Pet Smart: Veterinary Services in the US Industry Market Research Report Now Available from IBISWorld

Revenue will remain strong in the future as more consumers own pets and demand more animal-related products; furthermore, individuals will be willing to pay top dollar for veterinary services as their incomes rise, contributing to greater growth. For these reasons, industry research firm IBISWorld has added a report on the Veterinary Services industry to its growing industry report collection.

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Strong and steady pet ownership trends will continue to drive demand for veterinary services

Los Angeles, CA (PRWEB) May 06, 2013

The Veterinary Services industry has performed well in the five years to 2013, with revenue rising at an annualized rate of 2.6%. “Although revenue slightly declined during the economic downturn due to a drop in client visits and disposable income, rising pet ownership and a greater willingness to spend on pet health and wellness helped maintain growth over the period,” says IBISWorld industry analyst Austen Sherman. An expected 4.0% boost in 2013 will push revenue to an estimated $31.7 billion by the year's end. This growth not only indicates the industry's resilience, but also the significant influence that changes in per capita disposable income have on demand for veterinary services.

Veterinary service operators have consolidated in an effort to maintain revenue in the face of mounting competition from superstores and online retailers that sell pet products and medications. In the past five years, the number of operators has declined at an estimated average of 1.3% per year to 38,316. According to Sherman, “Consolidation has helped operators reduce costs to remain competitive, though wages have actually increased as a percentage of revenue due to a veterinarian shortage in the United States.” This factor is also partly attributable to the rising use of well-paid veterinary technicians to assist in the use of developing technologies. Nevertheless, consolidation has allowed many operators to share the industry's fixed costs. It is also increasing market share concentration in the Veterinary Services industry. Concentration has increased in recent years due to acquisition activity, particularly by major players, VCA Antech Inc. and IDEXX Laboratories Inc.

Consolidation is projected to continue during the five years to 2018. As consolidation helps operators build economies of scale, in which they can spread costs over a larger customer base, average profit margins are projected to widen by 2018. Similarly, revenue is forecast to increase. This trend will be fostered by continued growth in pet ownership, greater demand for animal products and legislation that will encourage veterinarians to practice in underserved areas. For more information, visit IBISWorld’s Veterinary Services in the US industry report page.

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IBISWorld industry Report Key Topics

The Veterinary Services industry includes establishments of licensed veterinary practitioners who provide medical, dental or surgical treatment for animals. The industry also includes establishments that provide laboratory and diagnostic testing services for licensed veterinary practitioners. Companies that manufacture medical supplies or pharmaceuticals for animal treatment are not included in the industry.

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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