Veterinary Contract Development and Manufacturing Organizations (CDMO) Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

Veterinary Contract Development And Manufacturing Organizations (CDMO) Market Analysis

The Veterinary Contract Development And Manufacturing Organizations Market size is estimated at USD 5.35 billion in 2024, and is expected to reach USD 8.88 billion by 2029, growing at a CAGR of 8.10% during the forecast period (2024-2029).

The rising adoption of CDMOs and technological adoption by veterinary CDMOs primarily drives the market. The key factors driving the growth of the veterinary contract development and manufacturing organizations (CDMO) market are the rising demand for veterinary products and drugs and increasing technological adoption by CDMOs. Digitalization, data analytics, and automation advancements have improved veterinary CDMOs and offered specialized expertise in manufacturing process and formulation development.

The rising adoption of outsourcing services due to the cost-effectiveness of veterinary pharmaceutical companies is the key factor driving the market growth. For instance, an article published by Pharma’s Almanac Nice Insights in June 2022 stated that outsourcing manufacturing services is a major factor in the growth of the veterinary health market. In a survey conducted, 94% of industry experts who were the respondents indicated that their companies outsource services and operations to CMOs or CDMOs.

Also, the major players in the veterinary CDMO market have focused on adopting strategic initiatives such as partnerships, mergers, acquisitions, etc. For instance, in May 2023, Argenta Limited announced the acquisition of Midwest Veterinary Services Inc., a CRO company providing services consulting, diagnostic laboratory, and regulatory services. This acquisition would strengthen and improve the company’s livestock production. As a result, CDMOs are in high demand for their manufacturing and development services.

Furthermore, the increasing adoption of companion animals is expected to increase the demand for the veterinary CDMO market, which is anticipated to fuel market growth. For instance, according to the 2023-2024 National Pet Owners Survey conducted by the American Pet Products Association (APPA), around 66% of United States households own a pet, which equates to 86.9 million homes, including 46.5 million cats and 65.1 million dogs. The most popular animals that are adopted worldwide are cats and dogs. Thus, the rising adoption of pet animals would further propel the demand for the veterinary CDMO market.

Moreover, the growing adoption of technological advancements by CDMOs is likely to propel market growth over the forecast period. CDMOs have started using predictive analytics, automated process monitoring, fault detection, and smart-automated bioprocessing to monitor, model, and regulate processes to lower costs and enhance product quality. For instance, according to an article published by Contract Pharma in 2023, AI-driven decision-making allows CDMOs to apply GMP at a higher level. Machine learning (ML) and predictive analytics can also be utilized for maintenance, and Augmented reality (AR) contributes to improved control over the manufacturing process. Thus, these advancements in the technologies mentioned above contribute to the veterinary CDMO market growth by increasing the quality of production and decreasing the time required.

However, the lack of standardized dosage forms and approaches for veterinary drugs can create complexities and higher costs during the manufacturing and development processes for CDMOs and are likely to hinder market growth over the forecast period.

Veterinary Contract Development And Manufacturing Organizations (CDMO) Market Trends

Livestock Animal Is Expected to Have Significant Market Share During the Forecast Period

Veterinary Contract Development And Manufacturing Organizations (CDMO) Industry Segmentation

The Veterinary Contract Development & Manufacturing Organizations (CDMO) market is segmented by animal type (companion animals and livestock animals), services (contract development, contract manufacturing, packaging & labeling services, market approval, and post-marketing services), and Geography (North America (United States, Canada, and Mexico), Europe (Germany, United Kingdom, France, Italy, Spain, and Rest of Europe), Asia-Pacific (China, Japan, India, Australia, South Korea, and Rest of Asia-Pacific), Middle East and Africa GCC, South Africa, and Rest of the Middle East and Africa), and South America (Brazil, Argentina, and Rest of South America)). The market report also covers the estimated market sizes and trends for 17 countries across major regions globally. The report offers a value of USD for the above segments.