Vetoquinol Universal Registration Document 2019

1 16   Vetoquinol  Universal Registration Document 2019  Financial report PRESENTATION OF THE GROUP Animal health world market 1.5 Animal health world market 1.5.1 Animal health world market Américas 45% of the world market Growth +5% Europe 23% of the world market Growth +4% Asia Pacific – Rest of world 32% of the world market Growth -5% Source: Vetoquinol 2019 estimates. In 2019, the animal world health market is expected to grow by around 1.5% at constant exchange rates (source: Vetoquinol estimates). In terms of species, the animal health market is divided into two segments: the food-producing segment (cattle, sheep, pigs, poultry, etc.) and the pet segment (dogs, cats, horses, etc.). These two segments are separated as they are based on different economic rationales: the food-producing segment is a high-volume market driven by profitability and subject to significant variations during a health crisis (e.g: bluetongue, bird flu, swine flu, etc.) while the pet segment represents a market with higher added value and growth, while still being linked to the increase in the purchasing power of owners (pets’ “parents”). The relative importance of these two segments varies considerably from country to country, depending on their economies. At constant exchange rates, the food-producing segment shrunk 4% in 2019, while the pet segment posted growth of around 10%. In 2019 the market was severely impacted by the swine fever outbreak in Asia, particularly in China whose pig population was heavily depleted by the virus. This explains the negative growth on the food-producing animal market in Asia Pacific.