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
Dec 14, 2024 - Veterinary Colleges Set to Meet Care Demand Through 2035
- 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 increased in November 2024, improving by 2.1 points from the previous month, according to The Conference Board. The Consumer Confidence Index was 111.7 in November 2024 from 109.6 in October 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, “Consumer confidence continued to improve in November and reached the top of the range that has prevailed over the past two years.” Purchasing plans for homes stalled while plans to buy new cars rose slightly in November 2024 on a six-month average basis.
- Consumer spending on pet products and services will increase by over $50 billion in the next six years, according to a forecast from the American Pet Products Association. Growth drivers include increased pet ownership, the humanization of pets, and advancements in veterinary care. The global pet industry, including pet food, healthcare, grooming, and luxury items, currently offers an economic contribution of $303 billion and is growing rapidly, with a 16% increase since 2022. According to the forecast, private equity firms are playing a growing role in the pet industry in mergers and acquisitions, as investors consolidate their businesses and expand market share. New investment trends include subscription-based services, tech-enabled products, and organic and sustainable foods.
- The US veterinary services industry is projected to grow at a CAGR of 5.1% between 2024 and 2028, according to a forecast from Inforum and the Interindustry Economic Research Fund, Inc. The expected growth rate is faster than the overall economy‘s anticipated growth. The report noted that consumer confidence is expected to improve in the forecast period, which bodes well for the professional, scientific, and technical services industries. Factors that continue to limit consumer spending are lower consumer sentiment levels, higher interest rate levels, and elevated price levels. On a positive note, inflation is subsiding, which supports a moderate increase of real disposable income by about 1.9% in 2024 and 2.4% in 2025. The improvement in disposable income, along with other developments, implies favorable prospects for the sector, according to the report.
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