Indonesia Animal Pharmaceuticals Market Outlook to 2030

Indonesia Animal Pharmaceuticals Market Overview

• The Indonesia Animal Pharmaceuticals Market has experienced a notable growth, this is reflected by Global Animal Pharmaceuticals Market reaching a valuation of USD 39 billion in 2023, driven by the rising demand for animal healthcare products and the increasing awareness regarding animal health and welfare. This growth is fueled by the expansion of livestock farming, increased pet ownership, and the rising prevalence of animal diseases requiring medical intervention.
• The Indonesia Animal Pharmaceuticals Market is characterized by the presence of several key players who contribute to its growth and competitiveness. Major companies include PT Sanbe Farma, PT Medion Farma Jaya, and PT K-24 Indonesia. These players dominate the market through extensive product portfolios, strong distribution networks, and significant investments in research and development to innovate and improve animal health products.
• In 2024, PT Sanbe Farma reported an annual revenue of $64 million, reflecting its strong performance in both human and animal health sectors. The company employs approximately 8,000 personnel, indicating a robust operational capacity that supports its extensive product lines, including animal health products.
• The Java region dominates the Indonesia Animal Pharmaceuticals Market, driven by its extensive livestock farming activities and well-established veterinary services. In 2023, Java was dominating the market. The region's dominance is attributed to its high livestock population, advanced veterinary infrastructure, and proactive government support for animal health initiatives.

Indonesia Animal Pharmaceuticals Market Segmentation

The Indonesia Animal Pharmaceuticals Market is segmented into different market segments are:

By Product Type: The Indonesia Animal Pharmaceuticals Market is segmented by product type into vaccines, antibiotics, and anti-inflammatory drugs. In 2023, vaccines were dominating the market due to the increasing need for preventive measures against widespread livestock diseases and the government's focus on vaccination programs.

By Animal Type: The market is also segmented by animal type into livestock, companion animals, and aquaculture. The livestock segment was dominating the market in 2023, primarily due to the large-scale livestock farming practices in Indonesia and the significant economic contribution of this sector. The high demand for meat and dairy products drives the need for veterinary pharmaceuticals to maintain animal health and productivity.

By Region: The market is segmented by region into North, South, East, and West Indonesia. In 2023, West region dominated the market in 2023. The region's strong livestock farming activities and advanced veterinary services contribute to its leading position. The presence of major cities and ports also facilitates the distribution of pharmaceuticals, enhancing market access and growth. West Java, in particular, has a high concentration of livestock farms and veterinary clinics, supporting the demand for animal health products.

Indonesia Animal Pharmaceuticals Market Competitive Landscape

PT Kimia Farma: Kalbe Farma's total assets reached approximately 27.06 trillion Indonesian rupiah in the 2023 financial year, continuing a growth trend since 2015. PT Kalbe Farma Tbk is one of Indonesia's largest pharmaceutical companies.

PT Medion Farma Jaya: In 2023, the company launched its Mediherba line of herbal-based veterinary medicines, earning the BBPMSOH Award for its contributions as a domestic producer of these products. Additionally, Medion's Fasbro product, which utilizes herbal plants to enhance chicken performance and meat quality, received the Indo Livestock Innovation Award 2023.

Indonesia Animal Pharmaceuticals Market Analysis

Indonesia Animal Pharmaceuticals Market Growth Drivers

• Rising Livestock Population: There is increase in livestock population that the gross domestic product (GDP) from livestock in Indonesia amounted to over 325 trillion Indonesian rupiah in 2023. The growing livestock population necessitates increased demand for veterinary pharmaceuticals to manage animal health and productivity. The Food and Agriculture Organization (FAO) reports that the rising demand for meat and dairy products is a significant driver for this growth, further amplified by Indonesia's expanding livestock sector.
• Increased Veterinary Infrastructure Investment: The Indonesian government has been making substantial investments to improve veterinary infrastructure, including the construction of new veterinary clinics and the enhancement of existing facilities. This investment aims to provide better access to veterinary services, ensuring timely and effective treatment of livestock and companion animals, thereby bolstering the market for veterinary pharmaceuticals.
• Growing Pet Ownership: There has been a significant increase in pet ownership in Indonesia, particularly in urban areas. This rise in pet ownership drives the demand for veterinary pharmaceuticals, including vaccines and medications for common pet diseases. The trend of treating pets as family members is leading to higher spending on pet healthcare, contributing to the market's growth.

Indonesia Animal Pharmaceuticals Market Challenges

• High Cost of Veterinary Drugs: The cost of veterinary drugs in Indonesia remains high, making them less affordable for small-scale farmers. This can limit the accessibility of necessary medications, thereby hindering effective disease management and treatment in livestock. The high cost of these drugs is a significant barrier to the widespread adoption of veterinary pharmaceuticals, particularly in rural and economically disadvantaged areas.
• Lack of Veterinary Professionals: Indonesia faces a shortage of qualified veterinary professionals, which impacts the quality and availability of veterinary care. This shortage is especially pronounced in rural areas, where access to veterinary services is already limited. The lack of veterinarians can lead to delayed diagnosis and treatment of animal diseases, adversely affecting animal health and productivity.

Indonesia Animal Pharmaceuticals Market Government Initiatives

• Foot and Mouth Disease (FMD) Vaccination Program: In response to the resurgence of FMD in May 2022, the Indonesian Ministry of Agriculture, in collaboration with the Food and Agriculture Organization (FAO) and support from Australia, accelerated a vaccination program targeting livestock in high-density areas. A total of 58,448 livestock including cattle, dairy cows, goats and sheep have been successfully vaccinated through this vaccination programme which ran from February to March 2024. This initiative aims to prevent future outbreaks and improve overall livestock health
• Nationwide Vaccination Programs: In response to outbreaks of diseases such as Lumpy Skin Disease (LSD) and Foot-and-Mouth Disease (FMD), the government initiated extensive vaccination programs. In 2023, the archipelagic country has recorded 4,499 active FMD cases in cows spreading across 18 provinces. Millions of doses of vaccines were distributed to protect livestock, with a particular focus on cattle, goats, and sheep. These programs aim to mitigate the impact of disease outbreaks and ensure the health of livestock.

Indonesia Animal Pharmaceuticals Market Future Outlook

The Indonesia Animal Pharmaceuticals Market is expected to grow exponentially by 2028. This growth will be driven by ongoing advancements in veterinary medicine, increased government initiatives to support animal health, and the expanding livestock industry. Additionally, the adoption of digital technologies in veterinary care and the rise of telemedicine services for animals are anticipated to further boost the market.

Market Trends

• Digital Veterinary Services: By 2028, digital veterinary services, including telemedicine and online consultations, will become more prevalent in Indonesia. The adoption of digital platforms for veterinary care is expected to improve access to veterinary services, especially in remote areas. This trend is anticipated to drive the demand for veterinary pharmaceuticals, as timely diagnosis and treatment become more accessible.
• Increased Focus on Preventive Care: The future of the Indonesia Animal Pharmaceuticals Market will see a greater emphasis on preventive care, with a significant rise in the use of vaccines and preventive medications. Government initiatives and farmer awareness programs are expected to promote the importance of preventive care, leading to higher demand for veterinary vaccines and related pharmaceuticals.