Veterinary sector emerges as a new healthcare opportunity; AI, smart technology will play a major role

THE local veterinary sector is emerging as a growing healthcare opportunity, supported by rising pet ownership, increasing spending on animal care and continued demand for livestock health products.

According to MBSB Research, the global veterinary industry is projected to exceed US$500 bil by 2035, driven by the growing trend of treating pets as family members, as well as rising pet insurance adoption and many others.

Companion animal care is expected to grow faster than the livestock segment, particularly as owners spend more on premium healthcare, specialised treatments and nutrition.

The report identified four major areas within the industry — pharmaceuticals and biologics, diagnostics, veterinary services, and nutrition and feed additives. 

Diagnostics is expected to be among the fastest-growing areas, while advanced services such as oncology, orthopaedic surgery, imaging and physical therapy are becoming more common.

Technology is also changing the sector. Artificial intelligence can help veterinarians while smart collars and monitoring devices detect early signs of health problems. 

Clinics are also adopting digital systems, telehealth and cloud-based management tools to reduce administrative workloads.

In Malaysia, MBSB Research highlighted the so-called “Oyen Economy”, noting that cats account for more than 55% of the country’s pet population.

Spending on pet supplements and nutraceuticals is growing by more than 11% annually, while diagnostics is emerging as a fast-growing investment area. However, the industry faces a major shortage of veterinarians.

Malaysia has about 2,500 active vets compared with an estimated requirement of at least 6,000. Measures being considered or introduced include easier pathways for qualified foreign veterinarians and greater responsibilities for veterinary technicians under supervision.

MBSB Research expects the global veterinary industry to grow by about 6% to 10% annually, supported by recurring pet healthcare spending, food security needs and technological innovation.

The research house highlighted Rhone Ma Holdings Bhd and Yenher Holdings Bhd as its top picks, citing Rhone Ma’s integrated animal health and diagnostic business and Yenher’s zero-debt balance sheet and capacity expansion.—Sept 30, 2026

Main image: easyuni.my

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