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Rising pet ownership will boost veterinary services market through 2016, study says
A Los Angeles-based research group is predicting nearly 3 percent growth for the veterinary services market next year, fueled by rising pet ownership.
Los Angeles --
A research group is predicting nearly 3 percent growth for the veterinary services market next year, fueled by rising pet ownership.
The economic prospects for 2016 are even better, says IBISWorld, a publisher of industry research.
A new report predicts revenue growth for the veterinary market of 3.8 percent per year through 2016 to $35.4 billion.
"The landscape will continue to change as consolidation picks up and female veterinarians increasingly enter the market," the company says.
Other factors contributing to the growth include an escalating demand for animal products and favorable legislation. Over the next five years, consolidation of veterinary practices is predicted to continue.
"During this period, the number of operators is expected to decline another 0.5 percent per year on average. The rise of larger practices will partly occur because of the mounting number of female veterinarians forecast to enter the work force," IBISWorld reports. "This trend will be fostered by continued growth in pet ownership, greater demand for animal products and favorable legislation that will encourage veterinarians to practice in underserved areas."
IBISWorld Analyst Sophia Snyder adds, "Growth of 3.6 percent in 2011 is a marked improvement from 2009 and 2010, but lower than the gains of 2006 and 2007. This trend indicates the negative influence that falling per capita disposable income has had on operators, but it also demonstrates the industry's resilience."