UK Watchdog Eyes Reform of £2bn Veterinary Sector Amid Price Hikes

British pet owners could soon see major changes in how veterinary services are priced and delivered, following a sweeping investigation into the country’s £2 billion animal care industry. According to The Guardian, the Competition and Markets Authority (CMA) is exploring a range of reforms aimed at improving transparency and ensuring fair treatment of consumers, amid growing concerns over rising costs and corporate influence in the sector.

The probe, which began after a 2023 review triggered an unprecedented 56,000 responses from the public, has revealed troubling trends in the industry. Among the CMA’s findings was a 60% increase in treatment prices between 2015 and 2023—far outpacing the 35% rise in general service inflation over the same period. Per The Guardian, these escalating costs have raised alarms about accessibility and fairness, especially as pet ownership has surged since the pandemic.

One of the central concerns identified by the CMA is the pressure some veterinary professionals face when working for large corporations. The regulator noted that certain vets reported feeling compelled to meet performance metrics, some of which are tied to specific treatment offerings—raising questions about whether clinical decisions are being unduly influenced by profit motives rather than animal welfare.

Read more: CMA Strengthens Investigation with Advisory Panel of Veterinary Experts

In response, the CMA is considering a ban on practices that limit a vet’s ability to offer a full range of treatment options. Additionally, it is evaluating the introduction of a temporary price cap—or even a freeze—on veterinary medicines, some of which are reportedly marked up by three to four times their original cost. The CMA pointed out that many pet owners are unaware they can purchase the same medications online for significantly less.

According to The Guardian, another possible reform includes mandating that veterinary clinics display clear and accessible pricing online for services such as treatments, surgeries, and out-of-hours care. The regulator is also examining pricing practices around pet cremation services, which it says are often sold at a moment of emotional vulnerability and may carry excessive markups.

The CMA’s investigation comes at a time of dramatic consolidation within the industry. Since 2013, six major corporate groups—CVS, IVC, Linnaeus, Medivet, Pets at Home, and VetPartners—have acquired approximately 1,500 of the UK’s 5,000 vet practices. This has led to a sharp decline in independent clinics, which made up 89% of practices in 2013 but just 45% by 2021.

Investor reaction to the CMA’s announcement was relatively positive, with shares in Pets at Home rising 2.3%, likely due to relief that the proposed measures were not as severe as some had anticipated.

Notably, the regulator highlighted that much of the current veterinary regulation dates back to 1966 and focuses primarily on individual practitioners rather than the corporate entities that now dominate the landscape.

The CMA is now inviting public feedback on its proposed remedies, with submissions open until 27 May. Provisional findings are expected to be released later this summer.

Source: The Guardian