PUBLISHER: Grand View Research | PRODUCT CODE: 2040623
PUBLISHER: Grand View Research | PRODUCT CODE: 2040623
The global veterinary contract manufacturing market size was estimated at USD 4.0 billion in 2025 and is projected to reach USD 7.7 billion by 2033, growing at a CAGR of 8.6% from 2026 to 2033. The major factors driving growth of the market include rising strategic focus on CMO core business models, increasing capacity expansion & investment in multi-species manufacturing, rising demand for infrastructure development and outsourced manufacturing contracts and favorable regulatory scenario.
The market is driven by companies prioritizing CMO-focused business models to enhance operational efficiency and scalability. Animal health companies are shifting from in-house production to outsourcing, enabling them to focus on R&D, commercialization, and portfolio expansion while leveraging specialized manufacturing expertise. This transition is further supported by growing demand for complex biologics, APIs, and companion animal therapeutics. For instance, in April 2026, Prange Pharma acquired an animal health manufacturing site from MSD Animal Health in Italy, strengthening its contract manufacturing capabilities and strategic positioning in the CDMO space.
In addition, capacity expansion across multi-species manufacturing facilities is a major growth driver, as demand rises for vaccines, APIs, and therapeutics across livestock and companion animals. CDMOs are investing in advanced infrastructure to support diverse production needs, including poultry, swine, and pet healthcare segments. These investments enable flexible, large-scale production while meeting regulatory and quality requirements across geographies. For instance, in September 2025, Sai Life Sciences expanded its dedicated veterinary API manufacturing capacity in India, strengthening its role in global animal health supply chains. Such expansions reflect the industry's shift toward integrated manufacturing platforms capable of handling multiple species and dosage forms, ultimately improving accessibility, reducing costs, and supporting the growing global demand for veterinary products.
Furthermore, the increasing complexity of veterinary pharmaceuticals, including biologics, vaccines, and specialty formulations, is driving demand for outsourced manufacturing services. Some of the companies are depending on CDMOs to access advanced technologies, regulatory expertise, and scalable production without significant capital investment. This trend is particularly evident in emerging markets and niche product segments such as diagnostics and pet therapeutics. For instance, in January 2026, Zomedica entered into a contract manufacturing and services agreement with Rahm Sensor Development to diversify its offerings and expand revenue streams. Such collaborations highlight how outsourcing enables companies to accelerate market entry, optimize costs and enhance product innovation.
Moreover, the market is advancing due to stringent and evolving regulatory frameworks that emphasize product safety, quality, and traceability. Compliance with Good Manufacturing Practices (GMP), biosafety standards, and international guidelines encourages animal health companies to partner with specialized CDMOs possessing regulatory expertise. These partners help navigate complex approval processes across multiple regions, reducing compliance risks and time-to-market. In addition, harmonization efforts and government initiatives to strengthen veterinary oversight are promoting standardized manufacturing practices.
Global Veterinary Contract 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 contract manufacturing market report based on product, animal, service, customer, and region: