Veterinary Services Industry Overview

Excerpt from Veterinary Services Report

Companies in this industry employ licensed veterinary practitioners and provide medical and health care services for animals. Major companies include Medical Management International and VCA Antech (both based in the US), as well as CVS Group (UK), and Greencross Vets (Australia).

Competitive Landscape

Demand is driven mainly by the number of cats and dogs kept as pets, which is affected by demographics. The profitability of an individual clinic depends on marketing skills, and by the range of services the practice offers. Large practices enjoy economies of scale in marketing as well as more capital to invest in onsite diagnostic equipment. Small practices can compete effectively by specializing in particular animals or types of treatment, or by serving an exclusive area. The industry is highly fragmented: the 50 largest companies account for 10 percent of revenue. The typical veterinary services company operates a clinic with fewer than 20 employees on staff and has annual revenue of less than $1 million.

Products, Operations & Technology

Animal hospitals and clinics treat injuries and disease, but derive most revenue from animal health procedures like neutering and spaying, vaccinations, and regular checkups. Some animal hospitals also bathe, groom, board, and provide testing services. Routine examinations and non-surgical treatments each account for about 25 percent of industry revenue; surgical procedures and lab services, about 15 percent each. Sales of pet food, vitamins, and accessories account for about 10 percent. The industry is divided into services for pets ("companion animals") and food animals (cattle, pigs, chickens).