Russia’s veterinary industry is navigating a period of dynamic growth alongside significant structural changes. The market is expanding, driven by a growing pet population and increased spending on animal health. However, this growth is accompanied by a sharp rise in service costs, a major shift towards domestic manufacturers, and a noticeable contraction in the number of veterinary clinics.
Market Growth: Medicines and Services on the Rise
The Russian veterinary market has demonstrated robust growth across both pharmaceuticals and services. In 2025, the retail market for veterinary drugs experienced significant growth, expanding by 17.7% in monetary terms to reach 49.2 billion rubles. In physical terms, the market grew by 13.2%, with 276.8 million packages sold. The market for veterinary services tells a similar story, with the volume of paid services reaching 16.5 billion rubles in the first quarter of 2026 alone, a 24.4% year-on-year increase. This growth is largely attributed to rising treatment costs.
Shifting Demand: Vaccines and Digital Channels
The demand structure is notably changing. In early 2026, the focus shifted towards vaccines. Sales of domestic vaccines grew significantly compared to the same period in the previous year. This demand is increasingly being met through online channels, which have become the primary driver of volume growth for veterinary medicines. The share of e-commerce in total drug sales reached significant levels in value terms in early 2026.
The Import Substitution Trend
A defining feature of the current market is the accelerating trend of import substitution. The share of domestically produced veterinary drugs in the domestic market has surpassed 72%. In 2025, the share of Russian products in monetary terms reached 56%, an increase of 8 percentage points from 2024. The success of local production is evident, with the volume of registered domestic drugs increasing fivefold over the past decade.
This shift is partly due to a reduction in supplies from unfriendly countries. Manufacturers from France and the Netherlands have significantly reduced their market presence. While the quality of domestic drugs is increasingly competitive, there are still concerns about the reliability of some foreign suppliers, as the number of imported drugs may be insufficient to meet market needs.
Rising Costs: A Significant Burden
Despite the market’s growth, both consumers and the industry are facing mounting financial pressure. The cost of veterinary services has risen sharply. In the first quarter of 2026, the average price of a single veterinary appointment increased by 34% to 857 rubles, and a single vaccination session rose by a third to 2,022 rubles. This has driven the average clinic check up to 3,913 rubles. This price surge is primarily attributed to inflation in the cost of medicines and equipment. The average price of a single dose of a vaccine increased significantly from 2022 levels.
Clinic Closures Amidst High Costs
In a paradoxical development, the number of veterinary clinics is declining despite rising revenues. In million-plus cities, the number of clinics fell by 6% in April 2026 compared to the previous year. This contraction is attributed to a stagnation in demand for services, where the number of visits has decreased slightly. Clinics are struggling with high operational costs, including rent, staff salaries, equipment, and the added burden of mandatory drug labeling, which is squeezing their profitability.
Future Outlook: Growth and Consolidation
Looking ahead, the Russian veterinary market is expected to continue its growth trajectory. Market forecasts project significant growth for the veterinary drugs sector by 2030. This growth will likely be accompanied by further consolidation, with weaker players potentially leaving the market. The industry’s future will be defined by its ability to balance rising costs, maintain the momentum of import substitution, and adapt to the changing landscape of digital sales.
