High-Stakes Trends Shaping the Global Animal Health Market in 2025

Introduction

On June 3, 2026, the U.S. Department of Agriculture's Animal and Plant Health Inspection Service (USDA APHIS) confirmed New World screwworm in a three-week-old calf in Zavala County, Texas, the first U.S. animal case of the current outbreak. Nine weeks later, on August 6, 2026, Zoetis Inc. lowered the midpoint of its full-year 2026 revenue guidance from USD 9.82 billion to USD 9.22 billion, pointing to fewer clinic visits and pet owner price sensitivity. Two events, one sector: the animal health market is no longer lifted by pet ownership alone, and the growth still being earned is concentrated in livestock disease response, diagnostics and differentiated product launches.

According to Next Move Strategy Consulting's Animal Health Market report, the global animal health market was valued at USD 50.10 billion in 2023 and is projected to reach USD 80.12 billion by 2030, growing at a CAGR of 7.0% from 2024 to 2030. NextMSC primary research and analysis indicates that this trajectory remains intact, while the sources of growth within it are being redistributed between companion animal clinics, livestock producers and diagnostic networks.

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This analysis follows three questions now facing investors and executives. Where does incremental revenue come from when veterinary traffic is flat to falling? How are regulators and producers responding to a parasite that U.S. Secretary of Agriculture Brooke Rollins noted had been eradicated from America in 1966? And what does the second half of 2026 imply for the animal health market through the 2030 forecast horizon? The answers draw on company filings, federal agency announcements and NextMSC primary research and analysis.

From Exam Rooms to Cattle Pastures: Where Animal Health Growth Is Moving

June 3, 2026: New World Screwworm Returns to American Cattle Country

USDA APHIS announced on June 3, 2026 that it had confirmed New World screwworm in a bovine in Zavala County, Texas, and formed a unified incident command with the Texas Animal Health Commission. It expedited ground release chambers for sterile flies on top of the 4 million sterile flies per week already being released aerially in the area. Within a week, USDA APHIS reported four confirmed detections, and on June 8 it activated the sterile fly dispersal facility at Moore Air Base in Edinburg, Texas.

The commercial significance is that screwworm converts an abstract biosecurity risk into immediate demand for approved parasiticides, wound care, diagnostics and veterinary labor. The FDA Center for Veterinary Medicine summary of conditionally approved and authorized animal drugs, current as of July 15, 2026, lists three conditionally approved products: Dectomax-CA1 (doramectin injection) for cattle, Credelio Quattro-CA1 for dogs and Exzolt Cattle-CA1 (fluralaner topical solution) for cattle. It also lists emergency use authorizations for NexGard, NexGard COMBO, Credelio, Credelio CAT and Ivomec, and states that no product yet holds full FDA approval for this indication.

On July 28, 2026, Brooke Rollins, U.S. Secretary of Agriculture, said USDA counted 42 confirmed cases, nine of them active, and would reopen the Douglas, Arizona port to cattle imports while adding that "we're not declaring victory yet," as reported by The National News Desk on July 29, 2026. Rollins also said USDA had invested more than USD 1 billion in sterile fly production and response. The U.S. Centers for Disease Control and Prevention (CDC) situation summary continues to rate the current risk to the public and to animals in the United States as very low and reports no locally acquired human infestations, which keeps the commercial impact concentrated on animal health spending.

August 2026 Earnings: One Sector, Two Opposite Readings

Zoetis reported second-quarter 2026 revenue of USD 2.5 billion on August 6, 2026, flat year over year and down 1% on an organic operational basis. U.S. companion animal sales fell 11%, which Kristin Peck, Chief Executive Officer of Zoetis, said in the company's August 6, 2026 results release reflected "a more pressured Companion Animal market." The same release shows U.S. livestock revenue rising 23%, led by cattle and by poultry vaccines tied to disease outbreak activity. Zoetis lowered full-year revenue guidance to USD 9.12 billion to USD 9.32 billion, from the USD 9.68 billion to USD 9.96 billion range it issued on May 7, 2026.

Elanco Animal Health Incorporated read the same quarter differently. Its August 5, 2026 release reports revenue of USD 1,368 million, up 10% and up 8% on an organic constant currency basis, with U.S. Pet Health and U.S. Farm Animal each growing 11%. Zenrelia reached blockbuster status in July and is used in approximately 18,000 U.S. clinics, while Credelio Quattro has reached more than 50% of the U.S. clinic base. Elanco raised full-year revenue guidance to USD 5.09 billion to USD 5.14 billion, and its management said on the August 5, 2026 earnings call that its results ran against secular declines in veterinary visits.

Boehringer Ingelheim's first-half 2026 results, published on July 15, 2026, sit between the two. Its Animal Health net sales were EUR 2.6 billion, a 0.4% increase, which the company attributed to a modestly growing animal health market with increased consumer price sensitivity and fewer veterinary visits in several countries.

The divergence isolates what is still growing. Zoetis cattle revenue rose from USD 323 million to USD 390 million in the quarter, a 21% reported increase, and the company attributed U.S. cattle strength to favorable producer economics in beef cattle and supply timing. Livestock is carrying growth that companion animal clinics are not.

Zoetis Inc. reports livestock revenue of USD 731 million for the second quarter of 2026, split across five species. Cattle contributed USD 390 million, swine USD 117 million, poultry USD 115 million, fish USD 83 million and sheep and other USD 26 million. The values come from the unaudited consolidated revenue by segment and species table in the company's August 6, 2026 results release.

Diagnostics: Revenue Growth Without More Visits

IDEXX Laboratories shows how diagnostics decouples revenue from clinic traffic. Its August 4, 2026 release reports second-quarter revenue of USD 1,217 million, up 10% as reported and 9% organic, with Companion Animal Group diagnostics recurring revenue up 11% as reported and 10% organic, including 10% growth in the United States. On its earnings call the same day, IDEXX said U.S. same-store clinical visits declined an estimated 1.3% in the quarter. The company placed more than 1,600 IDEXX inVue Dx analyzers in the quarter, lifting the installed base above 9,000 instruments, and raised its 2026 organic revenue growth outlook to 8.5% to 9.7%.

Zoetis completed its acquisition of VitalRADS, a veterinary teleradiology platform, in July 2026 and expanded the capabilities of its Vetscan Opticell hematology analyzer, according to its August 6, 2026 release. The VitalRADS platform adds around-the-clock access to board-certified veterinary specialists through a cloud-based service, extending the company's diagnostics offering beyond in-vitro testing into imaging interpretation.

NMSC Strategic Perspective: Growth in the Animal Health Market Has Decoupled From Clinic Traffic

NextMSC primary research and analysis identifies a structural change in how the animal health market converts demand into revenue. The August 2026 results show three distinct revenue engines running at different speeds: livestock vaccines and parasiticides tied to disease events, diagnostics monetized per patient rather than per visit, and differentiated companion animal launches that win share from incumbents instead of from new visits. Segmentation by product, animal type, distribution channel and end user, as used in the NextMSC report, therefore explains company outcomes better than headline pet ownership.

This reading is consistent with the restraints NextMSC's report already identifies, namely the high storage cost of animal vaccines and a gradual shift toward vegetarian diets. Both cap volume growth and reward products that raise value per animal. It also explains why one quarter can produce a guidance cut at one company and a guidance raise at another: the market grows at 7.0% in NextMSC's model, but the distribution of that growth across companies is no longer even.

For executives, the implication is portfolio positioning. Companies concentrated in mature companion animal franchises face share and pricing pressure, while those with exposure to livestock biologics, diagnostics and screwworm-relevant parasiticides can monetize disease events directly.

Section Summary:

Four developments in 2026 show where animal health revenue is moving, away from clinic traffic and toward disease response, diagnostics and share-gaining launches.

• USDA APHIS confirmed New World screwworm in Texas on June 3, 2026, and Rollins reported 42 confirmed cases by July 28, 2026.

• Zoetis cut 2026 revenue guidance while Elanco raised its own, showing that product positioning outweighs market direction.

• IDEXX grew diagnostics recurring revenue 10% organically while U.S. same-store clinical visits fell an estimated 1.3%.

• NextMSC projects the animal health market at USD 80.12 billion by 2030, with growth unevenly distributed across segments.

Industry Impact Analysis

Emergency Authorizations Turn Regulation Into Revenue Timing

The FDA's use of conditional approvals and emergency use authorizations compresses the usual path from data to sale. Zoetis noted in its August 6, 2026 release that Dectomax-CA1 was the first parasite control product to receive FDA conditional approval for prevention and treatment of New World screwworm myiasis in beef cattle, and that Dectomax received an emergency use authorization covering swine, sheep, deer, horses and dairy cattle. Boehringer Ingelheim stated in its July 15, 2026 release that it continues to support the U.S. screwworm response after receiving emergency use authorizations earlier in the year.

FDA Screwworm Product Actions Listed as of July 15, 2026

Sterile Fly Capacity and Border Policy Set the Livestock Demand Curve

Ohio State University Extension's beef team reported on June 17, 2026 that the only operating sterile fly production facility, in Pacora, Panama, produces nearly 100 million sterile flies per week, while USDA aims to reach nearly 500 million per week, the level that supported the original eradication. Two additional plants are planned: one in Metapa, Mexico, with capacity of 60 to 100 million flies per week, and one at Moore Air Base, Texas, with 300 million per week.

Until that capacity exists, producers bridge the gap with chemical prevention, wound management and movement controls, each of which is a purchase or a labor cost. The July 28, 2026 decision to reopen the Douglas, Arizona port, which Rollins said represents only a small share of cattle movement, shows that border measures are being adjusted port by port as case counts fall.

Companion Animal Pricing and Competitive Pressure in the Animal Health Market

In the U.S. companion animal business, Zoetis cited persistent price sensitivity and heightened competition in dermatology and Simparica Trio, generic competition for Cerenia and Convenia, and lower Librela sales in its August 6, 2026 release. Elanco, by contrast, reported strong contributions from both price and volume, and a 9-point year-over-year gain in U.S. JAK market share for Zenrelia. NextMSC's assessment is that share shifts within a flat visit base are now the main driver of company-level outcomes, and that portfolio mix decides exposure: Zoetis states that companion animal products made up 70% of its 2025 revenue.

Zoetis Inc. states that companion animal products represented 70% of its 2025 revenue and livestock products 30%. The company notes that these shares exclude revenue associated with Client Supply Services and Human Health, which represented 1% of total 2025 revenue. The two published shares total 100.0%.

Section Summary:

Regulation, border policy and pricing now determine the timing and distribution of animal health revenue more than aggregate demand does.

• FDA conditional approvals and emergency use authorizations let screwworm products reach cattle and pets before full approval.

• Sterile fly capacity is expected to rise from nearly 100 million to nearly 500 million per week, but not before producers spend on prevention.

• Companion animal pricing pressure and generic entry reward companies with differentiated, efficacy-led launches.

Pros and Cons of Recent Market Developments

Key Data & Statistics

Zoetis Revenue by Segment and Species, Second Quarter 2026 vs Second Quarter 2025 (USD million)

Animal Health Company Results Reported Between July and August 2026

Three readings stand out. Livestock grew 12% at Zoetis while companion animal revenue fell 5%. The International segment grew in both species groups, with livestock and companion animal each up 8% as reported. And the two companies with the strongest quarters, Elanco and IDEXX, grew on product innovation rather than on veterinary visit volume.

Future Outlook & Forecast

The Path to USD 80.12 Billion: What Must Hold for the Animal Health Market

According to NextMSC primary research and analysis, the global animal health market is projected to reach USD 80.12 billion by 2030 from USD 50.10 billion in 2023, a CAGR of 7.0% from 2024 to 2030. NextMSC's report identifies growing demand for protein, rising awareness of food-borne disease and government initiatives that support animal healthcare facilities and product incentives as the demand-side supports for this outlook.

Three conditions determine whether the remainder of 2026 stays consistent with that path. First, screwworm containment: the 42 confirmed cases Rollins reported on July 28, 2026 need to remain a contained event, because renewed spread would raise producer spending on prevention and keep border controls in place. Second, diagnostics utilization: IDEXX's raised outlook relies on testing per visit offsetting weaker traffic. Third, companion animal pricing: Zoetis's guidance revision shows that price sensitivity can erase a full year of expected growth within two quarters.

Regional Lens: North America and Asia-Pacific

NextMSC's regional analysis identifies North America as the largest regional market, supported by pet owners with high disposable incomes and veterinary pharmaceutical research activity, and Asia-Pacific as a steady riser on a growing livestock population and demand for animal-derived food. The 2026 evidence adds nuance. Zoetis's International segment grew 6% on an organic operational basis in the second quarter while its U.S. segment fell 7%, and its other emerging markets grew 21% on the same basis.

Section Summary:

NextMSC projects the animal health market to reach USD 80.12 billion by 2030 at a 7.0% CAGR, with the 2026 path set by screwworm containment, diagnostics utilization and companion animal pricing.

• Screwworm containment determines how long producer prevention spending and border controls persist.

• Diagnostics growth depends on testing per visit continuing to offset weaker clinic traffic.

• Emerging markets are growing faster than the U.S. at Zoetis, consistent with NextMSC's Asia-Pacific analysis.

Next Steps for Stakeholders

For C-Level Executives and Operating Leaders

Rebalance portfolio exposure toward disease response and diagnostics. The August 2026 results show livestock and diagnostics growing while companion animal volumes soften. Review which products in the pipeline earn revenue per patient or per outbreak, and which depend on additional visits.

Secure label and supply readiness for screwworm. With only conditional approvals and emergency use authorizations in place, manufacturers should confirm inventory, cold-chain capacity and veterinarian education ahead of any renewed spread, since NextMSC's report flags the high storage cost of animal vaccines as a restraint.

Price against clinic economics. Zoetis and Boehringer Ingelheim both cite price sensitivity. Test price-volume scenarios for mature franchises before generic entry sets the price for you.

For Institutional Investors

Separate market growth from company growth. A 7.0% market CAGR coexisted with a guidance cut at Zoetis and a guidance raise at Elanco in the same week. Underwrite on franchise positioning and launch trajectory, not on sector averages.

Track three indicators quarterly: confirmed screwworm cases and active case counts from USDA APHIS, U.S. same-store clinical visits as reported by IDEXX, and U.S. livestock revenue growth at Zoetis. Together they show whether the disease-driven, visit-driven and price-driven legs of growth are moving together or apart.

Conclusion

The animal health market is on a 7.0% growth path in NextMSC's model, reaching USD 80.12 billion by 2030, but 2026 has shown that the path is not evenly shared. A screwworm outbreak that began in Texas on June 3, 2026, a guidance cut at Zoetis on August 6, 2026 and a guidance raise at Elanco the day before all point to the same conclusion: revenue now follows disease events, diagnostic utilization and product differentiation more closely than it follows clinic traffic. Stakeholders who position for that distribution, rather than for the sector average, will be better placed as the forecast period advances.