Drugdu.com expert's response:

The market size of China's veterinary diagnostic reagent industry has expanded from 2.2 billion yuan in 2018 to 4.84 billion yuan in 2024, with a compound annual growth rate of 14.04%. It is expected to maintain a growth trend in the coming years. With the rapid development of the breeding industry, the demand for veterinary diagnostic reagents has been on the rise. Meanwhile, the emergence of the pet market has also brought new growth momentum to the industry. For instance, in 2024, there were 71.53 million pet cats and 52.58 million pet dogs in China, and the consumption scale of urban pets (cats and dogs) reached 300.2 billion yuan. The increasing demand for pet medical care has driven the development of the diagnostic reagent market.

Continuous Technological Upgrades

Detection Technology Iteration: Detection technology has been continuously advancing. For example, CRISPR gene-editing technology has reduced the detection limit to 10 copies/mL, microfluidic chips have enabled 8-plex testing, the detection time has been shortened to 15 minutes, and the accuracy rate of artificial intelligence-assisted diagnostic systems has reached 98.7%. The application of these new technologies has improved the accuracy and efficiency of diagnosis.

Towards High-end and Intelligent Development: The application of advanced technologies such as biotechnology and molecular diagnostics in veterinary diagnostic reagents has been continuously expanding, significantly enhancing product performance and accuracy. At the same time, with the integration of Internet and big data technologies, the data analysis and remote diagnosis capabilities of the veterinary diagnostic reagent industry have gradually strengthened. For example, point-of-care testing (POCT) devices have become popular in veterinary clinics. Portable and easy-to-operate diagnostic devices allow veterinarians to conduct tests directly in the clinic and obtain results immediately, improving the speed and efficiency of treatment.

Accelerated Import Substitution

Although the domestic veterinary diagnostic reagent industry started relatively late, with the improvement of the product technology levels of domestic enterprises, they have been continuously seizing market share by virtue of their high cost-effectiveness and advantages of being close to the local market. The market structure, which was originally dominated by imported products, is gradually being broken, and there is broad space for the import substitution of high-quality domestic products.

Expansion of Application Areas

From Traditional Breeding Industry to Emerging Fields: It covers three major technological paths: molecular diagnostics, immunodetection, and rapid screening. Application scenarios have extended from the traditional breeding industry to emerging fields such as pet medical care and biosafety monitoring. For example, the demand for pet medical testing has surged, and urban pet medical expenses reached 300.2 billion yuan in 2024.

Increased Penetration in Grassroots Markets: The penetration rate of rapid diagnostic reagents in grassroots areas has increased to 57%, and the penetration rate of leasing services in small and medium-sized breeding farms has reached 41%,不断扩大 (which can be translated as "continuously expanding" or "constantly broadening") the market coverage.

Increased Policy Support

Policy Regulation for Industry Development: The state has introduced a series of laws, regulations, and industrial policies to supervise, regulate, and manage the production, quality control, operation and management, and product registration of veterinary diagnostic reagent enterprises, which is conducive to the healthy development of the industry. For example, the "Industrial Strategic Emerging Industry Classification Catalog (2023)" lists "biological veterinary drugs, veterinary biological products and vaccine manufacturing - veterinary drug manufacturing - veterinary in vivo and in vitro diagnostic products" as key products in strategic emerging industries.

Encouragement of R&D and Innovation: Through measures such as setting up special funds and offering tax incentives, the government encourages enterprises to invest in R&D and enhance product competitiveness. For example, in 2024, the central government's special support fund reached 1.5 billion yuan, focusing on supporting frontier fields such as molecular diagnostics.

Accelerated International Development

Participation in International Standard Setting: Participation in the formulation of ISO/TC34/SC9 international standards has increased the proportion of domestic reagents obtaining the EU CE certification to 38%, enhancing international competitiveness.

Expansion of Export Markets: The export market is accelerating its expansion, with the target market share in countries along the "Belt and Road" increasing to 15%, bringing new growth opportunities to the industry.

Service Model Innovation

Cloud diagnostic platforms cover 32 provincial-level administrative regions, and the sales of pet hospital co-branded testing packages have increased by 170%. The innovation of service models has injected new impetus into the development of the industry.