Thinking of Buying a Pet Health Business in Australia? Here Are 3 Vital Questions to Ask

The Australian veterinary services industry, which underpins pet health businesses, generated $5.7 billion in revenue in 2025 with profit margins averaging 13.5%. The sector employs nearly 29,700 people across more than 3,793 enterprises.

Revenue is forecast to grow at 2.7% annually through 2031, reaching $6.6 billion. Growth is supported by Australia’s high pet ownership rate of 29.7 million animals, including 6.4 million dogs and 5.3 million cats. Rising demand for preventative healthcare, advanced procedures, and the humanisation of pets are driving expansion. However, labour shortages, cost-of-living pressures, and strong competition from corporate-owned clinics and pet retailers are key challenges.

1. Is the Business Financially Resilient in a High-Cost Environment?

Why It Matters

Pet health businesses enjoy solid profitability, but labour shortages and rising wage costs are straining margins. With demand often exceeding supply, many clinics report long wait times and are forced to turn away new clients. Practices that can balance costs while maintaining service quality will outperform competitors.

What to Check

• Profitability – Benchmark against the industry’s 13.5% margin.
  
  

• Revenue streams – Assess reliance on routine vet services (42.5% of income) versus higher-margin planned and emergency procedures.
  
  

• Wage exposure – Review staffing stability, overtime reliance, and recruitment costs.
  
  

• Cost control – Examine rent, equipment depreciation, and consumables, particularly in high-rent urban markets.
  
  

2. Does the Business Have Strong Market Positioning?

Why It Matters

Pet health businesses thrive in locations with high-income earners, strong pet ownership, and client loyalty. Urban households contribute nearly half of industry revenue, while rural areas also provide growth opportunities with higher pet ownership rates. Reputation, referral networks, and alignment with insurance coverage strongly influence patient flow.

What to Check

• Client base – Review demographics, with affluent suburbs more willing to pay for premium procedures.
  
  

• Location – Assess positioning in NSW, VIC, and QLD, the states with the highest clinic concentrations.
  
  

• Reputation – Review online feedback, referral relationships, and community engagement.
  
  

• Insurance access – Confirm alignment with pet insurance providers, which increase affordability and demand.
  
  

3. Is the Business Positioned for Industry Trends and Technology?

Why It Matters

The sector is rapidly evolving through consolidation, advanced medical technologies, and digital health services. Larger networks such as VetPartners and Greencross are acquiring smaller practices, raising competition but also creating partnership opportunities. Clinics adopting AI diagnostics, telehealth, and wellness programs are best positioned for future growth.

What to Check

• Technology adoption – Assess use of AI diagnostic tools, telemedicine, and digital records.
  
  

• Service mix – Confirm diversity across routine, planned, and specialist care, as well as ancillary services like dental and rehabilitation.
  
  

• Growth readiness – Evaluate alignment with trends such as pet humanisation and preventative health.
  
  

• Compliance – Verify licensing and adherence to veterinary practice regulations across states.
  
  

Ready to Invest in a Thriving Pet Health Business?

With robust pet ownership, rising demand for advanced procedures, and strong profitability, pet health businesses remain attractive opportunities in Australia.

Success will depend on cost management, strong positioning in affluent or high-ownership regions, and readiness to embrace digital and medical innovations.

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