Poultry pharmaceuticals comprise vaccines, feed additive medication, and drugs such as parasiticides, and specialized products used to manage reproductive, metabolic or infectious diseases.

The global poultry pharmaceuticals market is estimated to account for US$ 5,807.2 Mn in terms of value and is expected to reach US$ 10,095.6 Mn by the end of 2027.

Global Poultry Pharmaceuticals Market: Drivers

Increasing consumption of chicken is expected to propel growth of the global poultry pharmaceuticals market over the forecast period. For instance, according to research presented at the 2018 Chicken Marketing Summit, Florida, U.S., 86% of consumers during a two week survey in the U.S. ate a chicken meal or snack purchased from a supermarket and 68% ate a chicken meal or snack from a food service establishment.

Moreover, significant growth of the poultry sector is also expected to aid in growth of the market. For instance, according to a report in 2019, by the U.S. Poultry and Egg Association, National Chicken Council, National Turkey Federation and United Egg Producers, the poultry sector generated US$ 495.1 billion in economic activity and US$ 38.5 billion in government revenue.

Vaccines held dominant position in the global poultry pharmaceuticals market in 2019, accounting for 40.7% share in terms of value, followed by feed additive and drugs, respectively.

Figure 1. Global Poultry Pharmaceuticals Market Share (%), by Value, by Product Type, 2019

Poultry Pharmaceuticals | Coherent Market Insights

Global Poultry Pharmaceuticals Market: Restraints

Low product exclusivity, generic competition, and stringent regulations are expected to hinder growth of the global poultry pharmaceuticals market. Product exclusivity period is only three to five years in the animal health care industry. Shorter exclusivity period results in increased competition from generics and over-the-counter (OTC) products. Additionally, stringent regulations for product approval and limited vaccine production hampers growth of the market.

Moreover, increasing concerns about the use of antibiotics and growth promoters in poultry are also expected to limit growth of the market. Growth promoters include hormonal constituents and antibiotics that are widely used in food or meat producing animals, such as poultry animals. There is strong evidence of the negative impact of poultry antibiotics on humans such as induction of antimicrobial-resistant bacteria and disruption of normal human intestinal flora.

Global Poultry Pharmaceuticals Market: Opportunities

R&D in poultry nutrition is expected to offer lucrative growth opportunities for players in the market. For instance, in May 2020, researchers from Veterinary Research Institute, Czech Republic, reported that the TGFβ3 gene could be used as a candidate gene marker for chicken growth traits.

Moreover, increasing demand for poultry over pork as protein is also expected to aid in growth of the market. For instance, in the Philippines, the production of dressed chicken increased 40% during 2009-2018, as per the Philippine Statistics Authority.

The global poultry pharmaceuticals market was valued at US$ 5,337.8 Mn in 2019 and is forecast to reach a value of US$ 10,095.6 Mn by 2027 at a CAGR of 8.2% between 2020 and 2027.

Figure 2. Global Poultry Pharmaceuticals Market Value (US$ Mn), and Y-o-Y Growth (%), 2019-2027

Poultry Pharmaceuticals | Coherent Market Insights

Market Trends/Key Takeaways

The willingness to invest in vaccination is high among backyard poultry in emerging economies. According to the study, ‘Drivers of vaccination preferences to protect a low-value livestock resource: Willingness to pay for Newcastle disease vaccines by smallholder households’, published in the Journal Vaccine in January 2019, the willingness to pay estimate was US$ 2.64 to vaccinate ten chickens against Newcastle disease virus given the vaccine was protective for a period of three month, in Tanzania.

The emergence of COVID-19 has slowed down the demand for poultry products and increased the preference for plant-based meat products in several countries. However, no direct link of poultry products to the spread of virus suggests that the impact on the sales may not be significant.

Global Poultry Pharmaceuticals Market: Competitive Landscape

Major players operating in the global poultry pharmaceuticals market include, Bayer AG, Bimeda, Ceva Sante Animale, Elanco Animal Health (Eli Lilly and Company), Merck Animal Health, Merial Animal Health (Sanofi), Virbac, Boehringer Ingelheim, Zoetis, Inc., Pacific GeneTech, and Avivagen Inc.

Global Poultry Pharmaceuticals Market: Key Developments

Major players in the market are focused on adopting partnership strategies to enhance their market share. For instance, in February 2020, Avivagen Inc., a developer of products for livestock, companion animal and human applications, partnered with INPHILCO, Inc. for the distribution of OxC-betaTM Livestock in in Philippines.

Major players in the market are also focused on launching new products to expand their product portfolio. For instance, in January 2020, Boehringer Ingelheim's U.S. Animal Health Business launched a vaccine, VAXXITEK HVT+IBD+ND that offers protection against Marek's Disease, Infectious Bursal Disease (classic and variant types) and Newcastle Disease.