Rising Veterinary Costs and Market Consolidation in the U.S.
Veterinary service prices have risen 67% since 2017, as advanced medical technology and private equity acquisitions reshape the industry.
The cost of veterinary care in the United States has outpaced general inflation, rising approximately 67% since 2017 compared to a 38% increase in broader consumer prices. This surge is causing a significant barrier to access, leading many pet owners to delay routine care or face high levels of medical debt.
Industry growth is driven by two primary factors: the integration of advanced medical technology and a shift in business ownership. Modern clinics increasingly provide human-level diagnostics, such as MRI and cardiology services, which carry higher operating costs. Simultaneously, the market has undergone rapid consolidation. According to Brakke Consulting, corporate and private equity ownership of veterinary practices has increased from 11% in 2017 to approximately 30% in 2024. In the specialty and emergency care sector, this ownership concentration is even higher, estimated at 75% to 80%.
Investors are drawn to the veterinary sector due to the fragmented market and the tendency for pet owners to pay out-of-pocket, which removes the pricing leverage typically held by insurance companies. However, this shift has drawn the attention of regulators. In the United Kingdom, a Competition and Markets Authority investigation found that large veterinary groups charged approximately 18% more than independent providers. In response, U.S. regulators, including the Federal Trade Commission, have begun to intervene in large-scale acquisitions to prevent market monopolization in specific regions.
The decline in routine veterinary visits over the past year highlights the strain on pet owners, who are increasingly forced to choose between essential care and their personal financial stability.