The Competition and Markets Authority (CMA) has released (6 February) its working papers on the state of the UK veterinary services market, highlighting significant concerns over pricing, transparency, and regulatory oversight.
With UK households spending over £6.3 billion annually on pet care, the CMA’s findings suggest the market is not functioning effectively for consumers or veterinary professionals.
Key Issues Identified
The CMA’s inquiry has uncovered several critical problems affecting pet owners and veterinary professionals:
- Lack of Pricing Transparency:
- 84% of veterinary practice websites do not list prices for basic services.
- Less than half of pet owners receive price estimates for non-routine treatments.
- Limited Consumer Awareness and Choice:
- Many pet owners are unaware of who owns their veterinary practice.
- Large veterinary groups (LVGs) control 60% of the market, often maintaining independent branding, making it unclear to consumers who owns their local practice.
- High Prices and Limited Competition:
- Veterinary service prices have increased by over 60% since 2015, far outpacing general inflation.
- Markups on veterinary medicines are substantial, with many pet owners unaware they can request prescriptions to buy medication elsewhere.
- Staffing Shortages and Market Consolidation:
- The sector has faced ongoing staff shortages, making it harder for independent practices to compete.
- Large corporations have acquired local practices, referral centers, and pharmacies, potentially limiting consumer choice and competition.
- Outdated Regulation:
- The veterinary sector is still governed by legislation from 1966.
- The Royal College of Veterinary Surgeons (RCVS) only regulates individual veterinarians, not the corporate entities that now dominate the market.
What Happens Next?
The CMA is currently gathering additional evidence and will publish further analyses in the spring, including:
- A study on veterinary pricing and treatment data.
- A paper on potential regulatory and market reforms.
- An in-depth review of profitability within the industry.
The authority is also inviting feedback from pet owners, veterinary professionals, and industry stakeholders until February 27, 2025, before making final recommendations. Potential outcomes could include mandatory price transparency, new regulations on corporate ownership, and measures to enhance competition.
The CMA’s findings signal that significant reforms may be needed to ensure veterinary services remain affordable and accessible while maintaining high standards of animal care.
Source: https://www.gov.uk/cma-cases/veterinary-services-market-for-pets-review
