Market Analysis of Veterinary Services in India
The relevance of research
In recent years, the need of the population for the provision of veterinary services has increased. This is due to the increase in the number of pets and people's concern about the health of their pets. Animal health protection is carried out on the basis of developments in the relevant field of human knowledge - veterinary medicine.
Purpose of the study
Analysis of the state of the veterinary services market, assessment of the market volume, analysis of competitors, as well as identification of factors affecting the veterinary services market.
Content
Part 1. Overview of the Indian Veterinary Services Market
1.1. Definition and Characteristics of the Indian Veterinary Services Market
1.2. Dynamics of the volume of the Indian veterinary services market, 2015-2019
1.3. Market structure by type of service provided in India
1.4. Structure of the Veterinary Services Market by Union Territories
1.5. Assessment of current trends and development prospects of the studied market
1.6. Assessment of factors affecting the market
1.7. Analysis of sectoral indicators of financial and economic activity
Part 2: Competitive Analysis in the Veterinary Services Market in India
2.1. Major players in the market
2.2. Market shares of the largest competitors
2.3. Profiles of major players
Part 3. Analysis of consumption of veterinary services
3.1. Estimation of consumption of veterinary services per capita
3.2. Market Saturation and Estimated Market Potential in India
3.3. Description of consumer preferences
3.4. Price analysis
Part 4. Assessment of factors of investment attractiveness of the market
Part 5. Forecast for the development of the veterinary services market until 2024
Part 6. Conclusions on the prospects of creating enterprises in the study area and recommendations for current market operators
Research excerpt
Part 1. Overview of the Indian Veterinary Services Market
1.1. Definition and Characteristics of the Indian Veterinary Services Market
Among the diversity that exists today in the market of services, an independent group stands out - veterinary services, which differs from the rest in a special object of influence, which is an animal.
...
Veterinary services - services related to the provision of therapeutic and preventive care to animals and the execution of relevant documentation.
...
1.2. Dynamics of the volume of the Indian veterinary services market, 2015-2019
Consider the dynamics of changes in the volume of the veterinary services market in India for the period 2015 - 2019.
During 2015-2019 The volume of the market in monetary terms has steadily increased. However, in 2016-2018 market growth slowed down. At the end of 2019, the volume of the veterinary services market in India amounted to … billion Rs., which is …% more than a year earlier and by …% than in 2015. The average annual growth rate of the market volume for the analyzed period was …%.
For 9 months In 2020, the volume of the studied market decreased by …% compared to the same period in 2019 and amounted to … billion Rs.
Diagram 1. Dynamics of the market volume of veterinary services in value terms in India, 2015-2019, billion Rs.
...
1.3. Market structure by type of service provided in India
All veterinary clinics can be divided into several types. Most (about …%) provide prevention, vaccination, clinical examination services, etc. The most popular product is packages of relatively inexpensive services aimed at preventing the disease. About …% of veterinary clinics have some kind of specialization: orthopedic, ophthalmological, etc. The remaining …% of institutions deal with the most severe pathologies.
Veterinary services include the following areas:
- review and therapeutic treatment of animals, carried out in veterinary clinics or with the departure of veterinary specialists at home;
- vaccination of animals carried out in veterinary clinics, at temporary points (by mobile teams) or at home;
- ...
In the structure of the market of veterinary services in the study period, the largest share is occupied by surgical procedures, the share of which is …%. The share of primary examination and therapeutic treatment accounts for …% of the market, for vaccination of animals – …%. Laboratory and diagnostic studies occupy …% of the market, including …% - ultrasound diagnostics. Services for keeping, professional care of animals in boarding houses, hotels for animals occupy …% of the market. Other veterinary services occupy …% of the market.
Diagram 3. Structure of the veterinary services market by type in 2019, %
1.4. Structure of the Veterinary Services Market by Union Territories
According to Rosstat, at the end of 2019, the main share of veterinary services falls on the Central Union Territories (…%) and the Volga Union Territories (…%). Together, these federal districts occupy …% of the market. The Southern Union Territories account for …% of the market, the Siberian Union Territories – …%, and the North-Western Union Territories – …%. In total, the TOP-5 Union Territories account for …% of the veterinary services market, while other federal districts in aggregate occupy a market share equal to …%.
...
1.5. Assessment of current trends and development prospects of the studied market
The development of the market is constrained by the lack of qualified specialists and the still not fully formed understanding among pet owners that quality treatment cannot be cheap. Against this backdrop, there is a growing demand for digital services such as televeterinary medicine among pet owners.
At the same time, the main problem of the industry is an acute shortage of qualified personnel. According to Petr Yershov, co-owner of the network of veterinary clinics Svoy Doktor, there are many veterinary universities in India, but there are not enough qualified personnel. The necessary experience can be obtained only by working as an assistant in the clinic, as well as constantly engaged in self-education.
...
1.6. Assessment of factors affecting the market
Let's consider the main factors influencing the market and, accordingly, demand.
Social (demographic)
During 2012-2018 India's population is on the rise. The increase in the population in 2015 was not only due to migration and natural increase, but also due to the formation of two new states of the Federation - the Republic of Crimea and the city of Sevastopol.
...
Economic
GDP is a macroeconomic indicator that reflects the market value of all final goods and services (that is, intended for direct consumption) produced per year in all sectors of the economy on the territory of the state for consumption, export and accumulation, regardless of the nationality of the factors of production used.
...
technological
A decisive role in the efficiency of work and increase in the competitiveness of veterinary services is played by the introduction of new modern equipment and technologies that allow high-quality diagnostics and treatment of diseases in a short time. At the same time, the purchase of equipment is the most costly stage in the development of the clinic. Negative influence of the factor.
...
Political
Credit policy. Today it is quite difficult to imagine the progressive development of the economy without the active participation of the credit system. It should also be noted that the assessment of the availability of credit resources for both legal entities and individuals is a significant indicator that allows assessing not only the demand for credit funds, but can also serve as a reflection of the real economic situation both in the region and in the economy as a whole.
...
1.7. Analysis of sectoral indicators of financial and economic activity
Consider the financial and economic indicators for the veterinary services industry (OKVED 75.0) in comparison with the indicators for all sectors of the Indian economy, in dynamics, for 2015-2019.
Gross margin
Gross margin is gross profit divided by sales revenue (excluding excise taxes and VAT). Gross margin shows how much gross profit falls on a unit of revenue. Gross profitability serves as an assessment of the economic efficiency of an enterprise, which reflects the rational use of labor, material, monetary and other resources.
...
Table 5. Gross margin of the veterinary services industry in comparison with all sectors of the Indian economy, 2015-2019, %
...
Return on profit
In 2017-2018 profit margins in the industry were negative. The profitability indicator in the industry as a whole at the end of 2019 is …%, having increased by … p.p. compared to 2018. Regarding profitability in all industries of India, the indicators of the veterinary services industry in the study period were lower than the indicators of the Indian economy as a whole, in 2019 - by ... p.p.
...
Current liquidity
Values of current liquidity in the industry in 2015-2019 were in the range of 2,28-5,87 times, which is higher than the “2” mark. A too high current ratio is not desirable, as it may reflect insufficiently efficient use of current assets or short-term financing.
...
Part 2: Competitive Analysis in the Veterinary Services Market in India
2.1. Major players in the market
Currently, about 15,5 thousand organizations of various forms of ownership operate in the veterinary services market, which provide veterinary services.
As profile experts note, most Indian institutions are private offices, in which there is only the most necessary equipment and medicines.
The largest players in the veterinary services market in India are the White Fang clinic chain, Biocontrol LLC, Svoy Doktor clinic chain, Veterinary Hospital LLC, and the MedVet clinic chain. Together, these companies account for only …% of the veterinary services market in India.
...
2.2. Market shares of the largest competitors
As of 2019, the largest market operators in India are the Beliy Klyk Clinical Chain and Svoi Doktor Clinical Chain, occupying …% and …% of the market, respectively. The third place is occupied by Biocontrol LLC - …%, and Veterinary Hospital LLC - …% of the market. The network of clinics ""MedVet"" occupies …% of the market of veterinary services in India. Other companies account for …% of the market for these services, which indicates its great fragmentation.
The calculation data of the Herfindahl-Hirschman Index in the veterinary services industry shows that this market belongs to low-concentration markets (market concentration is low). Mergers and acquisitions are allowed freely.
Diagram 15. Shares of the largest competitors in the veterinary services market in India in 2019, %
2.3. Profiles of major players
Network of clinics ""White Fang""
Belyi Klyk Veterinary Clinic is a multidisciplinary veterinary center providing a full range of medical and diagnostic services for pets, from simple preventive measures such as vaccination, chipping, sterilization, castration, to complex surgical interventions.
...
Network of clinics ""My doctor""
The first clinic of the network was opened in 2009, and the Svoy Doktor brand was registered in 2012. By that time, 7 clinics were already operating in the network. Today, the network has 20 clinics, the Center for Exotic Animals, the Center for Veterinary Dermatology, and the Center for Veterinary Ophthalmology.
...
Part 3. Analysis of consumption of veterinary services
3.1. Estimation of consumption of veterinary services per capita
During 2015-2019 the volume of consumption of veterinary services per capita increased. Thus, in 2019, the consumption of veterinary services per capita amounted to … Rs./person, which is …% higher than in 2018. Compared to 2015, the volume of consumption of veterinary services per capita in 2019 increased by …% . According to GidMarket analysts, in 2020, due to the unfavorable economic situation, the consumption of veterinary services per capita will decrease by …% to … Rs./person.
Diagram 17. Consumption of veterinary services per capita, 2015-2019, Rs./person
3.2. Market Saturation and Estimated Market Potential in India
From a life cycle perspective, the veterinary services market in India is in a growth phase.
This is evidenced by:
- the growth of the market volume in terms of money, the low growth rate is due to the limited income of the population;
- ...
The market potential for veterinary services in India remains quite high. only half of Indians with pets used the services of a veterinarian over the past year …%). In most cases, a veterinarian was contacted in emergency situations (…%), for preventive purposes - almost half as many (…%).
3.3. Description of consumer preferences
The determining factor in the activation of market transformation processes is the demand for veterinary services, on the basis of which the capacity of the market for these services is formed.
So …% of pet owners always go to veterinary clinics, …% rarely go, and …% prefer not to use veterinary services.
Diagram 19. Frequency of visits by pet owners to veterinary clinics, %
...
At the same time, …% of pet owners visit the veterinary clinic once every six months, and …% - once a year.
...
Diagrams
Diagram 1. Dynamics of the market volume of veterinary services in value terms in India, 2015-2019, billion Rs.
Diagram 2. Dynamics of the volume of the veterinary services market in India, 2015-2019, million services
Diagram 3. Structure of the veterinary services market by types in 2019, %
4 Chart. Structure of the provision of veterinary services in India by Union Territories in 2019, %
Diagram 5. Dynamics of the population of India, as of January 1, 2012-2020, million people, thousand people
Diagram 6. Population forecast in India for the period 2021-2024, million people
Diagram 7. Dynamics of real incomes of the population of India, 2015-2020 (9 months), %
Diagram 8. Dynamics of India's GDP, 2015-2020 (Jan.-Sept.), % to the previous year, trillion Rs.
Diagram 9. Monthly dynamics of the US dollar against the rupee, 2015-2020 (Jan-July), Rs. for 1 US dollar
Diagram 10. Dynamics of the inflation rate in India, 2015-2020 (Oct.), %
Diagram 11. Dynamics of the average interest rate on loans to legal entities, 2014-2020, %
Diagram 12. Profitability of profit before tax (profit of the reporting period) in the field of veterinary services in comparison with all sectors of the Indian economy, 2015-2019, %
Diagram 13. Current liquidity (total coverage) in the field of veterinary services for 2015-2019, times
Diagram 14. Business activity (average term of receivables turnover) in the field of veterinary services, for 2015-2019, days days
Diagram 15. Shares of the largest competitors in the veterinary services market in India in 2019, %
Diagram 16. Dynamics of revenue volume of the largest operators of the veterinary services market (TOP-5) in India, 2015-2019, million Rs.
Diagram 17. The volume of consumption of veterinary services per capita, 2015-2019, Rs./person
Figure 18. Stage of the life cycle of the veterinary services market
Diagram 19. Frequency of visits by pet owners to veterinary clinics, %
Diagram 20. Frequency of visits by pet owners to veterinary clinics, %
Diagram 21. Main reasons for visiting private veterinary clinics, 2020, %
Diagram 22. The main reasons for visiting a specific veterinary clinic, 2020, %
Diagram 23. Forecast of the volume of the veterinary services market in 2020-2024 – under the scenario of one quarantine, billion Rs.
Diagram 24. Forecast of the volume of the veterinary services market in 2020-2024 – under the scenario of two quarantines, billion Rs.
Tables
Table 1. Structure of paid services to the population in India, 2015-2019, %
Table 2. Industrial production index by state of India (in % of the previous year), 2015 - 2019
Table 3. Analysis of the impact on the industry of the state aid proposed for the current date
Table 4. STEP-analysis of factors influencing the market of veterinary services
Table 5. Gross margin of the veterinary services industry in comparison with all sectors of the Indian economy, 2015-2019, %
Table 6. Absolute liquidity in the veterinary services sector compared to all sectors of the Indian economy, 2015-2019, times
Table 7. Financial stability (security of own working capital) in the field of veterinary services in comparison with all sectors of the Indian economy, 2015-2019, %
Table 8. The main companies participating in the veterinary services market, 2019
Table 9. Basic information about the participant of the veterinary services market Network of clinics ""Bely Klyk""
Table 10. Basic information about the participant in the market of veterinary services The chain of clinics ""Svoi Doktor""
Table 11. Basic information about the participant of the market of veterinary services LLC ""Biocontrol""
Table 12. Basic information about the participant in the market of veterinary services Veterinary Hospital LLC
Table 13. Basic information about the participant in the market of veterinary services MedVet Clinics Network
Table 14. Consumer price indices for clinical examination of an animal in the Union Territories of India in 2015-2020. (9 months), %
Table 15. Consumer Price Indices for Animal Grafting by Union Territories of India in 2015-2020 (9 months), %
Table 16. Average prices for clinical examination of an animal in the Union Territories, 2015-2020 (9 months), Rs./arb.
Table 17. Average prices for animal vaccination in the Union Territories, 2015-2020 (9 months), Rs./pc.
Table 18. Assessment of factors of investment attractiveness of the veterinary services market
All reports