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Revenue
 12 Months Ended
Dec. 31, 2020
Revenue Recognition and Deferred Revenue [Abstract]  
Revenue
A. Revenue from Product Sales
We offer a diversified portfolio of products which allows us to capitalize on local and regional customer needs. Generally, our products are promoted to veterinarians and livestock producers by our sales organization which includes sales representatives and technical and veterinary operations specialists, and then sold directly by us or through distributors, retailers or e-commerce outlets. The depth of our product portfolio enables us to address the varying needs of customers in different species and geographies. Many of our top selling product lines are distributed across both of our operating segments, leveraging our R&D operations and manufacturing and supply chain network.
Over the course of our history, we have focused on developing a diverse portfolio of animal health products, including medicines, vaccines and diagnostics, complemented by biodevices, genetic tests and a range of services. We refer to all different brands of a particular product, or its dosage forms for all species, as a product line. We have approximately 300 comprehensive product lines, including products for both companion animals and livestock within each of our major product categories.
Our major product categories are:
•vaccines: biological preparations that help prevent diseases of the respiratory, gastrointestinal and reproductive tracts or induce a specific immune response;
•anti-infectives: products that prevent, kill or slow the growth of bacteria, fungi or protozoa;
•parasiticides: products that prevent or eliminate external and internal parasites such as fleas, ticks and worms;
•dermatology products: products that relieve itch associated with allergic conditions and atopic dermatitis;
•other pharmaceutical products: pain and sedation, antiemetic, reproductive, and oncology products;
•medicated feed additives: products added to animal feed that provide medicines to livestock; and
•animal health diagnostics: portable blood and urine analysis systems and point-of-care diagnostic products, including instruments and reagents, rapid immunoassay tests, reference laboratory kits, blood glucose monitors and reference laboratory services.
Our remaining revenue is derived from other non-pharmaceutical product categories, such as nutritionals and agribusiness, as well as products and services in biodevices, genetic tests and precision livestock farming.
Our companion animal products help extend and improve the quality of life for pets; increase convenience and compliance for pet owners; and help veterinarians improve the quality of their care and the efficiency of their businesses. Growth in the companion animal medicines, vaccines and diagnostics sector is driven by economic development, related increases in disposable income and increases in pet ownership and spending on pet care. Companion animals are also living longer, deepening the human-animal bond, receiving increased medical treatment and benefiting from advances in animal health medicine, vaccines and diagnostics.
Our livestock products primarily help prevent or treat diseases and conditions to allow veterinarians and producers to care for their animals and to enable the cost-effective production of safe, high-quality animal protein. Human population growth and increasing standards of living are important long-term growth drivers for our livestock products in three major ways. First, population growth and increasing standards of living drive demand for improved nutrition, particularly through increased consumption of animal protein. Second, population growth leads to greater natural resource constraints driving a need for enhanced productivity. Finally, as standards of living improve and the global chain faces increased scrutiny, there is more focus on food quality, safety, and reliability of supply.
The following tables present our revenue disaggregated by geographic area, species, and major product category:
Revenue by geographic area
Year Ended December 31,
(MILLIONS OF DOLLARS)202020192018
United States$3,557 $3,203 $2,877 
Australia207 196 189 
Brazil258 293 295 
Canada210 206 203 
Chile100 91 76 
China266 200 211 
France118 117 130 
Germany159 153 147 
Italy90 112 104 
Japan177 158 149 
Mexico116 117 100 
Spain112 114 110 
United Kingdom178 198 181 
Other developed markets388 370 361 
Other emerging markets656 647 634 
6,592 6,175 5,767 
Contract manufacturing & human health83 85 58 
Total Revenue$6,675 $6,260 $5,825 
Revenue exceeded $100 million in eleven countries outside the U.S. in 2020 and 2019, and ten countries outside the U.S. in 2018. The U.S. was the only country to contribute more than 10% of total revenue in each year.
Revenue by major species
Year Ended December 31,
(MILLIONS OF DOLLARS)202020192018
U.S.
Companion animal$2,391 $1,984 $1,608 
Livestock1,166 1,219 1,269 
3,557 3,203 2,877 
International
Companion animal1,261 1,161 1,005 
Livestock1,774 1,811 1,885 
3,035 2,972 2,890 
Total
Companion animal3,652 3,145 2,613 
Livestock2,940 3,030 3,154 
Contract manufacturing & human health83 85 58 
Total Revenue$6,675 $6,260 $5,825 
Revenue by species
Year Ended December 31,
(MILLIONS OF DOLLARS)202020192018
Companion Animal:
Dogs and Cats$3,437 $2,950 $2,445 
Horses215 195 168 
3,652 3,145 2,613 
Livestock:
Cattle1,558 1,654 1,754 
Swine621 611 663 
Poultry537 559 522 
Fish148 134 132 
Sheep and other76 72 83 
2,940 3,030 3,154 
Contract manufacturing & human health83 85 58 
Total Revenue$6,675 $6,260 $5,825 
Revenue by product category
Year Ended December 31,
(MILLIONS OF DOLLARS)202020192018
Vaccines$1,476 $1,483 $1,488 
Anti-infectives1,206 1,254 1,280 
Parasiticides1,173 966 836 
Dermatology941 770 607 
Other pharmaceuticals821 780 765 
Medicated feed additives460 470 485 
Animal health diagnostics305 268 136 
Other non-pharmaceuticals210 184 170 
6,592 6,175 5,767 
Contract manufacturing & human health83 85 58 
Total Revenue$6,675 $6,260 $5,825 
B. Other Revenue Information
Significant Customers
We sell our companion animal products primarily to veterinarians who then sell the products to pet owners. We sell our livestock products primarily to veterinarians and livestock producers as well as third-party veterinary distributors, and retail outlets who generally sell the products to livestock producers. Sales to our largest customer, a U.S. veterinary distributor, represented approximately 14%, 15% and 13% of total revenue for 2020, 2019, and 2018, respectively.