Veterinary API Manufacturing Market Size, Share & Forecast 2032
Veterinary Active Pharmaceutical Ingredients (API) Manufacturing Market Forecast & Trends Analysis 2024-2032

Veterinary Active Pharmaceutical Ingredients Manufacturing Market Share, Size, Trends, Industry Analysis Report, By Service Type (In House, Contract Outsourcing); By Synthesis Type; By Animal Type; By Therapeutic Category; By Region; Segment Forecast, 2024 - 2032

  • Published Date:Feb-2024
  • Pages: 116
  • Format: PDF
  • Report ID: PM4540
  • Base Year: 2023
  • Historical Data: 2019 – 2022

Report Outlook

Global veterinary active pharmaceutical ingredients manufacturing market size was valued at USD 7.86 billion in 2023. The market is anticipated to grow from USD 8.41 billion in 2024 to USD 14.63 billion by 2032, exhibiting a CAGR of 7.2% during the forecast period

Industry Trends

Veterinary active pharmaceutical ingredients (APIs) are essential components of animal medicines. These ingredients are responsible for producing the desired therapeutic effects and undergo rigorous testing and research before they are approved for commercial use. As the demand for animal healthcare solutions continues to increase, the market for high-quality veterinary APIs is also growing rapidly. The market is anticipated to grow owing to numerous factors such as research & development of veterinary products, increasing investment in outsourcing, facility expansion, and expenditure on animal health.

  • For instance, in January 2023, Merck & Co., Inc.'s animal health sector enhanced its production capabilities through the expansion of its pet vaccine manufacturing facility located in the Netherlands. This facility is an integral part of Merck's broad manufacturing network in the country, comprising well-established production and research facilities, all dedicated to serving the veterinary vaccine market.

Veterinary Active Pharmaceutical Ingredients Manufacturing Market Size

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The cost-effectiveness and operational advantages of outsourcing API manufacturing have become major drivers of the veterinary API market. Animal health companies are increasingly looking for ways to optimize their operations and reduce costs. By outsourcing the production of veterinary APIs to specialized manufacturers, pharmaceutical companies can focus on their core strengths, such as research, development, marketing, and distribution. Overall, the veterinary API market is expanding rapidly due to the growing awareness of the importance of animal health and welfare. As a result, pharmaceutical companies are producing high-quality APIs to fulfill the needs of pet owners, farmers, and animal enthusiasts alike.

The veterinary active pharmaceutical ingredients manufacturing market report details key market dynamics to help industry players align their business strategies with current and future trends. It examines technological advances and breakthroughs in the industry and their impact on the market presence. Furthermore, a detailed regional analysis of the industry at the local, national, and global levels has been provided. 

Key Takeaways

  • North America dominated the market and contributed over 35% of the industry share in 2023
  • By service type category, the in-house segment held the largest veterinary API market share in 2023
  • By synthesis type category, the biological API segment is projected to showcase substantial growth over the assessment period
  • By animal type category, the companion animal segment is expected to grow with a significant CAGR over the market forecast period
  • By therapeutic category, the anti-infective segment dominated the global veterinary API market in terms of market size

What are the market drivers driving the demand for the Veterinary Active Pharmaceutical Ingredients Manufacturing market?

The growing prevalence of transboundary and zoonotic diseases fuels veterinary active pharmaceutical ingredients manufacturing market growth.

The veterinary active pharmaceutical ingredients (APIs) manufacturing market is growing due to the increasing prevalence of transboundary and zoonotic diseases. These diseases pose a threat to both animals and humans and can quickly cross borders, risking public health, global trade, and animal welfare. To control and prevent the spread of these diseases, the use of veterinary APIs has become essential. These APIs play a vital role in treating sick animals, developing effective treatments, and reducing the severity of symptoms, aiding in the recovery of affected animals.

Veterinary APIs also help control animal population epidemics and reduce the risk of disease transfer from animals to humans. As a result, the global community has increased the use of veterinary APIs to prevent and control zoonotic and transboundary illnesses. To support these initiatives, governments, veterinary professionals, and international organizations are working together to develop and implement comprehensive disease control programs. However, these veterinary APIs must be reliable and of high quality to minimize the negative impacts of these diseases on public health and international trade.

Which factor is restraining the demand for Veterinary Active Pharmaceutical Ingredients Manufacturing?

The high cost of veterinary diagnostic and treatment hampers market growth.

The veterinary active pharmaceutical ingredients manufacturing market growth is being hindered by the high costs associated with veterinary diagnostics and treatment. The significant expenses related to veterinary care are a challenge for pet owners, livestock farmers, and veterinary practitioners. In many cases, state-of-the-art technology, specialized tools, and laboratory space are vital for veterinary diagnosis and treatment. However, these resources come with a high price, including initial investments and ongoing maintenance expenses. The advanced equipment and technology required for veterinary care contribute significantly to the high cost of veterinary care.

Moreover, compared to human healthcare, the demand for veterinary diagnostics and treatments is relatively low, resulting in increased costs per unit. The limited demand for veterinary products makes it difficult for market players to achieve efficiencies in cost, leading to higher prices for diagnostics and treatments.

Report Segmentation

The market is primarily segmented based on service type, synthesis type, animal type, therapeutic category, and region.

By Service Type

By Synthesis Type

By Animal Type

By Therapeutic Category

By Region

  • In-house
  • Contract Outsourcing
    • Contract Development
      • Preclinical Development
      • Clinical Development
    • Contract Manufacturing
  • Biological API
  • Chemical-based API
  • HPAPI
  • Production Animals
  • Companion Animals
  • Antiparasitic
  • Anti-infectives
  • NSAIDs
  • Others
  • North America (U.S., Canada)
  • Europe (France, Germany, UK, Italy, Netherlands, Spain, Russia)
  • Asia Pacific (Japan, China, India, Malaysia, Indonesia. South Korea, Australia)
  • Latin America (Brazil, Mexico, Argentina)
  • Middle East & Africa (Saudi Arabia, UAE, Israel, South Africa)

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Category Wise Insights

By Service Type Insights

Based on service type analysis, the market has been segmented based on in-house and contract outsourcing. The in-house segment accounted for the largest market share of the global veterinary active pharmaceutical ingredients (API) manufacturing market due to the reason that many prominent animal health companies, such as Zoetis and Elanco, have established their own API manufacturing facilities to ensure a reliable supply chain and maintain control over the quality of their products. In addition, these companies can reduce costs associated with outsourcing manufacturing by producing APIs in-house. Also, having an internal API production capacity allows them to respond quickly to changes in demand and adjust their product offerings accordingly.

In-house API manufacturing enables animal health companies to protect their intellectual property and maintain confidentiality regarding their proprietary formulations. All these advantages combined contribute to the dominance of the in-house segment in the veterinary API manufacturing market.

By Synthesis Type Insights

Based on synthesis type category analysis, the market has been segmented on the basis of biological API, chemical-based API, and HPAPI. The biological API segment is expected to experience significant growth in the veterinary API manufacturing market over the forecast period due to increasing demand for advanced vaccines and biologics for animal healthcare. Biological APIs are essential components of modern vaccines, which offer better efficacy and safety compared to traditional vaccines. Also, the growing prevalence of zoonotic diseases and the rising number of companion animals are also contributing to the increased demand for biological APIs.

Along with this, advancements in biotechnology have enabled the development of new biological molecules that can be used as APIs in veterinary medicine, further driving the growth of this segment. Overall, the biological API segment is poised to witness robust growth in the forecast period, driven by the need for innovative and effective biological solutions in animal healthcare.

By Therapeutic Category Insights

Based on therapeutic category analysis, the market has been segmented on the basis of antiparasitic, anti-infectives, NSAIDs, and others. The anti-infective segment accounted for the largest share of the global veterinary active pharmaceutical ingredients (API) manufacturing market in 2023, owing to the high demand for antibiotics and other anti-microbial agents used to treat bacterial, fungal, and viral infections in animals.

Anti-infectives are widely used in animal healthcare to prevent and treat various infectious diseases, such as respiratory, gastrointestinal, and skin infections, which are common in livestock and companion animals. The increasing incidence of zoonotic diseases that can be transmitted from animals to humans has also led to an increased focus on disease control measures, including the use of anti-infectives in animal healthcare. Also, the growing trend toward the use of generic drugs and the availability of affordable alternatives have fueled the growth of the anti-infective segment in the veterinary API market.

Regional Insights

North America

The North American region held the largest market share in the global veterinary active pharmaceutical ingredients manufacturing market in 2023 due to the presence of well-established animal healthcare industries in countries such as the United States and Canada, which has led to a high demand for veterinary APIs. In addition, the region has a large number of prominent players operating in the market, including companies such as Zoetis, Elanco Animal Health, and Bayer Animal Health, which have a strong focus on research and development and offer a wide range of products for various animal health conditions. Also, the region has a well-developed regulatory framework that ensures the quality and safety of veterinary drugs, which has encouraged investment in the industry and boosted market growth.

Asia Pacific

The Asia Pacific region is expected to experience the most rapid growth in the veterinary active pharmaceutical ingredients manufacturing market due to the region's growing population of companion animals, such as dogs, cats, and horses, which drives the demand for veterinary drugs. Also, the increasing prevalence of diseases in the region, such as avian influenza and SARS, has led to a growing need for animal health products. Governments in countries like China and India have implemented policies that support the development of the animal health industry, including investment in research and development and tax incentives for manufacturers. All these factors are expected to contribute to the rapid growth of the market in the Asia Pacific region.

Competitive Landscape

The veterinary API market comprises a wide array of market players, ranging from multinational pharmaceutical corporations to mid-sized enterprises. This diversity represents the expansive range of APIs required for veterinary pharmaceuticals, catering to the varied health needs of different animal species. Large companies usually offer a diversified portfolio with APIs for both human and veterinary use, and their global reach enables them to cater to a wide range of markets. In addition to major pharmaceutical firms, specialized contract manufacturing organizations (CMOs) are also present in the sector, focusing on the human and animal health sector or exclusively on veterinary API production.

Some of the major players operating in the global market include:

  • Alivira Animal Health Ltd.
  • Chempro Pharma Pvt. Ltd.
  • Elanco
  • Excel Industries Ltd.
  • MENADIONA
  • Ofichem Group
  • Qilu Animal Health Products Co., Ltd.
  • Siflon Drugs
  • SUANFARMA
  • Vetpharma
  • Zoetis

Recent Developments

  • In January 2024, Huateng Pharma, a Contract Development and Manufacturing Organization (CDMO) specializing in Active Pharmaceutical Ingredients (APIs) and intermediates, introduced a comprehensive range of veterinary solutions, including Fluralaner and Sarolaner.
  • In July 2023, Bimeda Inc. announced the launch of the SpectoGard (spectinomycin sulfate) Sterile Solution for veterinarians and cattle producers in the United States.
  • In June 2022, Orion Corporation agreed with Belgian private company Inovet BV to acquire its wholly-owned subsidiary V.M.D. NV and all companies belonging to V.M.D. NV’s group of companies. V.M.D. is a veterinary pharmaceuticals company specializing in medicines and health products for livestock and has a product portfolio for companion animals and minor species.

Report Coverage

The Veterinary Active Pharmaceutical Ingredients Manufacturing market report emphasizes key regions across the globe to provide a better understanding of the product to the users. Also, the report provides market insights into recent developments, and trends and analyzes the technologies that are gaining traction around the globe. Furthermore, the report covers an in-depth qualitative analysis pertaining to various paradigm shifts associated with the transformation of these solutions.

The report provides a detailed analysis of the market while focusing on various key aspects such as competitive analysis, service type, synthesis type, animal type, therapeutic category, and their futuristic growth opportunities.

Veterinary Active Pharmaceutical Ingredients Manufacturing Market Report Scope

Report Attributes

Details

Market size value in 2023

USD 7.86 billion

Revenue Forecast in 2032

USD 14.63 billion

CAGR

7.2% from 2024 – 2032

Base year

2023

Historical data

2019 – 2022

Forecast period

2024 – 2032

Quantitative units

Revenue in USD billion and CAGR from 2024 to 2032

Segments Covered

By Service Type, By Synthesis Type, By Animal Type, By Therapeutic Category, By Region

Regional scope

North America, Europe, Asia Pacific, Latin America; Middle East & Africa

Customization

Report customization as per your requirements with respect to countries, regions, and segmentation.

Explore the landscape of veterinary active pharmaceutical ingredients manufacturing in 2024 through detailed market share, size, and revenue growth rate statistics meticulously organized by Polaris Market Research Industry Reports. This expansive analysis goes beyond the present, offering a forward-looking market forecast till 2032, coupled with a perceptive historical overview. Immerse yourself in the depth of this industry analysis by acquiring a complimentary PDF download of the sample report.

 

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FAQ's

The global Veterinary Active Pharmaceutical Ingredients Manufacturing market size is expected to reach USD 14.63 Billion by 2032

Key players in the market are Alivira Animal Health Ltd., Chempro Pharma Pvt. Ltd., Elanco, Excel Industries Ltd., MENADIONA, Ofichem Group

North American contribute notably towards the global Veterinary Active Pharmaceutical Ingredients Manufacturing Market

Veterinary Active Pharmaceutical Ingredients Manufacturing Market exhibiting the CAGR of 7.2% during the forecast period

The Veterinary Active Pharmaceutical Ingredients Manufacturing Market report covering key segments are service type, synthesis type, animal type, therapeutic category, and region.