Animal Health Biotechnology Industry growth will be positively affected by recent FDA announcements regarding food safety and cloning
Los Angeles, California (PRWEB) November 29, 2011
The Animal Health Biotechnology industry is expected to experience robust growth over the next five years. From 2011 to 2016, revenue is forecast to rise at an average annual rate of 7.9% to an estimated $11.0 billion, according to IBISWorld, the nation’s largest publisher of industry market research. This includes expected revenue growth of 9.0% in 2012. Favorable legislation and improved economic conditions will spur continued R&D activity, benefiting industry operators. Future development in genetic engineering is expected to play a larger role in the industry. Genetic engineering developments will likely focus on improving food quality and disease resistance among livestock. For this reason, industry research firm IBISWorld has added a report on the Animal Health Biotechnology industry to its growing Life Sciences and Animal Health report collection.
The Animal Health Biotechnology industry first entered the scene in the 1960s with the advent of genetically based biotechnology. The industry experienced strong growth over the five-year period, with the exception of 2008 and 2009, when revenue contracted due to lower funding and tight credit conditions. Over the five years to 2011, revenue rose on average 3.6% to an estimated $7.5 billion. This increase includes expected revenue growth of 7.1% from 2010 to 2011. Industry growth has been driven by research and development (R&D) expenditure, which rose by an average of 1.4% over the five years to 2011. Furthermore, greater US consumption of meat and dairy products and rising food safety concerns have expanded research into reducing the incidence of livestock diseases.
The largest companies in the industry are pharmaceutical manufacturers, which distribute vaccines, parasiticides and other pharmaceutical products for use with livestock, poultry, fish and pets. The largest companies in the Animal Health Biotechnology industry include Pfizer, Sanofi-Aventis U.S. LLC, Merck and Co. Inc. Bayer AG and Novartis. Recently, smaller biotech companies have focused on developing genetically modified and cloned animals, which may potentially limit livestock disease and enhance dairy and meat production. Overall, the number of industry operators rose at an average annual rate of 2.5% over the five years to 2011, to an estimated 407 companies. Profit margins currently average 4.7% for animal health biotechnology companies.
According to IBISWorld analyst, Caitlin Moldvay, revenue growth is expected to accelerate over the five years to 2016, rising at an average annual rate of 7.9% to an estimated $11.0 billion. "Animal Health Biotechnology Industry growth will be positively affected by recent FDA announcements regarding food safety and cloning," says Moldvay. Furthermore, many R&D programs aided by the American Recovery and Reinvestment Act of 2009 will receive their funding starting in 2011. Over the next five years, animal biotech companies are expected to increasingly focus on genetically engineering animals to produce nutrient-enhanced products. Furthermore, in 2011, the Food and Drug Administration is expected to decide whether it will allow the first genetically engineered animal to enter the food production market, potentially driving investment for transgenic animal production, which involves inserting DNA from one species into another one to express that trait in the offspring.
For more information, including latest industry trends, statistics, analysis and market share information, download the full report from IBISWorld on the Animal Health Biotechnology industry
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