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Product price, demand expected to stay strong
St. Louis — Veterinarians expect demand and prices for in-clinic products to climb in the second quarter compared to the previous quarter.
ST. LOUIS — Veterinarians expect demand and prices for in-clinic products to climb in the second quarter compared to the previous quarter.
Demand for analgesics, diagnostic tests and services, anti-inflammatory products and prescription pet food is expected to soar compared to the same time period in 2004, and practitioners plan to raise prices in these product categories, too, according to a report by C.F. Grass Consulting, which measures veterinarians' sentiments about the forthcoming quarter. The report compares its data with the same period of the previous year, as well as sentiments from previous quarters.
Product demand recovers, prices persist
"In each of the past three quarters, growing numbers of pets has had a growing impact on the positive demand picture," says Corey Grass, president of C.F. Grass Consulting. "Concern over economic conditions has had a corresponding decrease in importance over the past few quarters. Thus, it appears that the growing economy is resulting in accelerated growth in the pet population — or at least the portion of pet owners taking their pets to the veterinarian."
Overall, veterinarians attribute growing demand to client education, rising numbers of animals under veterinary care, pet insurance, new products and macro-economic conditions.
Pet owner awareness and focus on pain alleviation appear to be driving healthy demand for analgesics.
Price sensitive
New product introductions, professional suggestions, pet-owner education and focus on preventive medicine are driving price hikes for diagnostic tests. Practitioners report year-round administration and growing patient numbers as main factors contributing to higher prices for prescription medications for heartworm and flea/tick preventatives.
"The pricing power in the cat/dog market is quite remarkable," Grass says. "Though most major categories have widespread reports of price increases, these price increases in almost all cases do not appear to be restricting demand."
Methodology
Prices for FeLV tests, sedatives, tranquilizers, corticoids and analgesics are expected to rise significantly compared to the first quarter, too. Diagnostics enjoy a healthy plateau after significant increases the past couple quarters.