Veterinary Market Research: How to Thrive in a Changing Animal Healthcare Industry
Veterinary market research is a vital tool for practices and also the companies that provide pharmaceuticals, medical equipment, diagnostic services, technology, and other services in a fast-changing environment. Advances in animal healthcare, evolving business models, and shifts in pet-owner expectations mean business as usual no longer applies. The economic pressures of higher operating costs, staff shortages, and increased competition add stress and risk. Veterinary market intelligence provides insights for this $41 billion industry across these issues to support better decisions.
Veterinary industry trends to watch
Veterinarians, practice operators, and companies serving this market are experiencing developments across several fronts that are creating both challenges and opportunities.
Veterinary practices are increasingly corporate-owned
The idea of a veterinarian opening up a local individual practice is less and less common. Corporate veterinary groups are taking over independent practices and animal hospitals. These larger organizations have negotiating leverage, economies of scale, and buying power. They can consolidate overhead, standardize practices, and invest in professional marketing.
New business models and distribution channels
Pet owners have more options for caring for their animals than ever before. Online telehealth, direct-to-consumer pharmacies, mobile vets and in-home providers, and specialized practices now compete with independent veterinary practices.
Technology and AI are a huge opportunity – with challenges
The opportunities inherent in digital practice management systems, AI-assisted diagnostics, telemedicine, and automated communications are still in their early stages. They promise improvements in operational efficiency and patient care. For smaller practices, technology can be prohibitively expensive and complicated to implement and use.
Workforce shortages put pressure on animal care providers
The demand for veterinary care is outstripping the supply of care providers. There are currently two to three thousand more openings for veterinarians than there were professionals available to fill those positions. This ongoing trend is contributing to higher costs and is increasing the need for more efficiency in operations.
Pet parent expectations are evolving
Pet owners see their pets as members of the family. That is driving more people to buy pet insurance. That makes advanced diagnostics and care more in reach and creates growing demand. Pet owners who see themselves as pet parents are more concerned about healthy habits for their pets and seek advice on preventive care. And, as with most industries, they expect transparency, convenience, and options from veterinary practices.
Where veterinary market research provides value
Market research helps veterinary practices and companies reduce uncertainty, make better-informed decisions, and identify opportunities in a changing industry. Research is useful in exploring:
- Developing products and services, both for new offers and improving existing ones
- Uncovering underserved market segments
- Better understanding purchasing decisions
- More effectively using marketing and promotions
- Improving competitive offers, pricing, and distribution
- Testing new concepts, features, pricing, and perceived value before investing
- Allocating resources more effectively
- Improving loyalty for long-term stability and growth
What questions should researchers ask?
The specifics of any veterinary market research program depend on the needs of the company sponsoring the research. Here are some basic questions for veterinary practices and the companies supplying them:
Market research areas for veterinary practices
- What are the biggest operational and clinical challenges facing your practice?
- Which veterinary services and treatments are experiencing growing demand?
- What unmet needs do you encounter in your daily work?
- What factors influence your choice of pharmaceutical, equipment, and technology suppliers?
- Who participates in purchasing decisions, and what criteria determine which products are selected?
- How do you evaluate new products, technologies, and treatment options?
- What prevents your practice from adopting new technologies or services?
- How are rising costs and pet-owner affordability concerns influencing treatment recommendations?
- What improvements would you like to see from your current suppliers?
Market research areas for companies serving the veterinary industry
- Which veterinary practice segments and specialties offer the greatest growth potential?
- What unmet needs are creating opportunities for new products and services?
- How are changes in practice ownership and corporate consolidation affecting purchasing behavior?
- What factors influence veterinarians’ selection of products, services, and suppliers?
- How do purchasing requirements differ between independent practices and corporate veterinary groups?
- Who are the leading competitors, and how are their products and services positioned?
- Which pricing strategies and distribution channels are most effective?
- What barriers make it difficult to introduce new products or gain market share?
- How are technology adoption and changes in veterinary practice operations influencing demand?
- What opportunities exist to improve customer acquisition, satisfaction, and retention?
Effective research methods for the veterinary industry
Generating useful insights in this market requires using a variety of research methodologies. It is a specialized audience and the industry is complex with many stakeholders, specialized areas, and business models. Those two factors call for using multiple approaches to gain a comprehensive perspective of the environment, risks, and opportunities.
- In-depth interviews: Direct discussions with veterinarians, practice owners, and staff are ideal for exploring professional needs, purchasing behavior, and operational challenges. Interviews are most useful for investigating complex issues like what is behind purchasing decisions, detailing unmet needs, and evaluating new product concepts.
- Focus groups: Group discussions uncover common concerns, reactions to new ideas, and differing opinions around practice challenges, evolving needs, and opportunities. They can be a creative tool, as well, generating ideas for product improvements and new services.
- Online surveys: Measuring product awareness, purchase influences, what drives supplier preferences, the extent of technology adoption, and customer satisfaction are just some of the areas where quantitative research is helpful. With a large sample size, it is possible to compare findings across practice sizes, specialties, ownership structures, and geographic markets.
- Competitive intelligence: Research into competing veterinary products, services, suppliers, and business models provides insights into market positioning, pricing, distribution, and competitive advantages. Companies can identify gaps, unmet needs, and opportunities to differentiate.
SIS International brings specific expertise to veterinary market research
SIS International tailors market research projects to the unique requirements of this industry and each client. We understand its specialized nature and the need to use a combination of qualitative and quantitative research, expert interviews, surveys, and focus groups to generate a comprehensive view of the marketplace. Our expertise in benchmarking and competitive assessments provides practices and suppliers with the perspective necessary for navigating through and thriving in a changing animal healthcare marketplace.
Frequently asked veterinary market research questions
What is veterinary market research?
Veterinary market research examines the animal healthcare industry, including veterinary practices, professionals, suppliers, products, and services. It helps companies understand market demand, purchasing behavior, competitive dynamics, and emerging opportunities.
Who should invest in veterinary market research?
Companies developing or supplying veterinary pharmaceuticals, medical equipment, diagnostic services, practice management software, and other animal healthcare products can benefit from market research. It is also valuable for investors and businesses considering market entry, expansion, acquisitions, or new product launches.
What market research methods are most effective for reaching veterinarians?
In-depth interviews, online surveys, and focus groups are effective for gathering insights from veterinary professionals. Competitive intelligence, market assessments, and product testing provide additional perspectives on market opportunities, purchasing behavior, competitive positioning, and unmet needs. The best approach depends on the research objectives, target audience, and information required.
