Animal biotech companies are expected to focus on genetically engineering animals to produce nutrient-enhanced products.
New York, NY (PRWEB) April 10, 2015
The Animal Health Biotechnology industry is heavily dependent on external funding to drive the technologically sophisticated research that produces new animal healthcare products and services. “As such, revenue generally contracts during tough economic times, as credit conditions tighten and public and private funding sources dry up,” according to IBISWorld Industry Analyst Jocelyn Phillips. However, the industry has experienced strong growth since the US economy has recovered from the recession during the past five years: industry revenue is accordingly expected to grow 5.0% per year on average in the five years to 2015, to an estimated $8.7 billion. This increase includes expected revenue growth of 7.1% in 2015. Opportunities for industry growth have largely been a result of public and private research and development (R&D) expenditure, which is expected to rise at an average of 4.1% per year over the five years to 2015.
The largest companies in the industry are pharmaceutical manufacturers, which distribute vaccines, parasiticides and other pharmaceutical products for use with livestock, poultry, fish and companion animals. “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,” says Phillips. Overall, the number of industry operators has risen at an average annual rate of 2.0% over the five years to 2015, to an estimated 152 companies. Profit margins currently average 8.7% for animal health biotechnology companies.
Revenue growth is expected to remain robust over the five years to 2020. Industry growth will be positively impacted by recent Food and Drug Administration (FDA) announcements regarding food safety and cloning. Furthermore, public and private R&D expenditure is expected to increase in the five years to 2020. During the next five years, animal biotech companies are expected to increasingly focus on genetically engineering animals to produce nutrient-enhanced products. Furthermore, the FDA is expected to decide whether it will allow the first genetically engineered animal (salmon) 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, visit IBISWorld’s Animal Health Biotechnology in the US industry report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
IBISWorld industry Report Key Topics
The Animal Health Biotechnology industry researches, develops, tests and distributes therapeutic drugs, diagnostic tools and preventive products for livestock and companion animals. Drugs that are not developed using biological materials or processes are not included in this industry. In addition, companies provide tools that aim to improve farm animal breeding programs.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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.