Packaged Facts: FTC report may drive more pet medicines to retail

ROCKVILLE, Md. - The U.S. pet medications market is a hotbed for competition as brick-and-mortar retailers and online retailers have entered the fray intent on gaining ground on the segment that still remains the industry's most important channel — veterinary clinics. Packaged Facts projections released Wednesday forecast that pet medications sales will rebound from its slow showing as recently as 2013 to experience healthier returns through 2018. At this pace, the market will grow from its 2013 level of $7.6 billion to $10.2 billion in 2018, reflecting a compound annual growth rate of 5%.

 

Most marketers of pet medications in the United States fall into one of two groups: 1) global pharmaceutical companies operating through animal health divisions and selling mainly through the veterinary channel, such as Merial and 2) pet product marketers selling through retail channels, including broad-line marketers like Central Garden & Pet and smaller companies focusing on over-the-counter pet health products. With the recent and ongoing crossover into retail of formerly vet-only brands like Bayer's Advantage and K9 Advantix, the pharmaceutical/veterinary vs. pet product/retail distinction is blurring, however. For many companies, antiparasitics are a key part of the pet medications portfolio, with flea/tick products representing their best-known consumer brands, noted Packaged Facts research director David Sprinkle.

 

Citing in part research by Packaged Facts and other resources, the Federal Trade Commission in May 2015 issued Competition in the Pet Medications Industry Prescription Portability and Distribution Practices, a report that at one point politely rebukes an established policy by several of the largest veterinary drug manufacturers to sell medications exclusively through veterinarians. 

 

The FTC report also pinpoints three things consumers can benefit from amid the increased competition in the market for pet medications: