Veterinary CRO Market Expected to Reach $1,175.72 Million by 2030

Veterinary CRO Market Report, published by Allied Market Research, Predicted that the global veterinary CRO market was valued at $577.20 million in 2020 and is projected to reach $1,175.72 million by 2030 registering a. CAGR of 7.7% from 2021 to 2030.

Veterinary CROs are organizations that offer support to veterinary drug manufacturers in the form of services. For instance, clinical trials involve handling large number of animals, which require specially designed facilities; therefore, veterinary CROs manage clinical trials for companies, which are engaged in the introduction of new veterinary medications.

Similarly, other services offered by veterinary CROs include regulatory support and market authorization process related to veterinary drugs. Furthermore, these organizations perform toxicology studies related to veterinary drugs to analyze safety and efficacy related to veterinary medicines. In addition, veterinary CROs conduct clinical trials for various indications such as oncology, neurology, and infectious diseases in animals.

This growth rate is majorly attributed to rise in ownership of companion animals and surge in animal health expenditure worldwide. In addition, increase in prevalence of various diseases among companion animals significantly drives the growth of the market as it leads to surge in demand for new therapeutics which in turn fuels the need for outsourcing. However, lack of standardization in veterinary CROs acts as a major restraint in the market. On the contrary, surge in awareness related to animal healthcare across the globe is expected to offer remunerative opportunities for the veterinary CRO market expansion during the forecast period.

Most practices in the animal health industry are affected by the COVID-19 pandemic, owing to transport restrictions, limited availability of human resources in manufacturing companies, and countrywide lockdowns. However, the COVID-19 phase has witnessed a significant rise in R&D practices in veterinary medicine.

The Centers of Diseases Control and Prevention (CDC) recently reported that even animals are susceptible to the infection caused by SARS-CoV-2; several tests across the globe were undertaken to identify these animals and are currently used as animal models for research purposes. Although the number of infections is quite low, the World Organization for Animal Health specifies that infection of animals with COVID-19 virus meets the criteria of an emerging disease. Moreover, the economic impact of COVID-19 has led veterinary drug manufacturers to restrict their budget and time toward research activities along with considering the urgency of drug development during this ongoing crisis. This has greatly facilitated outsourcing of R&D activities to veterinary CROs.

The veterinary CRO market is segmented into service type, animal type, indication, and region. According to service type, the market is segregated into clinical trials, toxicology, market authorization & regulatory support, and others. The clinical trials segment is the largest segment in the veterinary CRO market, in terms of revenue and is expected to exhibit fastest growth rate during the forecast period. This is attributed to increase in outsourcing of clinical trials, owing to its extensive nature due to which the entire process becomes lengthy and expensive. Thus, veterinary medicine manufacturing companies outsource clinical trials to veterinary CROs for managing lengthy procedures, which also involve handling of large number of animals in specialized facilities. Therefore, this factor considerably boosts the demand for clinical trial services offered by veterinary CROs.

By animal type, the dog segment acquired a major share of the global veterinary CRO market, and is expected to exhibit fastest growth rate during the forecast period, owing to surge in ownership of dogs as companion animals worldwide. Furthermore, surge in awareness related to dog health among their owners is another major factor that augments growth of the segment.

Key Findings of the Study

• By service type, the clinical trials segment accounted for a share of 33.67% in the veterinary CRO market in 2020.
• Region wise, Asia-Pacific is anticipated to grow at the highest CAGR of 9.0% throughout the forecast period.
• In Europe, Germany accounted for 17.91% of the veterinary CRO market, in 2020.
• By animal type, the dog segment accounted for a share of 65.90% in the global veterinary CRO market in 2020.

In 2020, North America acquired a major share, owing to easy availability of CRO services in the region, surge in pet ownership, and increase in the animal healthcare expenditure. However, Asia-Pacific is expected to grow at the highest rate during the forecast period, owing to surge in awareness related to animal health among owners leading to rise in demand for novel therapeutics and research related to bringing them to market which in turn leads to surge in need for outsourcing.