Animal instinct: An increase in research and development spending for new technologies will stimulate growth

The Animal Health Biotechnology industry has experienced steady growth over the five years to 2018. Rising research and development (R&D) expenditure, which grew at an annualized rate of 2.6% during the five-year period, has enabled companies to invest in and develop new products to support industry growth. Over the five years to 2023, IBISWorld expects revenue growth to remain strong and increase at an annualized rate of 1.4% to $8.7 billion. Accelerated growth in the number of pets, in addition to continued rises in per capita disposable income and shifting attitudes toward pets, will boost demand for industry products for companion animals and lead to a slight increase in profit...purchase to read more.

Industry Statistics & Market Size
Revenue
$8bn
Annual Growth 13-18
1.3%
Forecast Growth 18-23
Profit
Employment
22,497
Businesses
218

Industry Threats & Opportunities

  • Growth in the number of pets, rises in per capita disposable income and shifting attitudes toward pets will boost demand
  • The rise in demand has enabled companies to increase the price of their products
  • Increasing per capita disposable income will encourage increased spending on pet health
  • Industry Report - Industry Investment Chapter

    The level of capital intensity within the Animal Health Biotechnology industry is low to moderate. For every $1.00 allocated toward labor in 2018, companies will dedicate an estimated $0.11 to capital investments, relatively unchanged from 2013. While the industry requires significant investment in laboratory space and equipment, the necessity of a skilled work force also causes wages to make up a sizeable portion of revenue. Scientists, often with a Ph.D, are needed to research and develop new products and technology. The average wage for an industry employee is expected to reach $78,351 in 2018.Capital investments include machinery, equipment, materials, computer technology and software. Als...purchase to read more.

    Additional Insights for the Animal Health Biotechnology Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Animal Health Biotechnology Industry are

  • Ability to raise financing
  • Ability to educate the wider community
  • Concentration on core business
  • IBISWorld analysts also discuss how external factors such as Research and development expenditure and Demand from livestock production support services in the Animal Health Biotechnology industry impact industry performance..

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    What's in this report

    What is the Animal Health Biotechnology Industry?

    The Animal Health Biotechnology industry researches, develops, tests and distributes therapeutic drugs, diagnostic tools and preventive products for livestock and companion animals. Drugs that are not developed using biological materials or processes are not included in this industry. In addition, companies provide tools that aim to improve farm animal breeding programs.

    Industry Products
  • Vaccines
  • Other drugs
  • Diagnostic tests
  • Reproductive and genetic products
  • Industry Activities
  • Developing animal vaccines
  • Researching and testing animal medicine
  • Developing preventative care medicine
  • Developing topical parasiticide
  • Propagating livestock breeding
  • Ensuring food safety through drug safety
  • Researching and developing animal cloning techniques
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Research and development expenditure
  • Demand from livestock production support services
  • Number of pets (cats and dogs)
  • Trade-weighted index
  • Per capita dairy consumption
  • Per capita meat consumption

  • Current Performance
  • Livestock and companion animals drive demand
  • New opportunities
  • International trade
  • Chart: Revenue Growth

  • Industry Outlook
  • Increasing number of pets drives growth
  • Competition on the rise
  • Table: Animal Health Biotechnology Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Animal Health Biotechnology Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Beef Cattle Production
  • Dairy Farms
  • Hog & Pig Farming
  • Chicken Egg Production
  • Sheep Farming
  • Fish & Seafood Aquaculture
  • Livestock Production Support Services
  • Pet Stores
  • Veterinary Services
  • Consumers

  • Key Selling Industries
  • Glass Product Manufacturing
  • Inorganic Chemical Manufacturing
  • Medical Instrument & Supply Manufacturing
  • Organic Chemical Manufacturing
  • Scientific Research & Development

  • Products & Services
  • Other drugs
  • Vaccines
  • Diagnostic tests
  • Reproductive and genetic products
  • Chart: Animal Health Biotechnology Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Domestic beef and dairy cattle farmers
  • Domestic veterinary hospitals
  • Exports
  • Domestic hog and pig farmers
  • Domestic poultry farmers
  • Domestic retailers and distributors
  • Domestic sheep, fish and other animal farmers
  • Chart: Major Market Segmentation for the Animal Health Biotechnology Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Animal Health Biotechnology

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Animal Health Biotechnology Industry

  • Industry Globalization
    Zoetis Inc., Merck and Co. Inc., Boehringer Ingelheim,
  • Table: Zoetis Inc. - financial performance
  • Table: Merck and Co. Inc. - financial performance
  • Table: Boehringer Ingelheim - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Animal Health Biotechnology Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Animal Health Biotechnology Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • Research and development expenditure (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Biopharmaceutical
  • A drug made from a biological component (such as a blood cell).
  • Bovine Spongiform Encephalopathy
  • Commonly known as mad cow disease, this condition is a neurodegenerative disease known to lead to death.
  • Cloning
  • Creating a genetic replica of an organism without sexual reproduction.
  • Companion Animal
  • A domestically kept animal or pet. The opposite of a livestock or farm animal.
  • Genetic Engineering
  • The technique of removing, modifying or adding genes to a DNA molecule.
  • Parasiticide
  • A substance used to kill parasites (such as fleas and ticks) from domestic and livestock animals.
  • Transgenic
  • Animals produced by introducing DNA from one species and inserting the DNA into another species to express that trait in the offspring.
  • What Our Customers Say

    Why buy this report?

    The Animal Health Biotechnology Industry Research Report measures market size, analyses current and future trends, and provides an indication of market share for the industry’s largest companies. IBISWorld’s collection of industry market research reports gives you insightful, up-to-date information on the supply chains, economic drivers, and key buyers and markets for hundreds of industries.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Animal Health Biotechnology:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Animal Health Biotechnology market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Animal Health Biotechnology, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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