A Divided Landscape: How Regional Economies Are Reshaping Veterinary Growth
Why Where You Practice Matters More Than Ever
For years, veterinary medicine has been viewed as a steady industry. Pets need care, no matter what happens in the economy. But the latest 2025 Veterinary Industry Benchmark Report from iVET360 shows a new reality taking shape—one where local conditions, not national trends, are defining success.
Revenue growth, visit volume, and client acquisition are no longer moving in sync across the country. Instead, regional differences are widening, and they are reshaping what growth looks like from state to state and city to city.
The Northeast Holds Strong, The Midwest Slips
Nationally, revenue growth slowed to just 1.3 percent in 2024, down sharply from 5.1 percent the year before. Beneath that modest average, the story becomes more complex.
The Northeast led the nation with a steady 3.5 percent gain, proving that even in areas with shrinking populations, practices can still thrive when they focus on retention and experience. The Southeast followed with a 2 percent increase, buoyed by continued migration trends that are bringing new pet owners into the region.
The West held the national average at 1.3 percent, while the Midwest and Southwest both slipped into the red, with revenue dropping by 0.5 and 1.9 percent, respectively.
These differences highlight a new truth: local economic health now has more influence on veterinary performance than ever before.
Visits Are Down Everywhere
Across every region, client visit volume declined in 2024. The Midwest saw the sharpest drop at 6.1 percent, followed closely by the Southwest at 6.0 percent. Even stronger markets like the West and Southeast posted losses of 3 to 4 percent. The Northeast, while more stable overall, still saw a 2.8 percent decline.
This trend is significant because it shows that practices are working harder to generate the same—or even less—revenue. Fewer visits mean fewer opportunities to build relationships, educate clients, and drive preventive care.
The reasons vary by region. In urban centers, rising costs and competition are keeping some pet owners from returning as often. In rural and suburban areas, a shortage of veterinary staff has led to limited appointment availability. But across the board, the pattern is clear: fewer visits, less volume, and greater pressure to rethink how practices attract and retain clients.
The Temporary Lifeline of Higher Prices
With visits slipping, many practices leaned on higher Average Transaction Charges (ATC) to maintain momentum. ATC growth slowed nationally from 7.8 to 6.1 percent, but it still served as a critical financial buffer.
The West reported the highest ATC at $419 per visit, driven by a higher mix of specialty and advanced services. Meanwhile, practices in the Midwest and Southwest—already facing steeper visit declines—showed signs that price sensitivity is becoming a serious concern. Clients in these regions are hitting their financial ceiling, and further fee increases could begin to backfire.
As the report notes, “Relying on increased pricing in the absence of volume is a short-term solution at best.” Pet owners are starting to delay care, shop around, or walk away altogether when costs feel too high.
The Shrinking New Client Pipeline
If declining visits are one challenge, attracting new clients is another. The data shows that new client acquisition is still falling across nearly every region. The Southwest was hardest hit with a 14.4 percent drop, followed by the Midwest at 12.5 percent. The West fared slightly better, improving from a 13.7 to a 9.5 percent decline, but the overall trend remains downward.
What’s driving this? It is not a lack of marketing—it is a breakdown in execution. Practices are losing potential clients at the first point of contact. Weak phone skills, missing online booking options, and outdated websites are quietly blocking access.
Every time a call goes unanswered or a client can’t schedule online, that’s lost revenue. In a competitive market where pet owners have unlimited options, first impressions matter more than ever.
Winning Locally in 2025
No two regions are the same, and that means your growth strategy shouldn’t be either. Start by looking at your own local data. Compare your revenue, visit volume, and ATC to the benchmarks in your region, not just the national averages.
Then, focus on the levers that actually move the needle:
- Strengthen your first impression by improving phone conversion and online scheduling.
- Create smart, accessible promotions like Free First Exams to attract cost-conscious clients.
- Reinvest in client communication tools to make scheduling and reminders seamless.
- Track compliance and preventive care conversations in your PIMS data to uncover missed opportunities.
The practices that will win in 2025 are not the ones chasing trends—they are the ones aligning with their local realities. Whether you are in Portland or Pittsburgh, the fundamentals are the same: listen to your data, serve your clients better, and make it easier to say yes to care.
Because in the end, growth in this divided landscape is not about location. It is about connection.
