The Europe animal healthcare market includes products such as biologics, pharmaceuticals, medicated feed additives, and vaccines. These products are used for prevention, diagnosis, and treatment of various diseases in companion animals as well as livestock animals. Biologics such as vaccines help prevent diseases in animals. Pharmaceuticals including antibiotics and anti-parasitics are used to treat infections and parasite infestations in animals. Medicated feed additives are mixed with animal feed to treat and prevent diseases in poultry and livestock animals. These products ensure good health and well-being of animals.

The Europe Animal Healthcare Market is estimated to be valued at US$ 14,096.3 Mn in 2023 and is expected to exhibit a CAGR of 4.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
Rising pet ownership across Europe due to changing societal trends is a major driver boosting the Europe animal healthcare market growth. According to the Pet Food Manufacturers’ Association, the number of pet dogs in the UK increased by 3.2 million from 8.5 million in 2015 to 11.7 million in 2020. The growing humanization of pets has increased the willingness of pet owners to spend more on animal healthcare. This provides opportunities for animal healthcare companies to launch advanced veterinary therapeutics and products. Additionally, growing demand for animal-derived food products like meat and dairy is increasing focus on livestock animal health management among farmers. The looming threat of zoonotic diseases is also prompting companies to develop novel vaccines and therapeutics for animals.

Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as the initial capital required for startup costs and research and development is substantial. However, easier paths are available for new entrants to gain foothold through product diversification.
Bargaining power of buyers: The bargaining power of buyers is moderate to high as the market comprises varied product segments like pharmaceuticals, feed additives, vaccines etc. Buyers have adequate options to switch between products and suppliers.
Bargaining power of suppliers: The bargaining power of suppliers is low to moderate as key raw materials like APIs and other ingredients are sourced globally and several alternative suppliers are available. Supplier concentration is also not very high.
Threat of new substitutes: Threat from substitutes is moderate as alternatives like generics come up for major blockbuster drugs. However, new substitutes are restricted by stringent regulatory compliances for animal healthcare products.
Competitive rivalry: Intense due to the presence of large global players like Merck & Co., Inc., Virbac and regional players like Ceva Santé Animale.

SWOT Analysis
Strength: Well-established distribution networks, strong brand presence and recognition in Europe and investments in R&D allow players to launch innovative products regularly.
Weakness: High dependency on few therapeutic categories like anti-infective and parasiticides makes portfolio vulnerable to patent expiries. Stringent regulations delay product approvals.
Opportunity: Growing pet ownership and increased meat consumption are driving demand for animal healthcare products. Opportunities exist in emerging markets of Eastern Europe.
Threats: Economic slowdowns negatively impact spending on animal healthcare. Increased trade protectionism and Brexit uncertainties pose threats.

Key Takeaways
The global Europe Animal Healthcare Market is expected to witness high growth, exhibiting CAGR of 4.8% over the forecast period, due to increasing pet ownership and demand for protein-rich diets. The market size for 2023 is estimated to reach US$ 14,096.3 Mn.

Regional analysis: Germany dominates the Europe animal healthcare market accounting for over 20% value share in 2023 due to high livestock population and strong presence of leading manufacturers. France is the second largest regional market growing at 5.2% CAGR through 2030 backed by supportive government policies for livestock development.

Key players operating in the Europe Animal Healthcare market are Merck & Co., Inc., Virbac, Dechra Pharmaceuticals Plc., Vetoquinol S.A., Zoetis Inc., Ceva Santé Animale, Bayer AG, Elanco, Evonik Industries AG, and Archer Daniels Midland Company. These firms focus on new product launches, mergers & acquisitions to strengthen regional foothold and capitalize on industry opportunities.
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