IBIS World’s report on the Veterinary Services industry is released to address the growth in marketplace of pet ownership. A forecast predicting expansion of the veterinary services market over the next five years to 2017 comes on the heels of a 2.4 percent annualized growth during the five years up to 2012. Expected growth of 4.6 percent in 2012 will help increase revenue by year’s end to $29.9 billion in the veterinary services market.

IBISWorld industry analyst, Sophia Snyder, shared, “Rising pet ownership and a greater willingness to spend on pet health and wellness helped maintain growth during these years.”

Due to a drop in the number of clients visiting their pet’s veterinarian, revenue growth for vets has slowed. Snyder notes the growth prediction based on improvement from the 2009 revenue decline. It is believed that even with falling per capita disposable income, the industry has remained resilient.

Larger practices are expected to increase by 2017, due in part, according to IBIS, female veterinarians entering the work force and generally not owning their own practices. It is noted that the majority of animal hospitals are sole-practitioner, single-site veterinarians but that the larger multi-doctor animal hospitals with more technical offerings are where many veterinarians are gravitating.

“Consolidation has helped operators reduce costs to effectively compete with other providers,” Snyder reported. “Nonetheless, wage costs have increased as a percentage of revenue, due to a veterinarian shortage in the United States.” This factor is also partly attributable to the rising use of well-paid veterinary technicians to assist in the use of developing technologies.”

IBISWorld is an independent source for industry and market research. The company’s services include business, professional, and government organizations throughout more than 10 locations worldwide. Learn more at www.ibisworld.com.