Animal Biotechnology Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Product Type (Diagnostics Tests, Vaccines, Drugs, Reproductive and Genetic, Feed Additives), By Application (Diagnosis of Animal Diseases, Treatment of Animal Diseases, Preventive Care of Animals, Drug Development, Others), By Animal Type (Companion, Livestock), By End-use (Laboratories, Point-of-care testing/In-house Testing, Veterinary Hospitals & Clinics, Others), By Region, and By Competition 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 25.93 Billion
CAGR (2026-2031)	9.74%
Fastest Growing Segment	Diagnostics Tests
Largest Market	North America
Market Size (2031)	USD 45.29 Billion

Market Overview

The Global Animal Biotechnology Market will grow from USD 25.93 Billion in 2025 to USD 45.29 Billion by 2031 at a 9.74% CAGR. Animal biotechnology involves the application of molecular biology and genetic engineering principles to modify the genomes of aquatic or terrestrial species for the production of pharmaceutical, industrial, or agricultural goods. The primary driver supporting this market is the escalating global necessity for quality animal protein which necessitates biotechnological interventions to enhance livestock productivity and disease resistance. Furthermore, the increasing focus on sustainable food security compels the industry to develop animals that require fewer resources and leave a smaller environmental footprint. According to the Food and Agriculture Organization, in 2024, global meat production rose by 1.7% to 379 million tonnes, underscoring the critical need for advanced biotechnological solutions to efficiently meet this expanding supply requirement.

A significant challenge that could impede the expansion of the global animal biotechnology market is the complex and often fragmented regulatory landscape governing genetically engineered animals. Inconsistent approval processes and ethical guidelines across different international jurisdictions create substantial barriers to trade and delay the commercialization of innovative products. This regulatory uncertainty increases the capital and time required for development, which can deter investment and effectively stall the broader adoption of new technologies within the sector.

Key Market Drivers

The expansion of the companion animal healthcare and wellness sector acts as a primary catalyst for market progression, driven by the increasing humanization of pets. As owners prioritize the longevity and quality of life of their animals, there is a marked shift toward precision medicine, necessitating advanced biotechnological interventions such as monoclonal antibody therapies and genetic screening. This demand encourages biotechnology firms to adapt human-grade medical technologies for veterinary applications, creating a lucrative avenue for industry growth. According to the American Pet Products Association, March 2024, in the 'State of the Industry' presentation, total U.S. pet industry expenditures reached $147.4 billion in 2023, reflecting a robust consumer willingness to invest in animal well-being. This significant capital influx directly supports the research and commercialization of specialized biopharmaceuticals tailored for companion species.

Supportive government initiatives and funding for veterinary biotechnology R&D further solidify the market's trajectory by de-risking early-stage innovation and infrastructure development. Public sector grants are essential for advancing complex technologies like synthetic biology and gene editing, which often face steep financial barriers before achieving commercial viability. According to UK Research and Innovation, February 2024, in the 'Major investment in engineering biology' announcement, the organization committed £100 million to fund six new Engineering Biology Mission Hubs designed to tackle global challenges, including those in food systems. These strategic investments enable private entities to scale operations and bring scientific breakthroughs to the global market more efficiently. According to Zoetis Inc., February 2024, in the 'Fourth Quarter and Full Year 2023 Financial Results' press release, the company reported revenue of $8.5 billion for the full year 2023, demonstrating the strong financial performance achievable within this supported ecosystem.

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Key Market Challenges

The complex and often fragmented regulatory landscape governing genetically engineered animals constitutes a formidable barrier to the growth of the global animal biotechnology market. Disparate approval processes and varying ethical guidelines across international jurisdictions create significant trade hurdles, forcing companies to navigate a patchwork of compliance requirements that delays commercialization. This lack of harmonization increases the financial risk for developers, who must invest substantial resources without the guarantee of global market access, thereby deterring venture capital and stifling innovation.

The extended timelines associated with these regulatory burdens further exacerbate the challenge, as companies cannot quickly recoup their investments. According to the Animal Health Institute, in 2024, the development of a new livestock pharmaceutical required an average of 8.5 years and an investment of approximately $30.5 million. Such prolonged duration and high capital expenditure prevent smaller biotech firms from entering the sector and slow the overall adoption of advanced animal health solutions essential for meeting global productivity demands.

Key Market Trends

The widespread adoption of CRISPR-Cas9 and precision genome editing is transitioning from experimental phases to commercial reality, fundamentally altering livestock disease management strategies. This trend is exemplified by the regulatory progression of gene-edited animals designed to resist devastating viral pathogens, thereby reducing economic losses and minimizing the industry's reliance on pharmaceuticals. A pivotal market milestone occurred when regulatory bodies began clearing these engineered traits for the food supply chain, validating the technology's safety and utility. According to Genus plc, April 2025, in the 'PRRS Resistant Pig - FDA Approval' announcement, the U.S. Food and Drug Administration approved the company's PRRS-resistant pig, a development crucial for addressing a disease that increases the need for antibiotics by more than 200% in affected herds.

Concurrently, the sector is witnessing a decisive shift toward DNA and mRNA-based veterinary vaccine platforms, driven by the urgent need for rapid response capabilities against transboundary animal diseases. Companies are aggressively capitalizing specialized manufacturing infrastructure to support these complex biologics, moving away from slower, traditional vaccine production methods. This focus on advanced large-molecule production capacity is critical for scaling novel therapeutic and preventative solutions to meet global demand. According to Merck Animal Health, May 2025, in the 'Merck Animal Health and State of Kansas Announce $895 Million Investment' press release, the company allocated $895 million to expand its facility in De Soto, Kansas, specifically to enhance filling and freeze-drying capacity for large molecule vaccines and biologic products.

Segmental Insights

The Diagnostics Tests segment is currently identified as the fastest-growing category within the Global Animal Biotechnology Market. This rapid expansion is primarily driven by the escalating prevalence of infectious and zoonotic diseases, which necessitates precise and early detection to prevent widespread outbreaks. Furthermore, the rising global demand for animal-derived food products has led regulatory bodies, such as the World Organisation for Animal Health (WOAH), to emphasize stricter disease surveillance standards. Consequently, veterinary professionals are increasingly adopting advanced molecular diagnostic tools to ensure livestock health and food safety, while growing pet ownership further accelerates the need for accurate testing solutions in companion animal care.

Regional Insights

North America maintains a dominant position in the global animal biotechnology market due to the extensive adoption of advanced veterinary products and a well-established healthcare infrastructure. The region benefits from the presence of major industry players and increasing investments in research and development for both livestock and companion animals. Furthermore, supportive initiatives by regulatory agencies, such as the U.S. Food and Drug Administration (FDA) and the United States Department of Agriculture (USDA), facilitate the efficient approval process for new biologics and vaccines. These factors, combined with high consumption of animal-based proteins, sustain regional market leadership.

Recent Developments

• In December 2024, Zoetis Inc. announced the global launch of a new point-of-care hematology analyzer powered by artificial intelligence and proprietary viscoelastic focusing technology. The company designed this diagnostic instrument to provide veterinary professionals with laboratory-quality complete blood count analysis in minutes, using a cartridge-based system. The product was developed to address increasing demands on veterinary clinics by streamlining diagnostic workflows and reducing the need for manual maintenance. The company stated that the device would be introduced to the market in early 2025, initially rolling out in the United States and other key international regions.
• In September 2024, Boehringer Ingelheim acquired Saiba Animal Health to accelerate its development of therapeutic vaccines for companion animals. This acquisition provided the company with access to a novel technology platform capable of inducing an immune response to target chronic conditions such as allergies, inflammation, and pain. The transaction followed successful research collaborations between the two entities and was intended to pave the way for a new class of veterinary medicines. The company emphasized that this integration would enhance its innovation pipeline and support the management of debilitating diseases in pets through advanced biological treatments.
• In July 2024, Merck Animal Health completed the acquisition of the aqua business of Elanco Animal Health Incorporated for $1.3 billion in cash. This strategic transaction broadened the company’s portfolio to include medicines, vaccines, and nutritional supplements specifically designed for aquatic species. The deal notably added a DNA-based vaccine for Atlantic salmon and an anti-parasitic treatment for sea lice to the company's offerings. By integrating manufacturing facilities in Canada and Vietnam and a research hub in Chile, the company aimed to leverage advanced biotechnology to address unmet needs in fish health and sustainability within the aquaculture industry.
• In May 2024, Elanco Animal Health Incorporated entered into a strategic partnership with Purdue University to establish a One Health Innovation District in Indianapolis. This collaboration involved the creation of a shared-use facility featuring wet labs, incubators, and office spaces designed to foster research convergence between industry and academia. The initiative focused on driving scientific advancements in critical biotechnology fields, including the microbiome, antimicrobial resistance, and comparative genomics. Through this alliance, the company aimed to create a robust ecosystem for innovation that optimizes the interconnected health of people, animals, and the planet.

Key Market Players

• Zoetis Inc
• Boehringer Ingelheim GmbH
• Biogenesis Bago SA
• Merck & Co., Inc.
• Virbac SA
• Elanco LLC
• IDEXX Laboratories Inc
• Heska Corp
• Indian Immunologicals Ltd
• Hester Biosciences Limited

By Product Type	By Application	By Animal Type	By End-use	By Region
Diagnostics Tests Vaccines Drugs Reproductive and Genetic Feed Additives	Diagnosis of Animal Diseases Treatment of Animal Diseases Preventive Care of Animals Drug Development Others	Companion Livestock	Laboratories Point-of-care testing/In-house Testing Veterinary Hospitals & Clinics Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Animal Biotechnology Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Animal Biotechnology Market, By Product Type:

• Diagnostics Tests
• Vaccines
• Drugs
• Reproductive and Genetic
• Feed Additives

• Animal Biotechnology Market, By Application:

• Diagnosis of Animal Diseases
• Treatment of Animal Diseases
• Preventive Care of Animals
• Drug Development
• Others

• Animal Biotechnology Market, By Animal Type:

• Companion
• Livestock

• Animal Biotechnology Market, By End-use:

• Laboratories
• Point-of-care testing/In-house Testing
• Veterinary Hospitals & Clinics
• Others

• Animal Biotechnology Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE