Veterinary Services in the US: Competing for the Pet Care Customer, 4th Edition

Veterinary Services in the US: Competing for the Pet Care Customer, 4th Edition
This report focuses on the veterinary services sector for dogs and cats in the US. Report coverage includes chapter-length discussion of trends and opportunities in pet medications, pet food, and pet supplements as key components of veterinary sector competition for the pet care dollar.

Wide-ranging macro-economic, retail, and generational trends have converged to re-shape the veterinary sector landscape. Recent price inflation for veterinary services doubles the inflation rates from early in the decade. As a result, the millennials and Gen Zers who account for almost half of pet owners are strongly concerned about the affordability of routine and emergency healthcare, including the cost of prescription pet medications.

Affordability issues help explain a drop in veterinary services usage. Recent declines in dog ownership rates partially account for this trend, but declines in dog ownership rates also tie back to affordability issues, including housing and consumer credit affordability. A result has been, and will continue to be, more attention to the cat category among successful pet industry players, including veterinary service providers.

Growth strategies for the veterinary sector include offering a wider range of economical services to reclaim a greater share of dog and cat owners as clients, including store-located veterinary clinics and telehealth options. As a facet of veterinary industry consolidation, hands-on veterinary and non-medical pet services are – and will increasingly become – a retail affair. The competitive landscape also calls for fresh thinking about veterinarian-guided pet product sales, particularly given the sharp challenge to veterinary practice profits as pet medication and prescription pet food product sales shift online.

The information contained in this report was obtained from primary and secondary research. Primary research includes national online consumer polls of US adult pet owners (age 18+) conducted on an ongoing basis by Packaged Facts, to measure veterinary service usage rates and psychographics. Consumer trends discussion draws on trended MRI-Simmons National Consumer Studies data though the Spring and Summer 2023 releases.