The Veterinary Pharmaceutical Manufacturing industry has been somewhat buoyed lately by the break of the drought conditions that have plagued Australia's agricultural sector since the previous century. This break in 2010 led to increased attempts by farmers to replenish their livestock numbers and has resulted in greater investment in animal health products by the sector. Furthermore, increasing levels of expenditure on pets by pet owners, as animals are increasingly perceived as a part of the family, is also assisting the industry to replenish revenue levels. August 14, 2012
The Veterinary Pharmaceutical Manufacturing industry experienced a tumultuous past five years, although the industry grew at an annualised 1.2% over the five years to 2012-13. Craig Shulman, “industry revenue is expected to continue its growth in 2012-13 increasing by 2.4% to reach $543.1 million”.
Industry market share concentration is high. The industry’s major players are Virbac (Australia) Pty Limited, Pfizer Australia Holdings Pty Limited, Intervet Schering-Plough Animal Health Pty Ltd and Jurox Pty Ltd. Shulman adds, “the past five years was marred by industry consolidation”. Pfizer acquired Wyeth and its Fort Dodge animal business, drastically shifting the industry's landscape. Major players have increased their share of the industry, which suggests that many smaller players either shifted their operations to supply or completely exited the industry. However, improving weather conditions over the five-year period, with the drought breaking over 2010, supported industry growth. Increased rainfall levels led to a shift in farming activity, whereby farmers decreased their turn-off rates, instead focusing on rebuilding low herd numbers. As a result, demand for the industry's products increased.
Although the Veterinary Pharmaceutical Manufacturing industry experienced a return to favourable weather conditions over the past five years, these conditions are expected to change over the next five-year period. The performance of the Veterinary Pharmaceutical Manufacturing industry is partially linked to Australia's climate as periods of little rainfall reduce demand for the industry's products, as evidenced over the five-year period to 2012-13. Moreover, the industry is expected to experience a shift in consumer spending behaviour as more emphasis is being placed on natural alternative treatments, even for animals. For instance, Blackmore's 2010 acquisition of Pure Animal Wellbeing has increased the awareness of non-pharmaceutical products for pets. Report Key Topics
This industry is mainly engaged in manufacturing drugs, medicines, medicinal chemicals, vaccines, serums and other pharmaceutical products for veterinary use...With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions...For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.
For the original version on PRWeb visit: http://www.prweb.com/releases/prweb2012/8/prweb9793204.htm