Animal Biotechnology Market Highlights

The global animal biotechnology market is estimated at USD 26.10 billion in 2023, which is expected to reach USD 58.00 billion at a CAGR of 9.27% during 2023-2032.

Animal biotechnology, as a scientific discipline, employs techniques and tools to manipulate and modify the genetic makeup of animals for a variety of purposes, such as improving agricultural productivity, enhancing animal health, and developing new pharmaceuticals and therapies. It utilizes technologies such as genetic engineering, cloning, gene editing, and reproductive technologies, and aims at the production of animals with desired traits or characteristics. Animal biotechnology plays a critical role in modern agriculture and veterinary medicine, offering opportunities to improve animal welfare, enhance food production and safety, and address global concerns such as disease outbreaks and climate change.

Animal Biotechnology Market CAGR

2023-2032

CAGR OF

9.27%

Animal Biotechnology Market

Rapid technological advancements, such as in gene editing and cloning, are driving innovation in the animal biotechnology market. Upgraded versions of these technologies are being used to develop new and improved biotechnological solutions for animal health and productivity. Moreover, there is a growing emphasis on sustainable agriculture, including animal agriculture, which is driving the adoption of biotechnological solutions to improve resource efficiency and reduce environmental impact.

However, the animal biotechnology market is subject to stringent regulations, which pose challenges for companies developing biotechnological solutions. At the same time, it is worth noting that regulatory bodies are increasingly recognizing the importance of biotechnology in animal health and are working to streamline the regulatory process. Elanco Animal Health, a global animal health company, works closely with such bodies to ensure compliance with requirements for its biotechnological products. The company has hence gained a strong sectoral expertise which has helped it navigate the complex regulatory landscape in the animal biotechnology market.

Opportunities in the animal biotechnology market are present with regard to breeding and genetics. The process of production of animals with desirable traits and superior genetic characteristics holds potential both in terms of the biotechnological tools employed in the development and production stages, as well as the benefits realized through applications of selective breeding of animals, such as higher productivity and disease resistance. Moreover, animal health qualifies as a core component of the animal biotechnology sector, evidenced by the fact that biopharmaceuticals for animal health represent a sizeable market opportunity in the sector. The demand for biopharmaceuticals aimed at animal health owes to the increasing incidence of diseases in livestock (as well as companion animals) and the subsequent need for more effective treatments.

Challenges in the animal biotechnology market primarily pertain to the complex nature of animal health applications owing to the intricacies of genetic manipulation and the sensitivity of biological systems. The requisite skill levels of scientists, the variable genetic make-ups of different animal species necessitating species-specific approaches to development and deployment of solutions, and the regulations governing the industry all comprise further challenges present in the animal biotechnology market.

Several investments in the animal biotechnology market have been directed in recent years, which would boost the overall market. Some of them are:

•    In November 2023, Virbac, a leading animal health company, announced a strategic investment of EUR 9 million (around USD 9.5 million) to support the installation of an advanced production line for companion animal vaccines in its Carros, France, facility. 
•    In September 2022, Merck Animal Health, a leading provider of cutting-edge animal health products, concluded its minority investment in Netherlands-based LeeO Precision Farming B.V., expanding the company’s vast portfolio of veterinary pharmaceuticals, vaccines, and other technologies.
•    In July 2018, IDEXX Laboratories, a leading provider of innovative animal healthcare, added SmartFlow, an advanced clinical workflow solution, to its veterinary cloud offerings. The strategic move furthered the company’s investments in high-end veterinary software and helped expand its product portfolio.

Animal Biotechnology Market Segments’ Analysis

Animal Biotechnology Market

By Product Type, 2023-2032, USD Bn

Vaccines

Diagnostics Tests

Feed Additives

Others

The Market will Grow

At the CAGR of:

9.27%

The Forecast Market

Size for 2032 in USD:

$58.00B

The animal biotechnology market is divided into product type-, animal type-, application-, end-user, and region-based segments.

Based on product type, the market is further segmented into vaccines, diagnostics tests, reproductive and genetic offerings, drugs, and feed additives. 
The vaccines market dominates other segments, estimated at USD 9,924.7 billion in 2023 and expected to reach USD 23,817.1 billion in 2032 at a CAGR of 10.22% during 2023-2032. The demand for veterinary vaccines has displayed a steady rise owing to reasons such as the public health advantages associated to veterinary vaccines, production losses caused by protozoal infections in animals, and increasing interest in treating spontaneous cancers, among others.
Diagnostics tests are involved in the assessment of animals’ health profiles and detection of pathogens. They are primarily concerned with pets and promise accurate diagnosis, timely treatment, identification of appropriate medications, detection of hidden diseases, and establishment of healthy baseline values.
Reproductive and genetic offerings are primarily concerned with livestock. They are utilized in the biotechnological enhancement of the breeding stock of animals, which seeks trait improvement, heritability determination, and product traceability.

Based on animal type, the market is further segmented into companion animals and livestock.
Companion animals comprise dogs, cats, horses, and others. The market for dogs dominates other segments, estimated at USD 7,958.7 billion in 2023 and expected to reach USD 19,192.7 billion in 2032 at a CAGR of 10.28% during 2023-2032. The healthcare needs of companion animals such as dogs are met through a range of veterinary pharmaceuticals, vaccination lines, and other tools.

Animal Biotechnology Market

By End-Use, 2023 (%)

70.4%

Veterinary Hospitals and Clinics

Laboratories

Point-of-Care Testing/In-house Testing

Others

26.10

Total Market Size

USD (Billion), 2023

9.27%

CAGR

2023 - 2032

Livestock comprises poultry, swine, cattle, sheep and goats, and fish. Animal biotechnology products are concerned with improving the health and productivity levels of these animals by promoting disease resistance and feed efficiency.

Based on application, the market is further segmented into preventive care of animals, diagnosis of animal diseases, treatment of animal diseases, food safety and drug development, and others.
The market for diagnosis of animal diseases dominates other segments, estimated at USD 7,728.2 billion in 2023 and expected to reach USD 18,375.6 billion in 2032 at a CAGR of 10.10% during 2023-2032. Diagnosis of animal diseases involves submission of clinical specimens to diagnostic labs in the case of livestock, and conduction of clinical observations along with utilization of laboratory assays for confirmatory diagnosis in the case of companion animals.  

Based on end-use, the market is further segmented into veterinary hospitals and clinics, laboratories, point-of-care testing/in-house testing, and others.
The market for veterinary hospitals and clinics dominates other segments, estimated at USD 18,373.3 billion in 2023 and expected to reach USD 41,795.8 billion in 2032 at a CAGR of 9.56% during 2023-2032. The animal biotechnology and animal health companies claim extensive portfolios strategically focused on this market. Some examples of offerings are: ProZinc (Boehringer Ingelheim), Oncept IL-2 (Merial), Imrestor (Elanco), and Virbagen Omega (Virbac).

Animal Biotechnology Market Regional Analysis

Animal Biotechnology Market

By Region, 2032, USD Bn

The Market will Grow

At the CAGR of:

9.27%

The Forecast Market

Size for 2032 in USD:

$58.00B

Geographically, the animal biotechnology market is present across regions such as North America, Europe, Asia-Pacific, South America, and the Middle East and Africa.
The North American segment showcases the second-highest growth rate, estimated at USD 10,310.5 billion in 2023 and expected to reach USD 23,600.6 billion in 2032 at a CAGR of 9.64% during 2023-2032. The North American segment is driven by an advanced veterinary infrastructure and a strong focus on R&D, particularly in genetics and genomics. Europe is characterized by a regional focus on regulating animal biotechnology product development and launches. The Asia-Pacific region showcases the highest growth rate during the forecast period owing to rapid urbanization and related rise in disposable incomes, which causes increased demand for animal proteins, further driving the need for improved animal genetics and productivity. There is also a broader shift towards improving animal health in the region, evidenced by consumer demand for ethically produced food products and roll-outs of regulations serving to promote animal welfare.

Animal Biotechnology Market Key Players

The market is characterized by high levels of competition with an increasing focus on product portfolio expansion via innovation/R&D and M&As, as well as geographic expansion to consolidate significant market share. The regulations the industry operates under are stringent and especially relevant in regions such as Europe. Nonetheless, the global animal biotechnology market is dynamic and companies routinely collaborate/partner, domestically as well as internationally, to cultivate a culture of strategic exchange of expertise.

In recent years, the market has witnessed several merger and acquisition deals as companies strive to expand their product portfolios, geographical reach, and market share. 
For instance:

•    In November 2023, Virbac, a leading animal health company, announced its acquisition of a majority stake in Globion, a key player in the Indian poultry vaccines market. The strategic move served to reinforce the company’s position as a premium player in the animal health market in India through the addition of avian vaccines to the company’s poultry product portfolio in the country. 
•    In April 2019, Merck, an innovative healthcare company offering biologic therapies, vaccination services, and animal health products, announced its acquisition of Antelliq Corporation, a leading digital animal identification, traceability, and monitoring solutions company.

The prominent players in this market are Boehringer Ingelheim, Zoetis, Virbac, Elanco, IDEXX Laboratories, Merck Co., Inc., Biogenesis Bago, Genus Plc., Heska Corporation, Randox Laboratories Ltd., and Intrexon Corporation. 

Animal Biotechnology Market Scope: