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
Mar 17, 2025 - Tariffs to Increase Costs for Veterinarians
- 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.”
- A bipartisan bill titled “Combating Illicit Xylazine” aims to protect the veterinary tranquilizer for industry use while combatting improper use of the drug, according to dmv 360. Xylazine, a nonopioid sedative used in the care of cattle, horses, and other large animals, is not approved for use in humans. The drug’s misuse, however, has led to it being declared an emerging threat by The White House’s Office of National Drug Policy. The drug has been found mixed with fentanyl and other narcotics, leading to overdoses. The bill proposes listing xylazine as a controlled substance and enabling the US Drug Enforcement Administration to track the manufacturing of the drug. According to bill co-sponsor Sen. Chuck Grassley, “This bipartisan bill recognizes the lethal threat of xylazine and provides law enforcement new tools to combat its spread while ensuring veterinarians, ranchers, and cattlemen can continue to access the drug for legitimate animal treatment.”
- A new report from the American Pet Products Association titled “2024 Bird, Small Animal & Horse Report: Strategic Insights from the National Pet Owners Survey” shows that pet owners are demonstrating increased emotional attachment and proactive pet care with their specialized pets, according to Pet Age. One key finding from the report involved a marked increase in proactive health management across all pet types. Small animal owners have also increased their vitamin and supplement purchases by 44%. The report noted that veterinarians continue to be a trusted information source, particularly for horse owners. Other trends found among these diversified pet owners are significant increases in gift giving and owners making more provisions in their wills for the long-term care of their pets.
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