Read the Conversation
Conversation highlights:
- Companion animal boom continues. Double-digit growth over the past decade, driven by pet humanization, innovation, and rising investment in preventive care and nutrition.
- Balanced portfolio across segments. While Mexico’s market is 70% farm and 30% companion animals, Virbac’s sales are evenly split, supported by a comprehensive, prevention-focused portfolio.
- Mexico is a strategic production hub. A key top-five affiliate globally and export platform to more than 20 countries, supported by a major manufacturing and R&D center in Guadalajara.
- Prevention over antibiotics. Strong emphasis on vaccination, parasiticides, and responsible antibiotic use to address antimicrobial resistance within a One Health framework.
- Innovation in high-value niches. Growth driven by dermatology, dental care, mobility, premium pet nutrition, and a unique non-surgical alternative to castration.
- People, sustainability, and long-term stability. Certified Great Place to Work, family-owned for nearly six decades, and focused on durable, market-outperforming growth.
EF: As we approach 2030, what should the sector focus on over the next four years?
XM: I have worked in animal health at Virbac for thirty-one years, the last ten of them in Mexico. The COVID-19 pandemic has been the most significant development of the past decade, largely because the sector did not anticipate its impact. It triggered strong growth. People spent more time at home, developed a closer bond with their pets, and became more willing to invest in their care. In some countries, visiting the veterinarian was one of the few permitted outings, which further supported the market. The positive trends that emerged during this period have continued.
In Mexico, the companion animal segment has grown at double-digit rates over the last ten years, yet there is still considerable room for expansion compared with more mature markets. Animal health is divided into two main segments: farm animals and companion animals. In Mexico, companion animals represent about 30% of the market, while farm animals account for 70%. The rapid growth in the companion animal population is driven by the increase in the pet ownership rate (70% of Mexican households own at least a pet, the shift to preventive healthcare, and the humanization of pets. Most pet parents now see them as family members and are increasingly aware of the need for vaccination and parasite control.
At the same time, the farm animal segment remains essential. We are feeding a world where demand for protein is rising, especially in developing countries such as Mexico. By 2050, global protein demand is expected to increase by more than 40%, driven largely by emerging economies and a growing middle class.
The pet industry is also highly innovative, particularly in parasiticides and new technologies such as monoclonal antibodies for various diseases. In Mexico, Virbac’s sales are evenly split between the companion animal and farm animal markets, and our portfolio is among the most comprehensive in the industry. We believe health starts with nutrition. Virbac offers a high-end, specialized pet food range, sold mainly through veterinary clinics, that is high in protein and low in carbohydrates. This line has grown by an average of 30% per year over the past decade.
Our portfolio spans vaccines, pet food, dental care, dermatology, mobility, anesthetics, parasiticides, behavioral products, and supplements. Dental, mobility, and dermatology products for dogs and cats have particularly strong potential. As a French company that began in the pet segment, Virbac has a long heritage in companion animal health. Today, our goal is to meet the needs of both pet parents and veterinarians through a comprehensive, clinically focused range of solutions.
EF: Could you elaborate on the strategic importance of Virbac's R&D manufacturing center in Mexico?
XM: Mexico has long been one of Virbac’s most important affiliates. We are its fifth-largest affiliate by sales, even though Mexico ranks only 11th among global animal health markets. Within Latin America, Mexico is Virbac’s leading affiliate, while Brazil is the largest market. I am very proud of our position as a top-five affiliate and key production platform, and we also expect Brazil to continue gaining importance.
We have invested significantly in our manufacturing site in Guadalajara, which fully opened in 2016. From there, we supply Mexico and export to about 20 countries, including South Africa, several Latin American markets, Asia, and North Africa. Virbac is the only multinational animal health company with a manufacturing facility in Mexico, which makes the country strategically essential as well as a dynamic, growing market.
In the farm animal segment, demand for protein is rising. In the south, the market is divided between many small producers, while the north and the center are far more concentrated and technical. This contrast makes the farm animal market both diverse and attractive. Mexico is therefore a priority for Virbac, with substantial potential in commercial animal production.
EF: What is your advice on preparing for and managing growth?
XM: It is important to note that we are certified members of the Great Place to Work community, and we repeat the survey every two or three years. Last year, we were recognized as one of the Best Places to Work in Mexico and have now obtained the certification twice. This growth would not have been possible without Virbac’s employees. Our close relationship with veterinarians clearly sets us apart. We have never been a subsidiary of a human pharmaceutical company, which allows us to stay close to our customers and understand their needs in depth.
Historically, veterinarians were our primary customers. Today, while they remain central, we are increasingly engaging directly with pet parents, who, with greater access to information and artificial intelligence, are more knowledgeable and often arrive at the clinic with a clear idea of what they want. It is therefore essential that we speak to them directly, not only through veterinarians.
Our growth is strongly supported by our innovative portfolio: our pioneering work in dermatology; a distinctive, hard-to-copy range of premium pet food, including the first medicalized pet food registered and sold in Europe and soon available in other regions; and unique solutions in reproductive health. For example, we offer the only non-surgical alternative to castration, a six-month implant that avoids mutilation and the behavioral changes associated with surgery. This aligns with our commitment to animal welfare, particularly in markets where surgical castration is still widely practiced. We were also pioneers in dental care. Although we do not rely on blockbuster products, we deliver strong solutions in high-value niche segments such as dentistry, dermatology, and mobility.
Finally, we are addressing the growing incidence of age-related diseases in dogs and cats. Our portfolio includes mobility support for cats and dogs and products for kidney problems, which are common in older pets, offering a comprehensive range tailored to their needs.
EF: What is your pitch for attracting investors to Mexico? Why, in your opinion, is a $1 investment in Mexico preferable to one made elsewhere?
XM: Doing business here is relatively straightforward. In my experience, Mexico is easier than many other countries when it comes to taxes, starting companies, and working with clients. Proximity to the United States is a defining factor for Mexico. An advantage or a disadvantage, depending on your perspective. Developments in the world’s largest market inevitably affect people, veterinarians, pet parents, and farmers here.
Because so much innovation originates in the United States, being close to that ecosystem has made me more open to new ideas. Although I am not focusing on tariffs, the current environment is favorable both for companies that want to manufacture in Mexico and for those that aim to export. Although we do not currently produce for the U.S. market, this is something we may pursue.
Another advantage is the quality of education at many universities, particularly in Guadalajara. It is possible to find highly capable, well-educated professionals at a competitive cost, which is one reason we also operate a research and development center in Mexico. Overall, investing in and having a presence in Mexico offers many advantages.
EF: What influence do you think AI and technology adoption will have on the current ecosystem for animal health?
XM: It has already begun to have an impact and will continue to do so. Our employees now have access to AI, which helps automate certain tasks and improves the speed and quality of information access. This allows them to focus on work that creates real value. AI also affects our customers. As pet parents become more informed, the relationship between them and veterinarians is changing. The information they find still needs to be verified, and veterinarians must remain the ones who prescribe and decide which medications are appropriate. In the farm animal segment, AI is starting to influence diagnostics and provide producers with better insights, such as how to increase production and what to use. I expect its role to continue to grow in the coming years.
EF: How does your portfolio differ in terms of volume value or the kind of products you offer in the farm animals’ segment?
XM: We offer a wide range of products for farm animals, with a strong emphasis on vaccination and disease prevention. Our portfolio includes many antibiotics, but we are aware that prolonged or inappropriate use can contribute to resistance. Antibiotics will remain necessary in certain situations, so we focus on educating producers on when they are truly needed and how to administer them correctly, including strict adherence to dosage and treatment protocols. At the same time, our priority is prevention; we seek to avoid the need for medication through robust preventive strategies.
We also provide an extensive range of parasite-control products, an important segment of the animal health market and a key component of preventive care. Prevention begins with vaccination and is reinforced by alternatives to antibiotics, such as injectable minerals that support overall health and help prevent disease. When animals fall ill, producers lose productivity. Our role is to equip farmers with effective, science-based solutions that keep animals healthy and sustain high levels of performance.
EF: In the next four years, what growth would you want to see in the company?
XM: We aim to continue outperforming the market by introducing new technologies, building on our average growth of 13%. Last September, we launched a pet mobility tablet that was a great success, and we now have high expectations for our allergy range, one of our key pet food launches. Innovation and new product introductions remain central to our strategy in the pet industry.
In the farm animal division, we added swine vaccines a year and a half ago. Our swine portfolio had been focused mainly on antibiotics, and we are now expanding into prevention, particularly through vaccination. In the ruminant segment, we do not expect our antibiotic range to grow, so we are concentrating on vaccines, injectable minerals, and parasiticides, where we see strong potential.
We also want to maintain our Great Place to Work certification because we put people first, not for the label itself, but to have employees who are proud of Virbac and happy to work here. Sustainability is another key priority. As a family-owned company in business for 58 years and never acquired, we benefit from strong stability and a long-term outlook. Free from excessive short-term pressure, we can make decisions that support the company’s durability over time.
Since animals are responsible for 75% of emerging infectious diseases in humans, it is important to highlight the significance of One Health. The contribution of animal and human health is often underestimated, and I want to underscore the role we play in this area. We have briefly addressed the need to reduce antibiotic use and to prevent antimicrobial resistance. At Virbac, we support the use of antibiotics as sparingly as possible but as much as necessary to combat the emergence of antimicrobial resistance in both humans and animals. We have a key role to play in advancing the health of animals for those who care for them every day, so that we can all live better together. I also want to emphasize the growing importance of sustainability.
