{"id":78673,"date":"2025-11-03T16:31:55","date_gmt":"2025-11-03T21:31:55","guid":{"rendered":"https:\/\/todaysveterinarybusiness.com\/?p=78673"},"modified":"2025-11-03T16:31:55","modified_gmt":"2025-11-03T21:31:55","slug":"veterinary-industry-economic-study-110325","status":"publish","type":"post","link":"https:\/\/navc.sitepreview.app\/todaysveterinarybusiness.com\/veterinary-industry-economic-study-110325\/","title":{"rendered":"Veterinary Industry Enters Downward Economic Phase"},"content":{"rendered":"

A new analysis reveals that while prices for veterinary services continue to climb, real expenditures have fallen, marking the start of an industry-specific downturn.<\/p>\n

According to the study, published in Frontiers in Veterinary Science<\/em>\u00a0at bit.ly\/4nDSwRg<\/a>, the veterinary sector entered a contraction phase in late 2024, with forecasts projecting continued negative growth through at least mid-2026.<\/p>\n

The veterinary industry has often been considered recession-proof, especially after demand increased following the COVID-19 pandemic, when the broader economy declined. This belief has shaped expansion strategies, staffing decisions and capital investments over recent years.<\/p>\n

However, the veterinary economy experiences cycles of growth and contraction, similar to the business cycle of the larger economy, but these cycles don\u2019t necessarily align with the macroeconomy\u2019s cycles, according to the study. The veterinary industry likely experiences its own distinct business cycle.<\/p>\n

To decipher recent trends and forecast what\u2019s ahead, the study analyzed consumer price index and expenditure data from 2000 to 2025.<\/p>\n

The authors\u2019 predictive model suggests the downturn will persist into 2026, with a possible recovery in the second quarter, assuming no major changes. The study also demonstrates that the veterinary business cycle may lag behind the macroeconomy by several years, meaning practices may continue to decline even when the broader economy appears stable.<\/p>\n

Veterinary practices can use the insights to manage risk and stabilize demand ahead of a possible recovery, the authors stated. Slower periods can allow veterinary leaders time to thoughtfully make changes that will help them navigate the negative growth period and plan for an upturn in business. Actions veterinary leaders can take now include:<\/p>\n