The global pharmaceutical lab chemicals market is expected to reach USD 26.24 billion by 2027 growing at a CAGR of 6.8% from 2021-2027. North America dominates the lab chemicals market, due to increased innovations in the pharma, biopharma, and biological sciences industry.
Lab Chemicals Market Outlook
North America is dominating the market, owing to the continuous improvements and innovations in the field of biological sciences and cell culture. For Europe, the growth landscape is almost at par with North America, owing to increased R&D and government funding. In Asia, the market is expected to grow at the highest CAGR, owing to high penetration of pharma companies and established academic research institutions.
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Increased number of analytical testing and drug development has been observed which created a widespread demand for lab chemicals
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The rise in expenditure by private and government agencies on R&D in the field of molecular biology research, drug discovery, and diagnostic applications, which require an increased and steady supply of buffers/chemicals is driving the market
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Pharmaceutical companies constitute around 38 percent of the overall demand for buffers and reagents. Suppliers view pharmaceutical industry buyers as core accounts with whom they are willing to engage in a strategic partnership and offer better options for discounts and product delivery.
COVID-19 Impact on Lab Chemicals
Owing to increased testing for coronavirus, disruption in the supply chain caused shortage of lab chemicals/buffers/reagents. Chemical manufacturers started setting up regional plants and were hiring more resources to ramp up the production to meet the world’s demand for buffers/chemicals.
Lab Chemicals Cost Structure
Raw materials and utilities are the major contributors to the cost structure of lab chemicals, followed by wages. Thus, procuring near-shore avoids issue related to logistics, saves time, and cost. Disposable items usually add up to lesser operational costs and help in preventing manual errors. Also, enables buyer to save on sterilization costs and reduce the chances of cross-contamination of samples
Lab Chemicals Supply Outlook
Market is dominated by the global suppliers, which majorly cater to end-to-end services. Reliance on regional suppliers is for specialized chemicals. With respect to the supplier landscape and level of consolidation, it is high in North America and Asia while medium in Europe.
Lab Chemicals Value Chain
Supplier Intelligence
The category intelligence covers some of the key global and regional players such as Agilent Technologies, Avantor Sciences, ThermoFisher Scientific, Perkin Elmer, Becton Dickinson & Co.
Pharma companies are finding out ways to produce less hazardous waste by adopting greener lab buffers and reagents, which will impact the environment in a positive manner. Companies are also partnering with academic institutions to develop newer applications of chemicals.
Segmentation Overview:
