Lab Supplies

Activated Lab Supplies Market Outlook:

MARKET OVERVIEW

Global Lab Supplies Market: $ 33.76 Billion (2022)

Global Growth CAGR of Lab Supplies Market:4-5 percent (2021–2025F)

• The 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)

• 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

• 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 Trends

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

Apart from lab consumables, higher percentage of demand increase is observed for personal protective equipment

Use of online tools to procure lab supplies (e-commerce websites)

• Pharma buyers have started to adopt aggregated e-commerce solutions with fee for service model for their procurement, mostly due to the ease in making optimized decisions. Identifying specific and rare supplies becomes more faster and easier with online resources

• AI is shaping the e-commerce sites in pharma providing better recommendations of the supplies for procurement decisions making the search intelligent

• Zageno is a tool that has recently gained traction with its streamlined e-commerce procurement platforms and spend analytics dashboard allowing accurate budget forecasts thus optimizing cost

Consolidation and collaboration of vendors

• 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. Regional acquisition and collaboration also strengthens the overall supplier capabilities

• As technology booms in the market, multiple collaboration is said to shape the industry, where vendors collaborate and acquire small tech or reselling players for better market access

Increase in regional supplier strength and academic organizations

• 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 

• Rise in the levels of applications of these supplies and equipment in educational & research institutes is expected to drive the growth of the market

Robotics and IoT device intervention

• Japan and China are planning to introduce industrial robots in laboratories which can disrupt the glassware market. The US has still not shifted to robotic technology even though they are less economical, thereby increasing the use of glassware

Porter's Analysis on Lab Supplies

Supplier Power

• Supplier power is on the higher side as supply base for laboratory supplies is consolidating due to the inorganic growth potential of the market

• Supply crunch is also a major problem, which causes the higher supplier power

Barriers to New Entrants

• The initial set up cost for supplies manufacturing facility is on the higher side. Setting up a facility that can manufacture large lab supplies on a large scale is very challenging

• The regulatory requirements and other technical complexities related to the set up of a lab facility is on the higher side

Intensity of Rivalry

• Intensity of rivalry is medium, as each supplier has products that would suit different requirements of the buyer

Threat of Substitutes

• Threat of substitutes is on the medium side, as some of the supplies can be replaced or improved with automation, as new technologies and designs are emerging

Buyer Power

• Pharmaceutical buyer power is on the medium side. Buyers are also focusing on consolidating their supply base to save cost in procurement

• They are expanding the portfolio with more suppliers from the regional front

Lab Supplies Cost Structure

• 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