According to IBISWorld, publisher of industry research information, a three percent growth rate is expected in the veterinary services market in 2012. With economic prospects even better for 2016, the research indicates rising pet ownership as a catalyst for this growth.
Sophia Snyder, IBIS World, revealed the United States is forecast to continue expanding in the veterinary industry over the next five years after a period of resiliency the past five years to 2011. Revenue growth slowed during economic downturn, with a greater willingness to spend money on pet health and wellness during growth years and rising pet ownership. A growth rate of 3.6 percent in 2011 is significant over 2009 and 2010, but lower than the gains of years 2006 and 2007.
An IBISWorld representative reported, “The rise of larger practices will partly occur because of the mounting number of female veterinarians forecast to enter the work force. This trend will be fostered by continued growth in pet ownership, greater demand for animal products and favorable legislation that will encourage veterinarians to practice in underserved areas.””
Vet service operators have consolidated so that they can maintain sales in response to competition from superstores and online retailers selling pet medications and products. One of the major companies in the industry according to the research is VCA Antech, Inc., which operates veterinary diagnostic labs and freestanding, full-service animal hospitals in the United States.
Despite a veterinary shortage in the United States, wage costs have also decreased as a percentage of revenue. Some of this is due to consolidation and shift in some responsibilities from veterinarians to administrative staff.
IBISWorld is an independent source for industry and market research. The company’s services include business, professional, and government organizations throughout more than 10 locations worldwide. Learn more about them at www.ibisworld.com.