Indonesia animal health market is evaluated at US$518.437 million for the year 2019 and is projected to grow at a CAGR of 4.04% to reach a market size of US$683.933 million by the year 2026.
Animal health products are all those products that are specifically manufactured to cater to the needs of animals such as medicines, vaccines, and other nutritional products among others. The growth in the number of diseases in animals is anticipated to be one of the primary factors supplementing the demand for animal health products globally during the next five years. Similarly, on the other hand, a significant increase in the demand for food and food products has led to an upsurge in the livestock population in the country. This, combined with the rising outbreak of animal diseases is projected to supplement the market growth during the given time frame. Furthermore, the government is playing a significant role in bolstering the demand for animal health-related products since they are strategically taking steps to promote the health of animals. A surge in the number of animal welfare associations in rapid growth in the number of NGOs focusing on the care of stray animals is also propelling the business growth opportunities for the manufacturers over the forecast period. Moreover, an upsurge in animal breeding activities and the growing inclination of millennials towards the adoption of animals also provides an impetus to the market growth in the near future.
Indonesia is one of the rapidly emerging South-Asian economies, and the growth is fuelled by the rapidly increasing urbanization and industrial rates. This demographic change is very crucial to the future growth of the animal health market in the country. The humanization of pets has become a new trend among the nuclear Indonesian household. This was further boosted by increasing single-populations who preferred to have a pet companion along with them. Larger low and middle-income group Indonesian populations are favoring the growth of improved healthcare for their animals. The major constrain offered by the region is that owning a dog is a limitation among the Muslim populations of Indonesia. A larger cat population can be witnessed in the country compared to the dogs. The rise in internet sales and the growth of e-commerce are important in convenience-oriented animal health care markets.
Pet humanization is a result of rising income, changing demographic patterns, and consumer preferences. There has been a shift toward pet ‘parenting’ from ‘ownership’, which influenced the purchasing decisions of pet products. Furthermore, the rise in income led to more imports of enhanced animal care products for retail sale in Indonesia. Consumers demand clearly defined clean labels due to increasing health consciousness for their pets. Currently, pet owners resolute about knowing the nutritional constituent information of the various animal care products. As a result, some animal; health care companies claim transparency in the sourcing and processing of ingredients. As consumers become progressively more concerned about their health, particularly in relation to their diet, similar concerns about the diets of their pets are increasing significantly. Furthermore, they highly prefer natural and organic products. Owners who are highly involved with their pets often spend a large amount on pet food and other animal care products.
The advent of COVID-19 had a positive impact on the Indonesian animal health market. Due to the pandemic scenario and lockdown imposed by the government, the animal owners prefer to stay at home spending more of their time nurturing and pampering their pets. The awareness towards healthy living has motivated the pet owners to spend on buying protein-rich, nutritious, customized pet foods for their pets. This widespread scare of the pandemic resulted in the rising awareness about animal health in the country. Leading players in the Indonesian market have performed well during the pandemic with demand increasing from both existing pet owners and new pet owners that acquired pets during the crisis. With growth across all product categories, many leading players have gained share as they are top of mind and have established more extensive distribution in the market. Developments seen during the COVID-19 crisis are expected to lay the foundation for the further expansion of pet care in the Indonesian market during the forecast period. The expansion of the pet population during the pandemic will support continued demand.
The segmentation of the Indonesian animal health market has been done into type, animal type, end-user, distribution channel, and geography. By type, the classification of the market has been done into Vaccines, Pharmaceuticals, Feed Additives, Others. By animal type, the classification of the market has been done into Companion Animal, Production Animal. By end-user, the classification of the market has been done into Vet Hospitals And Clinics, Animal Farms, Others. By distribution channel, the classification of the market has been done into Online, Offline.
Encouraging government regulations will drive the market during the forecast period.
On February 10, 2020, the Ministry of Trade (MOT) issued regulation number 7/2020 on Buying Reference Prices at Farmer’s Level and Selling Reference Prices at Customer Level for several commodities, to ensure stable supply and prices. The poultry industry consumes a significant share of domestic animal feed supplies including animal health care products followed by aquaculture that consumes and cattle and swine the aforementioned MOT regulation sets up buying prices of chicken meat, day-old chicks, and egg due to the fluctuating prices of poultry products. To support the MOT regulation, and to ensure a balance of supply and demand of day-old chicks, on February 20, 2020, the Ministry of Agriculture (MOA) issued a circular letter on hatching eggs. The letter requires integrated poultry farmers to withdraw a total of 15 million of 19-days old hatching eggs from the hatching machine every week for February 4 - 29, 2020. The policy is expected to reduce day-old chick production by approximately 40 million head by the end of March 2020. At the end of December 2019, integrated poultry farmers produced a total of 262.9 million hatching eggs. The policy, combined with lower consumption due to COVID-19, is expected to lower overall poultry meat production in 2020.
Rising awareness of animal health amongst the farmers will be a tailwind to the growth of the market during the forecast period.
The growth of the market of animal health care market in Indonesia will be further fuelled by its increasing awareness amongst the farmers in the country. According to a document published by the ReAct Asia-Pacific, the share of antimicrobials used in livestock production in Indonesia is dominantly in poultry farms rather than other livestock sectors. A study of antibiotic use in 360 small and medium scale commercial broiler farms in three provinces: West Java, East Java, South Sulawesi by the Ministry of Agriculture revealed the following results: Most of the farms (86%) operated under a supply contract with a major integrated poultry company. The decision on which antibiotics to use is influenced by the technical staff of the poultry farm supply contract company, who also provide the antibiotics for farmers (75%), followed by farmers’ previous experiences (9%), and sales staff of drug/feed/day-old-chick suppliers (7%). Most farm supply contract company technical staff (86%) and drug/feed/day-old-chick suppliers’ staff (50%) do not have a veterinary background. Most commonly used antibiotics were: Enrofloxacin (49.4%), amoxicillin/colistin (35.3%), trimethoprim/sulfadiazine (14.1%), and doxycycline (13.3%). Such developments are expected to increase the adoption of animal health care solutions in the country.
Competitive Insights
The players in the Indonesian animal health market are implementing various growth strategies to gain a competitive advantage over their competitors in this market. Major market players in the market have been covered along with their relative competitive strategies and the report also mentions recent deals and investments of different market players over the last few years. The company profiles section details the business overview, financial performance (public companies) for the past few years, key products and services being offered along with the recent deals and investments of these important players in the market.
Segmentation:
By Type
By Animal type
By end-user
Animal health products are all those products that are specifically manufactured to cater to the needs of animals such as medicines, vaccines, and other nutritional products among others. The growth in the number of diseases in animals is anticipated to be one of the primary factors supplementing the demand for animal health products globally during the next five years. Similarly, on the other hand, a significant increase in the demand for food and food products has led to an upsurge in the livestock population in the country. This, combined with the rising outbreak of animal diseases is projected to supplement the market growth during the given time frame. Furthermore, the government is playing a significant role in bolstering the demand for animal health-related products since they are strategically taking steps to promote the health of animals. A surge in the number of animal welfare associations in rapid growth in the number of NGOs focusing on the care of stray animals is also propelling the business growth opportunities for the manufacturers over the forecast period. Moreover, an upsurge in animal breeding activities and the growing inclination of millennials towards the adoption of animals also provides an impetus to the market growth in the near future.
Indonesia is one of the rapidly emerging South-Asian economies, and the growth is fuelled by the rapidly increasing urbanization and industrial rates. This demographic change is very crucial to the future growth of the animal health market in the country. The humanization of pets has become a new trend among the nuclear Indonesian household. This was further boosted by increasing single-populations who preferred to have a pet companion along with them. Larger low and middle-income group Indonesian populations are favoring the growth of improved healthcare for their animals. The major constrain offered by the region is that owning a dog is a limitation among the Muslim populations of Indonesia. A larger cat population can be witnessed in the country compared to the dogs. The rise in internet sales and the growth of e-commerce are important in convenience-oriented animal health care markets.
Pet humanization is a result of rising income, changing demographic patterns, and consumer preferences. There has been a shift toward pet ‘parenting’ from ‘ownership’, which influenced the purchasing decisions of pet products. Furthermore, the rise in income led to more imports of enhanced animal care products for retail sale in Indonesia. Consumers demand clearly defined clean labels due to increasing health consciousness for their pets. Currently, pet owners resolute about knowing the nutritional constituent information of the various animal care products. As a result, some animal; health care companies claim transparency in the sourcing and processing of ingredients. As consumers become progressively more concerned about their health, particularly in relation to their diet, similar concerns about the diets of their pets are increasing significantly. Furthermore, they highly prefer natural and organic products. Owners who are highly involved with their pets often spend a large amount on pet food and other animal care products.
The advent of COVID-19 had a positive impact on the Indonesian animal health market. Due to the pandemic scenario and lockdown imposed by the government, the animal owners prefer to stay at home spending more of their time nurturing and pampering their pets. The awareness towards healthy living has motivated the pet owners to spend on buying protein-rich, nutritious, customized pet foods for their pets. This widespread scare of the pandemic resulted in the rising awareness about animal health in the country. Leading players in the Indonesian market have performed well during the pandemic with demand increasing from both existing pet owners and new pet owners that acquired pets during the crisis. With growth across all product categories, many leading players have gained share as they are top of mind and have established more extensive distribution in the market. Developments seen during the COVID-19 crisis are expected to lay the foundation for the further expansion of pet care in the Indonesian market during the forecast period. The expansion of the pet population during the pandemic will support continued demand.
The segmentation of the Indonesian animal health market has been done into type, animal type, end-user, distribution channel, and geography. By type, the classification of the market has been done into Vaccines, Pharmaceuticals, Feed Additives, Others. By animal type, the classification of the market has been done into Companion Animal, Production Animal. By end-user, the classification of the market has been done into Vet Hospitals And Clinics, Animal Farms, Others. By distribution channel, the classification of the market has been done into Online, Offline.
Encouraging government regulations will drive the market during the forecast period.
On February 10, 2020, the Ministry of Trade (MOT) issued regulation number 7/2020 on Buying Reference Prices at Farmer’s Level and Selling Reference Prices at Customer Level for several commodities, to ensure stable supply and prices. The poultry industry consumes a significant share of domestic animal feed supplies including animal health care products followed by aquaculture that consumes and cattle and swine the aforementioned MOT regulation sets up buying prices of chicken meat, day-old chicks, and egg due to the fluctuating prices of poultry products. To support the MOT regulation, and to ensure a balance of supply and demand of day-old chicks, on February 20, 2020, the Ministry of Agriculture (MOA) issued a circular letter on hatching eggs. The letter requires integrated poultry farmers to withdraw a total of 15 million of 19-days old hatching eggs from the hatching machine every week for February 4 - 29, 2020. The policy is expected to reduce day-old chick production by approximately 40 million head by the end of March 2020. At the end of December 2019, integrated poultry farmers produced a total of 262.9 million hatching eggs. The policy, combined with lower consumption due to COVID-19, is expected to lower overall poultry meat production in 2020.
Rising awareness of animal health amongst the farmers will be a tailwind to the growth of the market during the forecast period.
The growth of the market of animal health care market in Indonesia will be further fuelled by its increasing awareness amongst the farmers in the country. According to a document published by the ReAct Asia-Pacific, the share of antimicrobials used in livestock production in Indonesia is dominantly in poultry farms rather than other livestock sectors. A study of antibiotic use in 360 small and medium scale commercial broiler farms in three provinces: West Java, East Java, South Sulawesi by the Ministry of Agriculture revealed the following results: Most of the farms (86%) operated under a supply contract with a major integrated poultry company. The decision on which antibiotics to use is influenced by the technical staff of the poultry farm supply contract company, who also provide the antibiotics for farmers (75%), followed by farmers’ previous experiences (9%), and sales staff of drug/feed/day-old-chick suppliers (7%). Most farm supply contract company technical staff (86%) and drug/feed/day-old-chick suppliers’ staff (50%) do not have a veterinary background. Most commonly used antibiotics were: Enrofloxacin (49.4%), amoxicillin/colistin (35.3%), trimethoprim/sulfadiazine (14.1%), and doxycycline (13.3%). Such developments are expected to increase the adoption of animal health care solutions in the country.
Competitive Insights
The players in the Indonesian animal health market are implementing various growth strategies to gain a competitive advantage over their competitors in this market. Major market players in the market have been covered along with their relative competitive strategies and the report also mentions recent deals and investments of different market players over the last few years. The company profiles section details the business overview, financial performance (public companies) for the past few years, key products and services being offered along with the recent deals and investments of these important players in the market.
Segmentation:
By Type
- Vaccines
- Pharmaceuticals
- Feed Additives
- Others
By Animal type
- Companion Animal
- Production Animal
By end-user
- Vet Hospitals And Clinics
- Animal Farms
- Others
Table of Contents
1. Introduction
2. Research Methodology
3. Executive Summary
4. Market Dynamics
5. Indonesia animal health market Analysis, by Type
6. Indonesia animal health market Analysis, by Animal type
7. Indonesia animal health market Analysis, by End user
8. Competitive Environment and Analysis
9. Company Profiles
Companies Mentioned
- Zoetis Inc.
- Merck & Co., Inc.
- Vetoquinol
- Elanco
- Bayer AG
- ceva Santé Animale
- Virbac
- IDEXX Laboratories
- Phibro Animal Health
- Boehringer Ingelheim
Methodology
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