IBISWorld Market Research
Industry deregulation has fuelled brand name expansion in the past five years, as exemplified by Greencross Limited's growth.
Melbourne, Australia (PRWEB) November 30, 2013
Demand for the Veterinary Services industry in Australia has been promoted by growing awareness of animal health issues and the increasing availability of advanced surgical and diagnostic procedures for animals. People are increasingly willing to spend more on vet procedures to prolong the lives of their pets. According to IBISWorld industry analyst Alen Allday, “Despite declines in dog and cat populations in the past five years, the industry has expanded due to higher expenditure on companion animal vet care.” Increased pet ownership numbers in future years is expected to drive industry growth.
Over the five years through 2013-14, industry revenue is expected to increase at an annualised rate of 2.0% as some pricing growth offset declining volumes. This includes revenue growth in 2013-14 of an estimated 2.0%, to reach $2.6 billion. “This growth has also been driven by increases in vet numbers as more graduates enter the industry, while veterinarian establishment numbers also continue to increase,” says Allday. However, a lower average wage compared with other medical fields limits industry expansion, with vets generally only able to supplement income by working overtime and weekends, or moving into senior positions.
Despite the challenging operating conditions, new medical treatments continue to surface and households are showing interest in these products. Growing media attention on pets and households has come to aid of the industry, as it has helped raise awareness of new developments in the veterinary scene. Industry deregulation has fuelled brand name expansion in the past five years, as exemplified by Greencross Limited's growth. Previously, ownership in the industry was limited to veterinarians. The deregulation enabled participants to raise equity from a broader market to help fund expansion activities. Greencross Limited is the only major player in an industry with particularly low market share concentration. Over the next five years, real household disposable income growth will determine the fate of the Veterinary Services industry. As livestock numbers and the household pet population grow at slow rates, industry participants will be able to sustain revenue growth with the continued take-up of value added services and higher pricing levels.
For more information, visit IBISWorld’s Veterinary Services report in Australia industry page.
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IBISWorld industry Report Key Topics
This industry is made up of veterinary practitioners and animal hospitals. Veterinarians are skilled in medicine and surgery pertaining to animals. Private veterinary practice can be divided into rural practice (mainly focused on farm animals) and town practice (mainly treating companion animals).
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