Veterinary Services Market: Growth and Industry Trends

This article was written by our expert who is surveying the industry and constantly updating the business plan for a veterinarian practice.

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The Dojo Business Team

A team of financial experts, consultants, and writers

We're a team of finance experts, consultants, market analysts, and specialized writers dedicated to helping new entrepreneurs launch their businesses. We help you avoid costly mistakes by providing detailed business plans, accurate market studies, and reliable financial forecasts to maximize your chances of success from day one—especially in the veterinary services market.

What is the current global market size of veterinary services, and how has it changed over the past five years?

The global veterinary services market is currently valued between USD 127 billion and USD 156 billion in 2025, with most estimates converging around USD 139.9 billion.

Over the past five years, the market has grown from approximately USD 131 billion in 2024 to nearly USD 140 billion in 2025. This represents a compound annual growth rate (CAGR) ranging from 4.9% (conservative estimates) to 8.4% (optimistic projections), depending on the region and analyst methodology.

The substantial growth has been driven by several key factors: rising pet ownership globally, expanding livestock health initiatives to ensure food security, increasing regulatory pressures for disease control and animal welfare, and rapid adoption of technological innovations such as telemedicine and AI diagnostics. Pet humanization—the trend of treating pets as family members—has particularly accelerated spending on preventive and advanced veterinary care.

For veterinary practice owners, this growth trajectory indicates strong market fundamentals and increasing consumer willingness to invest in animal health services. The market has demonstrated resilience and expansion even during economic uncertainties, making it an attractive sector for new entrants with proper planning and differentiation strategies.

What are the projected growth rates for the veterinary services market over the next five to ten years, both globally and regionally?

The veterinary services market is projected to grow at a global CAGR of 7.4%–8.4% through 2032–2035, potentially reaching between USD 209 billion and USD 313 billion by the end of this period.

Regionally, Asia-Pacific is expected to experience the fastest growth, driven by rapid urbanization, rising disposable incomes, and increasing pet ownership in countries like China, India, and Southeast Asian nations. North America will maintain its position as the largest regional market due to high pet insurance penetration, advanced veterinary infrastructure, and strong government support for animal health initiatives.

Europe is also projected to see steady growth, supported by stringent animal welfare regulations and high standards of veterinary care. Latin America and the Middle East-Africa regions are emerging markets with growing potential, particularly in livestock and production animal segments as these regions focus on food security and agricultural productivity.

The growth projections are underpinned by several catalysts: increasing awareness of preventive care, digital health innovations expanding service accessibility, rising pet insurance adoption, and government-funded disease surveillance and vaccination programs. For new veterinary practice owners, understanding these regional dynamics can inform strategic decisions about location, service offerings, and target market segments.

You'll find detailed market insights in our veterinarian business plan, updated every quarter.

Which regions or countries are experiencing the fastest growth in veterinary services demand, and what factors are driving this expansion?

Asia-Pacific is the fastest-growing region for veterinary services, with particularly strong expansion in China, India, and Southeast Asia.

Several interconnected factors are driving this rapid growth in the Asia-Pacific region. Rapid urbanization is creating larger middle-class populations with disposable income to spend on pet care. Cultural shifts are increasing pet ownership rates, especially in urban areas where pets provide companionship in smaller family units. Investments in animal health infrastructure—including new veterinary clinics, diagnostic facilities, and educational institutions—are expanding service availability and quality.

In China specifically, the growing middle class and changing attitudes toward pet ownership have created explosive demand for companion animal care services. India is experiencing growth in both companion animal and livestock segments, driven by improving economic conditions and government initiatives for animal health. Southeast Asian countries like Thailand, Vietnam, and Indonesia are seeing increased veterinary services demand as urbanization accelerates and pet ownership becomes more mainstream.

North America, while not the fastest-growing region, remains the largest market due to its mature veterinary infrastructure, high pet ownership rates (approximately 67% of U.S. households own pets), widespread pet insurance adoption, and advanced technological integration in veterinary practices. The U.S. market benefits from strong consumer spending on pet health, with pet owners increasingly willing to invest in preventive care, advanced diagnostics, and specialized treatments.

For veterinary entrepreneurs, these regional dynamics present different opportunities: Asia-Pacific offers high-growth potential with emerging market challenges, while North America provides a stable, mature market with opportunities for specialization and premium service differentiation.

What are the main segments within veterinary services, and how are they performing comparatively?

The veterinary services market comprises four main segments: companion animal care, livestock/production animal services, diagnostics, and telemedicine, each with distinct performance characteristics and growth trajectories.

For new veterinary practice owners, companion animal care typically offers the most accessible entry point with strong growth potential, while specialized segments (diagnostics, emergency care, specialty services) can provide differentiation and higher margins but require greater capital investment and specialized expertise.

How have recent technological advancements influenced the veterinary industry's growth and efficiency?

Technological advancements have fundamentally transformed veterinary services by improving diagnostic accuracy, expanding access to care, enhancing operational efficiency, and enabling data-driven treatment decisions.

AI-powered diagnostic tools are revolutionizing how veterinarians identify and treat diseases. Machine learning algorithms can now analyze radiographic images, identify patterns in laboratory results, and predict disease progression with accuracy that matches or exceeds human interpretation. These tools reduce diagnostic errors, speed up treatment decisions, and enable earlier intervention for better patient outcomes.

Telemedicine platforms have experienced explosive growth, particularly accelerated by the COVID-19 pandemic. These platforms now provide remote consultations, triage services, follow-up care, and prescription management. Telemedicine expands access to veterinary care in rural and underserved areas, offers convenience for routine consultations and follow-ups, reduces overhead costs for practices, and improves client engagement through easier communication channels.

Digital health tools and practice management systems are streamlining operations and improving client experiences. Cloud-based electronic medical records enable seamless information sharing between practices and specialists. Automated appointment scheduling, reminder systems, and client portals reduce administrative burden. Inventory management systems optimize supply ordering and reduce waste. Mobile apps allow pet owners to access medical records, schedule appointments, and receive health recommendations.

Advanced diagnostic equipment—including portable ultrasound devices, digital radiography, molecular diagnostic platforms, and point-of-care testing equipment—enables more comprehensive diagnostics in general practice settings, reducing the need for external laboratory referrals and providing faster results.

Precision farming technologies are transforming livestock veterinary services through wearable sensors for continuous health monitoring, automated feeding and milking systems with health alerts, data analytics for herd health management, and early disease detection algorithms that prevent outbreaks.

This is one of the strategies explained in our veterinarian business plan.

What are the primary drivers fueling demand for veterinary services?

Demand for veterinary services is driven by four primary factors: pet ownership trends, livestock health requirements, regulatory pressures, and increasing consumer spending on preventive and advanced care.

Pet ownership trends, particularly the pet humanization phenomenon, represent the strongest demand driver for companion animal services. Pet humanization refers to the growing tendency to treat pets as family members, leading to higher spending on healthcare, nutrition, and wellness. This trend is most pronounced in developed economies but is rapidly expanding in emerging markets as urbanization increases and cultural attitudes shift. Demographic changes—including aging populations seeking companionship, smaller family sizes, and remote work arrangements—have accelerated pet adoption rates globally.

Livestock health requirements drive demand in the production animal segment. Global food security concerns require healthy, productive animal populations. Disease control and prevention programs are critical for maintaining agricultural productivity and preventing zoonotic disease transmission. Biosecurity measures, vaccination programs, and routine health monitoring have become standard practice in modern livestock operations. Government-funded initiatives for disease surveillance, outbreak response, and herd health improvement create consistent demand for veterinary services.

Regulatory pressures significantly influence veterinary services demand. Animal welfare standards are becoming more stringent globally, requiring regular veterinary oversight and documentation. Food safety regulations mandate veterinary involvement in livestock production. Import-export requirements necessitate health certifications and disease testing. Licensing and compliance requirements for animal facilities create ongoing demand for veterinary services.

Rising consumer spending on preventive care and advanced treatments reflects changing attitudes toward animal health. Pet insurance adoption is increasing, making expensive treatments more accessible. Wellness subscriptions and preventive care plans encourage regular veterinary visits. Advanced treatment options—including chemotherapy, orthopedic surgery, and chronic disease management—are becoming more widely accepted and sought after by pet owners willing to invest in their animals' health and longevity.

What are the key restraints or challenges the veterinary industry is currently facing?

The veterinary industry faces three major challenges: critical shortages of skilled veterinarians and support staff, high operating costs and limited standardization, and uneven access to services across geographic and economic segments.

Veterinarian and support staff shortages represent the most pressing challenge globally. The supply of new veterinarians is not keeping pace with demand growth, creating recruitment and retention difficulties for practices. High educational debt burdens (often exceeding USD 200,000 in the U.S.) discourage students from entering the profession and limit career flexibility. Burnout and mental health issues are prevalent due to demanding work schedules, emotional stress, and difficult client interactions. Support staff shortages—including veterinary technicians, assistants, and administrative personnel—compound the problem by increasing workload on veterinarians. Rural areas face particularly acute shortages as professionals prefer urban locations with better compensation and lifestyle amenities.

High operating costs challenge practice profitability and sustainability. Equipment and technology investments require significant capital (diagnostic equipment, surgical tools, practice management systems). Real estate costs in urban areas reduce profit margins. Supply chain disruptions and inflation have increased costs for medications, supplies, and equipment. Labor costs are rising due to competitive pressure for skilled staff. Insurance expenses—including malpractice, property, and liability coverage—represent significant overhead. For new practice owners, these high fixed costs create substantial barriers to entry and require careful financial planning to achieve profitability.

Uneven access to veterinary services creates market gaps and limits growth potential. Rural areas often lack adequate veterinary coverage, forcing clients to travel long distances for care. Urban low-income areas may be underserved despite high pet ownership rates. Developing countries have limited veterinary infrastructure and trained professionals. Affordability barriers prevent some pet owners from accessing needed care, even when services are geographically available. Language and cultural barriers can limit service accessibility in diverse communities.

Additional challenges include limited standardization in treatment protocols and pricing across practices, increasing competition from corporate consolidation potentially pricing out independent practices, regulatory complexity varying significantly by jurisdiction, and client expectations sometimes exceeding realistic medical outcomes or affordable treatment options.

We cover this exact topic in the veterinarian business plan.

Who are the leading players in the veterinary services market, and what strategies are they using to expand their market share?

The veterinary services market is led by major corporate networks including Mars Inc. (through its Banfield Pet Hospital, VCA, BluePearl, and other brands), National Veterinary Care Ltd., Greencross Vets, CVS Group PLC, Ethos Veterinary Health, Pets at Home Group PLC, PetIQ LLC, and Armor Animal Health, among others.

These leading players employ several key expansion strategies. Geographic expansion through acquisition and organic growth is the primary strategy, with companies acquiring independent practices and regional chains to build nationwide or international networks. This consolidation creates economies of scale, standardized protocols, and enhanced bargaining power with suppliers and service providers.

Investment in hospital networks and infrastructure allows these companies to offer comprehensive service ranges under one brand. They develop multi-location networks with general practice clinics, specialty hospitals, emergency centers, and diagnostic laboratories, creating integrated service ecosystems that capture more of the veterinary care value chain.

Technology integration is a critical differentiator. Leading players invest heavily in proprietary practice management systems, telemedicine platforms, client-facing mobile apps, AI diagnostic tools, and data analytics capabilities. These technology investments improve operational efficiency, enhance client experience, and provide competitive advantages through better data insights and service delivery.

Subscription-based wellness programs represent an innovative revenue model gaining traction. Companies offer monthly subscription plans covering routine care (vaccinations, examinations, parasite prevention) at predictable prices. These programs improve client retention, increase visit frequency, create predictable revenue streams, and build stronger client relationships.

Vertical integration strategies include acquiring diagnostic laboratories, pharmaceutical distribution, pet insurance operations, and medical equipment suppliers. This integration reduces costs, improves service delivery, and captures additional profit margins across the veterinary care ecosystem.

Brand building and marketing investments help corporate players differentiate in competitive markets through consistent service standards, recognizable brand identity, loyalty programs, and extensive digital marketing. Specialty service development in areas like oncology, cardiology, ophthalmology, and emergency care allows these companies to capture high-margin referral business and position themselves as comprehensive care providers.

For independent veterinary practices, understanding these corporate strategies is essential for developing competitive responses, whether through differentiation, niche specialization, or strategic partnerships with other independent providers.

What role do regulatory policies and animal welfare standards play in shaping veterinary services growth and operations?

Regulatory policies and animal welfare standards are fundamental market drivers that shape practice operations, create demand for services, and influence competitive dynamics in the veterinary industry.

Disease control and prevention regulations mandate veterinary involvement in several critical areas. Vaccination requirements for companion animals (rabies, core vaccines) create consistent baseline demand. Livestock disease surveillance programs require regular veterinary inspections and reporting. Import-export health certifications necessitate veterinary examinations and documentation. Outbreak response protocols require veterinary expertise for containment and eradication. These regulatory requirements create non-discretionary demand that provides revenue stability for practices.

Animal welfare standards increasingly influence practice operations and service offerings. Minimum care standards for animals in commercial settings (farms, breeding facilities, research institutions) require veterinary oversight. Anti-cruelty laws create enforcement and reporting responsibilities for veterinarians. Housing and transport regulations for livestock mandate veterinary certification. Welfare audits and certifications in food production create demand for veterinary services in agricultural settings.

Food safety regulations drive demand for production animal veterinary services. Residue testing programs for antibiotics and other drugs require veterinary monitoring. Veterinary feed directives and prescription requirements for antimicrobials create ongoing client relationships. HACCP (Hazard Analysis and Critical Control Points) plans in food production require veterinary input. Traceability requirements for animal products necessitate veterinary documentation and health certifications.

Licensing and professional regulation ensure service quality but also create compliance obligations. Veterinary licensing requirements vary by jurisdiction and include continuing education mandates, practice standards, record-keeping requirements, and controlled substance regulations. Facility licensing and inspection requirements create operational standards. Medical waste disposal regulations require specialized handling procedures. These regulatory requirements increase operating complexity and costs but also create barriers to entry that protect established practices.

Government-funded programs directly stimulate demand for veterinary services through rabies control initiatives, livestock vaccination programs, disease eradication campaigns, agricultural extension services, and disaster response veterinary assistance. These programs provide consistent revenue opportunities and support public health objectives.

How has consumer behavior regarding spending on preventive care and advanced treatments shifted in recent years?

Consumer behavior in veterinary services has shifted dramatically toward higher spending on preventive care, advanced treatments, and premium services, driven by pet humanization and increased awareness of animal health benefits.

• Preventive care adoption has accelerated substantially. Pet owners increasingly understand that routine wellness examinations, vaccinations, parasite prevention, and dental care reduce long-term healthcare costs and improve quality of life. Wellness subscription plans make preventive care more accessible and predictable for budgeting. Insurance companies incentivize preventive care through policy structures that reward routine maintenance. Technology platforms send automated reminders and educational content that encourage preventive visits.
• Advanced treatment acceptance has expanded significantly. Pet owners are more willing to pursue expensive treatments like chemotherapy, radiation therapy, advanced orthopedic surgery, specialty cardiology procedures, and chronic disease management that were previously considered too costly or invasive. Pet insurance coverage makes these treatments financially accessible for more owners. Improved success rates and quality-of-life outcomes justify the investments for many families. Specialty referral acceptance has increased as general practitioners better communicate the benefits of specialized care.
• Diagnostic testing willingness has increased markedly. Pet owners accept recommendations for bloodwork, imaging, and specialized diagnostic tests more readily than in previous decades. Understanding of early disease detection benefits drives acceptance of screening tests. Point-of-care testing provides immediate results that facilitate treatment decisions. Genetic testing for breed-specific conditions is gaining adoption for proactive health management.
• Premium service expectations have risen across all segments. Extended hours and emergency access are increasingly expected rather than considered luxury services. Convenience features like online appointment booking, telemedicine consultations, home visits, and curbside service have become standard expectations. Communication preferences have shifted toward digital channels including text messaging, email updates, and client portal access. Transparency in pricing and treatment options is demanded by informed consumers who research online before visits.
• Nutrition and wellness product spending has grown substantially. Pet owners invest in prescription diets, supplements, therapeutic foods, and specialized nutrition products recommended by veterinarians. This creates significant revenue opportunities beyond traditional medical services through product sales and nutritional counseling services.

These behavioral shifts create opportunities for veterinary practices to increase average transaction values through comprehensive care offerings, but they also increase client expectations for service quality, communication, and outcomes that require investment in staff training and client education.

It's a key part of what we outline in the veterinarian business plan.

What impact are mergers, acquisitions, and partnerships having on the competitive landscape of veterinary services?

Mergers, acquisitions, and strategic partnerships are fundamentally reshaping the veterinary services competitive landscape through consolidation, integration, and market concentration that affects both corporate players and independent practices.

Market consolidation is accelerating rapidly. Large corporate networks are acquiring independent practices and regional chains at unprecedented rates, creating multi-location healthcare systems. Private equity investment has surged into veterinary services, providing capital for aggressive expansion and practice acquisitions. Roll-up strategies combine multiple practices under unified management and branding, generating economies of scale in purchasing, administration, and marketing.

Service integration is expanding through strategic acquisitions. Corporate players are acquiring diagnostic laboratories to bring testing in-house, specialty hospitals to capture referral revenue, telemedicine platforms to expand service delivery channels, and pharmaceutical distributors to control supply chains. This vertical integration allows companies to capture more value across the care continuum and offer comprehensive service packages that independent practices cannot match.

Technology partnerships are becoming critical competitive factors. Practice management software companies partner with telemedicine providers, diagnostic equipment manufacturers, and client communication platforms to create integrated technology ecosystems. Pet insurance companies partner with corporate practice networks to create preferred provider relationships. Technology companies partner with veterinary groups to develop AI diagnostic tools and data analytics capabilities.

Market concentration effects are creating distinct competitive dynamics. Corporate chains control increasing market share in urban and suburban areas, with some markets showing 30-40% corporate ownership of practices. Pricing power shifts toward consolidated players who can negotiate better supplier terms and set market pricing standards. Independent practices face increased competition from well-funded corporate neighbors with superior marketing and technology resources. Recruitment challenges intensify as corporate chains offer higher salaries, better benefits, and less ownership responsibility than independent practices.

For independent practices, these consolidation trends create both threats and opportunities. Threats include direct competition from better-resourced corporate practices, pressure on pricing and margins, recruitment difficulties competing for staff, and potential inability to invest in technology at competitive levels. Opportunities include potential acquisition by corporate buyers at favorable valuations, partnerships with other independents to achieve scale benefits, niche positioning in underserved segments, and differentiation through personalized service and community relationships that corporate chains struggle to replicate.

Strategic responses for independent practices include considering group purchasing organizations to improve supplier pricing, technology cooperatives to share system costs, strategic alliances with specialty practices for referral relationships, and succession planning that includes potential corporate buyers as exit strategies.

What are the most important emerging trends that will likely shape the future of the veterinary services market?

Several transformative trends are emerging that will reshape veterinary service delivery, business models, and competitive positioning over the next decade.

For new veterinary practice owners, these emerging trends represent both opportunities and challenges. Success will require carefully selecting which trends align with your target market, competitive positioning, and resource capabilities while remaining flexible enough to adapt as the industry continues evolving.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are encouraged to consult with a qualified professional before making any investment decisions. We accept no liability for any actions taken based on the information provided.

Sources

1. Coherent Market Insights - Veterinary Services Market
2. Future Market Insights - Veterinary Services Market
3. Grand View Research - Veterinary Care Market Report
4. Mordor Intelligence - Veterinary Services Market
5. Precedence Research - Veterinary Services Market
6. Towards Healthcare - Veterinarian Care Market Sizing
7. Fact.MR - Pet Wellness Services Market
8. Morgan Stanley - Pet Care Industry Outlook 2030