March 23, 2023. Shanghai – China’s animal health market is expected to top $10 billion (USD) by 2027, driven mainly by people’s increased standard of living, higher quality animal health products, and growing spending on animal healthcare, Zoetis Senior Vice President and Greater China Cluster Lead Mike Wang shared during a special Executive Forum at the CEIBS Shanghai Campus this evening.

During the event, Mr. Wang discussed the fundamentals and distinctive features of the animal health industry, its market prospects, and how animal health companies can seize business opportunities in the Chinese market.

For an industry that is less regulated and has low political risks, the global animal health industry, which is valued at around $45 billion (USD), has grown rapidly over the past decade, Mr. Wang stated.

“The trend was particularly prominent from 2020 to 2021, when the world was hit by the pandemic. People’s increasing need for animal protein in their diets and companionship of pets significantly drove industry growth,” he explained, adding that the animal health industry remains resilient despite economic headwinds.

Zoetis is now the world’s leading animal health company offering a comprehensive line of vaccines, medicines, diagnostics and other technologies for companion animals and livestock.

With nearly 30 years of experience in China’s pharmaceutical industry, Mr. Wang started his career at Merck Sharp & Dohme. He joined Zoetis in 2010 after graduating from the EMBA programme at CEIBS.

Mr. Wang pointed out that the animal health industry, which includes both companion animals and livestock, is mainly fuelled by population growth and a rising middle class.

“As the global population grows, people’s demand for animal protein sources has also increased, especially middle classes who place higher requirements on protein. Meanwhile, increased urbanisation driven by economic growth also gave rise to the pet ownership,” Mr. Zhang told the audience. 

Although China is well developed in terms of poultry and swine production (China is home to more than half of the global pig population), it lags behind in aquaculture and pet industries, he said.

However, China’s animal health spend on companion animals will surpass that of swine by 2027 thanks to an open market environment and numerous growth opportunities, he continued.

“One of the important transitions in the pet industry is that it has now become a combination of the traditional healthcare industry and fast-moving consumer goods (FMGC) sector and targets both businesses and consumers with advanced business model and digital marketing,” he explained.

One of the biggest challenges China faces, Mr. Wang said, is that the country is short of professional veterinarians.

“The Doctor of Veterinary Medicine (DVM) programme advances veterinary education and promotes the development of the animal health industry in China,” he added.

In 2011, Zoetis partnered with the China-US Joint Education Center to sponsor 50 Chinese students to obtain DVMs in the US — many of whom are now giving lectures at top Chinese universities.

“We hope to benefit more people through the programme rather than be driven purely for commercial purposes,” Mr. Wang said.

Close human-animal bonds have made animal care a loving industry which provides value and fulfilment for people, he concluded.