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The State of Veterinary Medicine in 2025

  • Nov 12
  • 4 min read
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The veterinary industry is navigating a period of transformation. Over the past two years, growth that once appeared unstoppable has slowed, and the realities of inflation, workforce fatigue, and changing client expectations have begun to settle in.


While the long-term outlook remains strong, the current environment demands a more deliberate and strategic approach from practice owners and leaders.



Visits and Revenue

Recent data show that patient visits per clinic have become inconsistent. Many practices report a strong week followed by an unexpected lull, even when marketing and staffing remain stable. According to the American Veterinary Medical Association (AVMA) and Vetsource Veterinary Industry Tracker, visit counts fluctuated throughout 2024, with nominal revenue increases driven largely by price adjustments rather than higher patient volume. Once adjusted for inflation, true growth across the sector has remained modest.


A 2025 paper by Neill, Salois, and McKay in Frontiers in Veterinary Science confirms that this pattern is not random. Their analysis shows that the veterinary industry follows a distinct four-phase business cycle of recovery, expansion, contraction, and recession. The data indicate that the profession entered a recessionary phase in late 2024, with contraction likely continuing through mid-2026 even as prices remain elevated. This means the turbulence practices are experiencing is cyclical, not catastrophic.


Pricing and Perceived Value

Veterinary service inflation continues to outpace other household categories. According to the Bank of America Institute’s 2025 report Best in Show: U.S. Pet Ownership, inflation for pet services remains elevated even as pet-food inflation has nearly flattened. The report also notes that household spending at pet stores and veterinary clinics is now growing more slowly than inflation, suggesting consumers are adjusting habits and trading down within the category.


The 2025 Bank of America data confirm that pet ownership remains widespread, with nearly 94 million U.S. households owning at least one pet. While spending levels remain high, growth has cooled, reflecting a normalization after the pandemic surge.


Consumer Spending and Market Size

The pet industry remains robust. The American Pet Products Association reported 152 billion dollars in U.S. pet spending for 2024, with continued growth projected through 2025. Over 94 million U.S. households now own pets, the highest level on record. However, within that total, consumer behaviour is shifting. Clients are prioritizing core services, wellness care, and essentials over discretionary or luxury offerings.


In practical terms, this means many clients still come in for vaccines and exams but may postpone dental work or non urgent diagnostics. Practices that adapt by offering tiered service bundles or preventive plans are more likely to maintain revenue stability.


Staffing and Burnout

The profession continues to face workforce pressure. Burnout among veterinarians and technicians remains high, particularly among credentialed technicians whose workloads often outpace compensation. This strain affects morale and clinic efficiency alike.


Forward-thinking hospitals are addressing this through workflow redesign, nurse-led appointments, and clearer delegation. Investing in support staff training yields long-term returns by improving both patient flow and retention.


Consolidation and Regulatory Scrutiny

Corporate ownership continues to expand across North America, but regulatory scrutiny is increasing. The UK’s Competition and Markets Authority is already examining the effects of consolidation on pricing and transparency. Similar conversations are emerging in Canada and the United States.


Independent practices may find opportunity here. Clients continue to express a preference for locally owned hospitals that emphasize continuity of care, community engagement, and transparent pricing. Positioning around independence and trust can serve as a key differentiator in 2025 and beyond.


The Canadian Perspective

In Canada, the veterinary profession continues to grow in both headcount and economic output. According to the Canadian Veterinary Medical Association, more than 16,000 veterinarians work across roughly 4,400 clinics nationwide. The pet population remains strong, with an estimated 8.5 million cats and 7.9 million dogs in Canadian households.


Despite this healthy demand, Canada continues to struggle with low pet insurance adoption, with only about 3 percent of pet-owning households carrying coverage according to the North American Pet Health Insurance Association. This limits client flexibility and makes cost conversations harder. Many practices now rely on wellness plans and third-party financing to reduce price barriers.


While national data show steady growth, they do not capture local saturation. Some regions simply lack the population base to support the rapid increase in new hospitals. Oversupply leads to competition for the same clients, pressure on pricing, and reduced margins. Recognizing regional variation will be critical for owners planning expansions or acquisitions.


Reports such as the CVMA’s Economic Impact of Veterinary Medicine in Canada, Global News coverage on rising veterinary costs, and Grand View Research’s Pet Insurance Market Outlook for Canada all highlight a market that is expanding yet underinsured. Forward-thinking clinics that combine transparent communication, financial education, and preventive health programs, and that understand their local market dynamics, are best positioned to remain resilient.


Strategic Takeaways for Leading Through a Downturn

The Frontiers in Veterinary Science paper emphasizes that each phase of the business cycle requires a distinct strategy. During contraction and recession, practices should focus on four key actions. Protect liquidity by preserving cash and reviewing spending priorities. Invest in efficiency by automating, streamlining workflows, and auditing pricing regularly. Maintain team stability through open communication and by resisting reactive cuts. Prepare for recovery by monitoring leading indicators and adopting efficiency tools early.


These principles echo what independent owners already know. Resilience is built through systems, not reactions.


Conclusion

The data tell a clear story. The veterinary sector is not collapsing; it is cycling. The next 18 months will test how well practices adapt to slower growth, tighter margins, and shifting client expectations. But the fundamentals remain strong. Pet ownership is high, the human animal bond is deep, and demand for veterinary care will persist.

Progress in this climate is not about slaying dragons. It is about consistent, incremental improvement, the quiet, daily actions that keep a practice stable, profitable, and trusted long after the headlines fade.



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