Veterinary Services in the US: Competing for the Pet Care Customer, 4th Edition

Table of Content

CHAPTER 1: EXECUTIVE SUMMARY

SCOPE OF REPORT

Veterinary Services Sector

Figure 1-1 National Map by State, Geographic Region, and Census Region

VETERINARY SECTOR OVERVIEW

Sector Sales and Growth

Dog Versus Cat Share of Expenditures

Veterinary Care Spending Levels

Pet Product Purchasing Patterns by Generational Cohort

VETERINARY SERVICES

Category Sales and Growth

Price Inflation and Vet Care Affordability

Topline Vet Services Usage Rates

Dog Versus Cat Share of Customers

Competitive Landscape

The Veterinary Customer

Millennial/Gen Z Patterns

Telemedicine Trends

Household Income and Use of Veterinary Services

PET MEDICATION PERSPECTIVES

Category Sales and Growth

Retail Versus Veterinary Sector Sales

Veterinary Sector Pet Medication Sales by Type

Usage Rates for Veterinary Flea Control

Competitive Landscape

Purchasing Channels and Options

Customer Demographics for Veterinary Flea Control

PET FOOD PERSPECTIVES

Category Sales and Growth

Retail Versus Veterinary Sector Sales

Inflation-Driven Dollar Growth

Purchasing Rates for Veterinary Pet Food

Competitive Landscape

Customer Demographics for Veterinary Pet Food

PET SUPPLEMENT PERSPECTIVES

Category Sales and Growth

Retail Versus Veterinary Sector Sales

Dog Products Dominate Sales

Competitive Landscape

CBD Trends

Customer Demographics for Pet Supplements

OPPORTUNITIES

Addressing Affordability Challenges

Offering Alternative Veterinary Service Models

Responding to Pet Services "Retail-ization"

Momentum for Telehealth

Fresh Thinking About Pet Product Sales

Catering to Cats

CHAPTER 2: VETERINARY SECTOR OVERVIEW

CHAPTER HIGHLIGHTS

SECTOR OVERVIEW

Veterinary Sector Revenues at $38 Billion

Table 2-1. US Veterinary Sector Revenues, 2018-2023P (million dollars and percent change)

Sector Projections

Table 2-2. Projected US Veterinary Sector Revenues, 2023 vs. 2027 (million dollars and percent change)

Dog Versus Cat Share of Veterinary Revenues

Service Versus Product Revenues

Table 2-3. Topline US Veterinary Sector Revenues: Overall and by Services vs. Products, 2020-2023P (billion dollars and percent growth)

Table 2-4. US Veterinary Sector Revenues by Service and Product Classification, 2020-2023P (in millions of dollars)

Veterinary Care Spending Per Customer Household

Table 2-5. Veterinary Care Spending in Last 12 Months per Dog/Cat-Owning Household: By Dollar Ranges, Summer 2022 - Summer 2023 (percent)

Table 2-6. Veterinary Care Spending in Last 12 Months per Dog or Cat Ownership Classification: By Dollar Ranges, Summer 2021 - Summer 2023 (percent)

Spending Range Patterns by Generational Cohort

Table 2-7. Veterinary Care Spending in Last 12 Months per Dog/Cat-Owning Household: By Dollar Ranges and Generational Cohort, Summer 2021 vs. Summer 2023 (percent)

Pet Product Purchasing Patterns by Generational Cohort

Table 2-8a. Pet Products Purchased in Last 12 Months Through Veterinarian: Dog Owners Overall and by Generational Cohort, 2023 (percent of veterinary customers)

Table 2-8b. Pet Products Purchased in Last 12 Months Through Veterinarian: Cat Owners Overall and by Generational Cohort, 2023 (percent of veterinary customers)

CHAPTER 3: VETERINARY SERVICES

CHAPTER HIGHLIGHTS

CATEGORY OVERVIEW

Veterinary Medical Service Revenues at $25 Billion

Table 3-1. US Medical Veterinary Service Revenues, 2019-2023P (in millions of dollars and percent change)

Revenue Projections

Table 3-2. Projected US Veterinary Services Revenues, 2023 vs. 2027 (in millions of dollars and percent change)

Price Inflation and Vet Care Affordability

Figure 3-1. Annual Price Inflation for Vet/Pet Services, 2019 - August 2023 (percent)

Figure 3-2. Significant Challenges Faced by Pet Owners, 2023 (percent)

Topline Vet Services Usage Rates

Table 3-3. Usage Rates for Veterinary Services: Overall and by Dog/Cat Ownership, 2018/19 - 2022/23 (percent of dog/cat owning households)

Vet Services Customer Base

Table 3-4. Customer Base for Veterinary Services vs. Overall Dog/Cat Household Population, 2012/13, 2017/18, and 2022/23 (in millions of households)

Figure 3-3. Growth for Veterinary Services Customer Base vs. Overall Dog/Cat Household Population, 2012/13 vs. 2017/18 and 2017/18 vs. 2022/23 (percent growth over 5-year periods)

Table 3-5. Customer Base Losses for Veterinary Services by Selected Demographics, 2017/18 vs. 2022/23 (thousand dog/cat households and percent change)

Dog/Cat Share of Customer Base

Figure 3-4. Dog/Cat Household Shares of Veterinary Services Customer Base vs. Overall Dog/Cat Household Population, 2012/13, 2017/18, and 2022/23 (percent)

Figure 3-5. Projected Dog vs. Cat Population, 2024 - 2030 (percentage of households)

Figure 3-6. Projected Dog vs. Cat Population, 2024 - 2030 (even-numbered years) (thousand households)

COMPETITIVE LANDSCAPE

Types of Service Providers

Figure 3-7. Mars Draw Among Veterinary Customers, 2023 (percent)

Industry Consolidation

Pet Services "Retail-ization"

PetSmart Veterinary Services

Petco Total Care and Vital Care Premier

Walmart Pet Services Center

Expanding Scope of Retail Store/Vet Clinic Partnerships

Veterinary Share of Revenues for Non-Medical Pet Care Services

Table 3-6. Revenue Share of Selected Non-Medical Pet Services: Veterinary vs. Non-Medical Pet Services Sectors, 2022 (million dollars and percent)

Overlap in Customer Base: Veterinary Versus Non-Medical Pet Services

Figure 3-8. Customer Base Overlap: Veterinary vs. Non-Medical Pet Services, 2014 vs. 2023 (percent)

Pet Services and "Omnimarket"

THE VETERINARY CUSTOMER

Customer Draw by Veterinary Service Type

Table 3-7. Usage Rates for Veterinary Services by Type of Provider: By Dog Owners Overall and by Generational Cohort, 2023 (percent of veterinary customers)

Table 3-8. Usage Rates for Veterinary Services by Type of Provider: Cat Owners Overall and by Generational Cohort, 2023 (percent of veterinary customers)

Patterns by Number of Veterinary Visits

Table 3-9. Patterns for Number of Annual Visits to Vet: Dog vs. Cat Owners, 2013 - 2023 (odd-numbered years) (percent of veterinary customers)

Reasons for Veterinary Visits

Table 3-10. Selected Reasons for Veterinary Visits: For Dogs vs. Cats, 2021 vs. 2022 (percent of veterinary customers)

Table 3-11. Selected Reasons for Veterinary Visits by Generational Cohort: For Dogs vs. Cats, 2022 (percent of veterinary customers)

Braving the New World of Millennials/Gen Z

Figure 3-9. Share of Pet Owners Who Changed Level of Pet Ownership in Last 12 Months: By Generational Cohort, 2021 vs. 2022 (percent)

Millennials/Gen Z Pet Parents Are Less Vet-Centric

Table 3-12. Most Important Sources of Pet Care Information: Overall, by Dog vs. Cat Owners, and by Generational Cohort, 2023 (percent)

Figure 3-10. Share of Pet Owners Who Consider Social Media a Most Important Source of Pet Care Information: Overall and by Generational Cohort, 2023 (percent)

Millennials/Gen Z Pet Parents Are Less Attached to Local, Independent Vet Model

Table 3-13. Levels of Agreement with Selected Veterinary Care Psychographics: Overall and by Generational Cohort, 2023 (percent of veterinary customers)

Figure 3-11. Share of Pet Owners Concerned About the Affordability of Pet Healthcare: Emergency vs. Routine, 2022 vs. 2023 (percent of veterinary customers)

Millennials/Gen Z Pet Parents Have Wider Range of Vet Service Priorities

Table 3-14. Selected Psychographics About Veterinary Services: Overall, by Dog vs. Cat Owners, and by Generational Cohort, 2023 (percent of veterinary customers)

Table 3-15. Factors Most Important in Choosing a Veterinary Clinic/Hospital: Overall and by Selected Age Brackets, 2023 (percent of vet service users)

Table 3-16. Satisfaction Levels with Selected Aspects of Veterinary Services: Overall and by Dog vs. Cat Owners, 2023 (percent)

Table 3-17. Satisfaction Levels With Selected Aspects of Veterinary Services: By Generational Cohort, 2023 (percent)

Telemedicine Trends

Figure 3-12. Selected Stats on Online/App Veterinary Telehealth Service Users, 2023 (percent)

Telehealth Usage Rates

Table 3-18. Use of Telehealth Consultation in Last 12 Months: Dog vs. Cat Owners, Overall and by Generational Cohort, 2023 (percent)

Figure 3-13. How Long Using Veterinary Telehealth Consultation Services: Dog vs. Cat Owners, 2023 (percent of veterinary telehealth uses)

Household Income and Use of Veterinary Services

Figure 3-14. Indexes for Use of Veterinary Services by Household Income Bracket, 2017/18 vs. 2022/23 (base index among dog/cat owners = 100)

Table 3-19a. Usage Rates for Veterinary Services by Demographic, 2012/13-2022/23 (every other year) (percent of dog/cat-owning households)

Table 3-19b. Customer Base for Veterinary Services by Demographic, 2017/18 - 2022/23 (thousand dog/cat-owning households)

Table 3-19c. Usage Indexes for Veterinary Services by Demographic, 2017/18 - 2022/23 (base index among dog/cat owners = 100)

CHAPTER 4: PET MEDICATION PERSPECTIVES

CHAPTER HIGHLIGHTS

CATEGORY OVERVIEW

Pet Medication Sales Exceed $12 Billion

Table 4-1. US Sales of Pet Medications, 2019 - 2023P (million dollars and percent change)

Retail Versus Veterinary Sector Sales

Table 4-2. US Sales of Pet Medications: Retail vs. Veterinary Sectors, 2019 - 2023P (million dollars and percent change)

Figure 4-1. US Sales of Pet Medications: Retail vs. Veterinary Sectors, 2019 - 2023P (million dollars)

Veterinary Sector Pet Medication Sales by Type

Table 4-3. Veterinary Channel Pet Medication Sales by Selected Classifications, 2023P (million dollars and share of total)

Usage Rates for Veterinary Flea Control

Table 4-4. Usage Rates for Veterinary Flea Control: Overall and by Dog/Cat Ownership, 2018/19 - 2022/23 (percent of dog/cat-owning households)

Size and Growth of Customer Base for Veterinary Flea Control

Table 4-5. Customer Base for Veterinary Flea Control vs. Overall Dog/Cat Household Population, 2012/13, 2017/18, and 2022/23 (million households)

Figure 4-2. Change in Customer Base for Veterinary Services, Veterinary Flea Control, and Veterinary Pet Food vs. Overall Dog/Cat Household Population, 2012/13 vs. 2017/18 and 2017/18 vs. 2022/23 (percent growth over 5-year periods)

Shares of Veterinary Flea Control Customer Base by Dog/Cat Ownership

Figure 4-3. Dog/Cat Household Shares of Veterinary Flea Control Customer Base vs. Overall Dog/Cat Household Population, 2012/13, 2017/18, and 2022/23 (percent)

Category Sales Projections

Table 4-6. Projected US Sales of Pet Medications, 2023 vs. 2027 (million dollars and percent change)

Table 4-7. Projected US Sales of Pet Medications: Retail vs. Veterinary Sectors, 2023-2027 (million dollars and percent change)

COMPETITIVE LANDSCAPE

Headwinds from Macro-Economic Inflation

Purchasing Channels and Options

Illustration 4-1. Chewy Pharmacy

Illustration 4-2. Chewy Veterinary Services

Table 4-8. How Pet Medications That Require a Vet's Prescription Were Purchased, 2023 (percent of dog/cat owners)

Table 4-9. Leading Websites for Purchasing Rx Flea/Tick Heartworm Medications: Overall, by Dog vs. Cat Owners, and by Generational Cohort, 2023 (percent of customers buying pet products through veterinarian)

Competing in the Online Marketplace

Illustration 4-3. Vetsource Vet-Targeted Web Page

Illustration 4-4. Vetsource Vet-Client Targeted Web Page

CUSTOMER DEMOGRAPHICS

Top Demographics for Veterinary Flea Control

Figure 4-4. Top Indexing Demographics for Use of Veterinary Flea Control, 2022/23 (base index among dog/cat owners = 100)

Table 4-10. Selected Demographic Losses in Purchasing of Veterinary Pet Food, 2017/18 vs. 2022/23 (thousand households and percent)

Source: Spring 2018 and Spring 2023 MRI-Simmons National Consumer Studies. Base: Household. Copyright: 2023. All rights reserved.

Table 4-11a. Rates for Purchasing Flea Control Products Through Veterinarian by Demographic, 2012/13-2022/23 (every other year) (percent of dog/cat-owning households)

Table 4-11b. Customer Base for Purchasing Flea Control Products Through Veterinarian by Demographic, 2017/18 - 2022/23 (thousand dog/cat-owning households)

Table 4-11c. Purchasing Indexes for Flea Control Products Through Veterinarian by Demographic, 2017/18 - 2022/23 (base index among dog/cat owners = 100)

CHAPTER 5: PET FOOD PERSPECTIVES

CHAPTER HIGHLIGHTS

CATEGORY OVERVIEW

Pet Food Sales Approach $53 Billion

Table 5-1. US Sales of Pet Food, 2019-2023P (million dollars and percent change)

Retail Versus Veterinary Sector Sales

Table 5-2. US Sales of Pet Food: Retail vs. Veterinary Sectors, 2019 - 2023P (million dollars and percent change)

Figure 5-1. US Sales of Pet Food: Retail vs. Veterinary Sectors, 2019 - 2023P (million dollars)

Inflation-Driven Dollar Growth

Figure 5-2. Consumer Price Index for All Urban Consumers: Pet Food, 2013 - August 2023 (index)

Figure 5-3. "Has your household spending on pet food changed in 2023, compared with 2022"? September/

Table 5-3. Level of Agreement with Selected Statements Related to Pet Product Spending: Pet Owners Overall, Dog Owners, and Cat Owners, 2023 (percent of pet product shoppers)

Note on MRI-Simmons Data on Purchasing Pet Food Through Veterinarian

Purchasing Rates for Veterinary Pet Food

Table 5-4. Usage Rates for Veterinary Pet Food: Overall and by Dog/Cat Ownership, 2018/19 - 2022/23 (percent of dog/cat-owning households)

Size and Growth of Customer Base for Veterinary Pet Foods

Table 5-5. Customer Base for Veterinary Pet Food vs. Overall Dog/Cat Household Population, 2012/13, 2017/18, and 2022/23 (million households)

Figure 5-4. Change in Customer Base for Veterinary Services, Veterinary Flea Control, and Veterinary Pet Food vs. Overall Dog/Cat Household Population, 2012/13 vs. 2017/18 and 2017/18 vs. 2022/23 (percent growth over 5-year periods)

Shares of Veterinary Pet Food Customer Base by Dog/Cat Ownership

Figure 5-5. Dog/Cat Household Shares of Veterinary Pet Food Customer Base vs. Overall Dog/Cat Household Population, 2012/13, 2017/18, and 2022/23 (percent)

Category Sales Projections

Table 5-6. Projected US Sales of Pet Food, 2023 vs. 2027 (million dollars and percent change)

Table 5-7. Projected US Sales of Pet Foods: Retail vs. Veterinary Sectors, 2023 - 2027 (million dollars and percent change)

COMPETITIVE LANDSCAPE

Veterinary Pet Food Marketers

Illustration 5-1. Hill's Prescription Diet

Illustration 5-2. Purina Pro Plan Vet Direct

Illustration 5-3. Royal Canin Veterinary Weight Control Dog Nutrition

Illustration 5-4. Blue Natural Veterinary Diet

Illustration 5-5. Virbac Veterinary HPM Pet Nutrition

Illustration 5-6. JustFoodforDogs Veterinary Support

Illustration 5-7. Sunshine Mills Veterinary Select

In-Clinic Versus Online

Figure 5-6. Share of Hill's Brand Pet Food Customer Base by Channel: Veterinary, Online, and Pet Specialty, cvool2016/17 - 2022/23 (every other year) (percent)

Figure 5-7. Share of Purina Pro Plan Brand Pet Food Customer Base by Channel: Veterinary, Online, and Pet Specialty, 2016/17 - 2022/23 (every other year) (percent)

Figure 5-8. Share of Royal Canin Brand Pet Food Customer Base by Channel: Veterinary, Online, and Pet Specialty, 2016/17 - 2022/23 (every other year) (percent)

Where High Spenders on Pet Food Shop: Veterinary Versus Online

Figure 5-9. Customer Base Among Households Spending $500 or More Annually on Pet Food: Veterinary Sector vs. Top Retailers/E-tailers, 2023 (thousand dog/cat-owning households)

CATEGORY TRENDS

The Prognosis for Prescription Pet Foods

Table 5-8. Products Considered Most Important for Pet Health: Dog vs. Cat Owners, 2023 (percent)

Lawsuit Against Prescription Diets

The Vet Card and Pet Food

Figure 5-10. Most Important Sources of Pet Care Information: Overall and by Generational Cohort, 2023 (percent)

Illustration 5-8. Hill's Prescription Diet at Chewy

Table 5-9. Sources Influencing Change in Pet Food: By Generational Cohort, 2023 (percent of dog and cat owners who changed foods in the past 12 months)

Table 5-10. Topics for Which Pet Owners Would Like to Receive More Guidance/Advice from Their Veterinarian: By Age Range, 2023 (percent of dog and cat owners)

Table 5-11. Selected Pet Food Psychographics: By Generational Cohort, 2023 (percent of dog and cat owners)

CUSTOMER DEMOGRAPHICS

Top Demographics for Veterinary Pet Food

Figure 5-11. Top Demographics for Purchasing Veterinary Pet Foods, 2023 (indexes)

Table 5-12. Selected Demographic Losses in Purchasing of Veterinary Pet Food, 2017/18 vs. 2022/23 (thousand households and percent)

Source: Spring 2018 and Spring 2023 MRI-Simmons National Consumer Studies. Base: Household. Copyright: 2023. All rights reserved.

Table 5-13a. Purchasing Rates for Veterinary Pet Food by Demographic, 2017/18 - 2022/23 (percent of dog/cat-owning households)

Table 5-13b. Customer Base for Veterinary Pet Food by Demographic, 2017/18 - 2022/23 (thousand of dog/cat-owning households)

Table 5-13c. Purchasing Indexes for Veterinary Pet Food by Demographic, 2017/18 - 2022/23 (base index among dog/cat owners = 100)

CHAPTER 6: PET SUPPLEMENT PERSPECTIVES

CHAPTER HIGHLIGHTS

CATEGORY OVERVIEW

Pet Supplement Sales Approach $2.7 Billion

Table 6-1. US Retail Sales of Pet Supplements, 2018-2023P (million dollars and percent change)

Dog Products Dominate Sales

Retail Versus Veterinary Sector Sales

Table 6-2. US Retail Sales of Pet Supplements: Retail vs. Veterinary Sectors, 2018-2023P (million dollars and percent change)

Figure 6-1. US Retail Sales of Pet Supplements: Retail vs. Veterinary Sectors, 2018 - 2023P (million dollars)

Illustration 6-1. Purina Pro Plan FortiFlora at Chewy

Category Sales Projections

Table 6-3. Projected US Retail Sales of Pet Supplements, 2023 vs. 2027 (million dollars and percent change)

Table 6-4. Projected US Retail Sales of Pet Supplements: Retail vs. Veterinary Sectors, 2023 vs. 2027 (million dollars and percent change)

COMPETITIVE LANDSCAPE

New Perspectives on Pet Supplements

Table 6-5. Satisfaction Levels with Veterinary Services Overall and with Veterinary Advice on Use of Pet Supplements: By Dog vs. Cat Owners, 2023 (percent of veterinary clients)

Figure 6-2. Percentage of Customers Who Would Like to Receive More Guidance from Veterinarians on Use of Pet Supplements, 2023 (percent)

Knowledge Gap a Prime Opportunity

Figure 6-3. Level of Agreement with the Statement, "I rely on my veterinarian for advice on pet vitamins/supplements", November 2022 (percent of pet supplement purchasers)

Figure 6-4. Pet Owner Knowledge of Pet Supplements, 2023 (percent of pet supplement purchasers)

CATEGORY REGULATION AND OVERSIGHT

Food and Drug Administration and Center for Veterinary Medicine

American Association of Feed Control Officials

American Veterinary Medical Association

National Animal Supplement Council

CATEGORY TRENDS

Heightened Focus on Pet Health

Figure 6-5. Pet Owner Concerns about Pet Health and Wellness due to COVID-19, 2023 (percent of pet owners)

Figure 6-6. Share of Pet Owners Who Began Purchasing Supplements Due to COVID-19 by Type, 2022 (percent of pet supplement purchasers)

Figure 6-7. Most Important Health Product for Pets, 2023 (percent of pet owners)

Veterinary-Positioned Marketers

Illustration 6-2. Zesty Paws Vet Strength Line

Illustration 6-3. VetriScience Pro Line

Illustration 6-4. Fera Pet Organics Webpage

Winning Over Veterinarians

Condition-Specific Supplements

Table 6-6. Top Concerns/Conditions for Which Pet Supplements Are Purchased: Dog vs. Cat Owners, 2023 (percent of purchasers)

Condition-Specific Products with Veterinary Positioning

Mobility/Joint Health Supplements

Illustration 6-5. Dasuquin Joint Health Supplement Webpage Banner

Illustration 6-6. NaturVet Evolutions Advanced Joint Support Chews

Digestive Support Supplements

Illustration 6-7. Nutramax Proviable Digestive Health Supplements

Alternative and Novel Format Supplements

Illustration 6-8. NaturVet VitaPet Puppy Daily Vitamins Soft Chews

Illustration 6-9. Nutri-Vet Puppy-Vite Gel

Illustration 6-10. Vet Worthy Hide-a-Pill Supplements

FOCUS ON CBD

CBD Versus THC

Regulatory Context

FDA Prohibition Remains

Hemp Products Designated as GRAS

AVMA Position on Cannabis and CBD

CBD Pet Products Usage and Sales

Illustration 6-11. VetCBD Cannabis Tincture

Illustration 6-12. Amazon Bestseller: Charlie & Buddy Hemp Oil for Dogs and Cats as Amazon Bestseller

Table 6-7. US Retail Sales of Pet CBD Products, 2018 - 2023P (million dollars and percent)

Conditions Treated with CBD

Figure 6-8. Health and Wellness Concerns for Which CBD Treats Are Purchased: Dog vs. Cat Owners, (percent of CBD pet treat purchasers)

CUSTOMER DEMOGRAPHICS

Dog Owners More Likely to Purchase Supplements

Purchasing Patterns by Demographic

Figure 6-9. Top Demographics for Pet Supplement Purchasing, 2023 (indexes)

Table 6-8. Pet Supplement Purchasing Patterns by Demographic, 2023 (percent purchasing, percent of total purchasers, and purchasing index)