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        Veterinary Services Industry Profile

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        Excerpt from Veterinary Services Industry Profile

        Companies in this industry employ licensed veterinary practitioners and provide medical, dental, and health care services for animals. Major companies include Banfield Pet Hospital, National Veterinary Associates, and VCA Animal Hospitals (all based in the US), as well as CVS Group plc (UK) and Greencross Vets (Australia).

        The US and the UK have typically been leading pet-owning countries. However, nations such as China and India are experiencing an increase in pet ownership rates as economies develop and people's attachment to pets drives spending.

        The US veterinary services industry includes about 31,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $40 billion.

        COMPETITIVE LANDSCAPE

        Demand is driven mainly by the number of cats and dogs kept as pets, which is affected by demographics and economic conditions. The profitability of an individual clinic depends on marketing skills, reputation, and the range of services the practice offers. Large practices enjoy economies of scale in marketing as well as better access to capital to invest in onsite diagnostic equipment. Small practices can compete effectively by specializing in particular animals or types of treatment, or by serving an exclusive area. The US industry is highly fragmented: the 50 largest companies account for about 20% of revenue.

        PRODUCTS, OPERATIONS & TECHNOLOGY

        Animal hospitals and clinics treat injuries and diseases but derive most revenue from animal health procedures like neutering and spaying, vaccinations, and regular checkups. Some animal hospitals ...

         
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