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
Sep 4, 2024 - Higher Use of Pet Weight-Loss Plans, Calming Products
- A new report from the American Pet Products Association (APPA) revealed increased use of calming products and more diagnosed pet obesity and prescribed weight-loss diets. According to the 2024 Dog and Cat Report, 12% of dog owners and 17% of cat owners say their pets are considered obese by their veterinarians, up from 9% and 15% in 2022. Prescribed weight loss diets are reported by 11% of dog owners and 13% of cat owners, an increase from 9% and 12% in 2022. Pet parents are also using more calming products for their animals, up 168% for dogs and 174% for cats since 2018. In addition, vitamin and supplement use has grown to almost 50% for dogs and 32% for cats in 2024 compared to 34% and 20%, respectively, in 2018, with prebiotic and probiotic supplements in particular on an uptrend.
- According to data from the US Bureau of Labor Statistics (BLS), average wages for nonsupervisory employees at veterinary practices rose 3.3% in June 2024, reaching $28.41 per hour. Employment by veterinary practices increased 0.8% year over year in June 2024, per the BLS. Consumer prices for veterinary services increased by 6.4% in June 2024 compared to a year ago and were 0.5% lower than the previous month, according to Consumer Price Index data from the BLS.
- Veterinary practices are monitoring a proposed ban by the Federal Trade Commission (FTC) on most non-compete agreements, which have historically been incorporated into veterinarian contracts to prevent them from leaving a practice and taking their clients with them, according to the American Veterinary Medical Association (AVMA). The ban is scheduled to go into effect in September 2024. Vet practices may want to review contracts of existing employees and new hires to become familiar with who is covered by non-compete agreements and delay any changes until the outcome of the ban is known, per the AVMA. A Texas federal district court issued a preliminary injunction in July 2024 preventing the FTC from enforcing its ban. According to the National Law Review, the injunction applies only to a Texas-based tax law firm and a group of business associations; legal challenges to the ban are pending in other US courts.
- Veterinary practice revenues were up almost 2% in the past 12 months ending in June 2024, while visits were down nearly 4%, according to the American Veterinary Medical Association’s Veterinary Industry Tracker. By category, services revenue declined 2.2% year over year in early July 2024, while product revenue fell 5.1%. The months of parasiticide protection dispensed fell year over year for both heartworm and flea/tick protection, down 13.3% and 12.7%, respectively. States with the highest revenue growth year over year were New Mexico (9.6%), New York (7.5%), Colorado (7.2%), New Hampshire (6.6%), West Virginia (6.6%), and North Carolina (6.5%).
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