The drug testing category is expected to grow at a CAGR of 6.5% from 2023 to 2030. The key drivers of the market growth are the increasing consumption of alcohol by young people and the elderly, the overuse of prescribed medications, and the rising use of narcotics. The demand for drug testing is also anticipated to increase due to the increased instances of illegal drug use and the rising crime rates linked to drug misuse. There is more competition among manufacturers, and those developing innovative products across a wider range of categories are capturing a larger share of the market.
Technologies such as gas chromatography-mass spectrometry (GC-MS), liquid chromatography-mass spectrometry (LC-MS), and enzyme-linked immunosorbent assay (ELISA) are used in this category. Quest Diagnostics uses GC-MS technology, which identifies and quantifies drugs in complex biological samples and separates the components of a sample based on their volatility and mass-to-charge ratio. Labcorp uses ELISA technology that uses enzymes to detect the presence of drugs in blood or urine samples.
This category is highly fragmented with many companies offering a variety of products and services. It includes a mix of large, established companies as well as smaller, specialized companies that focus on specific types of testing or serve niche markets. There are many companies that provide services outside of the traditional laboratory setting such as point-of-care testing devices and at-home drug testing kits.
Order your copy of the Drug Testing Procurement Intelligence Report, 2023 - 2030, published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis
Suppliers often use a volume-based pricing strategy. Suppliers frequently offer discounts and other incentives to customers who require numerous tests, which in turn helps the suppliers to increase their sales. Additionally, it provides a cost-effective choice for individuals who require ongoing or recurring services. The cost of the equipment, which includes drug testing kits that range from USD 2 to USD 350 depending on the accuracy and kind of sample, is a significant cost component. The typical cost of other equipment, including sterilizing supplies, lab coats, and other sanitary things, is typically between USD 200 - USD 500. The cost of insurance, which must be purchased to cover losses and damages that may result from conducting testing, is another significant cost component. It includes property and general liability and may cost between USD 500 - USD 2,500.
The United States and China are the global leaders in this category as they are heavily investing in research and development to improve the accuracy and efficiency of drug testing technologies. Choosing a trustworthy supplier with a track record of delivering high-quality goods and first-rate customer service is the finest sourcing strategy in the category. Another key parameter to consider is whether the goods adhere to industry norms and rules. Observing OSHA's (Occupational Safety and Health Administration) standards, for instance. In order to prevent tampering or contamination and to guarantee the integrity and authenticity of the results, it is essential to maintain a safe and documented chain of custody for samples.
Drug Testing Procurement Intelligence Report Scope
• Drug Testing Category Growth Rate: CAGR of 6.5% from 2023 to 2030
• Pricing growth Outlook: 9 - 10% (Annually)
• Pricing Models: Volume-based pricing model
• Supplier Selection Scope: Cost and pricing, Past engagements, Productivity, Geographical presence
• Supplier selection criteria: Regulatory compliance, validation and certification, delivery time, location, reliability, experience, technical specifications, operational capabilities, regulatory standards and mandates, category innovations, and others.
• Report Coverage: Revenue forecast, supplier ranking, supplier matrix, emerging technology, pricing models, cost structure, competitive landscape, growth factors, trends, engagement, and operating model
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Key companies profiled
• Quest Diagnostics
• Abbott Laboratories
• Quidel
• Thermo Fisher Scientific
• Siemens Healthineers
• Bio Rad Laboratories
• Agilent Technologies
• Labcorp
• Clinical Reference Laboratory
• Cordant Health Solutions
Brief about Pipeline by Grand View Research:
A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain, which helps in efficient procurement decisions.
Our services include (not limited to):
• Market Intelligence involving – market size and forecast, growth factors, and driving trends
• Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships
• Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing
• Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions
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