Vet market grows as pet ownership continues to increase
Lastly, it expects that the CMA will publish its review of veterinary services in the UK which will lead to reduced corporate M&A within the short to medium-term
The UK’s veterinary market, which comprises 5,331 practices, has risen from £5.04bn in 2021, to £6.3bn in 2023, according to the Office for National Statistics.
Over the past five years, there has been a significant increase in the number of independent practices acquired by corporate operators.
According to RCVS the top six corporate groups now own circa 3,000 practices (56%) of veterinary practices in the UK.
Between 2021 and 2024, Christie & Co’s specialist VS team valued over 150 veterinary practices across the UK with a combined total value of £222m.
Christie and Co has seen a 71% increase in the value of practices it has valued since 2021, which can be attributed to the sharp increase in animal ownership figures and a consequential uptick in demand for veterinary services.
The report also shows there has been a 6.13% rise in the average gross profit margins of practices between 2021 and 2023, demonstrating the increased strength of the sector.
Over the next year Christie expects continued growth within UK pet ownership will lead to further demand for veterinary services, although the cost-of-living crisis may impact the amount pet owners are willing to pay.
The company also expects a hangover from Brexit with regards to the national shortage of veterinary surgeons and nurses, which may result in increased costs for staff retention which could be passed on to the consumer.
Lastly, it expects that the CMA will publish its review of veterinary services in the UK which will lead to reduced corporate M&A within the short to medium-term.
This may result in the divestment of existing corporate portfolios and, as a result, growth of the independent sector.
Chris Vowles, head of Valuation – Medical at Christie and Co, said: “The UK veterinary operational market is poised for continued growth and evolution. Key drivers such as demographic shifts, evolving pet owner expectations, and technological advancements will shape the industry landscape.
“Veterinary practices will have to continue to navigate the evolving landscape. Strategic investment in technology, talent, and client engagement will be essential for sustaining competitive advantage and meeting the evolving needs of pets and their owners.”
