterinary vaccine facility in Genome Valley, Hyderabad. This greenfield project is aimed at enhancing India's vaccine security against economically important diseases like Foot and Mouth Disease (FMD) and other emerging threats.

Similarly, in June 2023, Boehringer Ingelheim Animal Health Canada Inc. introduced a new vaccine combination that protects two of the most serious and economically impactful swine diseases in a single dose. Utilizing a proprietary purification process, Boehringer Ingelheim has successfully combined its Ingelvac CircoFLEX with the leading Ingelvac PRRS MLV vaccine without compromising the effectiveness of PRRS protection. This innovative vaccine combination offers veterinarians and producers greater flexibility in selecting the most suitable vaccine for their herd and disease management strategies.

In addition, major players in the industry more focus on the key developments in veterinary vaccines helps to drive this market growth. For instance, in January 2023, Merck Animal Health, announced the opening of a state-of-the-art manufacturing facility in Boxmeer, the Netherlands, for sterile filling and freeze drying of companion animal vaccines. 

Boxmeer is one of the company's centers for the development and production of veterinary vaccines, and the location is part of a manufacturing network in the Netherlands that includes existing production and research facilities in Boxmeer and De Bilt. The new facility will provide Merck Animal Health with additional manufacturing resources to meet the growing customer demand for its innovative vaccines.

Market Geographical Share

North America accounted for approximately XX% of the global veterinary API market share. 

North America region is expected to hold the largest market share over the forecast period owing to the rising prevalence of zoonotic diseases, growing demand for animal-derived food products, and well-established veterinary healthcare infrastructure helping to drive this market growth in the region.

Moreover, in this region, rising pet population & ownership, key player strategies such as partnerships & collaborations, and government support would propel this market growth. For instance, in November 2022, Dutch, a virtual veterinary care provider, partnered with Synchrony, a consumer financial services company, to offer Pets Best insurance to its annual veterinary care members. 

According to NAPHIA despite over 90.5 million American families owning pets, only 3% of U.S. pets are insured. Dutch aims to address this gap by providing easy access to common veterinary needs through telemedicine, personalized treatment plans, and prescription fulfillment in most states. 

Dutch and Pets Best are leveraging API-driven solutions and innovative pet insurance products to meet the growing demand for veterinary services, further advancing the pet health industry. The accident-only policies exclude pre-existing injuries, cruciate ligament injuries, and any illnesses or diseases, including infectious bacterial or viral diseases, parasitic infections, metabolic disorders, or cancer.

Similarly, in August 2023, Dômes Pharma announced the successful acquisition of SentrX Animal Care. SentrX specializes in developing and manufacturing ophthalmology products utilizing its proprietary BioHAnce technology. This patented technology involves crosslinked Hyaluronic Acid, which enhances and accelerates natural healing, hydration, and lubrication while minimizing the frequency of applications required.

Market Segmentation

By API Type 

• Anti-infectives
• Vaccines
• NSAIDs
• Antiparasitics
• Others

By Synthesis Type

• Chemical Based API
• Biological API
• Highly Potent API (HPAPI)

By Route of Administration

• Oral
• Injectable
• Topical

By Animal Type 

• Companion Animals
• Production Animals

By Service Type

• In House
• Contract Outsourcing
  • Contract Development
  • Contract Manufacturing

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • U.K.
  • France
  • Spain
  • Italy
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • The rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • South Korea
  • Rest of Asia-Pacific
• Middle East and Africa

Competitive Landscape

The major global players in the veterinary API market include SUANFARMA, Alivira Animal Health Limited, Zoetis, Excel Industries, Sidhiv Pharma, Chempro Pharma Private Limited, De Ofichem Group, NGL Fine-Cheam Ltd., AMGIS Lifescience Ltd., and Rochem International Inc. among others.

Key Developments

• In May 2024, EUROAPI announced that it had entered into a significant Contract Manufacturing Organization (CMO) agreement with a prominent global animal health group. By using this collaboration, EUROAPI will manufacture and supply the group with a critical veterinary product. The anticipated total value of this contract is projected to fall between €130 and €150 million over the projected period.
• In January 2024, Huateng Pharma announced the introduction of a specialized product line aimed at the veterinary sector. Committed to providing high-quality solutions, the company offers a diverse selection of veterinary APIs and intermediates, including Fluralaner and Sarolaner.
• In November 2022, SeQuent Scientific Limited finalized a definitive agreement to acquire a 100% stake in Tineta Pharma Private Limited, a company based in India. This acquisition is expected to significantly boost the rapid growth of SeQuent's formulations business in India, particularly enhancing its presence in the livestock sector.

Why Purchase the Report?

• To visualize the global veterinary API market segmentation based on API type, synthesis type, route of administration, animal type, service type, and region and understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development. 
• Excel data sheet with numerous veterinary API market data points with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping is available in Excel consisting of key products of all the major players.

The global veterinary API market report would provide approximately 78 tables, 74 figures, and 184 pages.

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies