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
Apr 15, 2025 - Faster Growth Forecast
- The US veterinary practices industry is projected to grow at a 5.86% CAGR from 2025 to 2029, faster than the overall economy's expected growth, according to a forecast from Inforum and the Interindustry Economic Research Fund, Inc. Consumer sentiment is likely to improve in the forecast period, which bodes well for the professional, scientific, and technical services industries, including veterinary services. Real disposable income in 2025 and upcoming years may benefit from continuing healthy nominal wage growth, lower inflation rates, and higher employment levels. Declining inflation could support a moderate increase of real disposable income of 2% in 2025 and 1.9% in 2026. Factors that may limit spending include higher interest rates and higher prices, including rising prices related to higher tariffs on consumer goods. According to the forecast, “Although progress in general has come slowly, services industries will recover more substantially.”
- Veterinary services providers may be affected by falling consumer confidence, with levels declining 7.2 points to 92.9 in March 2025 month over month, according to the Consumer Confidence Index from the Conference Board. Stephanie Guichard, Senior Economist of Global Indicators at The Conference Board, noted that the segment driving March’s decline was consumers over 55 years old, and the decline spanned all income groups with the exception being households earning over $125,000. Per Guichard, “Consumer confidence declined for a fourth consecutive month in March, falling below the relatively narrow range that had prevailed since 2022.” Purchasing plans for homes and new cars declined while big-ticket purchases rose on a six-month moving average basis, which may reflect plans to purchase certain items before impending tariffs lead to price increases.
- Tariffs on medical supplies from China used by veterinarian offices are driving up costs for pet owners, according to a recent report by KGUN9 Tucson. The higher prices for imported medical supplies are affecting pet medications, surgical tools, and other essentials. The Trump Administration’s tariff plans include an additional 10% levy on imports from China and a 25% on imports from Canada and Mexico, which will increase prices for pet owners after veterinary practices pass along the higher costs. According to Douglas Patriquin, CEO of Dr. Kelly’s Surgical Unit, “Where it impacts us the most is in the consumables, the generic drugs, and the equipment we buy.” Some veterinarians are moving to domestic suppliers of medical supplies to avoid the tariff costs. According to the report, emergency vet clinics are most impacted, as they need to maintain a large stock of medications and equipment.
- According to a report by dvm 360, veterinary patient visits are decreasing, and the gap between appointments is increasing. The results were published in a white paper by Vetsource titled, “Behavior shift: Implications of today’s pet owner trends on veterinary medicine in 2025.” The changes may be related to pet owners struggling to cover the rising cost of pet care, as inflation has increased vet care costs by 8% in the past 12 months. The study incorporated data from 6,574 US general companion animal clinics, with 65% being independently owned and 35% being corporate-owned. The data showed that veterinary visits had fallen 2.3% in 2024 compared to 2023, and the total number of active patients dropped nearly 2% during the same period. Compared to three years ago, the time between visits increased by 48% to 85.8 days from July 2023 to July 2024. According to the analysis, “These economic concerns and other challenges translate into pet owners increasing time between visits to their veterinary practice.”
Get A Demo
Vertical IQ’s Industry Intelligence Platform
See for yourself why over 60,000 users trust Vertical IQ for their industry research and call preparation needs. Our easy-to-digest industry insights save call preparation time and help differentiate you from the competition.
Build valuable, lasting relationships by having smarter conversations -
check out Vertical IQ today.