Veterinary Laboratory Testing Services in Australia Industry Market Research Report Now Available from IBISWorld

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Australia’s heavy investment in livestock and increasing pet ownership has kept industry services in demand over the past decade. Despite the decreases in funding due to economic instability, industry revenue ahs continued to grow. As the economy recovers, funding is expected to return and household pet health expenditure per pet is likely to increase. For these reasons, industry research firm IBISWorld has added a report on the Veterinary Laboratory Testing Services industry in Australia to its growing industry report collection.

IBISWorld Market Research

IBISWorld Market Research

Increasing funding and pet ownership lead to healthy revenue growth

The Veterinary Laboratory Testing Services industry in Australia includes the testing and diagnosis of animal related diseases within laboratories. Specifically, this involves conducting blood and serum analysis, toxicology, parasite test services, virology, bacteriology and mycology. This service is obviously seen as essential in Australia, as Australia invests a significant amount into its livestock industries and pet ownership is high. However, over the past five years the industry has declined as government labs have been consolidated and centralised in the midst of cost-cutting measures. According to IBISWorld industry analyst Craig Shulman, “These cost-cutting measures have provided an opportunity for the private sector to jump into the breach.” However, higher prices from the private sector, along with declining health expenditure on pets overall as pet ownership declines, has not allowed the private sector to take full advantage of this drop in government funding. Consequently, IBISWorld estimates that industry revenue declined at an annualised rate of 4.4% over the past five years to reach $148.8 million in 2012-13. Revenue in 2012-13 is expected to decline 0.5%.

The Veterinary Laboratory Testing Services industry in Australia is characterised by a medium level of market share concentration. The top two companies in the industry, AAHL and IDEXX, account for a large portion of the market, while a range of government laboratories and private companies make up the remainder of the industry. “Over the next five years, industry market share concentration is expected to remain moderate with some increases,” adds Shulman. The large presence of the AAHL and IDEXX Laboratories is expected to remain, while private companies begin to capture some market share from state run laboratories facing reduced government funding.

The next five years are expected to bode significantly more positively. With general economic conditions, improving this is expected to ease the financial burden on government budgets and consumer wallets, meaning that government funding and pet ownership are expected to remain healthy and increase respectively. These positive signs will allow the private industry players to further establish a strong position. Regardless, the industry is expected to consolidate further with more government work being allocated to the CSIRO's Australian Animal Health Laboratory and IDEXX attempting to acquire its private rivals. Consequently, IBISWorld expects that industry revenue will rise over the five years through 2017-18. For more information, visit IBISWorld’s Veterinary Laboratory Testing Services report in Australia industry page.

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IBISWorld industry Report Key Topics

The Veterinary Laboratory Testing Services industry provides laboratory testing and diagnostic services for licensed veterinary practitioners.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognised 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 Australian 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 Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit or call (03) 9655 3886.

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Gavin Smith
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