Veterinary Services M&A Market Experiences Growth

The global veterinary services market is estimated to be worth approximately $148.8 billion in 2024 and is projected to grow at a compound annual growth rate of 6.9% to reach $194.3 billion by 2028. Despite increased regulatory oversight, several market drivers are fostering further consolidation within the sector.

The demand for veterinary care is significantly boosted by rising pet ownership across major regions like the US, UK, and Europe, a trend amplified during the COVID-19 lockdowns. Increased time spent at home has led owners to invest more in their pets' well-being, including extended lifespans through advanced veterinary services. This heightened focus on pet health is a substantial driver for dealmaking.

Technological advancements mirroring those in human healthcare, such as MRI, wearable devices, and AI-driven diagnostics, are increasingly adopted. Concurrently, rising veterinary costs are fueling growth in the pet insurance sector. North America reported a 16.7% annual growth in pet insurance, indicating significant untapped global potential.

While the market remains fragmented, regulatory attention on consolidation is creating numerous opportunities for mergers and acquisitions. Alvarez & Marsal has released a paper detailing key merger and acquisition trends shaping the veterinary services landscape.