PUBLISHER: Grand View Research | PRODUCT CODE: 1888555
PUBLISHER: Grand View Research | PRODUCT CODE: 1888555
The global veterinary active pharmaceutical ingredients manufacturing market size was estimated at USD 9.33 billion in 2024 and is projected to reach USD 17.36 billion by 2033, growing at a CAGR of 7.24% from 2025 to 2033. The industry is growing due to rising investments in outsourcing, R&D of new veterinary products, the expanding livestock industry, and expenditure on animal health.
Pharmaceutical companies increasingly outsource animal health API production to specialized contract manufacturing organizations (CMOs) to reduce costs, improve efficiency, and access advanced manufacturing capabilities. This outsourcing enables firms to focus on R&D and marketing of pharmaceuticals. This surges the demand for high-quality APIs having faster production timelines and enhanced scalability. For instance, in November 2024, SeQuent Scientific and Viyash Lifesciences approved a strategic merger, creating a global animal health leader with integrated capabilities, 16 manufacturing facilities, strong R&D, and access to over 150 international markets. This merger is poised to strengthen their global presence, enhance innovation through manufacturing and deliver comprehensive solutions across the animal healthcare industry.
In addition, rising investments in research and development by companies to create innovative APIs, including novel medications and biologics are boosting market growth. R&D focuses on efficacy, safety, and regulatory compliance, enabling differentiation in a competitive market. This leads to the development of high-value, specialized APIs, improved animal health outcomes, and enhanced market competitiveness.
The surge in livestock numbers for meat, dairy, and poultry production, combined with increasing pet populations, has propelled the need for animal health medications. Higher populations lead to more disease susceptibility, requiring vaccines, anti-infectives, and supportive drugs. Manufacturers respond by producing larger volumes of APIs and expanding production facilities. The effect is a robust demand pipeline for APIs, stimulating innovation, technological adoption, and strategic collaborations.
Furthermore, increasing veterinary healthcare spending, driven by higher disposable income, growing pet ownership, and livestock industry expansion, raises demand for preventive and therapeutic medications. According to the American Pet Products Association report, in 2024, USD 152 billion was spent on pets for food, medicines, vet care products and other services. This surge in spending has driven higher production and consumption of veterinary APIs, encouraging manufacturers to expand operations, adopt advanced technologies, and develop innovative products to meet growing market demand. Higher expenditure encourages investment in quality control, innovation, and regulatory compliance. Thus, rising animal health expenditure directly fuels the expansion and competitiveness of the veterinary API manufacturing market.
Global Veterinary Active Pharmaceutical Ingredients Manufacturing Market Report Segmentation
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Grand View Research has segmented the global veterinary active pharmaceutical ingredients manufacturing market report based on service, synthesis, animal, therapeutic category, and region.