The steep increase in pet healthcare costs have doubled over the past five years, according to NPR. There are a number of reasons for this trend, but the overall numbers are large, reaching $39.8 billion in 2024.
Some projections estimate that pet healthcare will swell to $112 billion by 2030. As a result, veterinary healthcare is a big growth segment of the overall US pet market which is estimated at $157 billion, and the global pet healthcare and products sector, which is on track to top $273 billion this year.
As a result, companies such as Zoetis Inc (NYSE: ZTS), IDEXX Lab. (NASDAQ: IDXX), Elanco Animal Health Incorporated (NYSE:ELAN), Trupanion Inc (NASDAQ: TRUP), and PetVivo Holdings (OTC: PETV) are all looking at a strong market climate heading into 2026.
All In The Family
Since the 1960s, the status of pets has steadily but inexorably increased from that of a convenient, but expendable temporary companion to an essentially equal family member. As such, spending on pets has exponentially increased in terms of food choices, amusements, and most significantly, in health care. The range of US pet medicines, surgical procedures, and treatments for allergies, disease, injury, and other ailments rivals that of humans in some emerging market nations. Of course, wherever a medical industry arises, a medical insurance industry is sure to follow – and so it has in the pet healthcare sector.
Zoetis Inc.
When it comes to veterinary medications and vaccinations, Zoetis is the industry’s 800-lb. Gorilla. In addition to its dominance in the pet industry, Zoetis also is a big pharmaceutical supplier to the livestock industry.
While the process is not nearly as stringent as with the FDA for humans, Zoetis and its rivals have to submit their new therapies to undergo federal oversight testing for efficacy and safety, which it does routinely. The New Jersey-based company’s prominence in the industry is such that it is actually a net exporter, and serves roughly 100 different foreign markets.
In 2024, Zoetis revenue grew 8% to $9.26 billion, and its pet segment comprised nearly all of the growth – revenue went up 13% to $6.28 billion. Zoetis is also highly profitable, with a net income of $2.5 billion in 2024. The company is currently on a four-consecutive quarter streak of beating analysts’ estimates. In fact, Zoetis even pays a 1.56% dividend.
The company’s top products include:
- Revolution Plus – a treatment for ear mites, lice, ticks, fleas, GI works and heartworm, as well as flea tapeworm infections.
- Librela – an monoclonal antibody injectable treatment for canine osteoarthritis pain.
- Simparica – a treatment specifically effective for longhorned tick infections.
Zoetis’ latest project dovetails nicely into the current Trump administration’s “Made in the USA” agenda. The company has invested $1.7 billion in US manufacturing sites since 2017, with the latest being a $590 million facility near Atlanta, GA for producing vaccine products. The new factory is expected to be operational in 2029 and create 100 new jobs. It is being designed to be a premier technology and digital innovation hub. Advanced manufacturing technologies such as collaborative robots, virtual reality training, a next-generation Manufacturing Execution System, and a comprehensive manufacturing data fabric will all be included.
99% of Zoetis intellectual property is in the US and more than 75% of its products are made on US soil.
IDEXX Laboratories
While medications and vaccinations are crucial for pet health, detecting and identifying ailments and diseases are equally important, diagnosing which treatment is needed is the other part of the equation. Headquartered in Westbrook, ME, IDEXX Laboratories is a diagnostics company that specializes in pet, livestock, poultry, dairy and water testing. IDEXX’s revenues are roughly 60% domestic US and 40% from its international work.
IDEXX has been on a bull-run tear going from $320 in August, 2022 to $701 as of the time of this writing. In reviewing its gains: 1-year is 62.5%, 3-year is 58.35%, and 5-year is 54.03%. The one-month return of IDEXX was 11.86%, and its shares have gained + 62% of their value over the last 52 weeks. The company’s latest breakthroughs include:
- IDEXX inVue Dx Cellular Analyzer – designed to detect cytologic changes in ear and blood samples by utilizing deep AI to deliver reference lab quality results in 10 minutes.
- IDEXX Cancer Dx Screening – a new process for screening canine lymphoma –
Institutions love IDEXX. Over 96% of the shares are in institutional hands, with the top holders being: Vanguard (12.48%), Blackrock (10.28%), and State Street Corp (4.45%). Baron Asset Fund is bullish on the company, and published the following analyst observations in November, 2025:
Baron Asset Fund: “Foot traffic to veterinary clinics in the U.S. continued to improve modestly from depressed levels, contributing to roughly 10% constant currency revenue growth in its core Companion Animal segment – its best result in two years. In addition, the company installed 2,400 of its inVue Dx cellular analyzers, exceeding investor expectations, and boding well for the associated future consumable revenue stream. IDEXX also continued aggressively to repurchase its shares, signaling management’s confidence that favorable dynamics should continue.”
Elanco Animal Health Incorporated
Unlike some of the other pet healthcare companies in this article, Indianapolis-based Elanco Animal Health, Inc. was never a start-up. It had a considerable head-start, being a subsidiary division of Eli Lilly and Co. (NYSE: LLY) until it was spun off as a public entity in 2019. It is presently the second largest veterinary health company in the world after Zoetis. Elanco sells its 200+ different products in over 90 different nations.
Elanco’s most notable growth driving products include:
- Coredelio Quattro – a monthly tick, flea, roundworm, tapeworm, and heartworm disease protection for dogs in a chewable tablet formulation. It achieved $100 million in sales in September, 2025.
- Zenrelia – a daily allergy and dermatitis itch relief treatment, used in over 8,000 US clinics.
Since April 2025, when Elanco was as low as $8.00 per hare, it is presently at $22,00 at the time of this writing, a 275% gain in 7 months. Its 1-year return is 55%, 3-year return is 62.8%, and its 5-year return, which reflects Elanco’s fall from a high in the mid $30’s to the $8 level and back, is -27.03%.
Elanco’s last quarterly report showed a 9% organic constant currency revenue growth, and raised its full-year revenue guidance by $100 million, based on its performance this year. Overall 2025 EBITDA target is now $890 million, according to CFO Bob Van Himbergen. Elanco also refinanced a $2.1 billion term loan, which will improve its capital structure via extended maturities.
Conversely, Elanco’s strategic investments have grown its operating expenses by 7% versus in 2024, which includes a $15 million interest expense increase in 2026 due to an interest rate swap maturing. Additionally, its livestock methane attenuation treatment, Bovaer, is gaining slower traction than anticipated, and increased competition in the parasiticide market could be a growth headwind.
Trupanion Inc.
With veterinary medicine growing by leaps and bounds, it became inevitable that medical insurance for pets would become a complimentary growth industry, comparable to how medical insurance for humans has become a financial staple advocated by Warren Buffett and other famous investors. Seattle headquartered Trupanion is the largest among those firms exclusively handling pet insurance, since such insurance stalwarts as Nationwide and MetLife have also entered this lucrative arena.
With business in the US, Canada, Puerto Rico and Australia, Trupanion’s has been a big aid to millions of dog and cat owners who have been faced with medical costs for pets that often rival pediatric costs for human toddlers. The company has over 1 million pet coverage policies and some state regulators have acknowledged the need for pet insurers to do business and approved rate increases last year, with New York greenlighting up to 18% and California at 12%.
Like most other pet industry stocks, Trupanion soared to lofty highs during the pandemic pet adoption surge, reaching as high as $158 per share in 2021 before coming back to earth during the aftermath. Nevertheless, Trupanion still wields a $1.7 billion market cap, and its latest Q3 2025 financial report held much good news for the company:
- Revenue: $366.9 million vs analyst consensus of $362.3 million (12.1% year-on-year growth, 1.3% beat)
- Adjusted EBITDA: $19.56 million vs analyst consensus of $15.31 million (5.3% margin, 27.7% beat)
- Operating Margin: 1.6%, up from 0.5% in the same quarter last year
- CEO Margaret Tooth said Trupanion will now invest more aggressively in pet acquisition, leveraging its strong financial position to accelerate growth beyond retention improvements.
In a recent analyst call, Trupanion addressed certain key business and economic issues for the company going into 2026:
- CFO Fawwad Qureshi said future growth should see greater action from increased pet counts as opposed to higher pricing, with margin targets remaining steady in 2026.
- Although North America has been the primary market and investment target for pet insurance, Europe will increasingly come into focus as margins improve.
- A partnership between Trupanion and BMO Insurance to open the Canadian market for Trupanion’s core insurance products. Canada’s high pet ownership levels but very low pet insurance percentage indicates a nearby large and underserved market that is ripe for opportunity.
- Quereshi also indicated that future pricing will be adjusted for inflation with an eye towards maintaining value, but the company had no plans to cut rates anytime soon.
PetVivo Holdings (OTCQX: PETV)
In the not too distant past, when a racing horse’s leg was injured, it was either kept for breeding purposes if it could be sufficiently healed, or put to sleep if not. However, new biomedical breakthroughs utilizing injections of collagen elastin hydrogel microparticle (CEHM) treatments for veterinary joint injuries have achieved some amazing results. PetVivo Holdings CEO John Lai even recounted that one horse that was treated with CEHM injections was not only able to re-enter the track competitively, but actually won a race!
Based in Edina, MN, PetVivo Holdings is a biomedical veterinary device and therapeutics company that has commercialized CEHM for horses, dogs, and cats under its veterinary product brands, Spryng® with OsteoCushion® Technology for joint treatment and a platement-rich plasma regenerative product under the name PrecisePRP™ for accelerated healing.
Spryng is an injectable veterinary medical device administered to pets and horses for lameness due to trauma, osteoarthritis, and other joint injuries. The CEHM composition of Spryng integrates with an animal’s joint tissue to assist in repairing damaged tissue and to help relieve pain. PrecisePRP is a plasma-rich platelets product that delivers concentrated platelets for accelerated healing without the need for blood draw or centrifugation. Both Spryng and PrecisePRP must be administered by a veterinarian. The treatments have established sufficient validation and efficacy that veterinary medical insurance companies such as Trupanion (see above) have covered their use.
PetVivo’s Q4 2024 results beat analysts’ projections by +$0.18, and its 1-year return presently calculates to +165.31. This may be a turning point for the company, which is -43.23% for its 3-year return. With Tibial Plateau Leveling Osteotomy (TPLO) surgery for both cats and dogs (a procedure comparable to ACL surgery for humans) becoming increasingly common and averaging between $8,000 – $11,000, the market for Spryng and PrecisePRP products looks very promising. The fact that pet owners unflinchingly consent to these expensive procedures further evidences the elevation of pets to equal family member status.