Veterinary Diagnostics: IDEXX, Mars Petcare, and Zoetis Driving 7% CAGR 2023-2028

In recent years, there has been a noticeable increase in diagnostic testing within animal healthcare, attributed to a surge in pet ownership and the emergence of various zoonotic diseases. Diagnostic testing plays a crucial role in animal healthcare, offering veterinarians a diverse range of tests for disease identification and monitoring. The efficacy of diagnostic testing relies on swift, reliable, and accurate methods, facilitating informed diagnoses.

Despite challenges, the veterinary diagnostics market has demonstrated consistent growth and is expected to continue expanding. This sector presents a rapidly growing market opportunity for in vitro diagnostic (IVD) companies and others capable of leveraging the constant need to ensure agricultural productivity and the growing consumer spending on companion animals.

Companies enter the veterinary diagnostics market through various means, including acquisitions, product development, and licensing or Original Equipment Manufacturer (OEM) agreements. Between 2023 and 2028, the global veterinary diagnostics market is projected to have a 7% compound annual growth rate (CAGR), according to The World Market for Veterinary Diagnostics, 7th Edition, a new report by leading medical market research publisher Kalorama Information. The low barriers to market entry and the absence of insurmountable competition create opportunities for a wide range of companies to achieve superior rates of growth in specific segments of the veterinary diagnostics market.

Market leadership in veterinary diagnostics has changed little in the past few years with IDEXX Laboratories securing the leading position. The veterinary diagnostics market serves as an ancillary segment for players in other large industries such as IVD and animal care including pharmaceuticals and vaccines. Companies active in these larger markets can make bolt-on acquisitions and adapt existing product lines (test kit, reagent, and instrumentation portfolios) to the veterinary market. Consequently, significant competitive pressure exists in the veterinary diagnostics market, not only from dominant players in the space including IDEXX, Mars Veterinary Health, Zoetis, and Thermo Fisher, but also due to the relative ease with which companies can diversify into veterinary diagnostics with existing products.

The competitive landscape of the veterinary diagnostics market includes numerous large and small companies that vary widely in terms of market participation (or degree of dedication or dependence on veterinary diagnostics), technology platforms, and product offerings. As mentioned, the clear-cut leader in veterinary diagnostics is IDEXX Laboratories, which accounts for almost half the market share. IDEXX is diversified with product offerings in companion animal rapid diagnostic tests, laboratory immunodiagnostic test kits, laboratory molecular test kits, and in-clinic veterinary analyzers systems for hematology, chemistry, blood gas and electrolyte, routine immunoassay, and coagulation testing. IDEXX is the undisputed leader in in-clinic veterinary diagnostic instrumentation with a comprehensive platform offering and leading distribution; the company also ranks among the leaders in veterinary infectious disease testing, but with peers in terms of sales and product breadth.

IDEXX company has distanced itself from its nearest competitors, mainly Mars Petcare and Zoetis, surging forward in the all-important in-clinic analyzer market. IDEXX also has a leading share in the food animal diagnostics space, though the market remains relatively fragmented. New infectious disease threats remain opportunities for IDEXX and others to gain share in food animal diagnostics. While few companies have yet to devote themselves as comprehensively to the veterinary diagnostics market as IDEXX, major pharmaceutical, IVD, and biotechnology companies could quickly gain a foothold and considerable sales in dynamic areas of market demand.

Mars Petcare has commanded a growing position in the market, bringing together several companies that play an important role in the manufacture and marketing of diagnostics.  Mars Petcare has made several strategic acquisitions within the last few years that have propelled its science and diagnostic group into a leading competitor in the veterinary diagnostic market, including:

• Heska Corp. which is heavily vested in in-clinic instrumentation sales for companion animal veterinarians and point-of-care diagnostics,
• Antech Diagnostics offers both reference laboratory services and laboratory test reagents and supplies,
• and Synlab Vet is a provider of vet diagnostics and technology in Europe.

Meanwhile, Zoetis has also been making strides in the market with steady strong growth capturing a notable remaining share of the total veterinary diagnostics market in 2023.  The company is a leader in medicines and vaccines. The company acquired competitor, Abaxis, which propelled Zoetis in the market by providing a broader range of diagnostic products. Abaxis captured a significant cache in near-patient clinical chemistry testing with its veterinary models and CLIA-waived Piccolo Xpress instrument in human diagnostics. The company also used its existing presence in veterinary diagnostic instrumentation to distribute USDA-licensed rapid infectious disease tests for companion animals.

Other major players in the market include:

• Thermo Fisher offers an extensive line of immunodiagnostic and molecular test kits for veterinary infectious diseases.
• Virbac develops and markets the Speed diagnostic range through its BVT division. The Speed product range includes a wide range of rapid tests designed for companion and food-producing animals that can be used at the point-of-care.
• Neogen Corp. has been making strides in the market and is heavily invested in the farm animal business.

Many large IVD companies have leveraged their marketable strengths in veterinary diagnostics through OEM and licensing agreements with veterinary specialists or the launch of ancillary market programs for existing instrument lines. Companies such as Abbott and FUJIFILM license or manufacture veterinary analyzers sold by other companies. Other companies such as Horiba, Sysmex, Siemens Healthineers, Nova Biomedical, bioMérieux, and Alfa Wassermann introduced in-clinic veterinary analyzer models based on their existing benchtop IVD instruments.

The presence of molecular diagnostics companies in the veterinary space continues to be conspicuous such as Thermo Fisher, Illumina, and bioMérieux. Illumina’s presence is related to agrigenomics where it is a leading supplier of genotyping kits and microarrays for livestock traits. bioMérieux has adapted its immunoassay products for veterinary practices but has potential in the molecular space with its ownership of Adiagene and growing company-wide emphasis on molecular diagnostics.

Serological and immunodiagnostic tests continue to serve as gold standards in veterinary reference laboratories and claim the highest volume despite the breakthroughs in molecular diagnostics. Molecular diagnostics has found the most value in mass screening of farms and herds to assess exposure to pathogens and infections, with industry responsiveness to emergent threats, most recently porcine coronaviruses. Larger molecular diagnostics players are well-positioned to secure tenders for regulatory screening programs.

For more information, purchase The World Market for Veterinary Diagnostics, 7th Edition.

About the Report

The World Market for Veterinary Diagnostics, 7th Edition meticulously examines the global veterinary diagnostics market, focusing on two key components: companion animal (pets) diagnostics and food animal diagnostics.

The report provides a comprehensive analysis of major veterinary disease markets, offering insights into overall market performance and development.

Click HERE for more information.

About Kalorama Information

Kalorama Information, part of Science and Medicine Group, is the leading publisher of market research in healthcare areas, including in vitro diagnostics (IVD), biotechnology, medical devices, and pharmaceuticals. Kalorama Information produces dozens of reports a year. The firm offers a Knowledge Center, which provides access to all published reports.

Kalorama Information’s studies feature independent primary research conducted by experienced analysts. Researchers build their market analysis independently from published databases, validating data with inside industry contacts and extensive secondary research, so you can have confidence that you’re getting your information from the most trusted source in the industry.