Pet Medications in the U.S., 5th Edition

Aug 25, 2017
192 Pages - Pub ID: LA15184172
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Pet Medications in the U.S., 5th Edition

Packaged Facts estimates that U.S. retail sales of pet medications will hit $8.6 billion by the end of 2017, inclusive of sales through veterinarians, brick-and-mortar stores, and online retailers, with sales growth even more robust than in 2016. The strong two-year increase reflects several blockbuster product introductions in the veterinary channel (including Zoetis’ APOQUEL and Simparica, Merial’s NexGard, and Merck’s Bravecto), as well as weather conditions favorable to parasiticide sales.

The market for pet medications continues to show strong growth in the U.S. A raft of new products in the flea & tick category has redefined the landscape both in the veterinary market and in retail stores. Merial’s growth has been spurred on by its success in chewable flea & tick, Nexgard, which it sometimes pairs with its heartworm product, Heartgard, to boost sales in both categories. Elanco’s heartworm presence has increased as well, particularly due to aggressive marketing of Interceptor Plus to go along with its leading brand, Trifexis.

The pet medication industry has undergone consolidation, most notably with the closing of Boehringer Ingelheim’s acquisition of Merial, making BI the second-largest player globally. Other significant deals included PetIQ’s IPO and a large investment in Vets First Choice. The Vets First Choice investment points to the Internet's affect on pet meds distribution, ranging from mainstream channels such as Amazon, to Chewy.com as a pet product specialist, to pet drug-specific outlets such as 1-800-PetMeds. 

Also factoring in are changes in the veterinary industry, including Mars’ acquisition of VCA.  Overall pet medication sales growth continues to be affected negatively by cheaper options for consumers (e.g., competition among Frontline Plus and its various imitators), particularly as they are sold in brick-and-mortar and online channels where margins are lower. However, the strong pipeline of patented prescription drugs is helping to keep price erosion at bay. 


Scope

In this fifth edition, Pet Medications in the U.S. analyzes the market for prescription and over-the-counter medications for dogs and cats, with a particular focus on brand-name products used by consumers. These include prescription, over-the-counter (OTC or “retail”), and ethical products (nonprescription medications whose distribution is restricted by the manufacturer to veterinarians). The primary focus of this report is on antiparasitics (flea, tick, heartworm, etc.), but it also covers market-shaping developments in other areas including cancer, cognitive dysfunction, mood disorder, pain management, and obesity/diabetes.

Animal health products for production animals and horses are excluded from this market analysis, as are nutritional supplements for horses and companion animals, the latter of which are covered in Packaged Facts’ April 2017 report, Pet Supplements in the U.S., 6th Edition.

The report provides in-depth coverage of competitive trends, new product trends and marketing activity, and draws on insights from other reports in Packaged Facts’ extensive Pet Market Collection. Data provided include historical and projected market revenues, along with demographics and psychographics of pet med purchasers, based on data from sources including Simmons and Packaged Facts’ proprietary national pet owner surveys.

Report Methodology

The information contained in this report was obtained from primary and secondary research. Primary research entailed informal interviews with leading manufacturers of pet medications and with other pet industry experts; attendance of the Global Pet Expo and Petfood Forum trade events from 2005 through 2017; consultations with pet product manufacturers and members of the trade; and an on-site examination of retail venues. Secondary research included extensive Internet canvassing and research- and data-gathering from relevant consumer business and trade publications; company reports including annual reports, press releases, and investor conference calls; company profiles in trade and consumer publications; government reports; and other pet market reports by Packaged Facts.

Sales estimates are based on published and estimated sales of major market participants; market size estimates from other sources appearing in the trade press; figures obtained through consultation with market participants; the performance of relevant retail venues; consumer usage rates for pet medications; rates of company and product entries into the market; and sales data from syndicated resources.

Our consumer analysis draws primarily on two sources:
  • Simmons National Consumer Surveys from Experian Marketing Services. On an ongoing basis, Experian Marketing Services conducts booklet-based surveys of a large and random sample of consumers (approximately 25,000 for each 12-month survey compilation) who in aggregate represent a statistically accurate cross-section of the U.S. population.
  • Packaged Facts Pet Owner Surveys, including one conducted in June/July 2017. These surveys had a sample of 2,000 U.S. respondents age 18 or over who in aggregate are representative of the primary demographic measures of gender, age bracket, race/ethnicity, geographic region, household income bracket, and presence of children in the household of the U.S. Census Bureau.
CHAPTER 1: EXECUTIVE SUMMARY
SCOPE AND METHODOLOGY
Market Definition
Report Methodology
MARKET TRENDS
Market Size & Composition
Table 1-1 Share of U.S. Retail Sales of Pet Medications by Distribution Channel, 2017 (percent)
MARKET OUTLOOK
Table 1-2 Projected U.S. Retail Sales of Pet Medications, 2017-2021 (in billions of dollars)
COMPETITIVE OVERVIEW
Prescription and Non-prescription Marketers
Global Animal Health Rankings Get Another Change
Table 1-3 Global Pharmaceutical Marketers: Total Sales vs. Animal Health Sales, 2015-2016 (in millions of dollars)
RETAIL PET MEDICATION MARKETERS
Notable Deals
Chewables: The Next Generation
SALES TRENDS
Pet Owners Have Options
Veterinary Pharmacies Online
CONSUMER TRENDS
Most Dog or Cat Households Use Flea/Tick Products
Spot On Still on Top
67% of Dog-Owning Households Use Heartworm Meds
Figure 1-1 Purchasing of Heartworm Medications by Channel, 2017 (U.S. dog owners)
Allergy Meds Top List of Other Pet Medications
Attitudes on Veterinarian/Professional vs. Store Products
Table 1-4 Levels of Agreement/Disagreement with Statement, “I Trust the Pet Medications My
Veterinarian Recommends”: Dog Owners vs. Cat Owners, 2017 (percent)
MARKET OPPORTUNITIES
Opportunity 1 – Veterinary Consolidation
Opportunity 2 – Human/Animal Bond
Opportunity 3 – Veterinary Services Growth
Opportunity 4 – Exploring E-Commerce
Opportunity 5 – Generics Increasing Competition, and Spurring Innovation
Opportunity 6 – Millennials
Opportunity 7 – Chewable Tablets
Opportunity 8 – Combo Products
Opportunity 9 – Pet Ownership Growth
CHAPTER 2: MARKET TRENDS
MARKET SIZE & COMPOSITION
U.S. Retail Sales of Pet Medications at $8.6 Billion in 2017
Table 2-1 U.S. Retail Sales of Pet Medications, 2013-2017 (in billions of dollars)
Share of Sales by Animal Type
Figure 2-1 Share of U.S. Retail Sales of Pet Medications by Animal Type: Dog vs. Cat, 2017 (percent)
Share of Sales by Distribution Channel
Table 2-2 Share of U.S. Retail Sales of Pet Medications by Distribution Channel, 2017 (percent)
Table 2-3 Share of U.S. Sales of Pet Medications by Type, 2017 (percent)
MARKET OUTLOOK
The Veterinary Market
Higher-Income Households a Key Segment
Table 2-4 $70K+ Household Share of U.S. Pet Market Expenditures: By Category, 2009-2015 (percent)
The Human/Animal Bond
Humanization & Wellness
Table 2-5 Level of Agreement with Statement: “I am willing to pay more for pet food products that are healthier for my pets,” by Age Bracket, 2017 (percent)
Age of Pets
Table 2-6 Age of Dogs and Cats, 2017 (percent of pet owners)
Weighty Issues
Table 2-7 Agreement with Statement: “I have an overweight dog/cat,” 2016 vs. 2017 (percent)
Small Dogs Rule, but Medium Sizes Rebound
Table 2-8 Size of Pet Dogs, 2012-2017 (percent of dog owners)
Table 2-9 Size of Most Recently Acquired Pet Dog, 2014-2017 (percent of dog owners)
Illustration 2-1 Trade Ad for Metacam
Millennial Pet Owners
Ownership Trends
Funding from Morris Animal Foundation
A Third Spend Less
Table 2-10 Level of Agreement with Statement: “I am spending less on pet products because of the
economy,” 2011-2017 (percent)
Economy Still Slow, but Many Indicators Show Positive Signs
Table 2-11 Economic Mood of U.S. Pet Households, 2013-2017 (percent)
Table 2-12 Economic Outlook of U.S. Pet Households, 2013-2017 (percent)
Veterinary Visits
Table 2-13 Percentage of Dog and Cat Owners Who Have Visited Vet in Last 12 Months for Routine and Sick/Emergency Vet Visits, 2016
Pet Owners Rely on Vet Advice
Table 2-14 Percentage of Dog and Cat Owners Who Rely on Their Veterinarian for Advice, by Topic of Advice, 2016
LOOKING AHEAD
Projected Market Growth: Sales to Crack $11 Billion by 2021
Table 2-15 Projected U.S. Retail Sales of Pet Medications, 2017-2021 (in billions of dollars)
CHAPTER 3: MARKETERS & PRODUCTS
COMPETITIVE OVERVIEW
Prescription & Non-prescription Marketers
Global Animal Health Rankings Gets Another Change
Table 3-1 Global Pharmaceutical Marketers: Total Sales vs. Animal Health Sales, 2015-2016 (in millions of dollars)
Table 3-2 Global Pharmaceutical Marketers by Dollar and Percentage Change in Global Sales: Total vs.
Animal Health, 2015-2016 (in millions of dollars)
Table 3-3 Global Pharmaceutical Marketers by Dollar and Percentage Change in Global Sales: Animal
Health, 2017 (projected) (in millions of dollars)
RETAIL PET MEDICATION MARKETERS
Notable Deals
Illustration 3-1 Trade Ad for Dechra’s Amoxicillin Trihydrate and Clavulanate Potassium Tablets
Generics Increasing Competition, Spurring Innovation
Chewables: The Next Generation
PARASITICIDES – COMPETITIVE LANDSCAPE
Merial Brands Lead the Flea/Tick Charts
Table 3-4 Marketer Shares of U.S. Flea & Tick Sales, 2017 (percent)
Moving Forward with NexGard and Frontline
Illustration 3-2 Coupon Offer for Frontline Gold
Illustration 3-3 Screenshot of NexGardClinic.com
Illustration 3-4 Merial Pup Cup Event at 2017 NAVC Conference
BAYER’S LINEUP PACKS A PUNCH
Bayer’s Channel Diversification
Illustration 3-5
Sponsored Ads on Google for Advantus
Illustration 3-6 Screen Shot from Advantage II for Cats TV Spot
ZOETIS EYES A BIGGER SLICE OF PARASITICIDE MARKET
Illustration 3-7
Screenshot from Simparica TV Ad
ELANCO’S GROWTH
VIRBAC’S OFFERINGS
Illustration 3-8
Screenshot of Virbac Rebates
CEVA PICKS UP GROWTH
Illustration 3-9
Trade Ad for Vectra 3D
Illustration 3-10
Trade Ad for Combiva II
Illustration 3-11
Ceva’s Catego
BRAVECTO GUIDES MERCK ANIMAL HEALTH’S GROWTH
Illustration 3-12 Bravecto Marketing
CENTRAL GARDEN & PET
Illustration 3-13 Facebook Post About Adams’ Amazon Dash Button
Illustration 3-14 Adams Rev Up VIP Racing Experience Sweepstakes
HARTZ
Illustration 3-15
Hartz Post on Facebook
PERRIGO LEADS GENERICS
PETIQ MAKES INROADS WITH OWN BRANDS
FIGHTING FOR YOUR PATENT
Illustration 3-16 Screenshot of 2015 PetAction Plus Ad
Illustration 3-17 Screenshot of PetArmor Plus Ad
Elanco
Illustration 3-18 Screenshot from Trifexis Ad
THE HEARTWORM MARKET
Virbac Sees Competitive Market
Illustration 3-19
Online Trade Ad for SENTINEL Spectrum
Elanco Adds Interceptor Plus to Lineup
Illustration 3-20 Trade Ad for Interceptor Plus
HEARTGARD Keeps Rolling
Illustration 3-21 Screen shot from TV Ad for Merial’s HEARTGARD Plus
Illustration 3-22 Combo Buy Discounts for Merial Brands
Illustration 3-23 Trade Ad for HEARTGARD
Broad Spectrum Wormers
Illustration 3-24
Trade Ad for Drontal Plus
THERAPEUTICS AND VACCINES
Cancer
Illustration 3-25 Palladia
Illustration 3-26 Excerpt from Online Review of Masivet
BRAIN HEALTH
PAIN MANAGEMENT
Major Brands
Illustration 3-27 Ad for Patterson Veterinary’s Levafen (Carprofen)
Illustration 3-28
Trade Ad for Norbrook’s Loxicom
Illustration 3-29
Trade Ad for Bayer’s Quellin
Illustration 3-30 Trade Ad for PREVICOX
Illustration 3-31 Banner Ad for RIMADYL
Illustration 3-32 Trade Ad for Galliprant
DIABETES
Illustration 3-33 Screenshot for Sugar & Spike Diabetes Website
Illustration 3-34 #PetHacks Diabetes Tweet by Merck
HEART HEALTH
Illustration 3-35 Trade Ad for Boehringer Ingelheim Vetmedica’s VETMEDIN
EAR INFECTIONS
Illustration 3-36 Trade Ad for Merial’s Tresaderm
Illustration 3-37 Trade Ad for Bayer Animal Health Claro
Illustration 3-38 Banner Ad for Baytril Otic
SKIN ALLERGIES
Illustration 3-39 Screenshot from APOQUEL TV spot
Illustration 3-40 Two-page Trade Ad for Cytopoint
Illustration 3-41 Search Ad for Cytopoint
Illustration 3-42 Trade Ad for Elanco’s Itrafungol
ANXIETY
Figure 3-1 Pet Calming Product Usage, 2016 (percent of dog or cat owners)
Table 3-5 Purchase of Products to Relieve a Pet’s Anxiety/Stress, Last 12 Months (percent of dog owners vs. cat owners)
Illustration 3-43 Sileo Noise Aversion Gel
VACCINES
Illustration 3-44 Trade Ad for Elanco’s Ultra Vaccine Line
Illustration 3-45 Trade Ad for Nobivac
Illustration 3-46 Trade Ad for Duramune Lyme
OTHER PET MEDICATIONS
Illustration 3-47 Trade Ad for Dechra’s ZYCORTAL
CHAPTER 4: SALES TRENDS
PET OWNERS HAVE OPTIONS
Online Sales
Table 4-1 Level of Agreement with Statement: “I am buying pet products online more than I used to,”2012-2017 (percent)
Table 4-2 Time Frame for Most Recent Online Purchase of Pet Products, 2012-2017 (percent of pet owners)
Vet-VIPPS Changes to the .Pharmacy Domain
Veterinary Pharmacies Online
Illustration 4-1 Trade Ad for Vets First Choice
Illustration 4-2 Screenshot of VetSource Website
Growth Improves for PetMed Express
Illustration 4-3 Banner Ad for 1-800-PetMeds
Table 4-3 PetMed Express Sales, 2007-2017 (in millions of dollars)
Petco Ups Its Pet Med Game
Illustration 4-4 Petco Drs. Foster & Smith Signage
Mass Market Retailers Emphasize Pet Meds
Illustration 4-5 TruProfen’s Mass Market Purchase Locations
Illustration 4-6 Costco’s Pet Medications Web Page
Veterinary Services Inside Pet Superstores
Table 4-4 Percentage of Dog or Cat Owners Who Have Taken Pets to a Pet Superstore for Veterinary
Services in Last 12 Months, 2016 vs. 2017
Illustration 4-7 Vetco Page on Drs. Foster & Smith
Mobile Clinics
Table 4-5 Percentage of Dog or Cat Owners Who Have Visited a Mobile Veterinary Clinic in Last 12 Months, 2017
Fairness to Pet Owners Act
PET SPECIALTY HIGHLIGHTS FLEA & TICK
Illustration 4-8 Screenshot of Ad for Sentry Fiproguard Plus at PetSmart
Illustration 4-9 Flea & Tick Section from PetSmart Flyer, July 2017
Illustration 4-10 Flea & Tick Section from Petsense April-May 2017 Flyer
CHAPTER 5: CONSUMER TRENDS
PET MEDICATION PURCHASING PATTERNS
Most Dog or Cat Households Use Flea/Tick Products
Table 5-1 Percentage of Dog or Cat Owners Who Purchase Flea & Tick Care Medications or Medicated
Products, 2014-2017 (U.S. dog- or cat-owning households in thousands)
Spot On Still on Top
Figure 5-1 Purchasing of Flea & Tick Care Medications: Share by Product Type, 2017 (percent of U.S. dog or cat owners)
Figure 5-2 Purchasing of Spot-On Flea & Tick Care Medications by Channel, 2017 (U.S. dog or cat owners)
Owners Choose Fipronil-Based Products
Table 5-2 Share of Flea & Tick Care Medication Purchasers by Brand, 2017 (U.S. dog owners)
Table 5-3 Share of Flea & Tick Care Topical Medication Purchasers by Brand, 2017 (U.S. cat owners)
DEMOGRAPHICS FOR FLEA & TICK BRANDS
Table 5-4a Index for Use of Flea/Tick Products by Brand, 2017
Table 5-4b Index for Use of Flea/Tick Products by Brand, 2017
67% OF DOG-OWNING HOUSEHOLDS USE HEARTWORM MEDS
Table 5-5 Index for Use of Heartworm Control Medications for Dogs, 2017
Figure 5-3 Purchasing of Heartworm Medications by Channel, 2017 (U.S. dog owners)
Heartworm Brand Preferences
Table 5-6 Share of Heartworm Purchasers by Brand, 2017 (U.S. dog owners)
Allergy Meds Top List of Other Pet Medications
Table 5-7 Use by Type of Selected Other Pet Medications for Dogs and Cats, 2017 (percent)
Table 5-8 Purchasing by Channel of Selected Other Pet Medications for Dogs, 2017 (percent)
Table 5-9 Purchasing by Channel of Selected Other Pet Medications for Cats, 2017 (percent)
Key Brick-and-Mortar Channels
Table 5-10 Brick-and-Mortar Channel Choices for Pet Medications, Last Three Months, 2016 vs. 2017(percent of pet product buyers)
Flea/Tick Owners Favor Amazon
Table 5-11 Purchasing of Flea/Tick Products for Dogs by Online Source, 2017 (percent)
Table 5-12 Purchasing of Flea/Tick Products for Cats by Online Source, 2017 (percent)
PET MED PSYCHOGRAPHICS
Consistency of Pet Med Purchases Among Pet Owners
Table 5-13 Levels of Agreement/Disagreement with Statement, “I Am Buying More Pet Medications Than I Used To”: Dog Owners vs. Cat Owners, 2017 (percent)
Table 5-14 Levels of Agreement/Disagreement with Statement, “The Current Range of Pet
Medications Is Not Adequate”: Dog Owners vs. Cat Owners, 2017 (percent)
Table 5-15 Levels of Agreement/Disagreement with Statement, “I Am Interested in New Types of Pet Medications”: Dog Owners vs. Cat Owners, 2017 (percent)
Age- and Weight-Related Issues Not a Purchase Driver
Table 5-16 Levels of Agreement/Disagreement with Statement, “Age-Related Conditions Are the
Cause of Some of the Pet Medications That I Buy”: Dog Owners vs. Cat Owners, 2017 (percent)
Table 5-17 Levels of Agreement/Disagreement with Statement, “Weight/Obesity-Related Conditions
Are the Cause of Some of the Pet Medications That I Buy”: Dog Owners vs. Cat Owners, 2017(percent)
Attitudes on Veterinarian/Professional vs. Store Products
Table 5-18 Levels of Agreement/Disagreement with Statement, “I Trust the Pet Medications My
Veterinarian Recommends”: Dog Owners vs. Cat Owners, 2017 (percent)
Table 5-19 Levels of Agreement/Disagreement with Statement, “I Trust the Pet Medications Available at the Stores Where I Buy Pet Products”: Dog Owners vs. Cat Owners, 2017 (percent)
Table 5-20 Levels of Agreement/Disagreement with Statement, “With Spot-On (Topical) Flea/Tick
Products, the Products Available in Stores Are Just as Effective as Those Available Through
Veterinarians”: Dog Owners vs. Cat Owners, 2017 (percent)
Table 5-21 Levels of Agreement/Disagreement with Statement, “With Spot-On (Topical) Flea/Tick
Products, I Would Trust Generic or Store-Brand Products if They Contained the Same Active
Ingredients”: Dog Owners vs. Cat Owners, 2017 (percent)
Table 5-22 Levels of Agreement/Disagreement with Statement, “Veterinarian-Dispensed Spot-On(Topical) Flea/Tick Products Are Too Expensive”: Dog Owners vs. Cat Owners, 2017 (percent)
Alternatives to Pet Meds
Table 5-23 Levels of Agreement/Disagreement with Statement, “I Avoid Using Pet Medications as
Much as Possible”: Dog Owners vs. Cat Owners, 2017 (percent)
Table 5-24 Levels of Agreement/Disagreement with Statement, “I Prefer to Try Holistic/Natural Pet
Treatments Including Nutritional Supplements Before Resorting to Pet Medications”: Dog
Owners vs. Cat Owners, 2017 (percent)
Table 5-25 Levels of Agreement/Disagreement with Statement, “High-Quality Pet Foods Are Effective as a Preventive Pet Health Treatment”: Dog Owners vs. Cat Owners, 2017 (percent)

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