Recently, my colleague, John Volk wrote about the competitiveness within the pet food market, the largest segment of the pet market. I would like to expand on his comments.

We have all seen the humanization of our pets, which now includes the humanization of the food we give them. Fresh and frozen food represents one of the fastest growing pet food segments. Companies like Fresh Pet, Farmer’s Dog, Ollie, Nom Nom and Just Food for Dogs to name a few, are strong players in this market. The gloves are now off. Pet food behemoths including Mars’ Royal Canin and General Mills through its Blue Buffalo brand both have recently announced new fresh food products. In addition, back in February 2025, Hills announced the acquisition of Care TopCo Pty Ltd., an Australian company marketing the Prime100 brand of fresh pet food.

According to NIQ data, the fresh/frozen pet food segment grew +16.1% in dollars and +15.8% in unit sales in 2024. NIQ data shows that the fresh/frozen market is still small, representing just 3.6% of the total pet food market. While small, the growth rates are difficult to ignore, and the advertising and marketing expenditure reflects this. Not a day goes by without seeing a TV ad for the Farmer’s Dog brand, some of the best ads on TV.

The race is on to capture market share in the premium pet food segment. Who will be next to enter this market? More importantly, will anyone produce better ads than the Farmer’s Dog?

Randy Freides

According to some industry analysts, 60% of the animal health market’s value has been driven by innovation, which underscores the critical role of startups in maintaining the growth trajectory of the animal health industry.  Recently, access to capital for animal health startups has tightened and to secure funding, startups must explore diverse sources, including angel investors, family offices, venture capital, private equity, and strategic partnerships.

I believe 2025 and 2026 present a prime window for investors, as evidenced by recent successful Series A and B rounds. Releveling valuations following 2024 market corrections further enhance investment appeal. For startups to attract this critical capital, they must demonstrate a deep understanding of the market, addressing:

• Market Potential: What is the realistic size and value of their target market?
• Distribution Strategy: How will they reach customers effectively?
• Competitive Landscape: Who are their competitors, and how do they differentiate?
• Value Proposition: What unique benefits do they offer?
• Financials: Are costs and selling prices well understood?
• Execution Plan: How will they achieve their ambitious goals?

By presenting a robust, data-driven business plan, startups can capitalize on the current market optimism and drive the next wave of animal health innovation.  Which is why I am excited to attend the KC Animal Health Corridor’s 2025 Summit next month.  Along with Alexis and the Brakke Consultants attending, we look forward to seeing the next wave of innovation.

Chuck Johnson

The largest pet product market is petfood, not animal health or veterinary services.  The July issue of Petfood Industry magazine list 111 petfood companies globally, but 4 companies represent half or more of all petfood sales – Nestle Purina, Mars, Hill’s and General Mills.  Nestle Purina and Mars, each with more than $22 billion in petfood sales, dwarf all other companies.  (Hill’s, in third place, has sales of about $4.5 billion.)  So petfood is even more concentrated than the animal health industry (pharmaceuticals, biologicals, diagnostics).

Interestingly, all of the large petfood companies are established consumer packaged goods companies.  General Mills was the most recent major CPG entrant with its purchase of Blue Buffalo in 2018.  Mars, one of the largest privately held companies, is also a major player in veterinary services and technology.  All of the largest petfood companies market therapeutic diets, and have large sales forces calling on veterinarians, many of which were highly rated in Brakke Consulting’s 2025 Sales Force Effectiveness Study.

It’s important to recognize that there’s an immense amount of competition for veterinarians’ time and attention from a variety of different suppliers.  What are you doing to earn your share?

John Volk

It is hard to believe that we are half-way through 2025 and we are looking forward to hearing about the 2^nd quarter performance of the publicly traded animal health companies.  Maybe the earnings reports will clear up a few things.  Here is what I mean.

According to a Wall Street Journal article published this week on Monday ticks are really bad this summer for humans.  Fordham University’s tick index is at a 9 out of 10 – a high risk time for humans.  And the CDC’s tick bite tracker has 2025 as the highest year since 2019 for ER visits for tick bites.  So if ticks are bad for humans, they must be bad for dogs, right?

But if you follow the weekly Vetsource Veterinary Industry data, seems like the flea and tick product dispensing is down every week this year.  According to Vetsource, the canine purchasing patients per practice is down about 7% YOY (TTM through June) and the months of protection dispensed are down 10% YOY for the same period.  So, big tick year, but slow sales of parasiticides through veterinary clinics.  What’s happening?

Are some pet owners moving to OTC channels to purchase their flea and tick preventatives?  Are some pet owners just not purchasing this year?  We will find out soon.

Robert Jones

Reflecting on the power of AH Brazilian Market.
The Animal Health Sector Growth in 2024 Reflects More Than Just Numbers

Brazil’s animal health sector grew 10.1% in 2024, reaching R$11.9 billion in revenue. While this aligns with the decade-long average, the data reveals deeper shifts in market dynamics and societal values. Cattle products still lead with 47% of sales, though slightly down from 49% in 2023—perhaps signaling a slow diversification. Poultry health products rose from 12% to 14%, reflecting growing demand for affordable, sustainable protein. Swine remained stable at 10%. The standout trend is the pet segment, now accounting for 27% of sales—nearly double its 2014 share. This surge highlights a cultural shift: pets are increasingly seen as family members, not just animals.

Therapeutically, antiparasitics lead with 29%, followed by vaccines at 21%, showing a continued focus on disease prevention. However, the sector still leans heavily on traditional solutions, raising questions about the pace of innovation. In essence, the sector’s growth mirrors broader societal changes—from food production to pet care. The challenge ahead lies in sustaining this momentum while embracing innovation, animal welfare, and environmental responsibility.

With a proven track record in strategic insights and market analysis, Brakke Consulting is now positioned in Brazil—ready to support your growth and innovation in this evolving animal health market.

Mauri Ronan Moreira

This week we record the announcement of intention to establish a new veterinary school as part of Roseman University of Health Sciences in Nevada.  We currently have 34 accredited veterinary schools in the U.S., with an additional 9 schools (including Roseman) in the process to open their doors.  While it is not clear today how many additional graduates will join the veterinarian work force every year, there is no doubt that there will be significantly more graduates each year once these 9 schools are granted accreditation.

It has been hotly debated for years whether we have a shortage of veterinarians in the US, especially in food animal practice.  Certainly the COVID-19 pandemic in 2020/21 exacerbated any shortage as pets received much more attention and client pressures increased in most vet practices.  Adding to the number of practicing vets has been seen as one way to alleviate “burnout” and the associated pressures felt by veterinarians (and professional staff members as well).

To get a better picture of these pressures and difficulties felt by vet practitioners, I highly recommend that you take time to review the several Veterinary Wellbeing studies authored by our Senior Consultant John Volk of Brakke Consulting.  John and his co-authors published several studies with Merck Animal Health and with the AVMA that are quite insightful and illustrate the effects of the adverse effects seen in veterinary practice in recent years.  I sincerely hope that efforts to enlarge the profession will prove to make veterinary medicine a more appealing and rewarding lifestyle for all concerned.

Jim Kroman

The High Cost of Veterinary Turnover: Why Retention Matters More Than Ever 

Veterinary turnover is one of the most expensive and disruptive challenges facing the animal health industry today. While the direct costs of replacing a veterinarian—recruitment fees, onboarding, and training—can exceed $50,000 per hire, the hidden costs are even more damaging. Lost productivity, reduced client satisfaction, and the strain on remaining staff can ripple through a practice, impacting both morale and profitability.

According to industry reports, turnover rates among clinical veterinarians and support staff have risen sharply in recent years, driven by burnout, workload pressures, and competition for talent. Practices that fail to address these issues risk not only financial losses but also long-term damage to their reputation. Clients notice when their trusted veterinarian leaves and rebuilding that trust takes time — if it happens at all.

Retention strategies must go beyond competitive salaries. Practices that invest in workplace culture, mental health resources, and career development opportunities see measurable improvements in staff satisfaction and loyalty. For example, mentorship programs and flexible scheduling can help reduce burnout, while fostering a sense of purpose and belonging.

The bottom line? Retaining a veterinarian is far more cost-effective than replacing one. Practices that prioritize retention not only save money but also build stronger teams, deliver better care, and maintain the trust of their clients. In today’s competitive market, keeping your best people is the smartest investment you can make.

Richard Hayworth

I recently attended the WOAH 92nd Congress in Paris, which is attended by representatives from over 150 countries along with the WOAH staff and invited guests, to review and manage the global animal health situation.

This year’s forum centered around vaccination and its benefits for not only animal health, but also the potential benefits to One Health, AMR reduction, and climate impact mitigation.

A referendum on increasing vaccine availability and usage was passed unanimously (view on the WOAH.Org website) but for its effect and impact, will require a stronger partnership between the private and public organizations involved. And most importantly, aligning potential vaccine usage with the WTO policies, which can create challenges.

Of note, during the program there was a special event where Brazil was declared FMD free without vaccination. Congratulations to Brazil for this tremendous effort as it took a multi-stakeholder effort by the livestock industry, animal health companies and government support to achieve this result.

On another note, I would like to also congratulate Ceva on its recent round of financing, resulting in a new valuation of nearly $10B USD. It’s an incredible story of growth through the years led by Dr. Marc Prikazsky, but also congratulations to many of my friends who also worked there and certainly were a big reason for the success! Maybe it will be the next publicly traded animal health company?

In my view, tremendous value creation is happing in animal health which offers not only growth- but consistent,  sustainable growth. Nice to see the investment community interest is following!

Paul Casady

We have been studying the changing distribution channels and home delivery of pet medications for years now.  Our first study on this was in 2019 where we detailed the way manufacturers were selling, and pet owners were buying pet medications and we most recently studied the home delivery trends with a report issued early last year – a very well received report by our clients.   We plan to survey pet owners and veterinarians late this year and issue an updated and expanded report early next year.

In thinking about this report, a recent McKinsey article caught my attention because of an unexpected change in consumer preferences.  Surprisingly, speed of delivery was the #1 preference in 2022, but it slipped to #5 in 2024 based on their survey of 1,000 US consumers.  This chart shows the results of their study:

Their data suggests that 90% of consumers are willing to wait two or three days for deliveries, especially if it lets them avoid shipping costs.  I thought we were all so impatient that we expected next-day delivery?  Their data also suggests that consumers are becoming more sensitive to costs and place more value on reliability of delivery.

We look forward to collecting new data from pet owners and veterinarians later this year and if you have aspects of e-commerce and home delivery you would like us to explore, let us know.

Bob Jones

Animal Health and Nutrition, though a bit conservative, is a refuge from the tumult of the tech and cyber world, right?

Wrong.

Have you heard of Venom Spider? I’m not talking entomology. Venom Spider is a phishing group specializing in social engineering. They cull sensitive data about organizations to attack them financially, organizationally, and strategically. “The attacks involve the use of email, telephone, or text messages that look legitimate and cause unsuspecting recipients to fall for the scam and put private information at risk,” offers SHRM. This is no small thing.

Their latest target? HR departments and hiring managers. Bit by bit, they enter the host’s ERP. Arctic Wolf Labs, a cybersecurity firm noted, “The recruiters and hiring managers who work in HR departments are often considered to be the weak point in an organization by attackers.”

If you’re in a larger organization, you may have received cybersecurity training. If not, common sense should prevail. Beware of attachments from unknown sources or those with suspicious titles. Check the sender’s email address before opening the attachment. Look them up via a search engine before proceeding.

We’re fortunate to enjoy a friendly, intimate industry. Still, vigilance is always appropriate.

Jeff Santosuosso