Veterinary Practices
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 27,000 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.
Industry size & Structure
A typical veterinary practice operates out of a single location, employs about 17 workers, and generates about $2 million in annual revenue.
- The veterinary care industry consists of 27,000 practices that employ 463,000 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
Veterinary Practices Industry Growth
Recent Developments
Jan 15, 2025 - Bird, Small Animal, Horse Owners Boosting Health Spending: Report
- A new report from the American Pet Products Association titled “2024 Bird, Small Animal & Horse Report: Strategic Insights from the National Pet Owners Survey” shows that pet owners are demonstrating increased emotional attachment and proactive pet care with their specialized pets, according to Pet Age. One key finding from the report involved a marked increase in proactive health management across all pet types. Small animal owners have also increased their vitamin and supplement purchases by 44%. The report noted that veterinarians continue to be a trusted information source, particularly for horse owners. Other trends found among these diversified pet owners are significant increases in gift giving and owners making more provisions in their wills for the long-term care of their pets.
- Chewy is growing its healthcare offerings with its Chewy Vet Care clinics, which were introduced in 2024, according to a recent report in Retail Dive. In its Q3 2024 update, the company said that the vet care services have been positively received with high customer satisfaction scores and a strong correlation between in-store visits and online shopping. Chewy currently operates six clinics and projects four to eight clinic openings in 2024. According to CEO Sumit Singh, “With the launch of Chewy Vet Care clinics earlier this year, we not only unlocked the $25 billion vet services [total addressable market] opportunity, but we are also observing compelling complementarities across the entire Chewy ecosystem. Performance across our clinic footprint is promising … The proportion of new to Chewy customers acquired through Chewy Vet Care continues to outperform relative to expectations.”
- A 10-year veterinary market projection commissioned by the American Veterinary Medical Association (AVMA) projects the current educational system will meet US veterinary service demand for the next decade, assuming there aren’t any significant disruptions, according to Veterinary Practice News. The study forecasts steady, parallel growth in supply and demand for veterinary services, which contrasts with earlier industry predictions of persistent workforce shortages. According to John Volk of Brakke Consulting, a co-author of the study, “The data do not support an expectation of a continued shortage in the U.S. veterinarian labor markets, as suggested in previous studies.” He noted that the COVID-19 pandemic spurred shifts in the veterinary services sector, with a rapid increase in demand as consumer disposable income increased along with spending on pet-related services and goods during lockdowns.
- Consumer confidence levels declined in December 2024, falling by 8.1 points from the previous month, according to The Conference Board. The Consumer Confidence Index was 104.7 in December 2024 from 112.8 in November 2024. Dana Peterson, chief economist at The Conference Board, noted that those remaining most confident on a six-month moving average basis confidence were those aged under 35 and those in the income category of over $100,000. Per Peterson, “The recent rebound in consumer confidence was not sustained in December as the Index dropped back to the middle of the range that has prevailed over the past two years.” Purchasing plans for homes decreased while plans to buy new cars and big-ticket items rose in December 2024 on a six-month average basis.
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