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
Apr 20, 2026 - Texas Leads Rising Heartworm Incidence
- New data from the American Heartworm Society shows that heartworm disease continues to pose a steady but shifting challenge for US veterinary practices, according to a dvm360 report. While overall incidence has remained relatively stable, Texas now leads the nation, and the Southeast and Gulf Coast still see the highest rates. Data from more than 1,000 clinics show mixed trends, with 59% reporting no change, 19% seeing increases, and 22% declines. At the same time, new hot spots are emerging, with some clinics diagnosing over 100 cases and others in newer regions reporting 6–25 cases. For veterinary providers, this means demand for testing and prevention remains strong, but the geographic spread is widening. It also reinforces the importance of consistent client education and year-round prevention, especially as risk expands into areas that were previously considered lower incidence.
- US consumer sentiment remains mixed, with implications for veterinary practices tied to discretionary spending trends, according to the Conference Board's Consumer Confidence Index. The Consumer Confidence Index rose slightly to 91.8 in March (+0.8 points), while the Present Situation Index increased to 123.3, indicating stable current conditions. However, the Expectations Index fell to 70.9, reflecting growing pessimism about future income and labor conditions. Rising inflation expectations and concerns about higher interest rates (up to 42.4% of consumers expecting increases) are pressuring household budgets. Consumers are shifting spending toward essential services, with healthcare among the top expected categories, while discretionary spending declines. For veterinary services providers, this suggests steady baseline demand but potential pressure on non-essential services as cost-conscious pet owners prioritize necessary care over elective treatments.
- Chronic conditions are driving a significant share of demand for US veterinary practices, according to an analysis of 3.3 million pet insurance claims by Nationwide from 2025 covering more than 1 million pets, according to a Veterinary Practice News report. Among dogs, skin allergies ranked as the top claim for the 15th consecutive year, with 6 of the top 10 conditions classified as chronic. Seizures also entered the top 10. For cats, digestive disorders led for the third straight year, with 7 of the top 10 conditions chronic. These findings highlight sustained, long-term care needs, reinforcing recurring visit volumes and ongoing treatment demand. For veterinary practices, the prevalence of chronic conditions supports stable revenue streams but also increases the importance of care management, client education, and treatment adherence.
- The 2025 State of Pet Care Study by PetSmart Charities and Gallup found that client financial limitations frequently prevent US veterinarians from providing recommended care. Surveying 933 veterinarians, 94% reported clients’ financial constraints sometimes (56%) or often (38%) block treatment, with cost cited more than twice as often as any other reason for declined care. Despite 81% of veterinarians claiming they offer alternative care when cost is a barrier, prior pet parent data show 73% were not presented with options, and only 23% recall being offered financing despite 41% of vets providing it. Nearly half (48%) had no formal training on discussing financial barriers, contributing to emotional strain: 74% cited euthanasia due to financial constraints as among the hardest aspects of practice. The findings highlight the need for proactive cost communication, veterinary education, and flexible strategies to improve access, protect animal welfare, and support the mental well-being of veterinary professionals.
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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