Market Trends of Veterinary Contract Development And Manufacturing Organizations (CDMO) Industry
Livestock Animal Is Expected to Have Significant Market Share During the Forecast Period
The livestock animal segment is expected to witness significant growth in the veterinary contract development and manufacturing organizations market over the forecast period, owing to factors such as the rising livestock population, increasing use of agricultural animals for the large production of veterinary vaccines, products, and drugs, and growing awareness of vaccine immunization campaigns. For instance, according to an article by Gavi, the Vaccine Alliance, in 2023, approximately 2.5 million sheep, cattle, and goats were vaccinated in 16 districts of the Ethiopia region, and 25,111 pastoralist members have benefited from the immunization campaign the regional agricultural bureau organized. Thus, the increase in awareness of immunization programs for livestock animals to prevent zoonotic diseases is expected to propel the segment growth, which is anticipated to fuel the Veterinary CDMO market growth.
Additionally, the rising investment by government and private entities in novel therapies and development for animal diseases also contributes to the segment’s growth. For instance, in March 2024, the Minister of Agriculture and Agri-Food invested up to CAD 1,697,850 in Animal Health Canada to support their role in foreign animal disease prevention and preparedness efforts in Canada, including for African swine fever (ASF) and Foot and Mouth Disease (FMD). Animal Health Canada brings together the agriculture industry and federal, provincial, and territorial partners to provide input on Canada's cohesive, functional, and responsive farmed animal health and welfare system. Thus, funding from government institutions can lead to the development and manufacturing new veterinary drugs, therapies, vaccines, and products, further contributing to the demand for veterinary CDMO services.
Thus, the rising demand for animal products produced ethically and regulations about livestock producers are expected to drive the market’s growth over the forecast period.
North America Holds the Largest Market Share of the Veterinary Contract Development and Manufacturing Organizations Market
North America is expected to dominate the veterinary CDMO market over the forecast period owing to the adoption of innovative technologies in manufacturing and development, a rise in drug and development activities, and the launch of veterinary products.
In addition, the strong presence of large CDMO players providing veterinary services, growing awareness of animal health and welfare, and strict regulatory compliance and quality standards are also contributing to the market growth in the region.
With the growing demand for drugs and veterinary products, CDMOs are entering into collaborative partnerships with pharmaceutical firms to improve the effectiveness and speed of drug development in the country. These partnerships support collaboration as well as innovation in the field of animal health. For instance, in February 2024, Blacksmith Medicines Inc. collaborated with Zoetis to discover and develop novel antibiotics to selectively target bacteria for animal health.
Additionally, the major players in the animal health industry prefer contract outsourcing over in-house due to its benefits. For instance, Zoetis, one of the key players in the veterinary field, has its manufacturing facilities and collaborated with 132 Third-party contract manufacturing organizations. This strategic outsourcing allows CDMOs to minimize the risks and encourage more development in the field.
Furthermore, in the US, there is an increase in pet adoption, which has directly or indirectly enhanced people’s willingness to spend more money and time on their pet’s healthcare. For instance, according to the 2023-2024 National Pet Owners Survey conducted by the American Pet Products Association (APPA), around 70% of United States households own a pet, which equates to 90.5 million homes, including 69 million dogs. These factors have had a major impact on the rise in end-user demand for medical products, which resulted in increased production volumes by players and increased involvement of contract development and manufacturing organizations.
Therefore, the region's veterinary CDMO market is expected to grow over the forecast period due to the abovementioned factors.
Veterinary Contract Development And Manufacturing Organizations (CDMO) Market Report Snapshots
- Veterinary Contract Development And Manufacturing Organizations (CDMO) Market Size
- Veterinary Contract Development And Manufacturing Organizations (CDMO) Market Share
- Veterinary Contract Development And Manufacturing Organizations (CDMO) Market Trends
- Veterinary Contract Development And Manufacturing Organizations (CDMO) Companies
