The global market for lab supplies globally is $33.76 billion as of 2022 and is expected to show a continuous growth rate of 5-6 percent (Y-o-Y). Due to the increasing analytical testing needs and drug development solutions increase, which is creating a high demand of lab supplies across the globe, the supply–demand gap is increasing
Lab Supplies Market Outlook
The lab supplies global market has witnessed a stable growth due to continuous demand from diversified end-user segment. The lab supplies global market has witnessed a stable growth due to continuous demand from diversified end-user segment
-
Pharmaceutical/biotech companies constitute 30 percent of the overall demand for lab supplies. Suppliers view the pharmaceutical industry buyers as core accounts with whom they are willing to engage in a strategic partnership and offer better options for technology updates and regular support.
-
Apart from lab consumables, higher percentage of demand increase is observed for personal protective equipment
-
The supply market is highly concentrated, and the competition is very intense. However, there will be higher price fluctuations owing to the increased demand for consumables for research and testing purposes
-
Sourcing from regional players has been the usual strategy adopted for low-cost supplies however with high export and import implications, regional suppliers are gaining strength
-
Vendors team up with resellers or specific tech players, in order to strengthen their market access and logistics. This gives them the power to reach multiple markets and devises a rapid delivery system
COVID-19, Russia-Ukraine Crisis, and Economic Headwinds Impact on Lab supplies
Due to the increased demand of lab chemicals, manufacturers are expanding their facilities, innovating their product development, and working practices to accommodate the excess demand of chemicals. Manufacturers expanded their facilities and ramped up their production to cope with the demand across various markets. The demand for PPE kits was high due to COVID-19 and a balance was being brought about slowly. However, virtual tools and e-commerce support enable a better situation to pharma companies
Lab Supplies Pricing Insights
Raw materials and packaging, logistics are the major contributors to the cost structure of lab supplies, followed by utilities. 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.
Lab Supplies Supply Outlook
More reliance on local/regional suppliers to overcome the demand. The situation has become better, and the vendors have increased production with more players providing better logistics support to sponsors. Suppliers are setting up regional plants and hiring resources to increase the production of the PPE kits and other supplies to meet the demand in addition to the existing plants
Lab Supplies- Value Chain
Regional Market Insights
The US and Europe contributed 48 percent and 32 percent respectively to the global lab supplies market. Increasing trials in the US would continue to influence lab supplies’ purchases by academic, research, and federal institutions
Impact of the crisis has increased regional demand and pharma companies are looking to source internally from the regional suppliers and at the also are keen on quality. Import and export regulations and shipment timelines pose a major threat to reaching global markets.
Supplier Intelligence
The category intelligence covers some of the key global and regional players such as Thermofisher Scientific, Agilent, Avantor, Perkinelmer, Sigma- Aldrich, Bio-Rad, Eppendorf Mettler-Toledo International, Inc. and Boekel Scientific among others.
Key global players have announced the reduction plant of carbon footprint. For instance, GREEN-DEX™ Biodegradable Single-Use Green Nitrile Gloves using its Eco Best Technology. These gloves are ideal for usage during intermittent contact with chemicals including certain acids, alcohols, alkalies and ketones.
Segmentation Overview
