Animal Health Market Outlook: Livestock Disease Prevention, Diagnostics Growth & Forecast to 2034

Animal health has quietly become one of the most strategically important sectors in global healthcare — and it's easy to see why. The lines between human health and animal health have never been blurrier, with zoonotic diseases like avian influenza and COVID-19 reminding the world just how interconnected the two are. At the same time, a generation of pet owners is treating their dogs and cats with the same level of medical care they'd expect for themselves. These two dynamics — one driven by public health necessity, the other by changing social attitudes — are reshaping the entire industry. According to IMARC Group, the global animal health market size was valued at USD 40.1 Billion in 2025. Looking forward, the market is projected to reach USD 51.6 Billion by 2034, exhibiting a CAGR of 2.73% during 2026–2034. North America currently dominates the market, holding a significant market share of 44.9% in 2025.

The market spans two broad animal type segments — commercial (livestock and poultry) and companion animals — with both seeing consistent investment in health solutions. By product type, pharmaceuticals lead the pack with a 57.0% share, a reflection of just how central drug therapy remains to both livestock disease management and companion animal care. Biologicals, diagnostics, and medicinal feed additives round out the product landscape, each growing as prevention-first approaches gain traction globally. North America accounts for the largest regional share at 44.9%, buoyed by 66% household pet ownership rates in the US and a livestock industry that generates billions in animal protein exports annually.

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Animal Health Market Growth Drivers:

• Surging Pet Ownership and the Humanisation of Companion Animal Care

Pet ownership has reached record levels across North America, Europe, and urban Asia — and the way people relate to their pets has fundamentally changed. In the US, 66% of households now own at least one pet, and spending on veterinary services has risen sharply as a result. Younger pet owners, particularly millennials and Gen Z, treat their animals as family members, willingly spending on specialist consultations, chronic disease management, and preventive care. This shift has created sustained demand for premium pharmaceuticals, advanced diagnostics, and even veterinary telemedicine — categories that barely existed a decade ago but are now mainstream.

• Zoonotic Disease Pressure Forcing Governments and Industry to Act

The threat of diseases jumping from animals to humans is no longer a theoretical concern — it is a live policy priority for governments worldwide. Outbreaks of avian influenza, African swine fever, and brucellosis have caused billions in livestock losses and triggered emergency responses from public health agencies. India's government launched its Livestock Health and Disease Control Scheme with a ₹525 crore budget specifically to manage critical animal diseases at the national level. The Indian government also committed a USD 25 million G20 Pandemic Fund to strengthen livestock health infrastructure in partnership with the Asian Development Bank, World Bank, and FAO.

• Expanding Livestock Sector Driving Demand for Preventive Health Products

Global demand for animal-derived protein continues to grow alongside rising incomes and urbanisation in developing markets. India's total meat production reached 10.25 million tonnes, rising nearly 5% over the past decade, while Brazil exported 5.138 million tonnes of poultry products in a single year. To maintain output at this scale, livestock producers simply cannot afford disease outbreaks — which is why investment in vaccines, feed additives, and biosecurity protocols has intensified. The Asian Development Bank invested USD 10 million in Zenex Animal Health India to specifically strengthen the production and distribution of animal healthcare products for smallholder farmers.

Animal Health Market Trends:

• Biotechnology Transforming How Animal Diseases Are Diagnosed and Treated

Gene editing, PCR-based diagnostics, MRI and CT imaging for animals, and mRNA vaccine platforms are no longer confined to human medicine — they are actively being deployed in veterinary settings. QBiotics Group in Australia received approval from the Australian Pesticides and Veterinary Medicines Authority for STELFONTA, a first-of-its-kind pharmaceutical therapy for canine soft tissue tumours derived from a rainforest plant compound. Hacarus and DS Pharma Animal Health launched an ECG platform for early cardiac diagnosis in dogs — cardiovascular disease being the second leading cause of canine mortality. These innovations reflect a growing pipeline of precision veterinary therapies coming to market.

• Preventive Healthcare Becoming Standard Practice Across Species

The shift from reactive to preventive animal healthcare is one of the most significant structural changes in this market. Rather than treating disease after it appears, producers and pet owners are increasingly investing upfront in vaccinations, regular screenings, nutritional management, and parasite control. In India, the Government's focus on reducing livestock production losses — which currently run at 10–15% due to disease — is directly supporting this shift through national health schemes. Among pet owners, Gen Z households are driving veterinary visit frequency higher than previous generations, and demand for activity monitoring devices has grown to the point where 100,000 dogs in the UK are fitted with GPS and health trackers.

• Pharmaceutical Innovation and Strategic M&A Reshaping the Competitive Landscape

The animal health industry is consolidating fast, with major players making significant acquisitions to broaden their product portfolios and geographic reach. Merck Animal Health acquired Elanco's aquaculture business outside the US and Canada for USD 1.3 billion — a deal that included medicine, vaccine, and nutritional supplement portfolios for aquatic species, plus manufacturing and research facilities across three countries. Elanco itself received FDA approval for Zenrelia (ilunocitinib tablets), a new targeted treatment for canine dermatology that addresses skin conditions affecting a growing portion of the companion animal patient base. These moves reflect confidence in long-term demand growth across both companion and commercial segments.

Recent News and Developments in the Animal Health Market

• January 2025: Ceva Animal Health secured rights to Touchlight's dbDNA technology platform for use in the animal health sector, aiming to develop next-generation DNA vaccines for animals. The programme is being led by Dr. Ian Thompson, a globally recognised expert in veterinary vaccines, signalling a meaningful step toward synthetic biology-based animal immunisation.

• November 2024: MSD Animal Health announced European Commission approval for BRAVECTO TriUNO, a new combination chewable tablet for dogs that targets both internal and external parasites in a single formulation. The product extends Boehringer's established BRAVECTO franchise into multi-parasite protection, simplifying treatment for pet owners and veterinarians.

• October 2024: The Indian government announced a USD 25 million G20 Pandemic Fund dedicated to enhancing livestock health coverage and pandemic preparedness, to be implemented in partnership with the Asian Development Bank, World Bank, and FAO. The initiative includes upgrades to veterinary laboratory networks and disease surveillance infrastructure, with completion targeted by mid-2026.

• February 2024: Merck Animal Health completed its acquisition of Elanco's aqua business outside the US and Canada for USD 1.3 billion, adding a portfolio of aquatic animal medicines, vaccines, nutritional products, and supplements, along with manufacturing facilities in Canada and Vietnam and a research centre in Chile.

• September 2024: Elanco announced FDA approval and the US launch of Zenrelia (ilunocitinib tablets), a new targeted therapy for canine atopic dermatitis and allergic skin conditions. The drug represents a precision medicine approach to companion animal dermatology, offering veterinarians a safer and more targeted option than existing broad-spectrum treatments.

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