US veterinary industry grows, but pressure points deepen
Bottom line
The U.S. veterinary industry is still growing, but the latest economic data suggest that growth is coming with sharper operational and workforce strain. AVMA’s 2025 Economic State of the Veterinary Profession report, which underpins recent coverage in Today’s Veterinary Business, shows a strong employment market and continued demand for care, while also highlighting rising student debt, uneven technology adoption, and persistent work-life balance pressures. Average DVM debt for graduates with debt reached $202,647 in 2024, and 38.5% of graduating veterinarians carried $200,000 or more in DVM debt. At the practice level, 19.3% of owners said they were falling behind on technology adoption, most often because of time or financial constraints, while relief and contract roles rose to 9.1% of veterinarians in 2024. (ebusiness.avma.org)
Why it matters: For veterinary professionals, the report reinforces that demand alone doesn’t solve access, staffing, or retention problems. Practices are staying open longer, averaging 10 hours on weekdays, but appointment capacity hasn’t expanded at the same pace, and many veterinarians considering change say mental health and work-life balance matter more than pay. Outside the AVMA report, industry commentary from AAHA and consultants points to rising hiring costs, uneven clinician distribution, and declining visit pressure in some markets, even as spending remains high overall. (ebusiness.avma.org)
What to watch: Watch whether practices respond with more investment in workflow technology, staffing models, and retention strategies, or whether debt, burnout, and softer visit trends keep limiting capacity. (ebusiness.avma.org)
The U.S. veterinary industry is still on solid footing economically, but the latest AVMA data show a profession being reshaped by debt, staffing friction, and changing expectations around work. That’s the core takeaway from AVMA’s 2025 Economic State of the Veterinary Profession report, highlighted in recent Today’s Veterinary Business coverage describing an industry that remains strong even as rising challenges test practice sustainability. (ebusiness.avma.org)
The backdrop is a profession that has spent the past several years balancing strong pet care demand against workforce fatigue, inflation, and changing career preferences. AVMA’s report shows employment remains favorable, and related industry coverage has noted that practices are adapting with larger teams, longer hours, and more flexible staffing. But those adjustments haven’t fully translated into more clinical capacity. A dvm360 review of the AVMA findings noted that relief veterinarians in private practice rose from 6% in 2023 to 9.1% in 2024, a sign that more clinicians are pursuing flexibility rather than traditional associate tracks. (ebusiness.avma.org)
Debt remains one of the clearest structural pressures. In 2024, average DVM debt for all graduates was $168,979, and for graduates with debt it was $202,647, according to the AVMA report. More than a third, 38.5%, graduated with at least $200,000 in debt, while 16.6% had $300,000 or more. The average debt-to-income ratio for new graduates securing full-time employment was 1.4. AVMA said debt rose in 2024 at a slightly faster rate than compensation, underscoring why compensation alone may not resolve recruitment and retention concerns. (ebusiness.avma.org)
Technology is another dividing line. AVMA found that 40.8% of practice owners described themselves as enthusiastic about new technology, while 69.5% said they were keeping up and 19.3% felt they were falling behind. Among those falling behind, the top reasons were time constraints, financial constraints, and lack of interest. Adoption also remains uneven across tools: 76.5% of practices reported using practice management software, 66.8% electronic medical record software, 64.1% online pharmacy tools, and 59.9% integrated client communication software. That suggests digital infrastructure is spreading, but not uniformly, and often not fast enough to relieve day-to-day pressure. (ebusiness.avma.org)
Work-life balance appears to be an equally important fault line. AVMA reported that veterinarians considering leaving the profession were driven less by money than by stress and lifestyle, with the most-cited reasons tied to mental health and work hours. In a separate section of the report, veterinarians preferring fewer hours most often cited better work-life balance and improved mental health. That aligns with broader industry commentary. AAHA recently reported that hospital leaders continue to see recruiting costs rise sharply, with some new hires needing extensive mentoring and some practices shortening hours or closing on certain days because they can’t find doctors. Consultant Karen Felsted also told AAHA that declining visits and economic uncertainty are adding to planning challenges. (ebusiness.avma.org)
Why it matters: For veterinary professionals, the bigger message is that industry “growth” is no longer a simple proxy for practice health. Practices were open an average of 10 hours on weekdays in 2024, and veterinarians were available for scheduled appointments for about 8 hours on weekdays, yet appointment slots per full-time veterinarian have remained constrained. In other words, many hospitals are stretching operations without meaningfully expanding throughput. That has implications for access to care, team burnout, capital planning, and the return on new technology investments. It also means that attracting and keeping clinicians may depend less on headline salary growth and more on mentorship, scheduling flexibility, manageable caseloads, and smarter use of support staff and software. (ebusiness.avma.org)
For pet parents, these pressures may show up as longer waits, fewer appointment options, or higher prices. For clinics, they raise harder strategic questions: whether to add doctors, rely more on relief coverage, invest in workflow tools, or redesign care delivery around efficiency and retention. The profession still has favorable fundamentals, but the AVMA data and industry reaction suggest the next phase of growth will hinge on whether practices can convert demand into sustainable capacity. (ebusiness.avma.org)
What to watch: The next signals to watch are whether debt trends worsen in the next AVMA cycle, whether technology adoption becomes more widespread among smaller practices, and whether visit softness and hiring costs push more hospitals toward alternative staffing and scheduling models through 2026. (ebusiness.avma.org)