Veterinary Practices NAICS 541940

        Veterinary Practices

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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

Jun 22, 2026 - Chewy Deepens Veterinary Presence
  • Chewy's continued expansion into veterinary care highlights the growing convergence of pet retail and veterinary services, according to a Digital Commerce 360 report. The company reported Q1 sales growth of 7.7% and identified pet health and veterinary care as its largest long-term growth opportunity. Chewy is accelerating its clinic strategy through the acquisition of Modern Animal and plans to operate about 60 veterinary clinics by year-end. Management noted that roughly 40% of Chewy Vet Care customers are new to the company and tend to spend significantly more than other customers, demonstrating the value of clinics as both healthcare providers and customer acquisition tools. For the veterinary services industry, Chewy's expansion signals increasing competition from large, technology-enabled operators that combine veterinary care, pharmacy, ecommerce, and subscription services. The trend could accelerate industry consolidation and raise competitive pressure on independent practices, particularly in urban markets where corporate-backed veterinary networks are expanding.
  • Rising consumer caution could temper demand for discretionary veterinary services, even as pet owners continue to prioritize essential care, according to recent indicators. The Conference Board's May Consumer Confidence Index fell to 93.1, with two-thirds of consumers reporting they were cutting back spending due to higher prices and many delaying nonessential purchases. Consumers also became more concerned about recession risks and future income prospects. Separately, the University of Michigan's June consumer sentiment index improved 9% from May but remained 19% below year-ago levels, while inflation expectations stayed elevated at 4.6% for the next year. Consumers continue to report financial strain from inflation and uncertainty about future costs. For the veterinary services industry, these trends suggest continued demand for core medical care but potential pressure on elective procedures, wellness add-ons, premium services, and discretionary pet spending as households become more price sensitive.
  • A new study of more than 43,000 dogs found that 91% exhibited at least mild fear or anxiety behaviors, underscoring growing demand for behavioral care within the US veterinary services industry, according to a DVM 360 report. The research, published in Veterinary Research Communications, identified fear of unfamiliar dogs, loud noises, and grooming as some of the most common issues, with nearly 10% of dogs showing extreme reactions to sudden sounds. For veterinary practices, the findings highlight increasing opportunities for behavioral screening, anxiety management, and preventive care services during routine wellness visits. The study also supports growing demand for behavioral medications and specialized treatment plans, particularly as pet owners become more aware of anxiety-related conditions. Veterinary providers may see stronger demand for client education, behavioral consultations, and stress-reduction services, especially during seasonal triggers such as thunderstorms and fireworks events.
  • 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.

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
                                  Source: Vertical IQ and Inforum

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