Veterinary Practices NAICS 541940
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Industry Summary
The 26,300 veterinary practices in the US provide preventative, medical, and surgical care for a wide variety of animals. Most veterinary practices are small, independent operations – 86% have a single location, and 85% have fewer than 20 workers. Most practices are private practices and are owned by a licensed veterinarian. Some vets focus on large animals and livestock and work at the client's location.
High Capital Costs
Diagnostic equipment and full laboratory set-ups can require a significant investment.
Shortage of Food Animal Veterinarians
While the number of veterinary school graduates grows at a steady rate, a shrinking percentage of vets choose to specialize in the care of animals used as livestock.
Recent Developments
Nov 18, 2025 - California Joins States Outlawing Elective Declawing
- Veterinary practices in California must now adapt to new legal and clinical responsibilities following the signing of AB 867, which bans elective cat declawing and permits the procedure only when medically necessary, according to Veterinary Practice News. Declawing, a surgery that amputates toe bones or severs tendons, has been widely opposed by veterinarians due to risks of chronic pain, behavioral changes, and long-term health issues. Data from the American Veterinary Medical Association shows strong professional consensus against non-medical declawing, aligning with the new law. Clinics will need to emphasize alternative strategies for managing scratching behavior, strengthen client education, and carefully document cases where declawing is performed for medical reasons. By joining states like New York and municipalities such as West Hollywood, California’s ban underscores a broader trend toward animal welfare reforms that directly reshape veterinary practice standards.
- According to a report in DVM360, veterinary practices are being urged to prepare for heightened risks as the FDA reminds pet food manufacturers to address H5N1 avian influenza in their food safety plans. This follows recent cases where raw cat food tested positive for H5N1, including a San Francisco incident in which a cat consuming RAWR Raw Cat Food Chicken Eats became infected and was ultimately euthanized. As the fall migratory season increases H5N1 detections, veterinarians may see more suspected exposures, requiring vigilance in diagnostics and communication. For clinics, this highlights the need to counsel clients on safe feeding practices, particularly addressing the risks of raw or unpasteurized products. Cats remain highly susceptible, with mortality rates significantly higher than in dogs, which typically show mild symptoms. Proactive guidance on nutrition and sourcing, aligned with FDA’s preventive controls, will help practices safeguard animal health while reinforcing trust with pet owners.
- A 2025 survey by veterinary imaging company HT Vista found that 62% of canine masses presented in US veterinary clinics go undiagnosed, with diagnostic rates declining as case volume increases, according to a report in DVM 360. General practitioners reported seeing 13.5 masses weekly, with 19% receiving review by pathologists. Many masses are assessed in-house without a review from a board-certified professional. Respondents in the survey said the belief that the mass is benign and does not require additional investigation is the cited reason for not performing aspiration, followed by cost concerns. According to the report, the “wait and see” approach risks delaying treatment for malignancies, which affect an estimated 15% of cases. Experts from HT Vista note that delayed diagnosis can reduce survival rates, limit treatment options, and erode client trust, potentially impacting both patient outcomes and clinic reputation.
- Softening consumer sentiment and confidence in November and October 2025 reflects a growing weakness in discretionary spending, posing challenges for veterinary services providers. The University of Michigan’s Index of Consumer Sentiment dropped 6.2% month-over-month in November's preliminary results to 50.3, a 29.9% year-over-year decline. The Current Economic Conditions Index fell to 52.3, and the Expectations Index to 49, down 36.3% annually. Year-ahead inflation expectations rose to 4.7%, while long-run expectations declined to 3.6%, with increased uncertainty across both horizons. Meanwhile, the Conference Board’s Consumer Confidence Index edged down to 94.6 from 95.6 in October, as improved current conditions (Present Situation Index up to 129.3) were offset by weaker short-term expectations (Expectations Index down to 71.5). Inflation expectations rose to 5.9%, and over half of consumers anticipated higher interest rates.
Industry Revenue
Veterinary Practices
Industry Structure
Industry size & Structure
A typical veterinary practice operates out of a single location, employs about 18 workers, and generates about $2 million in annual revenue.
- The veterinary care industry consists of 26,300 practices that employ 467,000 workers and generate $59 billion annually.
- Most veterinary practices are small, independent operations - 86% have a single location, and 85% have fewer than 20 workers. Most practices are private practices and owned by a licensed veterinarian.
- About 70% of vets provide care primarily for companion animals; 5% operate a mixed practice; 4% care for food animals; and 4% care for horses.
- Large companies include Mars Veterinary Health (VCA, Banfield Pet Hospitals, BluePearl), Gulf Coast Veterinary Specialists, and Antech.
Industry Forecast
Industry Forecast
Veterinary Practices Industry Growth
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