ROCKVILLE, Md., Oct. 22, 2015 /PRNewswire/ -- It's shaping up to be a strong year for the pet medications industry, with U.S. retail sales projected to reach $7 billion by the end of 2015, according to market research publisher Packaged Facts in a recent report. The forecast figure, which is almost a 7% increase over 2014, includes sales through veterinarians, brick-and-mortar retailers, and online. With sales having also increased 6% in 2014 over 2013, the past two years mark a return to form for pet medications.
The findings were published in the brand-new Packaged Facts report, Pet Medications in the U.S., 4th Edition. For in-depth information on the report, including the abstract and table of contents, visit: http://www.packagedfacts.com/redirect.asp?progid=87943&productid=9349344.
The industry's performance in 2013 was the worst in recent memory. The flat growth was attributed to several factors: a colder than normal winter and spring, which greatly affected flea and tick medication sales; significant erosion of the market-leading Frontline brand, which felt the effects of its fipronil patent expiration as it loses sales to lower-priced alternatives; and something of a scale-back in revenue in several products that launched in 2012 and received less marketing support in 2013.
The strong two-year increase for 2014 and 2015 reflects several blockbuster product introductions in the veterinary channel in the last couple of years, particularly Zoetis' APOQUEL, Merial's Nexgard, and Merck's Bravecto, as well as the reintroduction of brands formerly produced by Novartis, such as Sentinel and Interceptor. Growth was mitigated somewhat by intense competition among Frontline Plus and its various knockoffs, particularly as they became sold in brick-and-mortar and online channels, where margins are lower.
Looking further ahead, Packaged Facts anticipates that pet medications will be one of the highest growth areas of pet retailing during the next decade, as more ethical and prescription products migrate to over-the-counter (OTC), and channels that have long made a big business out of selling human medications increasingly tap in on the companion animal side. Still, the veterinary channel continues to be critical to the industry, as animal health companies understand that the veterinarian will continue to hold considerable sway over pet owner decisions, especially for products that require a prescription.
"Pet medications sales will continue growing at a brisk pace and experience solid returns through 2019. As always, the biggest wildcard will be the weather for flea and tick sales. But several animal health companies have a strong product pipeline, with new products expected in the next couple of years that could have a favorable impact on sales," says David Sprinkle, research director, Packaged Facts.
Pet Medications in the U.S., 4th Edition analyzes the market for prescription and over-the-counter medications for dogs and cats, with a particular focus on brand-name products used by consumers and on antiparasitics. Areas covered include parasite prevention and control (flea, tick, heartworm, etc.), cancer, pain management, behavioral health, diabetes, cognitive dysfunction, heart health, ear care and allergies. The report provides in-depth coverage of competitive trends, new product trends and marketing activity, and draws on insights from other reports in Packaged Facts' extensive Pet Market Collection. Statistics provided include historical and projected market revenues, along with demographics and psychographics of pet med purchasers, based on data from sources including Simmons and Packaged Facts own pet owner surveys. For more information on Pet Medications in the U.S., 4th Edition, or to purchase the report visit: http://www.packagedfacts.com/redirect.asp?progid=87943&productid=9349344.
About Packaged Facts – Packaged Facts, a division of MarketResearch.com, publishes market intelligence on a wide range of consumer market topics, including consumer demographics and shopper insights, consumer financial products and services, consumer goods and retailing, consumer packaged goods, and pet products and services. Packaged Facts also offers a full range of custom research services. Reports can be purchased at www.PackagedFacts.com and are also available on www.marketresearch.com and www.profound.com.
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SOURCE Packaged Facts