R&D Spending Will Spur Growth In Animal Health Biotech Industry, Report Says

R&D Spending Will Spur Growth in Animal Health Biotech Industry, Report Says R&D Spending Will Spur Growth in Animal Health Biotech Industry, animal biotechnology growthThe animal health biotechnology industry is projected to grow into an $11 billion industry by 2016, according to a new report from market research publisher Ibisworld. The animal health biotechnology industry is projected to grow into an $11 billion industry by 2016, according to a new report from market research publisher Ibisworld. newslineR&D Spending Will Spur Growth in Animal Health Biotech Industry, Report Says Posted: Nov. 29, 2011, 6:20 p.m. EST

Growth

The animal health biotechnology industry is projected to grow into an $11 billion industry by 2016, according to a new report from market research publisher Ibisworld.

Revenue growth in the industry is forecast to rise at an annual rate of 7.9 percent over next five years, including a 9.0 percent increase in 2012.

Favorable legislation and improved economic conditions will spur continued research and development activity, benefiting industry operators, according the report. Future development in genetic engineering is also expected to play a larger role in the industry, with developments likely to focus on improving food quality and disease resistance among livestock.

Industry growth “will be positively affected by recent FDA announcements regarding food safety and cloning,” said Ibisworld analyst Caitlin Moldvay. Research and development programs aided by the American Recovery and Reinvestment Act of 2009 will receive their funding starting in 2011, and animal biotech companies are expected to increasingly focus on genetically engineering animals to produce nutrient-enhanced food.

The industry grew by 3.6 percent to $7.5 billion over the five years leading up to 2011, including revenue growth of 7.1 percent from 2010 to 2011. According to the report, industry growth has been driven by research and development expenditure, which rose by an average of 1.4 percent over the five years to 2011. Also, greater U.S. consumption of meat and dairy products and rising food safety concerns have expanded research into reducing the incidence of livestock diseases.

The number of industry operators in the field rose at an average annual rate of 2.5 percent over the five years to 2011, to an estimated 407 companies. Profit margins currently average 4.7 percent for animal health biotechnology companies.

<Home>11/29/2011 4:24 PM

Leave a Comment

Comments

Your email address will not be published. Required fields are marked *

Register

Sign-up for your account with Veterinary Practice News. Your account gives you unlimited free access to our Newsletter Archives and our Digital Editions of Veterinary Practice News.
Please check the box below to confirm you would like to be added to Kenilworth Media’s various e-mail communications (includes e-newsletters, a survey now and then, and offers to the veterinarian industry*).
 

Leave this empty:

*We do not sell your e-mail address to 3rd parties, we simply forward their offers to you. Of course, you always have the right to unsubscribe from any communications you receive from us, should you change your mind in the future.