The report below gives a good overview of the Fall 2022 M&A activity in the Animal Health Industry Sector. The global pet care market was valued at US$232 billion in 2020 and is expected to grow to US$350B in 2027 with a CAGR of 6.1% from 2021 to 2027 (source: GM Global Insights research). As seen during past recessions, the pet care market has shown resilience during economic downturns and continues to grow in the current inflationary environment. Pet owners view their pets as members of the family. As a result, consumer spend related to pet consumer goods and pet services, such as pet walking, boarding, veterinary care, and pet immunization have continued to grow, albeit a little slower during recessionary periods. Pet adoptions exploded during COVID lockdowns, providing a one-time step up in the number of pets over a short period of time, further increasing the size of the available market (but also creating a tough compare vs. prior year). Other important factors driving market growth are consolidation in the veterinary services space globally, and innovative new products. New products such as new pet parasiticides, increasing usage of tele-health and home veterinary diagnostics products are not only making pet care for pet owners better, but they are also expanding the veterinary care part of the market by facilitating access. Last, but not least, there has been continued rapid consolidation in the veterinary services space globally. These consolidation efforts have further helped the market stay resilient to the economic downturn, with larger entities managing investing in consumer outreach, and expanding opening hours, improving operating efficiency, and more.
Posted by Alexander Petersen.