Industry Snapshot
Who we are and what we do
The U.S. animal health market makes up about 2% of the total U.S. pharmaceutical market ($9.9 billion animal compared to $450 billion human medicines). About 60% of animal health sales in the U.S. are companion animal products and about 40% are food-producing animal products.
Pharmaceuticals account for more than half of sales, flea and tick medications are about 29% of the industry, and biologics are just over 19% of the industry.
The U.S. animal health market is estimated to be one-third of the global market and generates around $10 billion of sales per year.
Economic Contributions of the Animal Health Industry
Direct and indirect economic impact
The animal health industry contributes directly to the U.S. economy through jobs, wages, exports, and taxes. Animal health products also support and enable other industries and enhance the quality of life for millions of Americans.
In 2016, animal health companies produced $11.4 billion of medicines in the U.S., of which nearly $9.0 billion was sold domestically and $2.4 billion was exported. The economic impact of the industry plus the industries that depend on animal health – veterinary services, pet services, and meat and dairy production – generated about $560 billion in output and created nearly 1.4 million jobs that paid $53.2 billion in wages in 2016.
Industry Leadership and Innovation
R&D, global outlook, and contributions to innovation
Animal health manufacturers invest an average of 8.5% of sales in R&D, 2.5 times that of the overall U.S. manufacturing average of 3.4%. Strong demand for U.S. products in foreign markets means that in 2016, U.S. animal health exports totaled more than $2.4 billion.
High levels of R&D investment lead to discoveries that can be applied to human health: animal health research contributes to development of vaccines and medicines for human diseases such as cancer, allergies, heart disease, and arthritis.
Pets in America
More than 67% of American households own pets, totaling nearly 400 million pets, including dogs, cats, horses, birds, fish, horses and more.
Americans spent over $75.5 billion on their pets in 2016, with an average total household spend of $892 on pet food, veterinary services, supplies, and other services. The median lifetime expenditures for medicines are $5,154 for a dog and $5,325 for a cat. We love our pets!
Pets improve their owners’ overall health and wellbeing and may help them live longer: research shows dog owners have a 36% lower risk of dying from cardiovascular disease and an 11% lower risk of a heart attack.
Food-Producing Animals
Healthy livestock means safe and affordable food
Farmers and ranchers use medicines to ensure the health of food-producing animals, protect public health, and protect the food supply.
In 2016, farmers and ranchers generated over $184 billion in output, raising cattle, pigs, chickens and other animals. Healthy livestock are used to produce meat and dairy products purchased by consumers in the U.S. and abroad, which contributes to the U.S. economy and supplies consumers with healthy, safe, and affordable food. Research shows healthy animals carry fewer pathogens that can cause disease in people.
