Veterinary Practices Are Struggling—Here’s How You Can Thrive in 2025 Amid Economic Challenges
The veterinary industry is at a crossroads. What once seemed like an unstoppable surge in pet care demand during the pandemic has now given way to a challenging new reality. Practices across the nation are facing a significant drop in revenue, fewer visits from clients, and a shrinking base of active customers. At the same time, the broader economy is in flux. Job losses, economic uncertainty, and rising inflation are making it harder for pet owners to afford the care their pets need. This shifting landscape, combined with evolving societal attitudes toward healthcare, is reshaping how veterinary practices must operate to stay afloat in 2025.
The Shifting Landscape of Veterinary Care
After a boom in pet care during the pandemic—when people were home more and able to invest in their pets' health—veterinary practices are now seeing a steady decline in both revenue and the number of visits. While price hikes helped sustain revenue growth in the past, that strategy has proven insufficient as patient numbers drop. The most noticeable impact is on wellness visits, especially those where pets are only coming in for preventive care or vaccines. Pet owners are becoming more selective about when and why they seek veterinary care, leading to fewer visits overall.
But it’s not just about declining visits. Rising costs across the board, combined with job losses and economic uncertainty, are hitting households hard. Pet owners are facing tough choices, and veterinary care is increasingly seen as a discretionary expense. The rising cost of services—well beyond the general inflation rate—has prompted many families to delay routine check-ups or forgo non-essential treatments altogether. Wellness visits, which include critical vaccinations and health checks, have seen the sharpest decline. In fact, the average time between veterinary visits has increased dramatically since the pandemic, reflecting how pet owners are prioritizing their spending in an uncertain financial climate.
The Economic Toll on Pet Care
The financial strain on families has also influenced spending patterns. Pet owners are trimming budgets, cutting back on items like therapeutic diets, pharmacy purchases, and surgical procedures. The most concerning trend is a growing reluctance to purchase preventative treatments—especially parasite prevention products. Instead, many pet owners are turning to cheaper alternatives or skipping these critical treatments altogether. This shift is concerning, as it may not only compromise pets’ health but also signal a disconnect between veterinary practices and the clients they serve when it comes to preventive care.
Compounding the financial pressures is the shrinking number of active patients, primarily driven by a reduction in canine clients. With fewer new puppies and kittens entering the system, practices are seeing a decline in new client acquisition and a drop in the number of returning clients. Without a steady stream of new pets and families, the long-term growth of practices is in jeopardy.
Workforce Challenges: A Strain on Operations
Veterinary practices are also contending with workforce shortages and burnout, exacerbating an already tough environment. Veterinarians are working fewer days per month and seeing fewer transactions each day, leading to significant revenue losses. The shortage of veterinary staff and the growing strain on remaining team members is further stretching practice resources, making it harder to maintain operations, let alone provide exceptional care.
Vaccine Hesitancy: A New Threat to Wellness Care
While economic pressures are a clear factor, there’s another, more subtle trend at play that is contributing to the decline in veterinary visits—vaccine hesitancy. This issue, which has plagued human healthcare for years, is now spilling over into veterinary care. Misinformation and distrust of medical institutions have led some pet owners to question the necessity of routine vaccinations for their pets. As wellness visits often include vaccinations, this skepticism is causing a direct dip in these essential appointments.
For some pet owners, the broader mistrust of medical systems—fueled by the vaccine debates in human healthcare—has translated into a reluctance to trust veterinarians. The erosion of trust in healthcare institutions, whether for humans or animals, is making it harder for practices to convince owners of the importance of preventive care.
Finding Solutions: Strategies for Adapting in 2025
The challenges are real, but they aren’t insurmountable. Here are some actionable strategies to help practices adapt and thrive in the changing landscape of 2025.
1. Prioritize Client Retention and Experience The key to sustaining revenue in 2025 is focusing on improving the client experience. From simplifying appointment scheduling to offering convenient post-visit follow-ups, every touchpoint with clients should be optimized for ease and satisfaction. In addition, offering multiple communication channels—text, email, and chat—ensures clients feel more connected to the practice.
2. Re-Engage Lapsing Patients Veterinary practices can tap into automated communication tools to remind clients about overdue services. Personalized outreach can go a long way in rebuilding relationships with clients who have scaled back their visits.
3. Meet Clients’ Financial Needs To navigate the economic uncertainty, practices can offer a broader spectrum of care options to accommodate varying budgets. Breaking down large invoices into smaller payments can also help ease financial strain. Offering flexible payment plans and digital payment options will make it easier for clients to access care, even during tough financial times.
4. Foster Loyalty and Repeat Business Loyalty programs can incentivize repeat business and increase lifetime client value. Rewards for consistent care and long-term relationships can help keep clients engaged with the practice.
5. Embrace Technology to Improve Efficiency Technology can streamline workflows, reduce manual data entry, and enhance communication within the practice. Leveraging practice data will allow for personalized marketing strategies and help target clients’ needs more effectively. Tracking key metrics, like client retention and revenue, will allow practices to measure success and adjust strategies accordingly.
6. Address Vaccine Hesitancy Through Education Finally, practices need to focus on educating clients about the importance of vaccinations and preventive care. Providing clear, evidence-based information can help alleviate concerns and rebuild trust. Rebuilding relationships through transparency and community outreach—whether through social media or local events—can make a significant difference in encouraging pet owners to take a proactive approach to their pets’ health.
Looking Ahead: A Path Forward
The veterinary industry is facing significant challenges, but it also has the opportunity to evolve and thrive. Practices that prioritize client experience, offer flexible care options, and leverage technology will be better positioned to navigate the tough road ahead. And by addressing societal trends like vaccine hesitancy through education and trust-building, veterinary practices can play an essential role in maintaining the health and well-being of pets across the country.
As the industry adapts to these changes, one thing is clear: the future of veterinary care will be shaped by those who can successfully balance economic realities with a commitment to compassionate, accessible, and high-quality pet care.
To dive deeper into VetSource’s white paper, read the full report here.
