Retail pharmacies jockeying for pet med share

Is there a niche OTC opportunity on which food, drug and mass retailer pharmacies are not fully capitalizing? If the answer isn’t yes, then the cat is already out of the bag — according to the American Pet Products Association the market for pet supplies and OTC medicines will grow by 4.7% by the end of the year. The APPA projects $14.4 billion will be spent on pet supplies and OTC medicines for animals in 2015, which compares to $13.8 billion actually spent in 2014.

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But how much of that is being captured by retail pharmacy?



According to Packaged Facts’ “Pet Medications in the U.S., 3rd Edition,” veterinarians sold an estimated 58% of dog and cat medications in 2013, while mass marketers accounted for 18% of medication sales. Similarly, Packaged Facts’ “Pet Supplements in the U.S. 5th edition” reported that 45% of pet supplements were sold through such specialty retailers as Petsmart in 2014, 35% in veterinary clinics and the remaining 20% of supplements were purchased online, in the natural grocery channel or at mass market retailers.

Less than 1-in-5 pet medicines or supplements are sold through mass retail. That barks opportunity.



The retail pharmacy community is absolutely jockeying for their fair share of pharmaceutical prescriptions for animals. Earlier this year, AmerisourceBergen significantly enhanced its animal health stake with the acquisition of MWI Veterinary Supply, and Chicago’s Shedd Aquarium announced a deal with Walgreens where the retail pharmacy operator will provide medicines and supplements for the 32,000 animals under Shedd’s care.