China Animal Healthcare Market Outlook to 2030

China Animal Healthcare Market Overview

• In 2023, The China Animal Healthcare Market was valued at USD 2.40 billion in 2023, driven by increasing pet ownership, a growing livestock population, rising awareness about animal health, and advancements in veterinary services. The market includes segments such as pharmaceuticals, vaccines, feed additives, and diagnostic products, with pharmaceuticals being the most dominant due to the high prevalence of diseases and infections among animals.
• Major players in the China Animal Healthcare Market include Zoetis Inc., Merck Animal Health, Boehringer Ingelheim, China Animal Husbandry Industry Co., Ltd., and Jinyu Bio-technology Co., Ltd. These companies are recognized for their extensive product portfolios and their focus on innovative animal health solutions. Zoetis Inc. leads the market with a wide range of veterinary products and strong distribution networks across China.
• In Eastern China, cities like Shanghai and Beijing are prominent markets due to the high concentration of pet owners and advanced veterinary facilities. In Northern China, provinces such as Heilongjiang and Inner Mongolia drive the livestock segment, fueled by extensive cattle and swine farming activities. Western China, including provinces like Sichuan and Yunnan, is witnessing growth in animal healthcare due to increased investment in veterinary infrastructure.
• Boehringer Ingelheim partnered with the University of Pennsylvania School of Veterinary Medicine to host the 2023 Rabies Symposium on September 30, 2023. The symposium, held virtually and in-person, aimed to educate veterinary students about rabies prevalence and prevention strategies from world-class experts in the field.

China Animal Healthcare Market Segmentation

The China Animal Healthcare Market can be segmented by product type, animal type, and region:

• By Product Type: The market is segmented into pharmaceuticals, vaccines, feed additives, and diagnostic products. In 2023, pharmaceuticals remained the most dominant product type due to the necessity for treating various animal diseases and infections. However, vaccines are gaining popularity, especially in livestock management, for preventing common diseases. The demand for feed additives is also rising, driven by the need to enhance animal growth and productivity.

• By Animal Type: The market is segmented by animal type into companion animals and livestock. In 2023, livestock dominated the market due to the large population of cattle, pigs, and poultry in China. Companion animals, such as dogs and cats, are also a significant segment, driven by increasing pet ownership and spending on pet healthcare.

• By Region: The market is segmented regionally into East, North, West, and South. In 2023, Eastern China led the market due to the high density of pet owners and advanced veterinary infrastructure. Northern China is also a market, driven by large-scale livestock farming. Western and Southern China are emerging markets with increasing investment in animal healthcare facilities.

China Animal Healthcare Market Competitive Landscape

• Zoetis Inc.: In 2023, Zoetis Inc. introduced a new range of parasiticides for pets under its Revolution Plus brand, addressing the growing demand for comprehensive parasite protection. This launch aims to strengthen the company's position in the premium pet healthcare segment, where there is increasing consumer interest in holistic and preventive healthcare solutions.
• Merck Animal Health: In 2024, Merck Animal Health expanded its product line with the launch of a new range of poultry vaccines designed to combat avian influenza and Newcastle disease. This expansion reflects Merck's commitment to enhancing animal health and food safety in China's large poultry sector.

China Animal Healthcare Market Analysis

Market Growth Drivers

1. Increasing Pet Ownership: The growing number of pet owners in China is significantly driving the demand for veterinary pharmaceuticals, vaccines, and pet healthcare products. A 2023 survey by the China Pet Industry Association indicated that pet ownership in China has seen a steady increase, with over 100 million pet dogs and cats now part of households across the country.
2. Growing Livestock Population: The expansion of the livestock industry in China, particularly in swine and poultry farming, is boosting the demand for animal healthcare products. According to the Ministry of Agriculture and Rural Affairs of China, the livestock population in 2023 included 435 million pigs and 14 billion chickens, marking a increase from previous years. In 2023, China reported over 100 outbreaks of ASF, which prompted a substantial investment in veterinary healthcare products, including vaccines, antibiotics, and biosecurity measures.
3. Advancements in Veterinary Services: The growing number of pet owners in China, with over 121.5 million pets as of 2023, is significantly driving the demand for veterinary pharmaceuticals, vaccines, and pet healthcare products. The pet industry in China is expanding rapidly, with spending on pet-related products and services increasing as pets are increasingly viewed as family members.

Market Challenges

• Rising Raw Material Costs: The rising costs of raw materials, especially proteins, grains, and packaging, pose challenges to manufacturers, leading to increased product prices. This could impact consumer purchasing power, particularly in the mid-range product segment.
• Regulatory Constraints: The market is subject to stringent regulations regarding product safety, quality, and efficacy. Compliance with these regulations can be challenging for manufacturers, particularly smaller players who may lack the resources for extensive testing and certification.

Government Initiatives:

• ???????China's National Animal Disease Control Program: The Chinese government has implemented the National Animal Disease Control Program, aimed at preventing and controlling major animal diseases and improving animal health management practices across the country. This initiative focuses on the surveillance, prevention, and control of diseases like African swine fever (ASF), avian influenza, and foot-and-mouth disease. In 2023, the government allocated RMB 5 billion to support this program, which includes funding for research and development of vaccines and diagnostics, as well as training for veterinary professionals and the implementation of biosecurity measures on farms.
• Promotion of Veterinary Biotechnology and Innovation: As part of its broader innovation-driven development strategy, the Chinese government has been supporting the veterinary biotechnology sector through subsidies and grants. In 2021, the Ministry of Science and Technology allocated RMB 1.5 billion for research and development in animal vaccines and diagnostics as part of the National Key R&D Program. This funding aims to promote the development of new veterinary products and enhance China's capacity to respond to emerging animal diseases.

China Animal Healthcare Market Future Market Outlook

The China Animal Healthcare Market is expected to continue its steady growth, driven by the increasing pet ownership, expansion of the livestock industry, and advancements in veterinary technologies.

Future Market Trends

• Growth of Telemedicine in Veterinary Services: Telemedicine for veterinary services is expected to grow in popularity, offering convenience and access to veterinary care for pet owners and livestock farmers in remote areas. This model ensures timely diagnosis and treatment, contributing to better animal health outcomes.
• Increased Focus on Preventive Healthcare: There will likely be a growing emphasis on preventive healthcare products such as vaccines and nutritional supplements, designed to maintain animal health and prevent diseases. Advances in veterinary science and biotechnology will drive the development of these products.