Veterinary Services
Buy This Industry Report
Get more in-depth industry information with a First Research industry report containing business challenges, trends, executive insight, call prep questions, and so much more!
Increase Appointments
Engage Prospects
Build Your Confidence
Industry Overview
The US veterinary services industry includes about 26,000 veterinary centers and animal testing laboratories, with combined annual revenue of $20 billion. VCA Antech and Banfield, located in PetSmart stores, are the largest operators of animal hospitals. VCA Antech also operates testing labs. The industry is highly fragmented: the 50 largest companies hold less than 10 percent of the market. The typical veterinary services company operates an animal hospital with less than 20 employees on staff and has annual revenue under $1 million.
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.
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. Sales of pet food, vitamins, and accessories account for about 40 percent of industry revenue, while veterinary care represents nearly 25 percent. The industry is divided into services for pets ("companion animals") and food animals (cattle, pigs, chickens).
Of the 85,000 licensed veterinarians in the US, 70 percent work in private practice, less than 10 percent are considered large animal veterinarians, and only 2 percent are exclusively food animal veterinarians. Most veterinarians, and about 75 percent of industry revenues, are associated with the care of 75 million dogs, 85 million cats, 15 million birds, and 14 million horses that are pets. Vets also treat exotic pets; about 70 percent of multi-pet households include an exotic species as well as a dog or cat, according to the American Veterinary Medical Association.
Animal testing labs provide important information about animal ailments, with blood and urine testing providing the bulk of lab work. Although some testing procedures are done manually, most involve automated equipment. Acquiring, operating, and maintaining test equipment is the principal activity of testing labs. Labs and animal hospitals buy diagnostic equipment and drugs from the veterinary wings of large medical supply and drug companies. Many animal hospitals and clinics do their own testing because sophisticated equipment is available that doesn't require highly skilled operators.
