North America Veterinary Reference Laboratory Market Outlook, 2031

Market Drivers

• Rising veterinary expenditure and increasing demand for advanced animal healthcare services The growing willingness among pet owners to spend on preventive healthcare, diagnostics, and specialized veterinary treatments is supporting demand for reference laboratory services across North America. According to the American Pet Products Association (APPA), U.S. pet-related spending exceeded USD 150 billion in 2024, reflecting increased expenditure on veterinary care, wellness services, and medical procedures. Higher adoption of routine health screening, chronic disease monitoring, and specialty veterinary care has encouraged clinics to utilize external laboratory services for accurate diagnosis and treatment planning. In livestock sectors, producers are also relying more on diagnostic testing to maintain animal productivity, meet health certification requirements, and minimize economic losses associated with disease outbreaks.
• Increasing consolidation of veterinary practices and outsourcing of diagnostic services: The expansion of corporate veterinary groups and multi-location animal healthcare providers is changing the way diagnostic services are utilized in North America. Large veterinary networks are increasingly partnering with reference Laboratory to access broader testing capabilities without investing heavily in internal laboratory infrastructure. Organizations such as National Veterinary Associates (NVA), Mission Veterinary Partners, and other veterinary practice groups have contributed to the consolidation of clinical services, creating greater demand for centralized diagnostic support.

Market Challenges

• Limited affordability of advanced diagnostic testing among price-sensitive customers: Although advanced veterinary diagnostics offer significant clinical benefits, the cost of specialized testing remains a challenge for wider adoption. Procedures such as genetic screening, comprehensive infectious disease panels, and advanced pathology services often involve higher expenses compared with routine veterinary tests. Rising veterinary care costs have created affordability concerns among pet owners and livestock operators, particularly where insurance coverage or reimbursement options are limited. This factor can influence decisions regarding the adoption of additional diagnostic procedures, especially for non-emergency healthcare situations.
• Fragmented veterinary healthcare delivery system across smaller clinics: The presence of a large number of independent veterinary practices creates operational challenges for reference laboratory providers. Smaller clinics may have limited resources for adopting advanced digital systems, managing complex sample logistics, or integrating external diagnostic services into daily workflows. The fragmented nature of veterinary care can also result in differences in testing practices, service utilization, and diagnostic awareness across providers. Maintaining consistent service quality and building efficient connections with smaller veterinary facilities remains an important challenge for laboratory operators.

Market Trends

• Growth of preventive diagnostics and routine health monitoring programs: Veterinary care in North America is gradually shifting toward preventive health management, with greater emphasis on regular screening rather than diagnosis only after symptoms appear. Concerning 2024 and 2026, veterinary clinics increasingly incorporated routine blood testing, wellness panels, and early disease screening into healthcare programs for companion animals. This approach is particularly relevant for aging pets, where early identification of chronic conditions can support better treatment outcomes and long-term health management.
• Expansion of veterinary diagnostic partnerships and integrated healthcare models: The veterinary reference laboratory industry is witnessing a shift toward integrated service models where diagnostic providers collaborate more closely with veterinary practices, pharmaceutical companies, and animal healthcare organizations. Through 2024–2026, partnerships focused on improving access to specialized testing, streamlining clinical workflows, and providing veterinarians with broader diagnostic support. This development is strengthening the role of reference Laboratory as long-term healthcare partners rather than only testing providers.