The report below gives a good overview of the Spring 2024 M&A activity in the Animal Health Industry Sector. The animal health sector continues to represent an indispensable segment of the U.S. economy. Participants foster healthier animals, deeper human-pet bonds, and increased productivity. In 2023, robust demand for premium pet products and advanced veterinary services drove the category to a record $147.1 billion (U.S, all pet categories). This category was up 7.5% compared to last year and had an 11% CAGR from 2019 (source: APPA) further fueled by a wave of new pet acquisitions during Covid. According to Michigan State University, the pet industry had an overall economic contribution in 2023 of $303 billion, an increase of 16% from 2022. The industry has been proven to be incredibly recession resilient. According to the Animal Health Institute, the US animal health pharmaceutical market is a significant part of the pharma industry, making up about $9.9 billion, around 2% of the total pharmaceutical market. The humanization of pets, where animals are increasingly considered family members, continues to be one of the most powerful drivers of growth.
Posted by Alexander Petersen.