Flea & Tick Product Manufacturing OTC in the US Industry Market Research Report Now Available from IBISWorld

Revenue for the Flea and Tick Product Manufacturing OTC industry has remained relatively stable over the past five years, growing slightly. In general, consumer demand for pet products, particularly pharmaceutical treatments, carries a somewhat inelastic quality. Many consumers treat their pets as members of their family, sparing no cost to ensure the health and wellbeing of the animal. Over the next five years, the industry will continue to benefit from steady demand from pet owners while heavier expenditure in research and development (R&D) will drive firms to produce high-margin products that will drive profitability. For these reasons, industry research firm IBISWorld has added a report on the Flea & Tick Product Manufacturing OTC industry to its growing industry report collection.

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Despite stable sales, manufacturers' profit was hampered by increasing government regulation.

Los Angeles, CA (PRWEB) November 20, 2012

Revenue for the Flea and Tick Product Manufacturing OTC industry has remained relatively stable over the past five years, growing at a slight annualized rate of 0.6% to roughly $552.2 million. In general, consumer demand for pet products, particularly pharmaceutical treatments, carries a somewhat inelastic quality. “Many consumers treat their pets as members of their family, sparing no cost to ensure the health and wellbeing of the animal,” says IBISWorld industry analyst Antonio Danova. Thus, unlike most manufacturing industries, the industry benefited from relatively stable demand even during the height of the downturn, as it endured only minimal losses of 1.1% and 1.4% in 2008 and 2009, respectively. Still, as the economy gained steam in 2010, those consumers that did delay purchases during the recession flocked back to the market, facilitating growth of 2.3% during that year. Demand has remained buoyant, and IBISWorld expects revenue to grow 1.7% further during 2012.

Despite benefiting from largely stable sales of flea and tick products of the past five years, firms' profitability was hampered by increasing government regulation of the industry's products, Danova says. According to the Animal Health Institute, the US Food and Drug Administration (FDA) and US Environmental Protection Agency (EPA) work jointly to ensure the safety and effectiveness of the product while protecting the individuals around the animal as well as the environment. Meeting such standards has increased the cost of production for firms, which has ultimately subdued the potential for more rapid margin growth in the Flea and Tick Product Manufacturing OTC industry over the past five years.

Over the next five years, the industry will continue to benefit from steady demand from pet owners while heavier expenditure in research and development (R&D) will drive firms to produce high-margin products that will drive profitability. Additionally, demand should grow as IBISWorld expects the total number of pet owners in the United States to increase 2.2% per year on average over the next five years. This, along with the development of new flea and tick treatments, will help generate new sales. As a result, industry revenue is expected to grow over the five years to 2017. The Flea and Tick Product Manufacturing OTC industry has a high level of market share concentration. In 2012, the top four companies in the industry are estimated to account for almost three-fourths of overall revenue. The industry's most dominant operators are large, multinational pharmaceutical companies, such as Bayer AG and Merial Limited, which is owned by Sanofi. These large pharmaceutical companies have the capital and resources to invest in new products and technologies. For more information, visit IBISWorld’s Flea & Tick Product Manufacturing OTC in the US industry report page.

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IBISWorld industry Report Key Topics

This industry is comprised of firms that primarily engage in the manufacture of over-the-counter (OTC) flea and tick prevention and treatments for animals. Products available include creams, tablets, collars, shampoos and sprays.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized 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 US 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 Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.


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