In 2015 the global animal health industry will see steady growth in the range of 4% to 5%. That’s the consensus of more than 40 senior executives surveyed recently by Brakke Consulting, Inc.
The survey was conducted in late 2014, and presented at Western Veterinary Conference in Las Vegas, NV, this month.
“Executives of smaller companies tended to be more bullish about 2015 and beyond than larger companies,” said Ron Brakke, president of Brakke Consulting. “Their optimism may be driven in part by new technologies they are developing.”
Regions of greatest growth are expected to be Asia, especially China, followed by the US and Latin America, according to survey participants. Sales in Europe are expected to be flat or perhaps even down slightly. While executives expect sales of both companion animal and food animal products to expand, they foresee further contraction in the equine market.
In the US, survey participants anticipate that beef and swine numbers will grow, rebounding from declines caused by drought (beef) and PEDV (swine). PEDV is porcine epidemic diarrhea virus, a devastating disease that hit US swine herds in 2013 and 2014.
Animal Health executives are happy to have the Great Recession behind them. There was almost universal agreement that meat consumption and pet populations were both negatively impacted by the recession, especially in the US.
On a more positive note, survey respondents were optimistic about the prospects for new technology to hit the market in 2015-2016. In the companion animal market, new products might include immunotherapy, cancer treatment and parasite control. In the food animal market, vaccines are expected to head the new product list.
A major change occurring in 2013-2014 was the launching of several initial public offerings (IPOs) by animal health companies, including the largest, Zoetis. The animal health executives interviewed for the survey viewed this as beneficial to the industry for two reasons: (1) it has created incentive for investors and financial analysts to learn more about the industry; and (2) it has brought new resources to companies to develop technologies and expand sales.
Longer term, survey participants were very bullish on the animal health industry. They reported that improving economic conditions around the world will create increased need for protein from livestock and poultry to feed a growth population, as well as increased dog and cat numbers.
About Brakke Consulting
Brakke Consulting is the leading consulting firm specializing in animal health and nutrition. Headquartered in Dallas, TX, 75234, the firm has offices in Chicago, St. Louis, Omaha, Kansas City, and Osaka, Japan. Services include international marketing, new business development, product evaluation, executive recruitment and distribution strategies. The company is known for its syndicated market studies, providing strategic and timely information for the industry.