Companies in this industry employ licensed veterinary practitioners and provide medical and health care services for animals. Major companies include Medical Management International and VCA (both based in the US), as well as CVS Group (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 30,000 veterinary clinics and providers of veterinary laboratory services, with combined annual revenue of about $28 billion. Key growth drivers include the popularity of pet ownership.
Demand is driven mainly by the number of cats and dogs kept as pets, which is affected by demographics. The profitability of an individual clinic depends on marketing skills, and by the range of services the practice offers. Large practices enjoy economies of scale in marketing as well as more 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 10 percent of revenue. The typical veterinary services company operates a clinic with fewer than 20 employees on staff and has annual revenue of less than $1 million....