2026 Vet Industry Trends, Challenges & Opportunities

23 June 2026• 5 min read

 

Key Takeaways

  • Financial pressure is the biggest challenge: Rising costs and tighter client budgets are shaping every major decision that practices make.
  • Technology adoption is accelerating: AI, automation, and PMS upgrades are becoming essential for efficiency and workload relief.
  • Staffing is improving but still fragile: Workforce shortages are easing, but burnout, workload pressure, and client aggression continue to affect teams.
  • Client expectations continue to rise: Clients want more information, faster service, and lower costs, making communication and clear boundaries crucial.

The APAC veterinary industry is heading into 2026 with plenty on its mind. Rising costs, shifting client expectations, and fast‑moving technology continue to shape how practices operate, but there are also signs of progress – especially around staffing stability and the smarter use of tools like AI.

Drawing on insights from more than 200 veterinary professionals across Australia, New Zealand, and Asia, this article breaks down the biggest lessons from 2025 and the key trends, opportunities, and challenges shaping the next 12 months. It’s a practical snapshot from our 2026 Veterinary Industry Trends survey report that will help your practice plan with confidence.

Lessons from 2025: What Drove the Biggest Impact

Our latest veterinary trends survey revealed several changes that had a meaningful impact on veterinary practices, which shaped how they entered 2026. These shifts weren’t just operational tweaks – they influenced practice culture, efficiency, financial stability and the way that teams delivered care. The following lessons highlight the areas that drove the greatest positive change and set the foundation for the veterinary industry’s direction in 2026.

1. AI note‑taking became the biggest operational game‑changer

AI‑powered clinical note‑taking delivered the strongest impact in 2025, according to our survey respondents. This technology dramatically reduced admin time and freed up veterinary professionals to focus on patient care. This shift has set the foundation for wider AI adoption in 2026.

“AI notes will open up and free up the appointment schedules for most clinics in 2026.” – Michael Woodcock, Practice Manager, SuncoastVet

2. Staffing changes reshaped team stability and morale

Hiring new vets and nurses, removing underperformers, and improving rosters also had major positive effects in APAC veterinary practices. Clinics reported stronger cohesion, better culture, and improved retention heading into 2026.

3. Investment in equipment and infrastructure lifted service capacity

Many practices upgraded their equipment, renovated facilities, or expanded their footprint. These changes improved their workflow, increased appointment capacity, and prepared them for rising clinical complexity in 2026.

4. Pricing and financial strategy adjustments strengthened viability

According to survey respondents, veterinary practices tightened their financial controls, increased their fees and improved billing accuracy in 2025. These changes helped them offset rising costs and positioned them to manage the intensified financial pressures seen in 2025 and 2026.

“It’s not easy to balance operating costs and client affordability, but it’s encouraging to see our industry exploring AI-driven technology to lessen workloads and improve service.” – Kevin Bryant, CEO, New Zealand Veterinary Association

5. Training, mentorship and career development boosted capability

Structured CPD, mentorship programmes and communication training improved the confidence, service quality and job satisfaction of veterinary staff. This investment in people helped reduce burnout and supported stronger retention in 2026.

6. Workflow and process improvements reduced friction and waste

Clearer protocols, better organisation and updated job descriptions helped streamline daily practice operations. This reduced inefficiencies and helped practices handle increasing demand and technological change through 2025 and into 2026.

Our 2026 survey reveals that the Asia-Pacific veterinary profession is under mounting financial pressure. It’s also facing rapidly evolving technology expectations and shifting workforce dynamics. Practices are adapting quickly, but the pace of change is reshaping how they operate, invest and plan for the future.

The following trends capture the most influential forces currently shaping the veterinary landscape.

1. Financial constraints intensify as the dominant industry pressure

Financial pressure is the most significant trend, with 45% of respondents identifying it as their top concern – almost double the 2025 figure. Rising operating costs, increased pharmaceutical and consumable prices, and clients who are struggling with their household budgets are creating a challenging financial environment for veterinary practices.

Many clinics are rethinking their pricing strategies, improving their billing accuracy and tightening cost control to stay viable. These pressures are also influencing investment decisions; practices are becoming more cautious about capital expenditure and are prioritising initiatives that deliver clear returns. Financial sustainability is also shaping staffing decisions, service offerings and long‑term planning across the sector.

“The economy will remain slow for a number of years due to local and international uncertainty.” – John Wright, Veterinarian, Culburra Veterinary Clinic

2. Rapid growth in AI and technology adoption

Technology – particularly AI, automation and data‑driven tools – has surged as a major trend for 2026, rising from 11% in 2025 to 27% in 2026. Practices are increasingly turning to digital solutions to reduce their administrative load, improve their efficiency, and manage staffing shortages.

AI‑powered note‑taking, automated workflows, and integrated practice management systems like Covetrus Ascend are becoming essential tools rather than optional add‑ons. Many clinics are navigating PMS migrations, addressing integration gaps, and investing in staff training to make sure tech adoption is successful.

While technology is a challenge for some practices, it’s also seen as a practical way to maintain service levels and protect margins. This rapid shift signals a long‑term transformation in how veterinary teams work and deliver care.

“Keeping things simple, the technology is a tool to make our lives easier. Focus is still on the animal and a good clinical exam.” – Martin Edelmaier, Practice Owner, Clare Animal Health

Getting Covetrus Ascend, cloud-based practice management software. It really made the business easier to run.” – Angela Nehring, Veterinarian, House Paws Mobile Vet

3. Workforce pressures shift from crisis to stabilisation

Although staffing remains a key issue, the intensity of the crisis appears to be easing. Staff attraction and retention concerns dropped from 15% in 2025 to 9% in our latest report, which suggests early signs of stabilisation.

Workforce shortages still influence wage pressure, difficulties with recruiting, and burnout risk. However, practices are responding with more structured wellbeing initiatives, improved rostering, flexible work arrangements, and stronger communication.

Psychological safety, zero‑tolerance policies for abusive clients, and clearer career pathways are now becoming standard expectations. While staffing isn’t the top crisis point any more, it’s still a foundational factor in practice performance and culture.

“It is encouraging to see the growing emphasis on a people‑first culture in veterinary businesses, driven by initiatives such as the AVA’s THRIVE program.” – Dr Gemma Chuck, President, Australian Veterinary Association

4. Corporatisation and evolving practice models

Corporatisation continues to reshape the veterinary landscape in Australia, New Zealand, and Asia. It’s influencing ownership structures, operational models, and expectations around efficiency and performance.

Larger veterinary groups are driving investment in technology, standardised processes, and sustainability initiatives, while independent practices are having to adapt quickly to stay competitive. This shift is also influencing career pathways, with some professionals looking for the stability and resources of corporate groups, while others value the autonomy of independent practice.

As corporatisation grows, practices are increasingly focused on their culture, leadership, and staff retention to differentiate themselves and maintain a strong team environment.

5. Preventive care, service expansion, and client experience

Improved service offerings and preventative‑care programmes continue to gain traction as practices look for sustainable ways to grow. They’re expanding wellness plans, enhancing client education, and refining service delivery to meet rising expectations.

However, client behaviour is becoming more challenging, with 82% of respondents in our survey reporting increased expectations. Many clients want gold‑standard care at a lower cost and are pushing back on pricing or demanding faster service.

Practices are responding with clearer communication, stronger boundaries, and more consistent client experience strategies. These efforts aim to strengthen loyalty and maintain service quality despite external pressures.

Download the detailed report

Top Opportunities for Veterinary Practices to Prioritise in 2026

Our 2026 veterinary trends survey highlights a shift in mindset across the veterinary sector, with practices focusing less on rapid growth and more on strengthening the foundations that support long‑term sustainability. The most important levers for success are identified as improving service quality, stabilising teams, and investing in the right tools and skills.

Here are the top four opportunities where practices believe they can make the biggest impact.

1. Improving client service

Improving client service is identified as the joint top opportunity for 2026, with 27% of respondents highlighting this as the most important lever for success versus 21% last year. Practices are focusing on enhancing the quality of care, improving client communication, and refining the overall client experience to build loyalty and trust.

This includes expanding their service offerings, improving convenience, and strengthening preventative‑care programs. Client expectations are rising, and financial pressures are affecting the decisions they make about patient care, so practices see service excellence as a way to differentiate themselves and maintain strong relationships.

By investing in consistent communication, clearer education, and more personalised care, practices can improve client satisfaction and build stronger partnerships.

“Clients are asking for more and more information, communication, services, payment options and medical breakthroughs.” – Daria Khorrami, Vet Nurse, Canberra Cat Vet

2. Creating a stable, supportive staffing environment

Also at 27% in our survey, improving the staffing environment and retaining team members is joint equal as the number‑one opportunity for 2026. Practices recognise that a stable, supported workforce is the foundation for high‑quality care and operational resilience.

Key focus areas include improving work‑life balance, strengthening communication, offering structured career development, and ensuring fair pay and recognition. Many clinics are also adopting zero‑tolerance policies for abusive clients and investing in mental health support to protect staff wellbeing.

With workforce shortages still affecting the sector, practices that prioritise culture, psychological safety, and professional growth are in a better position to retain skilled staff and reduce burnout.

“We have a four‑day weekend once a month and make sure we have at least four weeks off over the year. We also make sure our team is supported.” – Marcus Holdsworth, Veterinarian, PAWS Mobile Pet Vet

3. Expanding practice capacity

Practice capacity growth is the third‑ranked opportunity for 2026, with 17% of respondents identifying it as a key focus. As appointment volumes increase for many clinics, expanding capacity through additional consult rooms, extended hours, improved rostering, or better workflow design can help practices meet demand and improve their revenue stability.

Capacity growth also supports better client access, reduces bottlenecks, and lets practices offer more specialised or advanced services. Many practices are building their capacity and increasing the use of technology by using AI note‑taking, online booking, and improved PMS systems to streamline operations and free up clinical time.

“AI scribe adoption is likely to see strong growth in 2026. The next five years will likely usher in a new era of veterinary software – where AI empowers vets to deliver better care with less administrative overhead.” – Mitchell Sigley, Founder, Vetnotes.com

4. Investing in technology, equipment and learning

Technology investment, equipment upgrades, and staff learning and development are closely linked opportunities that support long‑term practice efficiency and capability. With 80% of survey respondents saying that AI will be important in 2026 and beyond, practices are increasingly adopting tools that reduce their administrative burden, improve accuracy, and streamline workflows.

Investment in instruments and equipment is also rising as clinics respond to more complex caseloads and higher client expectations. At the same time, learning and development remains essential for building staff confidence, improving service quality, and supporting career progression.

Together, these investments help practices operate more efficiently, reduce pressure on staff, and deliver higher‑quality care.

“Capital investment in 2026 will need to be carefully assessed for ROI as the capacity of clients to pay for new services is explored. New equipment will need to be able to generate profits for clinics within a reasonable time span.” — Michael Woodcock, Practice Manager, SuncoastVet

The Biggest Challenges Facing Veterinary Practices in 2026

The 2026 veterinary trends survey shows that veterinary practices continue to face significant pressures, many of which have intensified since 2025. Economic strain, rapid technological change, and shifting client expectations are reshaping how clinics operate and plan for the future.

The following challenges highlight the biggest issues practices must navigate to remain sustainable for the future.

1. Financial pressures

Economic conditions and the rising cost of living remain the dominant challenges for 2026, with 69% of survey respondents identifying financial pressure as their biggest concern. Practices are grappling with increased operating costs, higher pharmaceutical and consumable prices, and clients who are more cost‑sensitive than ever.

These pressures are forcing them to reassess their pricing strategies, improve billing accuracy, and find efficiencies without compromising care. Many practices are also becoming more cautious with capital investment and prioritising initiatives that deliver measurable returns. As financial strain continues to shape decision‑making, practices must balance affordability for clients with the need to maintain profitability and support their teams.

“The economy will remain slow for a number of years due to local and international uncertainty.” — John Wright, Veterinarian, Culburra Veterinary Clinic

2. Adapting to rapid technological change

Adapting to new technology trends and procedures has seen the most dramatic increase as a challenge – rising from 15% in 2025 to 27% in 2026. These are showing up in practices needing to navigate PMS migrations, deal with integration issues and data security concerns, and support ongoing staff training.

While technology offers some big efficiency gains, the transition period can be disruptive and resource‑intensive. Many clinics are also struggling with staff resistance or limited technical confidence, which slows adoption and increases frustration.

As AI, automation, and digital tools become more central to practice operations, veterinary practices must invest in structured change management, training, and system optimisation to make sure that technology becomes an enabler rather than an added burden.

“We would love to implement AI to help vets with their note writing. We are seeing more complex cases that take longer than a normal 20-minute appointment, and note writing is taking a back seat to patient care.” – Sarah, Vet Nurse, Pimpama City Veterinary Surgery

3. Staffing challenges

While vet staffing pressures have eased slightly since 2025, workforce shortages, burnout, and retention are still major concerns for practices. Staff attraction and retention dropped from 15% to 9% as a challenge for respondents, but the underlying issues of wage pressure, limited candidate pools, and rising client aggression continue to affect team wellbeing.

Practices are responding with better rostering, flexible work arrangements, stronger communication, and more structured wellbeing initiatives. However, the emotional and psychological toll for the veterinary profession remains high, and many clinics are still struggling to keep their teams stable. Ensuring a supportive culture, clear career pathways, and fair recognition is essential for retaining skilled staff and reducing burnout.

“Team member retention is always paramount. We are approaching this with the in-house use of subcontracted experts in medicine and surgery to mentor our veterinarians through their growth years.” – Michael Woodcock, Practice Manager, SuncoastVet

4. Rising client expectations are increasing pressure on teams

Client expectations have shifted significantly, with 82% of respondents reporting that clients are more demanding, cost‑sensitive, and time‑pressured than in previous years. Practices are experiencing increased pushback on pricing, more requests for immediate appointments, and greater reliance on online information that challenges veterinary advice.

This behaviour contributes to staff stress, longer consult times, and more complex communication needs. Practices must now balance clear boundaries with empathetic communication to make sure that clients understand the value of veterinary care while managing unrealistic expectations.

Strengthening client education, improving service consistency, and implementing firm behaviour policies are becoming essential strategies to maintain positive client relationships and protect staff wellbeing.

Download the detailed report

Category 2025 2026 What changed
Top challenges Economic conditions (73%). Staff recruitment & burnout high. Technology a minor issue (15%). Economic conditions still #1 (69%). Technology challenge jumps to 27%. Staffing concerns ease to 9%. Tech adoption pressure surges; staffing stabilises slightly.
Top opportunities Improved service offering (21%). Staffing environment (19%). L\&D (10%). Improved service offering (27%). Staffing environment (27%). Capacity growth (17%). Stronger focus on service quality and retention; capacity becomes a priority.
Anticipated trends Financial constraints (24%). AI/tech use (11%). Staff attraction/retention (15%). Financial constraints (45%). AI/tech use (27%). Staff attraction/retention (9%). Financial pressure intensifies; AI becomes mainstream.
Staff wellbeing priorities Workload management. Culture & safety. Fair pay. Mental health support. Same priorities but stronger emphasis on psychological safety, boundaries, and structured wellbeing. Wellbeing becomes more formalised and proactive.
Appointment volumes 48% increased. 27% decreased. Similar pattern; slight increase in stability. Demand remains uneven but manageable.
Client expectations Rising expectations noted. Some cost sensitivity. 82% say expectations have changed. More demanding, cost‑sensitive, aggressive behaviour. Client pressure significantly intensifies.
Technology adoption Early exploration of AI. PMS upgrades emerging. 80% say AI is important. Widespread PMS migration, automation, workflow optimisation. AI moves from “emerging” to “essential”.
Investment priorities Staffing (high). L\&D (moderate). Equipment (moderate). Staffing (73%). L\&D (66%). Equipment (48%). Tech/software (38%). Stronger investment in people, skills, and tech.
Sustainability Growing interest. 42% have initiatives planned. Sustainability becomes more action‑oriented.

For a deeper understanding of the forces shaping the veterinary sector in 2026 and beyond, read the full veterinary trends survey report. Inside, you’ll find detailed data visualisations, expanded insights on financial pressures, technology adoption, staffing trends, sustainability initiatives, and the real‑world strategies practices are using to stay resilient.

You’ll also gain access to expert commentary, practical examples, and the full breakdown of survey results across Australia, New Zealand, and Asia.

Download the complete report to explore every insight and equip your practice to navigate the future with confidence.

FAQs

What are the investment priorities for vet practices in 2026?

Practices are prioritising an investment in staffing, learning and development, equipment upgrades, and technology that improves their efficiency, workflow, and overall team wellbeing.

How important will AI be for veterinary practices in 2026?

AI is becoming essential, with strong growth in tools like scribes and automation that reduce admin time and support better clinical decision‑making.

Have client expectations changed in the veterinary industry?

Yes, clients are more demanding, cost‑sensitive, and time‑pressured. This makes clear communication, boundaries, and consistent service more important than ever.

Corporatisation, rapid AI adoption, and stronger expectations around staff flexibility and wellbeing will drive change. Cloud‑based PMS platforms like Covetrus Ascend will streamline workflows, automate admininstration, and support smarter, data‑driven practice management.

How are staffing work conditions changing in the veterinary industry?

Staffing is slowly improving, but burnout, workload pressure, and client aggression remain ongoing issues that require active management and strong leadership.