China Companion Animal Health Market Size, Share & Trends Analysis Report By Type (Medicine, Diagnostics), By Animal Type (Dogs, Cats), By Diagnosis Method, By Product, By Indication, And Segment Forecasts, 2021 - 2028

Report Overview

The China companion animal health market size was valued at USD 962.8 million in 2020 and is estimated to grow at a compound annual growth rate (CAGR) of 11.3% from 2021 to 2028. The growing companion animal population, pet humanization, incidence of diseases in animals, and initiatives by key companies are the key factors driving the market growth in the country. In May 2021, Boehringer Ingelheim, for example, received approval for GastroGard, intended for horses, from the Ministry of Agriculture and Rural Affairs of China. With this, Boehringer Ingelheim became the first global animal health company with equine business in China. The COVID-19 pandemic had a mixed impact on the market. The negative effects resulting from movement restrictions and logistical hurdles resulted in low demand and sales for certain market players.

Some global MNCs redirected their resources to lower lucrative segments and opportunities. During the third quarter of 2020, Zoetis reported that favorable market conditions along with its promotional and educational efforts resulted in increased sales of companion animal products in China. The country also witnessed rising pet ownership. This is estimated to fuel demand for pet medicines and diagnostic products in the coming years. Chinese pet parents spend about USD 784.18 annually on their pets, and this trend was anticipated to increase over time. This factor combined with the growing initiatives by market players is expected to propel the market growth.

According to Virbac, there was almost no local competition in the companion animal segment in China in 2016, making it an ideal market for the company to expand into. As part of its growth strategy, Virbac focused on spearheading a direct distribution model to vet clinics in China. The competition has increased over time with the entry of other international livestock medicine companies diversifying into the pet medicine segment and the introduction of generics by local companies. However, there are opportunities in the market due to the growing demand for treatment options for pets and increasing pet expenditure.

In addition, infectious diseases caused by virulent pathogens may seriously affect the animal’s way of life and lifespan. The demand for various preventive treatment options, such as vaccines and pharmaceuticals, is anticipated to increase with the growing pet health awareness. Many veterinarians and clinicians recommend screening pets for infectious diseases annually. This can enable timely detection of communicable diseases, ensure treatment, and may also contribute to the prevention of complex cases. The growing incidence of zoonoses, pet health concerns, and product developments by market players are expected to fuel the segment growth. In April 2017, Zoetis launched the Witness Lepto point-of-care test to detect acute leptospirosis in dogs.

China Companion Animal Medicine Insights

The dogs animal type segment dominated the market in 2020 with a revenue share of over 35%. The equine segment, on the other hand, is anticipated to register the fastest CAGR from 2021 to 2028. This is owing to the rising prevalence of diseases in animals and product launches by market players. For example, in September 2020, Boehringer Ingelheim invested in the New Ruipeng Group in China to strengthen its presence.

According to a 2019 survey report on the development of China’s equestrian sector, an increasing number of Chinese citizens are being involved in equestrian sports. The country had 2,160 equestrian clubs. In addition, horses are used for tourism, treatment, and raised as pets. However, China is still lagging in suitable diagnostic and medicinal products for horses, thus presenting opportunities for market entrants. These factors, combined with the increasing horse population, are expected to fuel the segment growth.

By indication, the market was dominated by the non-infectious diseases segment in 2020, while pharmaceuticals held the largest share of the product segment. Chronic kidney diseases, for example, have an incidence of as high as 30% in cats. In older cats aged above 15 years, it can be even as high as 80%. In the early stages, most cats have almost no clinical symptoms. Once the symptoms appear, the animal has usually entered the middle and late stages, which can seriously affect its quality of life. In March 2021, Boehringer Ingelheim launched Shengmila, an imported original drug, in China for the treatment of chronic kidney disease in cats.

China Companion Animal Diagnostics Insights

In terms of animal type, the dogs segment accounted for the largest share of 36% in 2020. The non-infectious diseases indication segment contributed to over 25% share of the overall market. By diagnosis method, the pathology segment led the market owing to the increasing availability of diagnostic tests and awareness about pet health. The China veterinary diagnostic market is estimated to register significant growth over the coming years, which can be attributed to increasing awareness about zoonoses, the rising cost of treatment & hospitalization of pets, and expansion of service offerings by vet clinics & hospitals.

The Veterinary Specialty Hospital of Hong Kong, for instance, provides a range of services, such as imaging and diagnostic services. These include MRI, CT, radiography, ultrasound, and endoscopy. As per an article published by Xinhuanet.com in October 2021, there were about 12,000 pet hospitals in China and a growing number of students were opting for veterinary medicine. This is anticipated to fuel the demand for pet medicine and diagnostic products in the coming years.

Key Companies & Market Share Insights

The market is competitive due to the strong presence of regional and global players. As people increase expenditure on pets, the market is expected to expand to include not just clinics but also products and services, such as magnetic resonance imaging. This presents growth opportunities for new market entrants.

Key market players implement various strategic initiatives, such as R&D, product launches, marketing & promotions, expansion of distribution networks, and strategic partnerships, to strengthen their foothold. For instance, Bimeda has a manufacturing facility and R&D lab in the country. Bimeda’s Chinese product portfolio includes a range of medicines for dogs, cats, and pigs. China is a key market for Zoetis and is estimated to be the 5th largest market for the company by annual revenue worldwide. Zoetis’ products cover five main categories, such as parasiticides, anti-infectives, vaccines, medicated feed additives, and other pharmaceutical products. Some of the key players in the China companion animal health market include:

• Boehringer Ingelheim International GmbH

• Elanco

• Merck & Co., Inc.

• Zoetis

• Ceva

• Virbac

• Bimeda, Inc.

• IDEXX Laboratories

• Thermo Fisher Scientific

• Randox Laboratories

China Companion Animal Health Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at a country level and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2028. For the purpose of this study, Grand View Research has segmented the China companion animal health market report on the basis of type, animal type, product, indication, and diagnosis method:

• China Companion Animal Health Type Outlook (Revenue, USD Million, 2016 - 2028)

  • Companion Animal Medicine

  • Companion Animal Diagnostics

• China Companion Animal Medicine Animal Type Outlook (Revenue, USD Million, 2016 - 2028)

  • Dogs

  • Equine

  • Cats

  • Others

• China Companion Animal Medicine Indication Outlook (Revenue, USD Million, 2016 - 2028)

  • Infectious Diseases

  • Non-Infectious Diseases

  • General Ailments

  • Others

• China Companion Animal Medicine Product Outlook (Revenue, USD Million, 2016 - 2028)

  • Vaccines

  • Pharmaceuticals

  • Feed Additives

• China Companion Animal Diagnostics Animal Type Outlook (Revenue, USD Million, 2016 - 2028)

  • Dogs

  • Equine

  • Cats

  • Others

• China Companion Animal Diagnostics Indication Outlook (Revenue, USD Million, 2016 - 2028)

  • Infectious Diseases

  • Non-Infectious Diseases

  • General Ailments

  • Others

• China Companion Animal Diagnostics Diagnosis Method Outlook (Revenue, USD Million, 2016 - 2028)

  • Analytical Services

  • Diagnostic Imaging

  • Bacteriology

  • Pathology

  • Molecular Diagnostics

  • Immunoassays

  • Parasitology

  • Serology

  • Virology