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

May 19, 2026 - Study Highlights Growing Canine Anxiety Trends
  • 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.
  • The US veterinary services industry is operating in a cautious consumer environment as confidence measures remain weak despite modest improvement in broader economic expectations. The Conference Board’s Consumer Confidence Index rose slightly to 92.8 in April 2026 from 92.2 in March, though consumers continued expressing concerns about inflation and future economic conditions. Meanwhile, the University of Michigan’s Consumer Sentiment Index fell to 48.2 in May 2026, remaining near historic lows as households reported ongoing financial anxiety. For veterinary practices, softer sentiment may increase price sensitivity around discretionary pet services, wellness plans, and elective procedures, while demand for essential and emergency care is expected to remain more stable. Veterinary providers may continue emphasizing preventive care programs, flexible payment options, and client retention strategies as consumers become more selective with household spending.
  • 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.
  • 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.

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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