"Prices have been rising far faster than general inflation between 2016 and 2023, says the watchdog. The increases cannot be justified at least, nothing like fully by investment in better kit or superior services or higher salaries. And, critically, there is a big difference between the prices charged by the large chains and the independents that, pre-2013, used to represent the bulk of the industry."
"The CMA found that the average price charged by a practice owned by a large vet group for consultation, treatment and medicines was 16.6% higher than at an independent vet. That statistic contributes, says the CMA, to a customer detriment which can be regarded as excess profits of more than 1bn over five years. For a substantial part of the market as a whole, profits are much higher than they should be if competition was working well, says the watchdog."
The Competition and Markets Authority investigated the veterinary sector and found prices rising far faster than general inflation between 2016 and 2023. The price increases are not fully justified by investment in equipment, superior services, or higher salaries. Practices owned by large vet groups charge on average 16.6% more for consultation, treatment and medicines than independent vets. The CMA estimates excess profits of more than £1bn over five years and finds profits higher than would occur under effective competition. The six largest companies, including IVC Evidensia, VetPartners, Medivet, CVS, Pets at Home and Linnaeus, collectively own over 60% of practices. The CMA considers significant structural remedies unnecessary given existing consumer choice and typical market concentration levels.
#veterinary-industry #competition-and-markets-authority #pricing-and-profits #corporate-consolidation
Read at www.theguardian.com
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