The global veterinary contract manufacturing market size was valued at USD 4.0 billion in 2025 and is anticipated to reach USD 7.7 billion by 2033, registering a CAGR of 8.6% from 2026 to 2033. The market is witnessing substantial growth due to the increasing strategic emphasis on contract manufacturing organization (CMO) business models, rising investments in multi-species production facilities, growing demand for outsourced veterinary manufacturing contracts, and supportive regulatory frameworks across major economies. The increasing reliance on outsourcing among animal health companies is enabling manufacturers to improve scalability, optimize operational efficiency, and focus on innovation-driven activities such as research, product development, and commercialization.

Key Market Trends & Insights

• Europe veterinary contract manufacturing industry held the largest revenue share of 31.1% in 2025.
• Germany dominated the European region with the largest revenue share in 2025.
• By product, the pharmaceuticals segment held the largest share of 48.1% of the market in 2025.
• By animal, the production animal segment held the largest in the market in 2025.
• By service, the manufacturing services segment held the largest market share in 2025.

Market Size & Forecast

• 2025 Market Size: USD 4.0 Billion
• 2033 Projected Market Size: USD 7.7 Billion
• CAGR (2026-2033): 8.6%
• Europe: Largest market in 2025
• Asia Pacific: Fastest growing market

The veterinary contract manufacturing industry is evolving rapidly as pharmaceutical and biotechnology companies continue to expand their outsourcing strategies. Companies operating in the animal health sector are increasingly preferring external manufacturing partners to reduce production costs and avoid heavy capital expenditure associated with in-house facilities. This shift has become particularly significant with the growing demand for veterinary biologics, vaccines, active pharmaceutical ingredients (APIs), and specialty therapeutics designed for both livestock and companion animals. The market is also benefiting from advancements in manufacturing technologies and the growing adoption of integrated production platforms that support multiple dosage forms and species-specific formulations.

Download a free sample copy of the Veterinary Contract Manufacturing Market report to understand detailed coverage and inclusions in the final report

One of the major factors supporting market expansion is the growing strategic focus on CMO-centered business operations. Animal health companies are concentrating on core competencies such as drug discovery, portfolio management, and market expansion while outsourcing manufacturing requirements to specialized partners. This model provides greater flexibility, faster production timelines, and enhanced compliance with regulatory standards. In April 2026, Prange Pharma acquired an animal health manufacturing facility from MSD Animal Health in Italy, which strengthened its presence in the contract development and manufacturing organization (CDMO) landscape. Such strategic acquisitions demonstrate how companies are increasing their manufacturing capabilities to meet rising global demand for veterinary healthcare products.

Another important growth driver is the increasing investment in capacity expansion for multi-species manufacturing facilities. Demand for veterinary vaccines, pharmaceuticals, and APIs is increasing across livestock, poultry, swine, aquaculture, and companion animal segments. To address this rising demand, CDMOs are investing in advanced infrastructure capable of supporting large-scale production across various animal categories. These facilities are designed to ensure flexibility, regulatory compliance, and efficient manufacturing processes. In September 2025, Sai Life Sciences expanded its dedicated veterinary API manufacturing operations in India to strengthen its position within global animal healthcare supply chains. Such investments highlight the industry's transition toward integrated and diversified manufacturing systems that can handle multiple therapeutic categories and dosage forms.

Looking for more specific insights? Customize this report to suite your business needs

The growing complexity of veterinary medicines is also accelerating demand for outsourced manufacturing services. Biologics, specialty injectables, vaccines, and advanced formulations require sophisticated technologies, specialized equipment, and strict quality control measures. Many pharmaceutical companies prefer collaborating with CDMOs that possess expertise in regulatory compliance and advanced manufacturing capabilities. Outsourcing also enables smaller and mid-sized firms to access scalable production solutions without incurring significant infrastructure costs. This trend is especially visible in emerging markets and niche segments such as companion animal therapeutics and veterinary diagnostics. In January 2026, Zomedica entered into a manufacturing and service agreement with Rahm Sensor Development to diversify its offerings and strengthen its revenue streams. Such collaborations reflect the growing importance of strategic outsourcing partnerships within the veterinary healthcare industry.

Regulatory developments are further contributing to market growth. Governments and regulatory authorities across different regions are increasingly emphasizing product quality, traceability, biosafety, and adherence to Good Manufacturing Practices (GMP). Compliance with evolving standards has encouraged animal health companies to collaborate with specialized contract manufacturers that possess strong regulatory expertise. These partnerships help reduce approval delays, minimize compliance risks, and improve product quality. Additionally, global harmonization initiatives aimed at strengthening veterinary healthcare oversight are promoting standardized manufacturing practices and encouraging investments in modern production infrastructure.

The market is also benefiting from the rapid growth of companion animal healthcare. Rising pet ownership, increasing expenditure on pet wellness, and growing awareness regarding preventive healthcare are contributing to higher demand for veterinary pharmaceuticals and biologics. Companion animal therapeutics, vaccines, and nutritional products are becoming increasingly important revenue segments for contract manufacturers. Simultaneously, the livestock industry continues to demand high-quality veterinary products to improve productivity, disease management, and food safety standards. These factors are creating strong long-term opportunities for contract manufacturing organizations operating in the animal health sector.

Explore Grand View Horizon to see global and regional level statistics related to the Veterinary Contract Manufacturing Market

The veterinary contract manufacturing market is expected to experience sustained expansion over the coming years due to increasing outsourcing activities, growing investments in biologics manufacturing, rising demand for veterinary therapeutics, and evolving regulatory requirements. The market’s projected growth from USD 4.0 billion in 2025 to USD 7.7 billion by 2033 reflects the increasing importance of specialized manufacturing services within the global animal healthcare industry. Europe is expected to maintain a strong market position, while Asia Pacific is anticipated to emerge as the fastest-growing regional market owing to expanding pharmaceutical infrastructure and rising animal healthcare demand.

Some of the major companies operating in the veterinary contract manufacturing market include Aenova Group, Grifols International, Labiana, Argenta Holdco Limited, Kela Health, Vetio Animal Health, TriRx Pharmaceutical Services, Parnell, VetViva Richter GmbH, Tecton Industries, Ubio Biotechnology Systems Pvt Ltd, Terumo Corporation, BioVenic, Esco Aster Pte. Ltd, and Alicanto Vetcare. The market remains fragmented, with companies competing through specialization, technological advancement, pricing strategies, and regional expansion initiatives.

Looking for a report customized to your requirements? Explore our Custom Research Offering

In conclusion, the veterinary contract manufacturing market is entering a phase of strong and sustained growth driven by increasing outsourcing trends, rising investments in manufacturing infrastructure, and growing global demand for animal healthcare products. Expanding biologics production, evolving regulatory requirements, and the need for cost-efficient manufacturing solutions are encouraging pharmaceutical companies to strengthen partnerships with specialized CDMOs. As demand for companion animal therapeutics, livestock vaccines, and veterinary pharmaceuticals continues to rise, contract manufacturers are expected to play a critical role in supporting innovation, scalability, and global supply chain efficiency across the veterinary healthcare industry.

Grand View Research offers

• Focused market intelligence reports on specific geographies or high-growth segments.
• Extended forecast timelines for long-term planning.
• Competitor Benchmarking and Supply Chain Analysis
• Inclusion of regulatory and policy assessments.
• Inclusion of custom data models, KPIs, or applications unique to your business
• Specific high-impact Data Decks and Tables to support effective decision making

And much more…

Browse our new services – Grand View Brainshare