Portugal Animal Health and Veterinary Market

Portugal Animal Health and Veterinary Market Overview

• The Portugal Animal Health and Veterinary Market is valued at USD 270 million, based on the latest available data for the pet and animal supplies sector and veterinary pharmaceuticals. This growth is primarily driven by increasing pet ownership, rising awareness of animal health, and advancements in veterinary technology. The market has seen a surge in demand for pharmaceuticals, vaccines, and diagnostic services, reflecting a growing commitment to animal welfare and health management. Notably, the prevalence of chronic and infectious diseases among animals and the adoption of pet insurance are further supporting market expansion .
• Lisbon and Porto are the dominant cities in the Portugal Animal Health and Veterinary Market due to their high population density and concentration of veterinary clinics and hospitals. These urban centers have a robust infrastructure for animal healthcare, supported by a growing number of pet owners and livestock producers, which further drives market growth .
• In 2023, the Portuguese government implemented Ordinance No. 146/2023, issued by the Ministry of Agriculture and Food, which mandates that all veterinary practices must adhere to strict hygiene and safety standards. This regulation establishes operational requirements for veterinary establishments, including protocols for disinfection, waste management, and staff training, aiming to enhance the quality of veterinary services and ensure the well-being of animals, thereby fostering trust among pet owners and livestock producers in the veterinary sector .

Portugal Animal Health and Veterinary Market Segmentation

By Product Type:The product type segmentation includes various categories such as pharmaceuticals, vaccines, nutritional supplements, diagnostics, medical devices & equipment, veterinary services, and others. Among these, pharmaceuticals and vaccines are the leading subsegments due to their critical role in disease prevention and treatment in both companion animals and livestock. The increasing prevalence of zoonotic diseases, the rising demand for preventive healthcare, and the adoption of advanced diagnostic solutions are driving the growth of these subsegments .

By End-User:The end-user segmentation encompasses companion animal owners, livestock producers & farmers, veterinary clinics & hospitals, research & academic institutions, animal shelters & NGOs, and others. Companion animal owners represent the largest segment, driven by the increasing trend of pet adoption and the growing willingness to spend on pet healthcare. This trend is further supported by the rise in disposable income, urbanization, and changing consumer attitudes towards pet care .

Portugal Animal Health and Veterinary Market Competitive Landscape

The Portugal Animal Health and Veterinary Market is characterized by a dynamic mix of regional and international players. Leading participants such as Independent Vetcare Ltd (IVC Evidensia), Unavets Group SL, Zoetis Inc., Merck Animal Health, Boehringer Ingelheim Animal Health, Elanco Animal Health, Vetoquinol, Dechra Pharmaceuticals, Virbac, IDEXX Laboratories, Neogen Corporation, Phibro Animal Health, Alltech, PetIQ, VetPartners contribute to innovation, geographic expansion, and service delivery in this space.

Portugal Animal Health and Veterinary Market Industry Analysis

Growth Drivers

• Increasing Pet Ownership:In Portugal, pet ownership has surged, with approximately 50% of households owning at least one pet, translating to around 5.2 million pets. This trend is driven by changing lifestyles and increased disposable income, with the average annual expenditure on pet care reaching €1,000 per pet. The growing emotional bond between pets and owners further fuels demand for veterinary services, contributing to a robust market for animal health products and services.
• Rising Demand for Animal Protein:The demand for animal protein in Portugal is estimated at approximately 1.2 million tons, driven by a growing population and changing dietary preferences. This increase necessitates improved animal health management practices to ensure livestock productivity and food safety. Consequently, investments in veterinary services and animal health products are expected to rise, supporting the overall growth of the animal health market as producers seek to enhance livestock health and yield.
• Advancements in Veterinary Technology:The veterinary sector in Portugal is witnessing significant technological advancements, with investments in telemedicine and diagnostic tools estimated to exceed €40 million in future. These innovations enhance the efficiency and accuracy of veterinary care, making it more accessible to pet owners. The integration of AI in diagnostics and treatment planning is also gaining traction, leading to improved health outcomes for animals and driving demand for advanced veterinary services and products.

Market Challenges

• High Cost of Veterinary Services:The cost of veterinary services in Portugal has risen, with average consultation fees reaching €45 per visit. This increase poses a barrier for many pet owners, particularly in lower-income households, leading to underutilization of essential veterinary care. As a result, untreated health issues can escalate, impacting overall animal health and creating challenges for the veterinary market in maintaining a steady client base.
• Regulatory Compliance Issues:The veterinary sector in Portugal faces stringent regulatory compliance requirements, particularly concerning veterinary medicinal products. Compliance costs can exceed €900,000 annually for larger veterinary practices, creating a financial burden. Additionally, navigating complex regulations can deter new entrants into the market, limiting competition and innovation. This regulatory landscape poses a significant challenge for existing veterinary practices striving to maintain profitability while adhering to legal standards.

Portugal Animal Health and Veterinary Market Future Outlook

The future of the Portugal animal health and veterinary market appears promising, driven by increasing pet ownership and advancements in veterinary technology. As the market evolves, the integration of telemedicine and AI in diagnostics will enhance service delivery and accessibility. Furthermore, a growing focus on preventive care and sustainability in animal health products will likely shape consumer preferences, leading to innovative solutions that cater to the needs of pet owners and livestock producers alike.

Market Opportunities

• Expansion of Telemedicine in Veterinary Care:The rise of telemedicine presents a significant opportunity for the veterinary market in Portugal, with an estimated 25% of consultations expected to transition online in future. This shift can enhance access to veterinary care, particularly in rural areas, while reducing costs for pet owners and improving service efficiency for veterinarians.
• Growth in Organic and Natural Pet Products:The demand for organic and natural pet products is on the rise, with the market estimated to reach €180 million in future. This trend reflects a broader consumer shift towards health-conscious choices, providing opportunities for companies to innovate and expand their product lines, catering to the growing segment of health-aware pet owners.