In this article, we explore the opportunities and challenges of entering these emerging markets, using data-driven insights to help businesses in the animal health sector position themselves for success.
Opportunities in Emerging Markets
1. Growing Middle-Class Demand for Animal Products
Rapid economic growth in emerging markets is leading to an increase in disposable income, driving higher spending on pet care and livestock health. According to Global Pets, pet ownership in China has increased by over 33% from 2018 to 2023, with the pet care market expected to grow by 14.2% annually, positioning China as one of the fastest-growing markets globally. Similarly, Brazil’s pet care market, valued at £7.2 billion in 2023, is the third-largest globally, with an annual growth rate of 13.5% projected through 2026.
Opportunities:
- The rapid rise in pet ownership in urban areas of China, India, and Latin America is driving demand for veterinary services and preventive care products.
- Livestock health is becoming a priority as countries strive to meet food safety standards and boost productivity.
- Companies offering high-quality pet foods and health supplements are well-positioned to meet growing consumer demand in these emerging markets.
2. Livestock and Agricultural Growth
Emerging markets account for over 60% of global livestock production, and this is expected to grow. Countries such as Brazil, India, and Vietnam are heavily reliant on livestock farming to meet both domestic consumption and export demands. According to IBISWorld, the global livestock production industry is forecast to grow at a compound annual growth rate (CAGR) of 3.5% through 2027, driven by the rising demand for meat and dairy products.
Opportunities:
- Veterinary companies can capitalise on the increasing need for animal health solutions that enhance livestock productivity, such as vaccines, disease prevention programmes, and nutritional supplements.
- Government investment in animal health infrastructure to secure food supplies presents partnership opportunities.
- Collaborating with local agricultural businesses offers animal health companies a chance to support sustainable farming practices and address rising global demand.
3. Technological Advancements and Innovation
Telemedicine and digital health solutions are rapidly becoming essential components of veterinary care, particularly in rural regions where traditional veterinary services are less accessible. In Southeast Asia, mobile applications offering telehealth services for pets and livestock have grown by over 20% annually. Additionally, wearable technology for pet health monitoring is gaining popularity in Asia and Latin America, with these regions expected to lead the global market by 2026, according to Global Pets.
Opportunities:
- Digital veterinary services are key to providing scalable solutions in regions with limited infrastructure.
- The adoption of mobile applications and wearable devices for pet and livestock health management is creating new market opportunities.
- Collaborations with local technology start-ups can support innovation and ensure veterinary services reach underserved rural populations.
Challenges in Emerging Markets
1. Regulatory Hurdles
Navigating complex regulatory frameworks is a major challenge for international businesses entering emerging markets. According to GlobalData, countries such as Brazil, India, and Saudi Arabia have stringent regulatory frameworks governing the import and distribution of animal health products. For instance, India requires veterinary drugs to undergo a lengthy approval process, which can delay market entry by up to two years.
Challenges:
- Lengthy regulatory approval processes can significantly hinder product launches and market entry.
- Variations in regulations across countries necessitate the development of localised compliance strategies.
- Staying up-to-date with evolving regulations is essential for long-term success in these markets.
2. Infrastructure Limitations
Despite growing demand for veterinary services, many emerging markets still face significant infrastructure challenges. According to IBISWorld, more than 45% of rural areas in Africa, Southeast Asia, and Latin America lack adequate access to veterinary care due to shortages of veterinary professionals and facilities.
Challenges:
- The shortage of veterinary professionals in rural areas limits companies’ ability to scale operations.
- Poor transportation networks in some regions pose challenges for product distribution.
- Companies may need to invest in local infrastructure or partner with organisations to establish reliable distribution channels.
3. Cultural and Consumer Behaviour Differences
Understanding local customs, consumer behaviour, and cultural differences is vital when expanding into new markets. Global Pets reports that while pet ownership in China is growing, owners tend to see pets as companions rather than family members, which influences spending habits. In contrast, pet owners in Latin America view their pets as integral family members, leading to higher spending on premium products.
Challenges:
- Marketing strategies must be adapted to fit local attitudes towards pets and livestock.
- In some markets, livestock health takes precedence over companion animals, requiring a tailored approach.
- Building trust with local communities and veterinary professionals requires cultural sensitivity and a long-term commitment.
Strategies for Success
1. Partner with Local Stakeholders
Collaborating with local distributors, veterinary clinics, and technology companies can help overcome regulatory and infrastructure challenges. Local partners possess valuable knowledge of the market and can assist with navigating regulatory requirements, distribution networks, and cultural nuances.
2. Tailored Products and Solutions
Businesses should develop products and services that meet the specific needs of each market. This could include affordable solutions for rural areas, products aligned with local veterinary practices, or technology-driven services that address infrastructure gaps.
3. Market and Competitive Analysis
Understanding the competitive landscape and market dynamics is essential for successful expansion into emerging markets. Companies that take the time to conduct thorough market and competitive analysis can better position themselves to enter these regions, tailoring their strategies to local competitors, consumer needs, and regulatory environments.
4. Long-Term Commitment
Entering an emerging market requires patience and a long-term strategy. Companies must invest in building relationships with local stakeholders, stay responsive to the evolving needs of the market, and be prepared to adapt their approach over time.
Conclusion
Emerging markets in animal health offer immense growth potential for businesses willing to navigate the complexities of these regions. By leveraging data-driven insights, forming partnerships with local players, and developing tailored solutions, businesses can establish a strong presence and unlock the full potential of these rapidly expanding markets.
However, as with any global expansion, success often hinges on seeking expert advice and maintaining an objective, external perspective. IntrinsiaVet, as the only global management consultancy focused solely on the veterinary and animal health industry, is uniquely positioned to provide the market analysis, strategic insights, and deep industry knowledge needed to guide companies through the complexities of entering and thriving in emerging markets.
If your company is looking to expand into new regions and requires expert guidance on market analysis, competitor insights, and growth strategies tailored specifically to the veterinary and animal health industry, IntrinsiaVet is here to help.
