Source: Freedonia Group
Veterinary services in the U.S. reached around $40 billion in 2024, reflecting modest growth from the previous year. However, the industry is facing headwinds due to rising costs, with service prices increasing by over 7% year-over-year. This has led to a noticeable decline in usage, as fewer pet owners—especially Millennials and Gen Z—seek care due to affordability concerns. Prescription medications, once a key profit driver for Veterinary clinics, are now increasingly purchased through online retailers, eroding traditional revenue streams.
In addition to online competition, pet owners are spending more on non-medical services like grooming, boarding, and daycare, further fragmenting the market. As pet ownership remains high but spending becomes more cautious, Veterinary providers are being pushed to rethink their service models. Looking ahead, affordability-focused strategies, telemedicine, retail-based clinics, and a stronger omnichannel presence are expected to play a central role in how Veterinary care is delivered and monetized in the coming years.
Read the full story HERE: https://www.freedoniagroup.com/packaged-facts/veterinary-services-in-the-us