There are numerous players operating in the global veterinary/animal vaccines market. Some of the big players have captured a significant share of the global market, taking advantage of their strong position and presence in a number of countries and regions across the world. Major companies are opting for new product launches, strategic partnerships, and collaborations to strengthen their market position. However, several local players also operate in domestic markets and hold significant market shares.
The top players in the global veterinary/animal vaccines market are Boehringer Ingelheim International GmbH, Zoetis, Ceva, and MSD & Co. Inc.
Boehringer Ingelheim International GmbH held the first position in the global veterinary/animal vaccines market with a 24.34% market share in 2017. It is one of the largest and fastest-growing market players. The company has a strong presence in the Americas, Europe, and Asia-Pacific. It operates in business segments including human pharmaceuticals, animal health, and biopharmaceuticals and generates its maximum revenue from the human health segment. The company had been showing constant growth in animal health revenues over a couple of years due to the acquisition of Merial.
Zoetis held the second largest position in the veterinary/animal vaccines market and accounted for a noticeable market share of 22.72% in 2017. The company has a strong presence in the market, and its products are unique and stable as compared to other market players. Zoetis emphasizes quality products through strong R&D. It offers more than 200 products in the global animal health market and operates in all major and emerging markets. Strategic collaborations and acquisitions along with new product launches could provide favorable conditions for the company to strengthen its position in the global veterinary/animal vaccines market.
Ceva held the third largest position in the global veterinary/animal vaccines market. The company is likely to register a significant growth during the forecast period owing to its strong presence in emerging markets such as the Americas, Europe, and Asia. The company has an extensive product portfolio, and it generates maximum revenue from its strategic products business segment and invests more than 9% of its revenue for research and development. The company accounted for 17.70% of the total market share in 2017.
MSD & Co. Inc. is known as Merck KGaA outside the Americas. The company offers products related to veterinary care under the animal health division. It is one of the major players in the global pharmaceutical market and has a strong distribution network worldwide. Currently, the company offers a wide range of products in veterinary/animal vaccines which covers all animal species including companion animals, horses, ruminants, swine, poultry, and aquaculture. In 2017, it accounted for the fourth largest position in the global veterinary/animal vaccines market with a market share of 12.76%. Some other major players operating in the global veterinary/animal vaccines market are Elanco, Virbac, Phibro Animal Health Corporation, Hipra, IDT Biologika GmbH, Biogénesis Bagó, and others.
Bargaining Power of Suppliers
The suppliers in the global veterinary/animal vaccines market are veterinary/animal vaccines product manufacturers. There are limited suppliers present in the global veterinary/animal vaccines market. Switching cost of these suppliers is low due to intense competition, and also it varies from product to product. Moreover, suppliers are likely to enter into strategic partnerships with distributors, government organizations, and veterinary hospitals to increase the reach. Due to the eruption of veterinary diseases, a large number of customers are available in the developing market, and several suppliers are there to cater to the needs of the customers which leads to intense competition between the existing suppliers. However, the quality of product plays an important role in the animal health industry as the veterinary/animal vaccines products are used to protect against life-threatening diseases. However, low-quality products are likely to damage the wellbeing of an animal, and it can cause adverse effects. Hence, customers and healthcare service providers are selective about suppliers. Due to this, the overall bargaining power of suppliers in the global veterinary/animal vaccines market is low to medium.
Bargaining Power of Buyers
The bargaining power of buyers is medium to high in the global veterinary/animal vaccines market. The market has a large number of buyers and numerous veterinary/animal vaccines product manufacturing companies to cater to the need of the buyers. However, the veterinary/animal vaccines products are specialized and play an important role in providing immunological protection to the animal, and the buyers of the veterinary/animal vaccines market are moderately inclined towards quality products manufactured by trusted companies. As the products are manufactured for the prevention of specific disease and there are limited substitutes available in the market. Also, most of the buyers are veterinary hospitals and government organizations; they are price sensitive. Moreover, they can exert pressure on the manufacturers due to the low switching cost and intense rivalry in the market, which is responsible for the increased bargaining power of buyers.
Threat of New Entrants
The threat of new entrants is medium to high in the global veterinary/animal vaccines market. Any manufacturing company trying to enter the market is required to accept or abide by the mandatory regulatory standards. However, the budget required for research and development of a product is moderate as compared to other industries. Veterinary/animal vaccines products are specialized and manufactured to be used in a specific disease, and the majority of the customers are using products of well-established brands and they are likely to prefer established brands over new market player due to quality concerns, which does not comfort the new entrants to enter the market easily. However, increasing awareness about veterinary disorders in developing countries and increasing adoption of new technology in healthcare is likely to provide a favorable environment for new entrants.
Threat of Substitutes
The threat of substitutes in the global veterinary/animal vaccines market is low to medium. Veterinary/animal vaccines products are used for protecting against veterinary disorders. There are limited options available in the veterinary/animal vaccines market to serve the need of the customers and which eliminates the threat of substitute. However, the dosage or the number of injections used in the procedure varies from brand to brand. Also, the medium degree of switching cost decreases the threat of substitutes. The overall threat of substitutes in the global veterinary/animal vaccines market is low to medium.
Rivalry
The rivalry in the global veterinary/animal vaccines market is high. The low degree of product differentiation and a large number of customers increases the intensity of rivalry in the market. The market is growing with a prominent growth rate and likely to provide opportunities for major players to expand their geographical boundaries which will initiate cutthroat competition between major players to capture maximum market share in the emerging markets. Major players are trying to develop less expensive products to make these products more affordable in emerging markets. Players are engaged in developing a process to lower their manufacturing and logistics cost to increase profitability and to overcome the competition. Moreover, they are also developing advanced products for differentiating their brand from their competitors.
