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Special Report: Animal Health Growth Drivers 2020 to 2030
01 June 2020
Author: Alan Bullion | Number of pages: 55 | PDF
Report
The quest for innovation in the animal health industry has been
accelerating tremendously over the past several years as the
leading companies in animal care develop strategies to offset the
maturation of their product portfolios while working to diversify
the ways they offer complete health solutions to veterinarians,
livestock producers, aquaculture professionals, and pet owners.
This report, titled Animal Health Growth Drivers 2020 to
2030 and produced in partnership between industry experts
Animal Pharm and Stonehaven Consulting, will summarize the forces
that have led to an increased emphasis on new approaches to
accessing innovative products and technologies via partnerships,
collaborations, acquisitions, or other means. It will also dive
into a number of potentially transformational technologies and
trends that hold promise for driving the growth of the animal care
industry over the next decade.
The information presented here builds on last year's popular
Animal Pharm report, The New World of Innovation in
Animal Care, which introduced the concept of how the top
companies in animal care have begun to converge technologies in
animal nutrition, diagnostics, vaccines, and therapeutics in their
ongoing effort to generate dynamic growth for their overall
businesses.
It is important to note that this report was researched,
developed, and written prior to the emergence and the known scope
of the COVID-19 crisis. As such, an introductory "chapter zero" has
been added to the report to acknowledge the many implications that
have become apparent for the animal care industry due to the
virus.
The added chapter attempts to outline several short-term,
mid-term, and longer-term effects that have the potential to
fundamentally alter various aspects of the animal care ecosystem
for certain stakeholders throughout both the companion animal and
farm animal sectors. Readers are encouraged to take into account
the ongoing evolution of the COVID-19 scenarios as the dynamics
change over time.
However, the basic premise of this report - that the animal care
industry will continue working to drive growth in the coming decade
by endeavoring to leverage transformational technologies and trends
- has ongoing relevance and remains an important element for
industry growth. The remainder of this summary describes why this
is the case.
Most importantly, as company growth strategies have shifted to
include a significant emphasis on external opportunities to
supplement internal development, the increase in demand for
external innovation has been dramatic. The availability of new
technologies in animal care and a proliferation of partnership
opportunities in recent years have rapidly expanded the sources of
innovation for the industry's leading competitors. At present,
virtually all of the top players are proactively inviting
collaborations with related industries and with startup companies
to potentially create synergies with their current, core research
programs.
This report will outline why the need for external innovation in
the animal care space is growing, and it will detail several areas
that are accelerating the move toward leveraging external
opportunities. For decades, consolidation has been a huge avenue
for climbing the industry rankings in terms of sheer size, and
consolidation will continue to be a large factor in that quest.
Today, however, industry elements like the emergence of an exciting
startup company ecosystem, strategic moves into adjacent and
synergistic market areas, and increasing investments in an evolving
biotechnology sector are adding significantly to the ways companies
are working to maximize the value they bring to customers.
Future sources of innovation and growth are likely to continue
leveraging multiple strategies. While the animal care industry
still has a number of smaller firms that represent potential
acquisition targets, the number of these companies that are of a
size that would bring immediate sales and profits to industry
leaders is not large. Hence, the increased interest in translating
innovation from the human health field into animal care; acquiring
technology through startups; developing
partnerships/collaborations/licenses that provide synergy with
existing portfolios; capitalizing on the Internet of Things (IOT)
and related digital opportunities; and looking at adjacent areas to
the traditional animal care area, including nutrition, diagnostics,
and medical devices.
Animal Health Growth Drivers 2020 to 2030 will work to
describe the new animal care industry that is emerging as a result
of the broader view companies are taking in their research and
development programs and in the ways they are defining and
addressing their customer bases in the various market segments
where they compete. The major takeaways from this report will be
that the potential benefits of investing in the animal care market
today have never been stronger, and that the related potential
breakthroughs in animal medicine have never been more exciting.
The report is organized into chapters intended to outline the
evolution of the traditional animal health industry to what is now
being described as the animal care industry. Ultimately, it will
identify and describe several trends and various technologies that
are expected to drive the growth of the animal care industry over
the next decade.
The first section is an overview the animal care market that
developed as a result of the decades of consolidation that has
taken place throughout the industry and the move toward adjacent
and synergistic market segments such as nutrition, diagnostics, and
digital technologies. This section includes a particular focus on
the latest large transaction to be announced in the form of
Elanco's pending acquisition of Bayer's animal health business.
Following that description of the market and its opportunities, a
handful of high potential areas of focus are highlighted,
including:
Nutrition and diagnostics, with emphasis on how some of the
major competitors in animal care are finding and capitalizing on
the synergies these industry segments bring to their core
businesses
The digital revolution, including digital
technologies/wearables, as well as their place
in the animal care segment
The role of data and artificial intelligence in the animal care
market
How classical innovation will continue to grow and prosper as
the central mechanism for meeting unmet medical needs in animal
health
The human health/animal health crossover, including
technologies like cell and gene therapy and precision
medicine.
Finally, the last section of this report describes how he
startup company investment ecosystem and its role in bringing new
technologies to the forefront of animal care - in addition to the
ongoing investments in all of these technologies, trends, and
factors - will support the animal care market's evolution over the
next decade.
