Veterinary CRO And CDMO Market Worth $11.42 Billion By 2030

Veterinary CRO And CDMO Market Growth & Trends

The global veterinary CRO and CDMO market size is expected to reach USD 11.42 billion by 2030, registering a CAGR of 8.94% over the forecast period, according to a new report by Grand View Research, Inc. The market is driven by several factors, including the growing number of expert contract research & manufacturing organizations in developing countries, rising adoption of outsourcing services in key stages of veterinary product developments, increasing animal healthcare investments by major players, and growing demand for novel therapeutic products. In addition, the rising adoption of companion animals and growing demand for animal-derived food products are increasing the need for the mass production of medicines.

Therefore, employing the network of third-party Contract Development & Manufacturing Organizations (CDMO) and Contract Research Organizations (CRO) favors the production scale on time with reduced financial risk. The COVID-19 pandemic caused the market downturn, especially during the year 2020. The primary challenges experienced by the majority of contract outsourcing organizations were enormous resource allocation shifts from non-covid to covid medicines (targeting human applications), supply shortages of veterinary raw materials & APIs, transportation & logistics disruption, and the need for more transparency with the vendors. In addition, other difficulties, such as establishing interruption-free, timely, and reliable supply chains, have added more complexity to outsourcing organizations in developing or manufacturing veterinary products.

However, the market growth quickly recovered the following year with significant measures implemented by key players and contract organizations. While it created numerous challenges, the pandemic also set new trends, such as increased ownership rates of companion animals and pet humanization, coupled with improved animal care expenditure and widened R&D activities in the context of global awareness of prognostic and diagnostic measures. According to the American Pet Products Association, pet care expenditure in the U.S. increased from USD 90.5 billion in 2018 to 123.6 billion in 2021. These factors are anticipated to support the employment of contract research, development, and manufacturing organizations by key players in the long run.

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Veterinary CRO And CDMO Market Report Highlights

• The key players in the animal health industry are adopting contract outsourcing over in-house manufacturing processes owing to the comprehensive services offered by CROs and CDMOs with extensive capabilities, such as highly reliable resources and technical expertise

• The livestock animal segment dominated the industry in 2022 owing to the large production rate of vaccines, pharmaceuticals, and infectious disease diagnostic products specifically for food-producing animals. The companion animal segment is expected to grow at the fastest CAGR during the projected period

• The development segment generated the largest revenue share of the animal health CRO & CDMO market in 2022. Whereas, the discovery segment is anticipated to register the fastest CAGR during the forecast period

• The medicine segment led the industry in 2022. New outbreaks of infectious diseases are increasing the need for veterinary R&D activities with significant expenditure on novel drug launches. Therefore, CROs are contributing largely to the smooth discovery and development processes

• North America was the leading region in 2022 due to the strong presence of key players coupled with the increased number of drug development and veterinary product launch activities in the region

• Key companies are implementing significant measures and strategies to enhance their industry presence. For instance, in October 2022, Klifovet (a part of Argenta Group), a combined CRO and CDMO dedicated to animal health, acquired Ondax Scientific to expand its footprint in Western and Southern Europe

Veterinary CRO And CDMO Market Segmentation

Grand View Research has segmented the global veterinary CRO and CDMO market based on animal type, service type, application, and region:

Veterinary CRO And CDMO Animal Type Outlook (Revenue, USD Million, 2018 - 2030)

• Companion Animals

• Livestock Animals

Veterinary CRO And CDMO Service Type Outlook (Revenue, USD Million, 2018 - 2030)

• Discovery

• Development

  • Early Phase/Preclinical

  • Late Phase/Clinical

• Manufacturing

• Packaging & Labeling

• Market Approval & Post-marketing

Veterinary CRO And CDMO Application Outlook (Revenue, USD Million, 2018 - 2030)

• Medicines

  • Pharmaceuticals

  • Biologics

  • Others

• Medical Devices

Veterinary CRO And CDMO Regional Outlook (Revenue, USD Million, 2018 - 2030)

• North America

  • U.S.

  • Canada

• Europe

  • U.K.

  • Germany

  • France

  • Italy

  • Spain

  • Rest of Europe

• Asia Pacific

  • China

  • Japan

  • India

  • Australia

  • South Korea

  • Rest of APAC

• Latin America

  • Brazil

  • Mexico

  • Rest of LATAM

• Middle East & Africa

  • South Africa

  • Saudi Arabia

  • Rest of MEA

List of Key Players of Veterinary CRO And CDMO Market

• Labcorp Drug Development

• Charles River Laboratories

• clinvet

• KLIFOVET GmbH (Argenta Group)

• OCR – Oncovet Clinical Research

• knoell - Triveritas

• Veterinary Research Management

• VETSPIN

• Inotiv.

• IDEXX Laboratories

• Zoetis – Nexvet

• Vetio