U.S. veterinary practices are booking fewer visits and struggling to attract new pet owners, according to the 2025 Veterinary Industry Benchmark Report from iVET360.
Based on 2024 data collected from more than 1,500 practices, the report reveals slowed growth across the industry, a trend that continued from 2023. Key findings include:
- New client acquisition fell by 9.5%.
- Client visits declined by 4%.
- Revenue growth slowed to 1.3%.
- Cost of goods sold and labor costs as a percentage of revenue remained flat.
- Smaller practices struggled more than larger practices.
Although patient visits decreased, the industry saw financial growth in 2024 due to price increases, with the average transaction charge increasing by 6.1% from 2023. However, growth varied by region, with surveyed practices in the Midwest and Southwest slipping into the red.
“Veterinary medicine didn’t fall behind; it just stood still while the rest of the world moved forward,” said Oliver Roller, the chief technology officer at iVET360. “Now the bar is higher, and if the profession wants to thrive, it has to level up for the client, for the team and for itself.”
According to the report, not committing to providing an optimal client experience might be to blame for the industry’s inability to attract and keep clients. Communication protocols established during the COVID-19 pandemic, a time marked by increased demand, might no longer be sufficient to convert callers into clients and meet growing client expectations.
The price of veterinary services is rising steadily due to increases in the cost of goods and services and pressure from private equity and corporate practices. The report suggests that raising prices year over year without increasing the value of services might not be an effective strategy for continued growth. As clients reach their budgetary limits, iVET360 predicts that price-shopping will increase and loyalty will decline.
The most successful practices in 2024 employed tactics to improve operational efficiency, communication clarity, access to care and client convenience. The report suggests the industry move beyond reactive pricing and focus on client relationships to reverse losses and improve growth.
Possible strategies for success in 2025 include adopting technology that improves client communication, attracting new clients using low upfront pricing and easy appointment booking, promoting pet health insurance, and leaning into core services like wellness labs, dental care and imaging.