US demand to top $8 billion in 2006
Demand for animal health chemicals in the US is forecast to advance four
percent per year to more than $8 billion in 2006, supported by the continuing
emergence and threat of animal disease, changes in animal production practices,
new product introductions and ongoing food safety concerns. Animal health
chemicals will also benefit from growth in the companion animal population and
the increasing availability of pet insurance.
A tightening regulatory environment (e.g., animal byproduct bans and animal
waste reduction initiatives) will benefit demand for some products such as amino
acids, while negatively impacting others, particularly antibiotics, as Congress
and the FDA seek to ban or reduce the use of antibiotics in veterinary
applications. In addition, the slow FDA veterinary drug approval process will
continue to hinder demand, as will a growing use and acceptance of alternative
health practices which do not use traditional chemicals.
Parasiticides, systemic agents to lead gains
Nutritional chemicals, the largest class of animal health products, will see
aboveaverage growth due to interest in improving food animal quality, in aiding
disease prevention and improving waste management. Parasiticides, the second
largest class of animal health chemicals, will see the fastest gains as a result
of product developments for the companion animal market, such as those aimed at
treating more than one pest in a single product, and the increasing availability
of parasite control products for pet owners through retail outlets and the
Internet.
Systemic agents will experience healthy growth as the availability of
pharmaceuticals such as cardiovascular chemicals and diabetes control chemicals
for companion animals increases. Therapeutic antibiotics will see the slowest
growth as their use in food animals will continue to be called into question due
to concerns over increased antimicrobial resistance in humans.
OTC products to be more available
Veterinarians will remain the primary end user of animal health chemicals due
to the prescription-only nature of many products and their expertise in
diagnosis and treatment. However, veterinarians will face increasing competition
from over-thecounter outlets such as pet supply stores and the Internet, which
enable pet owners, farmers and animal managers at other sites to purchase animal
health chemicals at a lower price. Households will see the strongest growth, as
pet owners move towards doit- yourself animal care. Animal feed manufacturers
will benefit from food safety concerns, the increasing use of feed additives to
improve food animal output, the convenience and cost efficiency of feed as a
delivery method and increasing shift towards preventative health care. Pet food
manufacturers will bolster demand as they incorporate higher levels of
nutritional chemicals in their formulations.
Companion animals to offer best prospects
Livestock and poultry will continue to account for the majority of animal
health chemical demand. However, companion animals will continue to see the
fastest growth, driven by strong growth in product developments, general aging
in the pet population and increased spending per animal. The increasing
availability of pet insurance will enable pet owners to more easily afford
preventative, routine health care, as well as costly treatments such as
chemotherapy. All other animals, including those which can be found at such
places as zoos, amusement and theme parks, circuses and shelters, will continue
to see gains through 2006 as pest and disease control, as well as general animal
health, continue to play a crucial part of animal management programs.
Study coverage
This new Freedonia study, Animal Health Chemicalsprovides historical data and forecasts to 2006 and 2011 by product type, end
user, and animal. The study also presents market share data and profiles key
industry competitors.
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