Animal health markets expand as biotech grows and veterinary antibiotics reach $7 billion outlook
Animal health markets are projected to expand in 2026, led by animal biotechnology at $34.6 billion to $36.19 billion and continued growth in veterinary antibiotics. Demand is being driven by companion animal care, livestock health, biologics R&D, and tighter oversight of antibiotic use.
Analysts project continued expansion across animal health markets in 2026, with the global animal biotechnology market expected to reach $34.6 billion to $36.19 billion this year and the veterinary antibiotics market projected to grow from US$ 4.8 billion in 2024 to around US$ 7 billion by 2034. The momentum is tied to food security, the increasing humanization of companion animals, and continued demand for disease prevention and treatment in livestock and pets.
The global animal biotechnology market is expected to maintain an estimated 10.04% compound annual growth rate, while the veterinary antibiotics market is expected to grow at a 3.8% CAGR during the forecast period from 2025 to 2034. The companion animal segment now represents approximately 36% of the total animal biotechnology market share. The global companion animal healthcare market is projected to grow from $29.68 billion in 2025 to over $56.6 billion by 2033.
Veterinary antibiotics remain essential therapeutic agents used to prevent and treat bacterial infections in animals, supporting both animal health and agricultural productivity. Broad-spectrum antibiotics, including tetracyclines, penicillins, and macrolides, are widely utilized due to their effectiveness against a range of bacterial pathogens. In 2024, the cattle segment accounted for 40.1% of total veterinary antibiotics market revenue, tetracyclines captured 29.3% of the overall market share, and powders contributed 31.5% of total revenue.
The commercial momentum in animal biotechnology is increasingly tied to precision biologics and molecular diagnostics. Monoclonal antibodies are being used for osteoarthritis and atopic dermatitis, while the industry is shifting beyond dermatology and pain into chronic kidney disease and oncology. One company is developing a first-in-class monoclonal antibody for chronic kidney disease in dogs, and another is preparing to launch Befren (tirnovetmab) in the first half of 2026 for canine atopic dermatitis.
Investment in animal health research and development remains elevated. One company reported adjusted net income growth of 9% in late 2025, fueled by a pipeline of monoclonal antibodies. Another committed €500 million specifically to animal health R&D, focusing on therapeutic vaccines and AI-driven gait analysis. Comparative 2026 estimates cited R&D spend of about $685 million, $540 million, $450 million, $380 million, and $320 million among major animal health companies.
At the same time, the use of veterinary antibiotics is being carefully monitored due to concerns related to antimicrobial resistance. Regulatory authorities and industry stakeholders are emphasizing responsible usage practices, including adherence to prescribed dosages, withdrawal periods, and veterinary guidance. Growing concerns over antibiotic resistance are accelerating demand for alternatives such as probiotics, prebiotics, and herbal solutions, while increased adoption of vaccines reflects a broader shift toward preventive animal healthcare.
North America accounted for over 33.2% of the global veterinary antibiotics market in 2024, with a market value of approximately USD 1.5 billion. The region’s high incidence of zoonotic diseases continues to drive demand for treatment solutions, while large-scale livestock production, increasing pet ownership, advanced diagnostics, and regulatory oversight support market growth.