Vetoquinol Universal Registration Document 2019

1 Vetoquinol  Universal Registration Document 2019  Financial report   17 PRESENTATION OF THE GROUP Animal health world market 1.5.2 The animal health market by region Market growth by major region is estimated as follows: • Europe +4%; • North America +4%; • Latin America +11%; • Asia Pacific and Rest of World -5%. Source: Vetoquinol 2019 estimates. Europe Europe is Vetoquinol’s No. 1 core market, thanks to the presence of its subsidiaries in all major countries. In 2019, the market maintained stable growth of 4%. The main growth driver in Europe for food-producing animals is the vaccine segment, which offsets a continued decline in the antibiotics market. For the pet segment, growth is driven by specialty dermatology and cardiology pharmaceuticals. Americas The Americas market is subdivided into two distinct regions: North America, a mature but constantly growing market, and Latin America, a developing market. North America North America, and more specifically the United States, is the No. 1 market worldwide with a market share of more than 33%. In the pet segment, the US market alone accounts for about half of the world market in this segment. Canada is the 10th biggest animal health market in the world. Animal production is up, as is the pet market, which is also being driven by parasiticides for pets and the intro- duction of new products. Latin America Latin America is the region with the strongest market growth. It is a developing region dominated by beef, pork and poultry production. The pet market is growing as peoples’ standard of living improves. Brazil still represents growth potential for Vetoquinol. It is a rapidly developing country among the world’s leading animal health markets. Brazil has one of the largest global cattle populations, representing about 10 times that of France. Brazil has the ambition and the political desire to become the top global producer and exporter of animal protein. To stren- gthen its presence in this key market, Vetoquinol recently acquired Clarion Biociencias, which specializes in para- siticides for food-producing animals. It is not only one of the world’s leading producers of cattle, pigs and poultry, but also offers high growth potential in the pet market. Also present in Mexico for over 20 years, Vetoquinol mainly operates in the dairy cow segment and, more recently, in the pet segment. Asia Pacific (and rest of world) Vetoquinol is present on these markets, either directly through its subsidiaries, or through a network of quality distributors in most countries in the region. Vetoquinol operates directly in South Korea, India, China and Australia. These regions represent strong growth potential for all of the Group’s species and strate- gic areas. China is a particularly important market for Vetoquinol in terms of growth potential in both pet and food-producing segments; it is currently the world’s second largest market and is positioning itself to over- take the USA and become the world’s No. 1 market during the coming years. Vetoquinol is actively seeking to expand its footprint in this key territory, firstly in the pet segment, where its subsidiary has achieved recogni- tion through the registration and launch of a number of Essentials products, but also in the pig market, where China is still the world’s top consumer and producer of pork (source: USDA – United States Department of Agri- culture) despite the swine fever crisis. Through active cooperation with local partners, in 2019 Vetoquinol suc- cessfully launched BoarBetter ® , an unrivaled innovation designed to stimulate reproduction processes in pigs. In 2017, Vetoquinol formed a partnership with Zenoaq, Japan’s leading independent veterinary pharmaceutical company, in order to register and market the Group’s Essentials products in Japan by harnessing our partner’s expertise.