Veterinary Active Pharmaceutical Ingredients (API) Market Size - By Type (Anti-infectives, Anti-parasitic, NSAIDs), Synthesis Type (HPAPI, Biological, Chemical Based), Contract Outsourcing (CDMO, CMO), Drug Type - Global Forecast, 2023-2032

Veterinary Active Pharmaceutical Ingredients (API) Market Size - By Type (Anti-infectives, Anti-parasitic, NSAIDs), Synthesis Type (HPAPI, Biological, Chemical Based), Contract Outsourcing (CDMO, CMO), Drug Type - Global Forecast, 2023-2032

Veterinary Active Pharmaceutical Ingredients Market Size

Veterinary Active Pharmaceutical Ingredients Market size was valued to be USD 6.3 billion in 2022 and is projected to witness growth at a CAGR of 7% by 2032 due to the rising ownership of companion animals, increasing prevalence of animal diseases, rising livestock production, growing awareness of zoonotic diseases, increasing demand for pet insurance, and expansion of companion animal drugs industry.

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Veterinary API (Active Pharmaceutical Ingredient) refers to the active chemical component in a pharmaceutical product specifically designed for use in veterinary medicine. These APIs are responsible for the therapeutic or pharmacological effects of the veterinary drugs as they serve as the core ingredient in various pharmaceutical formulations. Veterinary APIs are subject to rigorous quality and safety standards to ensure they are effective and safe for use in animals. They undergo extensive research, development, and testing before they are approved for commercial use. The veterinary pharmaceutical industry continuously works to develop and improve APIs to provide better treatment options and promote animal health and welfare.

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COVID-19 Impact Analysis

The COVID-19 pandemic has had a substantial impact on the veterinary active pharmaceutical ingredients market. During pandemic, the number of veterinary visits decreased due to lockdown and fear of exposure to viruses. Also, many pet owners faced financial constraints. The economic downturn caused by the pandemic have influenced consumer spending on pet care products and veterinary services, including veterinary APIs. which has impacted animal healthcare expenditure. This have led to a decline in the demand for certain veterinary APIs and medications. The pandemic prompted a shift in priorities and resources towards human healthcare and pharmaceuticals.

Prices for various veterinary APIs and feed additives skyrocketed as a result of the outbreak.  For example, the price of vitamin C has risen considerably, reaching over 30 RMB (USD 4.19) per kg, or an almost 50% increase. Meanwhile, the price of Vitamin D3 has nearly doubled.

However, the pandemic led to a surge in pet adoptions which created a larger customer base for veterinary services and products, including veterinary APIs. Also, the adoption of telemedicine and virtual consultations in the veterinary industry increased during pademic. Veterinary API suppliers and pharmaceutical companies adapted to e-commerce trends, making it easier for pet owners to access veterinary medications online.

Veterinary Active Pharmaceutical Ingredients Driving Factors

The veterinary active pharmaceutical ingredients market is estimated to develop at a 7% CAGR by 2032. The global pet care sector is worth more than USD 280 billion in 2022. A variety of causes are driving this expansion, including an increase in the prevalence of zoonotic illnesses, an increase in animal populations and pet ownership, and an increase in the number of veterinarians and veterinary visits. The average pet owner spends more than USD 700 on their pet's health care each year. In 2022, Americans spent USD 136.8 billion on their pets, up 10.68% from 2021 (USD 123.6 billion).

Veterinary Active Pharmaceutical Ingredients Restraint

In veterinary active pharmaceutical ingredients market the cost of veterinary medications can be substantial, making them unaffordable for some pet owners. A course of therapy for a common skin illness in dogs, for example, might cost between USD 50- 100. 

The veterinary API regulatory environment is getting increasingly stringent, raising the cost of compliance and making it more difficult for new companies to enter the market. Also, a substantial investment is required during the drug development process which may lead to higher drug pricing to recoup costs.

Veterinary Active Pharmaceutical Ingredients Market Analysis

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Based on type, the veterinary active pharmaceutical ingredients market is segmented into anti-infectives, anti-parasitics, vaccines, hormones, biologics, anti-inflammatory, and other APIs. The anti- parasitics segment held largest share of 25% in 2022. Parasitic diseases can significantly impact animal health and productivity. As a result, there is a high demand for effective parasiticides to prevent and treat these conditions. These diseases can significantly impact animal health and productivity. As a result, there is a high demand for effective parasiticides to prevent and treat these conditions. For example, flea and tick treatments for pets are typically applied monthly, and deworming of livestock may be done periodically. This frequent usage leads to higher consumption of parasiticides compared to some other types of veterinary APIs.

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Based on synthesis type, the veterinary active pharmaceutical ingredients market is segmented into chemical-based API, biological API, and highly potent API (HPAPI). Chemical-based API segment held a major market share of 57.4% in 2022. Chemicals in their active form are used for the manufacturing of active pharmaceutical ingredient (API) that produces the intended effect. Chemical based APIs have pharmacological activity mainly used with combination of other ingredients to diagnose, cure, mitigate, and treat veterinary diseases. Chemicals acts as a base to convert raw materials into API thereby potentially creating a sustainable healthcare system and influencing product innovation.

Based on contract outsourcing type, the veterinary active pharmaceutical ingredients market is segmented into contract outsourcing and inhouse. Contract manufacturing segment held a majority market share in 2022 and is forecasted to grow at 7.4% CAGR by 2023. This robust expansion rate is owing to increasing preference for outsourcing manufacturing process of APIs and drugs to reduce the operational cost of the company.

The contract manufacturing segment is further sub segmented into contract development and contract manufacturing. Increasing demand for veterinary APIs has influenced the service providers including contract manufacturing and contract development. Moreover, outsourcing will continue to grow as it significantly lowers the cost of R&D expense and in-turn, increase the profit margin for the company.

Based on animal type, the veterinary active pharmaceutical ingredients market is segmented into companion animals and livestock. The companion animals segment held a significant market share in the veterinary active pharmaceutical ingredients accounting for USD 4,139.1 million in 2022. The rising pet ownership rates have led to a larger customer base for veterinary products, including APIs.

The humanization of pets, where they are treated as members of the family, has driven pet owners to seek higher standards of care. This cultural shift translates into higher demand for advanced treatments, further contributing to the prominence of companion animals in the veterinary API market.

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North America veterinary active pharmaceutical ingredients market held more than 39% revenue share in 2022 and is expected to reach USD 4.5 billion by 2032. This high revenue share is mainly attributed to the significant pet expenditure, presence of large number of grazing animals, and supportive government initiatives, etc. Favorable laws and policies implemented in the region by regulatory authorities would further aid the companies operating in the market. Increasing prevalence of zoonotic diseases in the U.S. is set to increase the demand for animal health products comprising of veterinary APIs. For instance, according to the reports published by the National Centers for Biotechnology Information, in 2021, zoonoses contributes around 61% of infectious diseases, approximately 75% of emerging infectious diseases, and around 80% potential bioterrorism pathogens.

Veterinary Active Pharmaceutical Ingredients Market Share

Few of the key players operating in the veterinary active pharmaceutical ingredients market include

• Vetpharma
• Huvepharma
• Alivira Animal Health Ltd
• NGL Fine-Chem Ltd
• Excel Industries Ltd.
• INDUKERN Chemie AG
• AMGIS Lifescience Ltd.

Veterinary Active Pharmaceutical Ingredients Industry News

• In 2022, Zoetis launched a new API called toceranib phosphate, which is used to treat canine mast cell tumors.
• In October 2022, Huvepharma announced the re-launch of PoultrySulfa drug consisting of sulfamerazine, sulfamethazine and sulfaquinoxaline API in the U.S. This drug is used to control coccidiosis and acute fowl cholera in chickens and turkeys caused by pathogens. This launch helped the company to enhance their product portfolio and increase their customer base.
• In November 2020, Ofichem Group announced the opening of new business office at Hangzhou, China. This strategic move helped the company to expand their geographical presence, enter new markets, gain a wide customer base, and enhance their business revenue.

 The veterinary active pharmaceutical ingredients market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2018 to 2032, for the following segments

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By Type

• Anti-infectives
• Anti-parasitics
• Vaccines
• Hormones
• Biologics
• Anti-inflammatory
• Other APIs

By Synthesis Type

• Chemical based API
• Biological API
• Highly potent API (HPAPI)

By Route of Administration

• Oral
• Injectable
• Topical
• Other routes

By Service Type

• In-house
• Contract outsourcing 
• Cntract development
• Contract manufacturing

By Animal Type

• Companion animals
• Livestock animals

The above information is provided for the following regions and countries

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