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 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
