Veterinary Services in the US: Competing for the Pet Care Customer, 4th Edition

Best Price Guarantee	Length	Publisher	Published Date	SKU
from $4,500	202 Pages	Packaged Facts	October, 2023	LA18274347

Best Price Guarantee
Price	from $4,500
Length	202 Pages
Publisher	Packaged Facts
Published Date	October, 2023
SKU	LA18274347

Veterinary Services in the US: Competing for the Pet Care Customer, 4th Edition

This report focuses on the veterinary services sector for dogs and cats in the US. Report coverage includes chapter-length discussion of trends and opportunities in pet medications, pet food, and pet supplements as key components of veterinary sector competition for the pet care dollar.

Wide-ranging macro-economic, retail, and generational trends have converged to re-shape the veterinary sector landscape. Recent price inflation for veterinary services doubles the inflation rates from early in the decade. As a result, the millennials and Gen Zers who account for almost half of pet owners are strongly concerned about the affordability of routine and emergency healthcare, including the cost of prescription pet medications.

Affordability issues help explain a drop in veterinary services usage. Recent declines in dog ownership rates partially account for this trend, but declines in dog ownership rates also tie back to affordability issues, including housing and consumer credit affordability. A result has been, and will continue to be, more attention to the cat category among successful pet industry players, including veterinary service providers.

Growth strategies for the veterinary sector include offering a wider range of economical services to reclaim a greater share of dog and cat owners as clients, including store-located veterinary clinics and telehealth options. As a facet of veterinary industry consolidation, hands-on veterinary and non-medical pet services are – and will increasingly become – a retail affair. The competitive landscape also calls for fresh thinking about veterinarian-guided pet product sales, particularly given the sharp challenge to veterinary practice profits as pet medication and prescription pet food product sales shift online.

The information contained in this report was obtained from primary and secondary research. Primary research includes national online consumer polls of US adult pet owners (age 18+) conducted on an ongoing basis by Packaged Facts, to measure veterinary service usage rates and psychographics. Consumer trends discussion draws on trended MRI-Simmons National Consumer Studies data though the Spring and Summer 2023 releases.

Executive Summary
- Scope of Report
  - Veterinary Services Sector
- Veterinary Sector Overview
  - Sector Sales and Growth
  - Dog Versus Cat Share of Expenditures
  - Veterinary Care Spending Levels
  - Pet Product Purchasing Patterns by Generational Cohort
- Veterinary Services
  - Category Sales and Growth
  - Price Inflation and Vet Care Affordability
  - Topline Vet Services Usage Rates
  - Dog Versus Cat Share of Customers
  - Competitive Landscape
  - The Veterinary Customer
  - Millennial/Gen Z Patterns
  - Telemedicine Trends
  - Household Income and Use of Veterinary Services
- Pet Medication Perspectives
  - Category Sales and Growth
  - Retail Versus Veterinary Sector Sales
  - Veterinary Sector Pet Medication Sales by Type
  - Usage Rates for Veterinary Flea Control
  - Competitive Landscape
  - Purchasing Channels and Options
  - Customer Demographics for Veterinary Flea Control
- Pet Food Perspectives
  - Category Sales and Growth
  - Retail Versus Veterinary Sector Sales
  - Inflation-Driven Dollar Growth
  - Purchasing Rates for Veterinary Pet Food
  - Competitive Landscape
  - Customer Demographics for Veterinary Pet Food
- Pet Supplement Perspectives
  - Category Sales and Growth
  - Retail Versus Veterinary Sector Sales
  - Dog Products Dominate Sales
  - Competitive Landscape
  - CBD Trends
  - Customer Demographics for Pet Supplements
- Opportunities
  - Responding to Millennial/Gen Z Pet Parent Mindsets
  - Addressing Affordability Challenges
  - Offering Alternative Veterinary Service Models
  - Responding to Pet Services "Retail-ization"
  - Momentum for Telehealth
  - Fresh Thinking About Pet Product Sales
  - The FDA's Animal and Veterinary Innovation Agenda
  - Catering to Cats
Veterinary Sector Overview
- Chapter Highlights
- Sector Overview
  - Veterinary Sector Revenues at $38 Billion
    - Table US Veterinary Sector Revenues, 2018-2023P (million dollars and percent change)
  - Sector Projections
    - Table Projected US Veterinary Sector Revenues, 2023 vs. 2027 (billion dollars and percent change)
  - Dog Versus Cat Share of Veterinary Revenues
  - Service Versus Product Revenues
    - Table Topline US Veterinary Sector Revenues: Overall and by Services vs. Products, 2020-2023P (million dollars and percent growth)
    - Table US Veterinary Sector Revenues by Service and Product Classification, 2020-2023P (in millions of dollars)
  - Veterinary Care Spending Per Customer Household
    - Table Veterinary Care Spending in Last 12 Months per Dog/Cat-Owning Household: By Dollar Ranges, Summer 2022 – Summer 2023 (percent)
    - Table Veterinary Care Spending in Last 12 Months per Dog or Cat Ownership Classification: By Dollar Ranges, Summer 2021 – Summer 2023 (percent)
  - Spending Range Patterns by Generational Cohort
    - Table Veterinary Care Spending in Last 12 Months per Dog/Cat-Owning Household: By Dollar Ranges and Generational Cohort, Summer 2021 vs. Summer 2023 (percent)
  - Pet Product Purchasing Patterns by Generational Cohort
    - Table Pet Products Purchased in Last 12 Months Through Veterinarian: Dog Owners Overall and by Generational Cohort, 2023 (percent of veterinary customers)
    - Table Pet Products Purchased in Last 12 Months Through Veterinarian: Cat Owners Overall and by Generational Cohort, 2023 (percent of veterinary customers)
  - The FDA's Animal and Veterinary Innovation Agenda
Veterinary Services
- Chapter Highlights
- Category Overview
  - Veterinary Medical Service Revenues at $25 Billion
    - Table US Medical Veterinary Service Revenues, 2019-2023P (in millions of dollars and percent change)
  - Revenue Projections
    - Table Projected US Veterinary Services Revenues, 2023 vs. 2027 (in millions of dollars and percent change)
  - Price Inflation and Vet Care Affordability
  - Topline Vet Services Usage Rates
    - Table Usage Rates for Veterinary Services: Overall and by Dog/Cat Ownership, 2018/19 – 2022/23 (percent of dog/cat owning households)
  - Vet Services Customer Base
    - Table Customer Base for Veterinary Services vs. Overall Dog/Cat Household Population, 2012/13, 2017/18, and 2022/23 (in millions of households)
    - Table Customer Base Losses for Veterinary Services by Selected Demographics, 2017/18 vs. 2022/23 (thousand dog/cat households and percent change)
  - Dog/Cat Share of Customer Base
- Competitive Landscape
  - Types of Service Providers
  - Industry Consolidation
  - Pet Services "Retail-ization"
  - Expanding Scope of Retail Store/Vet Clinic Partnerships
  - Veterinary Share of Revenues for Non-Medical Pet Care Services
    - Table Revenue Share of Selected Non-Medical Pet Services: Veterinary vs. Non-Medical Pet Services Sectors, 2022 (million dollars and percent)
  - Overlap in Customer Base: Veterinary Versus Non-Medical Pet Services
  - Pet Services and "Omnimarket"
- The Veterinary Customer
  - Customer Draw by Veterinary Service Type
    - Table Usage Rates for Veterinary Services by Type of Provider: By Dog Owners Overall and by Generational Cohort, 2023 (percent of veterinary customers)
    - Table Usage Rates for Veterinary Services by Type of Provider: Cat Owners Overall and by Generational Cohort, 2023 (percent of veterinary customers)
  - Patterns by Number of Veterinary Visits
    - Table Patterns for Number of Annual Visits to Vet: Dog vs. Cat Owners, 2013 – 2023 (odd-numbered years) (percent of veterinary customers)
  - Reasons for Veterinary Visits
    - Table Selected Reasons for Veterinary Visits: For Dogs vs. Cats, 2021 vs. 2022 (percent of veterinary customers)
    - Table Selected Reasons for Veterinary Visits by Generational Cohort: For Dogs vs. Cats, 2022 (percent of veterinary customers)
  - Braving the New World of Millennials/Gen Z
    - Table Most Important Sources of Pet Care Information: Overall, by Dog vs. Cat Owners, and by Generational Cohort, 2023 (percent)
    - Table Levels of Agreement with Selected Veterinary Care Psychographics: Overall and by Generational Cohort, 2023 (percent of veterinary customers)
    - Table Selected Psychographics About Veterinary Services: Overall, by Dog vs. Cat Owners, and by Generational Cohort, 2023 (percent of veterinary customers)
    - Table Factors Most Important in Choosing a Veterinary Clinic/Hospital: Overall and by Selected Age Brackets, 2023 (percent of vet service users)
    - Table Satisfaction Levels with Selected Aspects of Veterinary Services: Overall and by Dog vs. Cat Owners, 2023 (percent)
    - Table Satisfaction Levels With Selected Aspects of Veterinary Services: By Generational Cohort, 2023 (percent)
  - Telemedicine Trends
  - State-Level Regulatory Initiatives for Virtual Establishment of VCPR
  - Telehealth Usage Rates
    - Table Use of Telehealth Consultation in Last 12 Months: Dog vs. Cat Owners, Overall and by Generational Cohort, 2023 (percent)
  - Household Income and Use of Veterinary Services
    - Table Usage Rates for Veterinary Services by Demographic, 2012/13-2022/23 (every other year) (percent of dog/cat-owning households)
    - Table Customer Base for Veterinary Services by Demographic, 2017/18 – 2022/23 (thousand dog/cat-owning households)
    - Table Usage Indexes for Veterinary Services by Demographic, 2017/18 – 2022/23 (base index among dog/cat owners = 100)
Pet Medication Perspectives
- Chapter Highlights
- Category Overview
  - Pet Medication Sales Exceed $12 Billion
    - Table US Sales of Pet Medications, 2019 – 2023P (million dollars and percent change)
  - Retail Versus Veterinary Sector Sales
    - Table US Sales of Pet Medications: Retail vs. Veterinary Sectors, 2019 – 2023P (million dollars and percent change)
  - Veterinary Sector Pet Medication Sales by Type
    - Table Veterinary Channel Pet Medication Sales by Selected Classifications, 2023P (million dollars and share of total)
  - Usage Rates for Veterinary Flea Control
    - Table Usage Rates for Veterinary Flea Control: Overall and by Dog/Cat Ownership, 2018/19 – 2022/23 (percent of dog/cat-owning households)
  - Size and Growth of Customer Base for Veterinary Flea Control
    - Table Customer Base for Veterinary Flea Control vs. Overall Dog/Cat Household Population, 2012/13, 2017/18, and 2022/23 (million households)
  - Shares of Veterinary Flea Control Customer Base by Dog/Cat Ownership
  - Category Sales Projections
    - Table Projected US Sales of Pet Medications, 2023 vs. 2027 (million dollars and percent change)
    - Table Projected US Sales of Pet Medications: Retail vs. Veterinary Sectors, 2023-2027 (million dollars and percent change)
- Competitive Landscape
  - Headwinds from Macro-Economic Inflation
  - Purchasing Channels and Options
    - Table How Pet Medications That Require a Vet's Prescription Were Purchased, 2023 (percent of dog/cat owners)
    - Table Leading Websites for Purchasing Rx Flea/Tick Heartworm Medications: Overall, by Dog vs. Cat Owners, and by Generational Cohort, 2023 (percent of customers buying pet products through veterinarian)
  - Competing in the Online Marketplace
- Customer Demographics
  - Top Demographics for Veterinary Flea Control
    - Table Selected Demographic Losses in Purchasing of Veterinary Pet Food, 2017/18 vs. 2022/23 (thousand households and percent)
    - Table Rates for Purchasing Flea Control Products Through Veterinarian by Demographic, 2012/13-2022/23 (every other year) (percent of dog/cat-owning households)
    - Table Customer Base for Purchasing Flea Control Products Through Veterinarian by Demographic, 2017/18 – 2022/23 (thousand dog/cat-owning households)
    - Table Purchasing Indexes for Flea Control Products Through Veterinarian by Demographic, 2017/18 – 2022/23 (base index among dog/cat owners = 100)
Pet Food Perspectives
- Chapter Highlights
- Category Overview
  - Pet Food Sales Approach $53 Billion
    - Table US Sales of Pet Food, 2019-2023P (million dollars and percent change)
  - Retail Versus Veterinary Sector Sales
    - Table US Sales of Pet Food: Retail vs. Veterinary Sectors, 2019 – 2023P (million dollars and percent change)
  - Inflation-Driven Dollar Growth
    - Table Level of Agreement with Selected Statements Related to Pet Product Spending: Pet Owners Overall, Dog Owners, and Cat Owners, 2023 (percent of pet product shoppers)
  - Note on MRI-Simmons Data on Purchasing Pet Food Through Veterinarian
  - Purchasing Rates for Veterinary Pet Food
    - Table Usage Rates for Veterinary Pet Food: Overall and by Dog/Cat Ownership, 2018/19 – 2022/23 (percent of dog/cat-owning households)
  - Size and Growth of Customer Base for Veterinary Pet Foods
    - Table Customer Base for Veterinary Pet Food vs. Overall Dog/Cat Household Population, 2012/13, 2017/18, and 2022/23 (million households)
  - Shares of Veterinary Pet Food Customer Base by Dog/Cat Ownership
  - Category Sales Projections
    - Table Projected US Sales of Pet Food, 2023 vs. 2027 (million dollars and percent change)
    - Table Projected US Sales of Pet Foods: Retail vs. Veterinary Sectors, 2023 – 2027 (million dollars and percent change)
- Competitive Landscape
  - Veterinary Pet Food Marketers
  - In-Clinic Versus Online
  - Where High Spenders on Pet Food Shop: Veterinary Versus Online
- Category Trends
  - The Prognosis for Prescription Pet Foods
    - Table Products Considered Most Important for Pet Health: Dog vs. Cat Owners, 2023 (percent)
  - Lawsuit Against Prescription Diets
  - The Vet Card and Pet Food
    - Table Sources Influencing Change in Pet Food: By Generational Cohort, 2023 (percent of dog and cat owners who changed foods in the past 12 months)
    - Table Topics for Which Pet Owners Would Like to Receive More Guidance/Advice from Their Veterinarian: By Age Range, 2023 (percent of dog and cat owners)
    - Table Selected Pet Food Psychographics: By Generational Cohort, 2023 (percent of dog and cat owners)
- Customer Demographics
  - Top Demographics for Veterinary Pet Food
    - Table Selected Demographic Losses in Purchasing of Veterinary Pet Food, 2017/18 vs. 2022/23 (thousand households and percent)
    - Table Purchasing Rates for Veterinary Pet Food by Demographic, 2017/18 – 2022/23 (percent of dog/cat-owning households)
    - Table Customer Base for Veterinary Pet Food by Demographic, 2017/18 – 2022/23 (thousand of dog/cat-owning households)
    - Table Purchasing Indexes for Veterinary Pet Food by Demographic, 2017/18 – 2022/23 (base index among dog/cat owners = 100)
Pet Supplement Perspectives
- Chapter Highlights
- Category Overview
  - Pet Supplement Sales Approach $2.7 Billion
    - Table US Retail Sales of Pet Supplements, 2018-2023P (million dollars and percent change)
  - Dog Products Dominate Sales
  - Retail Versus Veterinary Sector Sales
    - Table US Retail Sales of Pet Supplements: Retail vs. Veterinary Sectors, 2018-2023P (million dollars and percent change)
  - Category Sales Projections
    - Table Projected US Retail Sales of Pet Supplements, 2023 vs. 2027 (million dollars and percent change)
    - Table Projected US Retail Sales of Pet Supplements: Retail vs. Veterinary Sectors, 2023 vs. 2027 (million dollars and percent change)
- Competitive Landscape
  - New Perspectives on Pet Supplements
    - Table Satisfaction Levels with Veterinary Services Overall and with Veterinary Advice on Use of Pet Supplements: By Dog vs. Cat Owners, 2023 (percent of veterinary clients)
  - Knowledge Gap a Prime Opportunity
- Category Regulation and Oversight
  - Food and Drug Administration and Center for Veterinary Medicine
  - American Association of Feed Control Officials
  - American Veterinary Medical Association
  - National Animal Supplement Council
- Category Trends
  - Heightened Focus on Pet Health
  - Competing with Pet Food and Treats
  - Veterinary-Positioned Marketers
  - Winning Over Veterinarians
  - Condition-Specific Supplements
    - Table Top Concerns/Conditions for Which Pet Supplements Are Purchased: Dog vs. Cat Owners, 2023 (percent of purchasers)
  - Condition-Specific Products with Veterinary Positioning
- Focus on CBD
  - CBD Versus THC
  - Regulatory Context
  - Market Context for CBD Supplements
  - CBD Pet Products Usage and Sales
    - Table US Retail Sales of Pet CBD Products, 2018 – 2023P (million dollars and percent)
  - Conditions Treated with CBD
- Customer Demographics
  - Dog Owners More Likely to Purchase Supplements
  - Purchasing Patterns by Demographic
    - Table Pet Supplement Purchasing Patterns by Demographic, 2023 (percent purchasing, percent of total purchasers, and purchasing index)