An Eagle-eyed Review: The Brakke 2022 Animal Health Industry Overview

At Animal Health Jobs, the new year wouldn't be the same without the Brakke Consulting Annual Industry Overview. Our Brakke colleagues assess the previous 12 months and predict what's coming in the next twelve. Their presentations at major veterinary conferences are packed with information.  Here we share some of what you'll learn from the 2022 Animal Health Industry Overview.

A global growth surge

The global animal health market was exceptionally strong in 2021, growing 12.5%. That's a dramatic increase over the steady 4-6% annual growth we've seen each year since 2015.¹

Growth was stronger in the companion animal segment than in the livestock segment, where high feed costs and supply chain disruption were two of the factors impacting growth. New segments, like precision animal production and nutritionals, are becoming drivers of market expansion.

Consolidation is the name of the game

Consolidation of veterinary practices and animal health companies continues. Veterinary corporate practices are expanding, particularly in specialty and emergency practice, where approximately 75% of the practices are now corporate-owned.¹  

Ten percent (10%) of independent practice owners plan to sell their practices in 2022; of these, 43% expected to sell to corporate practices. In 2020, only 27% of owners who planned to sell their practices expected to sell to a corporate consolidator.³

Industry mergers and takeovers continued, and companies at the top of animal health are packed tightly together. The top 5 companies (Zoetis, Merck, Boehringer Ingelheim, Elanco and Idexx) were responsible for almost $27 billion, or nearly two-thirds of the industry's 2021 revenues.¹

Pressure in practice

It's no surprise that 2021 was another stressful year in veterinary practice. Although companion animal veterinary visits increased by 5% and practice revenues by more than 13%, practice productivity decreased dramatically.^1,4

Veterinarians and staff members spoke up about their stress: 67% of veterinarians reported that their practices were short-handed, and 46% worked more than their normal hours.²

Despite this, reports of long wait times at companion animal practices seem to have been overstated, with 65% of pet owners able to schedule routine appointments within one week.⁵

Growth will continue

The animal health industry is resilient. We have bounced back from past challenges, from bovine spongiform encephalopathy (Mad Cow Disease) to the financial crash of 2008. Like our survey respondents of 2021 the Brakke team is confident that animal health remains strong.  

Let's talk

If you missed the Brakke team's presentation of the 2022 Animal Health Industry Overview, request a meeting at an upcoming veterinary conference. These conferences are ideal places to pick up the latest news in the animal health industry, look for jobs and meet candidates. The Animal Health Jobs team attends the major conferences too. Be sure to say hello.

To find your own home in animal health, submit your resume  and search for current job openings from top and emerging industry companies. Register for job alerts and our newsletter to stay on top of the latest jobs and trends in animal health and animal nutrition.

 

1. Brakke Consulting: 2022 Animal Health Industry Overview
2. Merck Animal Health Veterinarian Wellbeing Study III
3. Brakke Consulting Survey December 2021
4. 2021 AVMA Veterinarian and Practice Owners Survey
5. AVMA 2021 Pet Owner Survey