The Veterinary CRO and CDMO Market is experiencing a significant upswing, according to recent market analysis. The market was valued at USD 6.23 billion in 2023 and is projected to grow to USD 13.3 billion by 2032, registering a compound annual growth rate (CAGR) of 8.84% over the forecast period from 2024 to 2032.

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This growth underscores a dynamic shift in the global animal health industry, where pharmaceutical and biotech companies are increasingly turning to specialized outsourcing partners to enhance efficiency, accelerate innovation, and reduce development timelines. CROs and CDMOs are now integral to veterinary drug development and manufacturing, offering strategic services across discovery, clinical trials, regulatory support, and commercial production.

Market Overview

The veterinary pharmaceutical sector is evolving rapidly, with rising global demand for animal protein, increasing pet ownership, zoonotic disease concerns, and stringent regulatory oversight shaping the development pipeline. Amidst this growth, veterinary CROs and CDMOs are emerging as essential partners, supporting drug sponsors through flexible, cost-effective, and expertise-driven services.

These organizations offer a wide range of outsourced services—including R&D support, formulation development, safety and efficacy studies, pharmacovigilance, and commercial-scale manufacturing—specifically tailored for companion and livestock animal products.

Key Growth Drivers

1. Rising Pet Ownership and Animal Health Spending

The global rise in companion animal adoption, especially across urban and middle-income households, is fueling a corresponding increase in demand for quality veterinary therapeutics. Pet owners are spending more on preventive care, vaccinations, diagnostics, and chronic disease management, pushing pharmaceutical companies to expand their product pipelines.

As these companies strive to bring novel therapies to market faster, they are increasingly partnering with CROs for clinical studies and with CDMOs for production scalability.

2. Increasing Prevalence of Zoonotic Diseases

Outbreaks of zoonotic diseases such as avian influenza, rabies, and leptospirosis have raised awareness of the interconnectedness between human and animal health. This "One Health" approach emphasizes the need for swift veterinary drug development, boosting the reliance on CROs and CDMOs that offer targeted preclinical and regulatory services.

3. Cost-Effective Drug Development Through Outsourcing

Developing a new veterinary drug is both expensive and time-consuming. By outsourcing research and manufacturing tasks to specialized CRO and CDMO partners, veterinary pharmaceutical companies can streamline operations, reduce overhead, and access expert capabilities without investing heavily in internal infrastructure.

Outsourcing allows sponsors to focus on core competencies such as innovation and marketing while improving time-to-market for essential animal health products.

Key Segments:

By Animal Type

  • Livestock Animals
  • Companion Animals

By Service Type

  • Discovery
  • Manufacturing
  • Development
  • Packaging & Labeling
  • Market Approval & Post-marketing
  • Early Phase/Preclinical
  • Late Phase/Clinical

By Application

  • Medicines
  • Biologics
  • Medical Devices
  • Pharmaceuticals
  • Others

 Industry Challenges

Despite a promising outlook, the veterinary CRO and CDMO market faces several challenges:

  • Regulatory Complexity: Navigating differing regional regulatory standards for veterinary drugs requires high expertise.
  • Limited Skilled Workforce: The industry struggles with a shortage of trained personnel specializing in veterinary drug R&D and manufacturing.
  • IP and Data Confidentiality Concerns: Outsourcing can expose companies to intellectual property risks without strong legal safeguards.

Nonetheless, companies are addressing these challenges through digitalization, improved regulatory compliance protocols, and strategic partnerships with global players.

Key Players

Key Service Providers/Manufacturers

  • Charles River Laboratories
  • Vetio
  • LABIANA Group
  • TriRx Pharmaceutical Services
  • Aenova Group
  • Oncovet Clinical Research (OCR)
  • Argenta Group (KLIFOVET GmbH)
  • Clinvet
  • VETSPIN
  • Knoell
  • IDEXX Laboratories Inc.
  • CZ Vaccines
  • Kela Health
  • Argenta Limited
  • AB7 Group
  • Labcorp Drug Development
  • Zoetis Inc.
  • Inotiv Inc.
  • Jubilant Biosys
  • Syneos Health Inc.

 Future Outlook

The future of the Veterinary CRO and CDMO market is characterized by continued innovation, increased collaboration, and strong investment in biotechnology. The convergence of data-driven research, AI in animal health diagnostics, and precision medicine for pets will require more specialized outsourcing services.

Furthermore, global regulatory harmonization efforts and incentives for veterinary biologics development are expected to ease barriers to market entry, creating new opportunities for service providers and sponsors alike.

As the global animal health sector expands, the Veterinary CRO and CDMO industry is not just growing—it is becoming an indispensable pillar of the ecosystem.

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