Growth Trajectory of Animal Health Industry

drThe veterinary medicine market is a tiny fraction of the size of the human medicine market, but it goes through just as stringent a regulatory process when producing medicines for animals, with additional studies needed for consumer safety of food-producing animals.

My understanding on the subject is – Internationally the Animal Health Industry is primarily catering to the food basket of the world besides serving other segments. The challenge of the developing nations is to ensure food security as well as food safety, whereas that of the developed nation is predominantly food safety.
Hence, it is imperative that the producers of Animal health medicines, vaccines, and neutraceuticals should undergo the necessary regulatory compliance.
Organizations like HFA (Health for Animals) and INFAH (Indian Federation of Animal Health Companies) are working together for harmonization of regulatory standards worldwide in order to address consumer’s safety of food producing animals.
As per recent future market insights, the global animal healthcare market is estimated to value at USD 32,081.5 million in 2014 and expected to reach 43,032.1 million by 2020. In which segment do you forecast maximum growth and why so?
As issues like AMR (Antimicrobial Resistance) and AMU (Antimicrobial Usage) are global concerns and at the same time it is a huge challenge on the part of farmers to produce cost effective animal protein withstanding the challenges of disease and food safety.
The biological as well as neutraceutical segments will drive the growth of Animal Health Industry in the days ahead.
Can you please update our readers about the size of Indian Animal Health Industry and its YOY growth?
We do not have adequate data about Animal Health Industry size. However as per industry source Indian Animal health market is estimated at INR 41,200 million (USD 620 million) in 2015 is set to reach INR 75,000 million (USD 1120 million) by 2020 with CAGR of >12% over the forecast period.
What are the main changing trends that influence key value drivers and creating opportunities for new business models in India?
Although India is predominantly agriculture based economy with increasing trend of urbanization, with challenges of land and water resources, Animal health industry growth rate is dependent on:
a) Increased trend of animal protein consumption
b) Increased disposable income of the middle class
c) Improved farm management practices
d) Export initiatives
However, factors like fluctuating Broiler meat and egg prices, threat of emerging and re -emerging diseases and increased input costs impact the industry growth negatively.
Please share your views about the impact of GST on Indian Animal health industry and overall livestock sector.
According to me, GST is primarily a business transformation rather than just a tax reform.
GST aims to a uniform tax structure across India which is in line with most nations in the world. It is expected that there can be initial hiccups, however I am quite upbeat about GST.
Phytogenics is the new buzz term in the industry which is getting more acceptances in the market due to consumer awareness of Antibiotic resistance.
The issue of antibiotic resistance should be viewed on totality. It should not be limited only to medicated feed additives in food producing animals. Factor like free availability of antibiotics across the retail chain (without prescription) also contributes to this.
Globally many scientists, institutions, Animal Health companies are working to develop the alternatives to medicated feed additives. Phytogenics is definitely an important source. However the other alternatives like probiotics, prebiotics, enzymes and other neutraceuticals also are proven sources.
Consolidation of the industry is considered as a huge unknown that can drastically change the scenario of worldwide feed industry; please share your observations for consolidation of Indian animal industry?
Consolidation, mergers and acquisitions are inevitable and work on the philosophy of the “Survival of the Fittest”. For Indian Animal Health Industry, it is important to comply with regulatory requirements and follow ethical business practices and still remain competitive. By doing so, we can cater to international market in much better way as in the case of Human Pharmaceutical Industry of India.