Veterinary CRO and CDMO Market by Animal Type (Companion and Livestock), Service Type (Discovery, Development, Manufacturing, Packaging & Labeling, and Market Approval & Post-marketing), By Application (Medicines and Medical Devices), and Region (North America, Europe, Asia-Pacific, and LAMEA): Opportunity Analysis and Industry Forecast, 2023-2032

Veterinary CRO and CDMO Overview

The veterinary industry’s sectors that are vital to supporting the processes of research, development, and manufacture are referred to as the Contract Research Organization (CRO) and Contract Development and Manufacturing Organization (CDMO) markets. CROs are businesses that provide outsourced research services to academic institutions, pharmaceutical and biotechnology firms, and other businesses in the veterinary field. Preclinical research, clinical trials, safety evaluations, and regulatory support are a few examples of these services. Through numerous investigations and tests, veterinary CROs contribute to the creation of new veterinary medications, vaccinations, and medical equipment. Whereas CDMOs are businesses that offer contract services for the creation and production of veterinary pharmaceuticals. These services cover the creation of formulations, production, packing, and delivery of veterinary medications and other medical supplies.

Global Veterinary CRO and CDMO Market Analysis

The global veterinary CRO and CDMO market size was $5.9 billion in 2022 and is predicted to grow with a CAGR of 8.5%, by generating a revenue of $13.4 billion by 2032.

COVID-19 Impact on Global Veterinary CRO and CDMO Market

The veterinary CRO and CDMO market has not been immune to the COVID-19 pandemic's repercussions, which have had a substantial impact on several businesses around the world. The pandemic caused significant economic disruptions in many areas, including movement restrictions, lockdowns, and supply chain delays, which had an impact on the veterinary sector. One of the early effects was a slowing in the development and clinical trial processes for veterinary medicines and vaccinations. As a result of limitations on non-essential activity and the prioritization of human health research, several veterinary CROs were forced to cease or postpone current projects. Similar difficulties were encountered by CDMOs in ensuring supply continuity, which caused delays in manufacturing and distribution.

Increasing Demand for Animal Healthcare Goods & Services to Drive the Market Growth

The veterinary CRO and CDMO market is growing significantly because of the rising need for animal healthcare goods and services. The demand for effective medicine development and manufacturing procedures has increased as more individuals realize the value of providing adequate healthcare for their animals, both domestic and wild. Besides, the animal health sector has drawn increasing attention from pharmaceutical and biotechnology companies. As a result, pharmaceutical firms are increasingly using CROs and CDMOs to handle the development and production of their veterinary drugs. These organizations can shorten the duration of medication development and lower expenses for pharmaceutical firms, increasing efficiency and market competitiveness. Additionally, regulatory agencies around the world are becoming stricter when it comes to approving animal health products. Veterinary CROs and CDMOs have the knowledge and experience to negotiate complicated regulatory routes in order to make sure that the medicines and products developed fulfil the essential safety and efficacy criteria.

Stringent Regulatory Approval Procedures of Veterinary Products to Restrain the Market Growth

The strict regulatory framework controlling the approval and commercialization of veterinary products is a substantial limitation. Regulations governing animal health frequently resemble or are closely related to those governing pharmaceuticals for humans, necessitating considerable preclinical and clinical research before products may be commercialized. The release of innovative veterinary medications and therapies can be greatly delayed by these labor-intensive and complicated regulatory procedures, which affect the income streams of CROs and CDMOs. Besides, more businesses may enter the market as demand for veterinary goods and services rises, escalating rivalry between CROs and CDMOs. This might put pressure on prices and diminish profit margins for these service providers, making it difficult to maintain expansion and make investments in state-of-the-art equipment and facilities.

Advancements in Technology to Drive Excellent Opportunities

The use of enhanced data management and analytics tools was one notable development. Big data and artificial intelligence are being used more frequently by veterinary CROs and CDMOs to process enormous amounts of animal health data effectively. This not only speeds up the pace of research and development, but also improves the precision of clinical research and drug development. Additionally, robotics and automation may enter the sector. Robotic systems are being used in laboratories and production facilities to automate repetitive activities, guarantee uniformity and precision, and minimize human error. Furthermore, the increasing usage of cutting-edge technologies in diagnostic equipment may provide potential opportunities for market growth. Furthermore, new opportunities for the creation of novel drugs have been made possible by developments in veterinary medicine and technology. The veterinary CROs and CDMOs are well-positioned to take advantage of these technical developments and provide cutting-edge treatments for a range of animal health issues.

Global Veterinary CRO and CDMO Market Share, by Animal Type, 2022

The livestock Animals sub-segment accounted for the highest market share in 2022. Animals bred for agricultural use, such as cattle, swine, poultry, sheep, and other farm animals, are the focus of the livestock animals sub-segment. These animals are essential to the world's food supply chain because they provide meat, dairy, eggs, and other goods derived from animals. Veterinary CROs and CDMOs may provide a wide range of services in this market area to support the productivity and health of livestock animals. This can entail carrying out clinical trials and research projects to create fresh vaccines, drugs, and dietary supplements designed to enhance the well-being of these animals. The part on livestock animals is crucial because it discusses the well-being and health of the animals that are used in agriculture and have an impact on food production.  The livestock animals sub-segment is becoming more and more crucial in delivering efficient and cutting-edge solutions for the sustainable and responsible management of animal health within the agriculture sector as the demand for high-quality animal products rises.

Global Veterinary CRO and CDMO Market Share, by Service Type, 2022

The development sub-segment accounted for the highest market share in 2022. Similar to human pharmaceuticals, the veterinary pharmaceutical sector normally follows a methodical and regulated approach to drug development. From preliminary investigation and discovery to clinical testing, governmental approvals, and finally commercialization, this process encompasses multiple steps. The development sub-segment of this all-encompassing medication development process especially refers to the phases and actions associated with preclinical and clinical research, where the security, effectiveness, and general effectiveness of veterinary pharmaceuticals are evaluated. Preclinical research on animal models is one of the activities carried out during the development phase to assess the safety and potential efficacy of the medicine. For getting regulatory permissions and assessing whether the drug is suitable for widespread usage in the veterinary market, the data gathered during this phase is essential.

Global Veterinary CRO and CDMO Market Share, by Application, 2022

The medicines sub-segment accounted for the highest market share in 2022. The animal health sector is supported by veterinary CROs and CDMOs, specialized service providers that provide a variety of services, including preclinical and clinical studies, formulation development, regulatory support, and the production of veterinary pharmaceuticals. The study and development of different drugs, vaccines, and therapy options specifically formulated to satisfy the unique healthcare needs of animals, both companion and livestock, is the focus of these organization's medicines division. By performing research studies, guaranteeing product safety and efficacy, and assisting in the marketing of veterinary pharmaceuticals, this sector significantly contributes to the advancement of animal healthcare. The pharmaceuticals sector within veterinary CROs and CDMOs is becoming more crucial in fostering innovation and enhancing the general welfare of animals as the demand for specialized veterinary treatments rises.

Global Veterinary CRO and CDMO Market Share, by Region, 2022

The North America veterinary CRO And CDMO market generated the highest revenue in 2022. This is mainly because the veterinary healthcare sector in the North America region is highly advanced. There is a significant market for cutting-edge and efficient medications, vaccinations, and other healthcare items designed specifically for veterinary use due to the large number of companion animals and cattle. Besides, the region has a strong network of private enterprises that specialize in animal health sciences, academic institutions, and research and development facilities. Innovative studies, clinical trials, and the creation of fresh veterinary goods are all supported by this infrastructure. Additionally, collaborations in North America between pharmaceutical firms and veterinary CDMOs have advanced drug discovery and production for the animal health industry. These partnerships have made it easier to introduce cutting-edge treatments and cures for many veterinary illnesses.

Competitive Scenario in the Global Veterinary CRO and CDMO Market

Investment and agreement are common strategies followed by the major market players. Some of the leading veterinary CRO and CDMO market players are Labcorp Drug Development, Charles River Laboratories, Clinvet, KLIFOVET GmbH (Argenta Group), OCR – Oncovet Clinical Research, Knoell – Triveritas, Veterinary Research Management, VETSPIN, Inotiv., and IDEXX Laboratories.