Doctor’s Orders: Veterinary Services in the US Industry Market Research Report Now Available from IBISWorld
Growth in pet ownership has contributed to Veterinary Services industry expansion in the midst of rising consolidation among operators. Although most animal hospitals are single-site, sole-practitioner facilities, veterinarians are gravitating toward larger, multidoctor animal hospitals that provide state-of-the-art facilities, treatments, methods and pharmaceuticals to enhance the services they can provide their clients. Revenue growth in the coming years will be fostered by favorable legislation that will encourage veterinarians to practice in underserved areas. Additionally, revenue will remain strong in the future as more consumers own pets, demand more animal-related products and pay top dollar for veterinary services as their incomes rise. For these reasons, industry research firm IBISWorld has added a report on the Veterinary Services industry to its growing industry report collection.
Los Angeles, CA (PRWEB) April 29, 2012
The Veterinary Services industry is forecast to expand over the five years to 2017, following annualized growth of 2.4% during the five years to 2012. Revenue growth slowed during the economic downturn, mainly due to a drop in the number of client visits. But according to IBISWorld industry analyst Sophia Snyder, “Rising pet ownership and a greater willingness to spend on pet health and wellness helped maintain growth during these years.” Expected growth of 4.6% in 2012 will push revenue to $29.9 billion by year-end. This expansion is a marked improvement from the 2009 revenue decline. This trend indicates the negative influence that falling per capita disposable income has had on operators, but it also demonstrates the industry’s resilience.
Veterinary service operators have consolidated in an effort to maintain revenue in the face of mounting competition from superstores and online retailers that sell pet products and medications. In the past five years, the number of Veterinary Services industry operators declined an estimated 1.6% per year on average to 38,568. “Consolidation has helped operators reduce costs to effectively compete with other providers,” Snyder says. “Nonetheless, wage costs have increased as a percentage of revenue, due to a veterinarian shortage in the United States.” This factor is also partly attributable to the rising use of well-paid veterinary technicians to assist in the use of developing technologies.
Consolidation is projected to continue during the five years to 2017, with the number of expected to decline each year on average. The rise of larger practices will occur partly because of the mounting number of female veterinarians forecast to enter the work force, typically not owning practices. Although most animal hospitals are single-site, sole-practitioner facilities, veterinarians are gravitating toward larger, multidoctor animal hospitals that provide state-of-the-art facilities, treatments, methods and pharmaceuticals to enhance the services they can provide their clients. Industry concentration has increased in recent years due to acquisition activity, particularly by major players, VCA Antech Inc. and IDEXX Laboratories Inc. Other large industry companies include Medical Management International Inc. and National Veterinary Associates. Growth in revenue over the five-year period will be fostered by continued growth in pet ownership, greater demand for animal products and favorable legislation that will encourage veterinarians to practice in underserved areas. For more information, visit IBISWorld´s Veterinary Services in the US industry report page.
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IBISWorld industry Report Key Topics
The Veterinary Services industry includes establishments of licensed veterinary practitioners primarily engaged in the practice of medical, dental or surgical treatment for animals. The industry also includes establishments that provide laboratory and diagnostic testing services for licensed veterinary practitioners. Companies that manufacture medical supplies or pharmaceuticals for animal treatment are not included in the industry.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation´s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
For the original version on PRWeb visit: http://www.prweb.com/releases/prweb2012/4/prweb9452530.htm