Increase in pet ownership will lead to industry growth

An increase in U.S. pet ownership is expected to result in an increase in veterinary services in the coming years, according to an industry report by IBISWorld.

IBISWorld is predicting a 3 percent increase in the veterinary services market in 2012, and cites strong economic prospects for 2016 along with rising pet ownership as a catalyst for future industry growth.

According to IBISWorld, veterinary services in the United States are forecast to continue expanding over the next five years following the recent stagnant revenue during the economic downturn.

IBIS is also predicting an increase in larger practices, which it reports will occur partly because of the increasing number of female veterinarians who will soon be entering the work force. The company also cites a greater demand for animal products and favorable legislation that will encourage veterinarians to practice in underserved areas.

IBIS is also predicting the continued growth of veterinary service operators like VCA Antech that consolidate practices in response to growing competition from box stores and online retailers.

Though 3.6 percent growth is a great improvement from 2009 and 2010, it is still lower than the gains of 2006 and 2007, IBIS reports.
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