AHNTI Conference Recap
Thoughts and takeaways from the Animal Health, Nutrition & Technology Innovation Conference
WittKieffer colleagues Joe Kennedy and Ysette Witteveen immersed themselves in the latest trends and insights shaping the animal health industry. Here are some of the most significant insights and observations they gathered from the event.
Market dynamics: The animal health sector is experiencing robust growth and significant transformation, fueled by innovation and a strong focus on sustainability. According to Stonehaven Cozmix Group, the global market, valued at $25 billion in 2015, is projected to hit $43 billion by 2025 and reach between $50 billion and $60 billion by 2030. At the forefront of this growth are innovations in blockbuster drugs and new delivery models, such as online purchasing and at-home pet care. Emerging fields like oncology and dermatology are gaining momentum. Companion animals now dominate the US animal health industry, comprising two-thirds of it, with companion animal drugs occupying nine of the top ten brands in the global market.
The landscape is rapidly evolving with consolidation of vet clinics and the rise of online platforms, like Chewy, that give pet owners more control over their pets’ health. The increasing presence of generics introduces price competition, while sustainability and AI-driven drug design are paving the way for a more responsive and innovative market. To sustain current industry growth rates, access to external innovation, capital, and talent will be increasingly vital in the coming years.
Market pulse: We had the pleasure of co-hosting a dinner with Anterra Capital, where we engaged with industry leaders and conducted a short market pulse survey. The results were both insightful and amusing! When asked to describe the current innovation energy in animal health, responses ranged from “hibernating bear” to “caffeinated squirrel,” averaging at a 2.7 out of 5. Private equity was likened to a tiger — fierce, brave, and always on the prowl. Participants recognized opportunities for growth in areas such as oncology, at-home diagnostics, and species-specific care needs like livestock treatment solutions, feline medicine, and equine medicine. In addition, our survey revealed that, by 2030, smart sensors and AI-driven platforms might reduce the role of general practitioners in routine care, leaving them to handle only specialist interventions.
Leadership trends: As the animal health industry evolves, so must its leaders. The current market environment demands transformative leaders who are not only innovative but also resilient and adaptable to the complexities of modern challenges. Leaders must focus on forging win-win partnerships, driving change, and accelerating value creation. To be impactful, they need to be attuned to investor ownership and performance requirements, have experience developing growth and performance playbooks, and possess the agility to evolve business models. A continuous understanding of scientific advancements and their implications for products, business models, and market opportunities is critical. Moreover, a strategic and operational focus on the application of digital technology and data, as well as their impact across the entire value chain, is essential.
Overall, there’s a sense of optimism about exciting developments on the horizon as the sector is poised for continued growth and innovation, adapting to meet the needs of both pets and their parents. We are thrilled about the future and look forward to more collaborations in this vibrant industry!
