Veterinary CRO and CDMO Market – By Animal Type (Companion, Livestock), Service Type (CRO, [Clinical Trials, Quality Assurance], CDMO [Manufacturing, Development, Packaging & Labelling]), Product (Drugs, Biologics) – Global Forecast 2024 – 2032

Veterinary CRO and CDMO Market – By Animal Type (Companion, Livestock), Service Type (CRO, [Clinical Trials, Quality Assurance], CDMO [Manufacturing, Development, Packaging & Labelling]), Product (Drugs, Biologics) – Global Forecast 2024 – 2032

Veterinary CRO and CDMO Market Size

Veterinary CRO and CDMO Market size was valued at USD 6.2 billion in 2023 and is estimated to grow at 8.7% CAGR from 2024 to 2032. The market has seen substantial growth due to the increasing prevalence of diseases in animals such as cancer and zoonotic infections. This has led to an increased need for advanced veterinary pharmaceuticals and biologics.

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Also, the increased focus on pet healthcare and the rising livestock population are further driving the demand for innovative treatments. This need for advanced therapies has intensified research and development activities to expedite drug development. Therefore, pharmaceutical and biotechnology companies are increasingly relying on specialized CROs and CDMOs to leverage their expertise, accelerate development timelines, ensure regulatory compliance, and efficiently bring high-quality animal health products to market. Thus, widespread adoption of CRO and CDMO services will spur the market growth.
 

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Veterinary CROs & CDMOs are specialized service providers in the animal healthcare industry. Veterinary CROs offer research, development, and regulatory services for drugs, and biologics intended for animals. They conduct preclinical and clinical trials, manage regulatory submissions, and provide expertise in veterinary drug development. Whereas, veterinary CDMOs focus on the manufacturing and production of veterinary drugs and biologics, offering services from small-scale production to large-scale commercial manufacturing.

Veterinary CRO and CDMO Market Trends

Pharmaceutical and biotechnology companies are outsourcing to CROs and CDMOs to utilize their specialized expertise, ensuring higher quality and more efficient production of new animal health products. This trend is driven by increased R&D spending in the veterinary sector which boosts the demand for advanced veterinary drugs and biologics.

• For instance, in May 2022, Argenta Limited, a global CRO and CDMO focused on animal health, along with NovaQuest Capital Management, announced a USD 30 million product financing agreement to develop several innovative veterinary pharmaceuticals. This investment aimed to expand the research capabilities in the animal health sector.

Moreover, the growing animal healthcare expenditure, rising incidence of zoonotic infections, enhanced diagnostic technologies, growing government support, and strategic expansions by major players are few of the other factors that propel the market demand.

Veterinary CRO and CDMO Market Analysis

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Based on the animal type, the market is categorized as companion animals and livestock animals. The companion animal segment is set to lead the market, accounting for the largest revenue of USD 3.8 billion in 2023, anticipating its dominance throughout the forecast period.

• Companion animals such as dogs and cats are considered family members in many households which is driving the need for advanced companion animal drugs. For instance, in 2024, approximately 66% of U.S. households with around 86.9 million are reported to own pets. Similarly, according to data from the UK Pet Food Manufacturers Association, an estimated 13.5 million dogs and 12.5 million cats are kept as pets. Thus, increasing pet ownership is expected to boost demand for new formulations.
• Therefore, CROs and CDMOs play a crucial role in supporting the development and manufacturing of innovative veterinary medicines and therapies to cater to the evolving needs of the companion animal market, which is a key driver of the overall veterinary outsourcing industry.

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Based on service type, the veterinary CRO and CDMO market is classified into CRO services and CDMO services. The CDMO services segment holds the largest market share of 85.5% in 2023.

• Pharmaceutical and biotechnology companies increasingly rely on specialized CDMOs to manage essential aspects of the veterinary drug lifecycle. They offer expertise, technical capabilities, and economies of scale, providing end-to-end solutions frm formulation development and manufacturing to commercial production and regulatory compliance. This allows veterinary companies to focus on core competencies, reduce costs, and bring products to market more efficiently.
• Moreover, the growing complexity of veterinary therapeutics and stringent regulations further drive demand for comprehensive CDMO services, making this segment dominant in the market.

Based on the product, the veterinary CRO and CDMO market is segmented into drugs, biologics, and medicated feed and supplements. The drugs segment is projected to reach USD 6.9 billion by end of 2032.

• The drugs segment dominance was asserted due to increasing demand for specialized services in drug development and manufacturing. Also, the increasing demand for innovative veterinary medicines to effectively address a variety of animal health issues is driven by advancements in biotechnology and the global growth of pet and livestock populations. Such aforementioned factor is expected to augment the segmental growth.

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U.S. dominated the North American veterinary CRO and CDMO market, accounting for USD 2.2 billion in 2023 and is anticipated to show considerable growth over the analysis period.

• This dominance is driven by high pet ownership rates, and significant investment in R&D.  Also, high veterinary healthcare spending in the U.S. tends to further expand the market. For instance, according to the American Pet Products Association, in 2022, pet owners spent USD 31.5 billion on supplies, live animals, and medicine, and USD 35.9 billion on veterinary care and products. Thus, the increasing expenditure on veterinary care is driving the demand for effective treatment options.
• Furthermore, the country is known for significant investments in research and development, which promotes innovation and enhances the capabilities of veterinary services, thereby augmenting the country level market growth.

Germany exhibited a high growth potential in the European veterinary CRO and CDMO market.

• Germany holds prominence in the market owing to its advanced healthcare infrastructure and strong regulatory framework. The country's robust pharmaceutical industry and emphasis on research and development contribute significantly. For instance, Germany's biotechnology sector has been expanding, with increasing investments in veterinary medicine. This growth underscores Germany's pivotal role in providing high-quality CRO and CDMO services, catering to global demands for advanced animal health solutions efficiently.

The Asia Pacific veterinary CRO and CDMO market is poised for rapid growth with a CAGR of 9.1% during the forecast period.

• The region's large livestock industry especially in countries such as China, India, and Australia contribute to the growth of the market. The need for effective animal health solutions has increased the demand for outsourced R&D and manufacturing services.
• In addition, growing investment in veterinary healthcare coupled with advancements in biotechnology as well as growing focus on animal health are propelling the adoption of innovative treatments.
• Thus, these factors collectively position the Asia Pacific region poised to expand and explore opportunities in the market.

Veterinary CRO and CDMO Market Share

The market is characterized by a diverse range of providers offering specialized services in drug development, manufacturing, and regulatory support for veterinary pharmaceuticals. These companies compete based on their expertise in clinical trial management, formulation development, and adherence to global regulatory standards. Further, the key factors influencing competition include technological capabilities, geographic reach, regulatory expertise, and the ability to tailor services to meet the evolving needs of clients in the animal health sector.

Veterinary CRO and CDMO Market Companies

Few of the prominent players operating in the veterinary CRO and CDMO industry include

• Argenta Holdco Ltd.
• Clinvet 
• Eva Pharma 
• Huvepharma
• IDEXX Laboratories, Inc.
• KLIFOVET GmbH
• löhlein and wolf vet research
• Mercurio HoldCo Ltd.
• Moredun Foundation
• Syngene International Ltd.
• Tekro Ltd.
• Triveritas 
• Uniivo
• Vetio 

Veterinary CRO and CDMO Industry News

• In May 2024, EUROAPI entered into a CMO agreement with a global animal health company. Under this collaboration, EUROAPI will provide a key veterinary product to its client. This agreement aimed to enhance EUROAPI's presence in the CDMO sector, highlighting its expansion and capabilities in the veterinary pharmaceutical industry.
• In February 2024, GNT Pharma signed an agreement with Pfizer's contract manufacturing arm, Pfizer CentreOne, for the overseas production of its veterinary drug ‘GedaCure’, a chewable tablet for dogs with cognitive dysfunction syndrome (CDS). Pfizer CentreOne will provide CDMO services in countries including the U.S, and Europe where GNT Pharma has launched GedaCure. This collaboration strengthened GNT Pharma's global reach and production capabilities for its innovative veterinary drug.

The veterinary CRO and CDMO market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD Million from 2021 – 2032 for the following segments

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Market, By Animal Type

• Companion animals
• Livestock animals

Market, By Service Type

• CRO services
  • Clinical trials
  • Toxicology
  • Quality assurance
  • Regulatory services
  • Other CRO services
• CDMO services
  • Manufacturing
  • Development
  • Packaging & labeling
  • Market approval & post-marketing
  • Other CDMO services

Market, By Product

• Drugs
• Biologics
• Medicated feed and supplements

The above information is provided for the following regions and countries

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Spain
  • Italy
  • The Netherlands
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East and Africa
  • Saudi Arabia
  • South Africa
  • UAE
  • Rest of Middle East and Africa