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Veterinary Services Industry Profile Excerpt
| SIC Codes: 0741, 0742 NAICS Codes: 54194 Page Length: 10-12 Last Quarterly Update: 9/8/2008 View Sample Industry Profile |
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The US veterinary services industry includes about 20,000 veterinary centers and animal testing laboratories, with combined annual revenue of $17 billion. Veterinary Centers of America (VCA Antech) is the largest operator of animal hospitals and testing labs. The industry is highly fragmented: the 50 largest companies hold less than 10 percent of the market. The typical veterinary services company operates a single 4,000 square foot animal hospital with a staff of ten, including two veterinarians, and has annual revenue under $1 million.
COMPETITIVE LANDSCAPE
Demand is driven mainly by the number of cats and dogs kept as pets, which is affected by demographics. The profitability of an individual clinic depends on marketing skills, and by the range of services the practice offers. Large practices enjoy economies of scale in marketing as well as more capital to invest in onsite diagnostic equipment. Small practices can compete effectively by specializing in particular animals or types of treatment, or by serving an exclusive area.
PRODUCTS, OPERATIONS & TECHNOLOGY
Animal hospitals and clinics treat injuries and disease, but derive most revenue from animal health procedures like neutering and spaying, vaccinations, and regular checkups. Some animal hospitals also bathe, groom, board, and provide testing services. Sales of pet food, vitamins, and accessories account for about 15 percent of industry revenue. The industry is divided into services for food animals (cattle, pigs, chickens) and pets ("companion animals"). Caring for dogs and cats accounts ...
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