Global Contract Sales Market Size Growing at 7 Percent CAGR, Says Beroe Inc
Source: PR Newswire
RALEIGH, N.C – May 26, 2021: Valued at $8.25-8.4 billion in 2020, the global contract sales organization market size is expected to grow at a CAGR of 7 percent, says Beroe Inc.
The market is showing positive signs of steady growth per the latest contract sales organization market outlook. The U.S., Australia, Europe, and Canada have a very high market maturity in the area of contract sales. The highest contributor is North America. China has done well in this area, with the highest year-on-year growth. Countries like India, Russia, Australia, and Brazil are expected to quickly scale heights in contract sales.
Beroe, which is based in North Carolina, further stated that procurement experts could access this report on its recently launched market intelligence platform Beroe
Europe and North America happen to have the leading CSO contract sales organizations. This is driven mostly by the pharmaceutical sector. They outsource a healthy 30 percent of their workforce dedicated to sales in North America and Europe. Most of what the contract sales market stands for is actually driven by the retail stores, which are modernizing themselves and rapidly expanding globally. There is also a growing demand for over-the-counter drugs, which is pushing the systematically wrought modern retail in Africa and Latin America, forcing a CSO growth.
The contract sales organization market size in North America is touted at $3–3.25 billion, which is also growing at 6 percent. The figures for Latin America are $1.15–1.25 billion with a growth of 10 percent. Europe is charting $2–2.25 billion, at a pace of 2.5–3.5 percent. For the Middle East and Africa, the figure stands at $0.75–0.9 billion, growing at 11 percent, For APAC, the market churns $1–1.25 billion, and the growth is figured at approximately 12 percent.
Like every other industry that was hit badly during the pandemic, the contract sales industry was also no different. Here, there was a demand for CSO, and it steadily went up too because these sectors had to cope with the demand brought forward by e-detailing and patient care services. CSOs need to be approached by clients, and they need to put plans in motion because there is a need to adapt to the new normal. There are some industry risk drivers. For one, some restrictions have been put on HCP visits to physicians. Social distancing and abrupt shutdowns saw a lower number of HCPs visiting physicians. Another factor was e-detailing. Now CSOs put more stock on home care for patients who need it, and importance is given to e-detailing.
CSOs run on contracts that are generally long-term, so prices have remained the same in most cases. The labor cost has come down now because many firms had to cut their workforce because of the losses incurred due to COVID-19. The investments started increasing in the technology sector because most industries, like the global scenario, had to depend on technology to pull the burden.
Because of the lockdown, many service providers could not function, so most companies across the world started looking for alternatives. This, though, is now slowly returning to the normal state, paving the way for a positive forecast.
- Most companies have seen a bumpy ride in the market for contract sales because they were all looking at alternate suppliers. After all, there was an imminent shortage of workforce.
- The curbs put on HCPs are the same all over the world. Relaxations in lockdown norms did improve the scenario, and the current trend is slowly becoming e-detailing. Engagement with patients is gradually coming down, and home care services are now the point where most CSOs focus.
- Most suppliers are expanding globally because the mature buyers in the industry are consolidating their supplies. In Europe, a hoard of established suppliers is now moving towards more demanding markets like the U.S.
- When it comes to regional suppliers, companies have been known to engage more thoroughly. This is because they have a detailed knowledge of the local market, and this helps most firms. This kind of engagement also helps companies adopt and adapt to the newest trends in the industry.
- The pharma industry is growing at a quick pace, and emerging markets that have modern retail will also boost the contract sales market in a positive way. CSOs are mostly taken care of in the pharma industry, so most of the constraints also come in this sector.
The report from Beroe includes:
- Market and supply analysis
- Market monitoring insights
- Billing rate benchmarking
- Procurement best practices
- Purchasing process
- Innovation framework
About Beroe Inc
Beroe is the world's leading provider of procurement intelligence and supplier compliance solutions. We provide critical market information and analysis that enables companies to make smart sourcing decisions—leading to lower costs, greater profits, and reduced risk. Beroe has been providing these services for more than 15 years and currently works with more than 10,000 companies worldwide, including 400 of the Fortune 500 companies. For more information about Beroe Inc., please visit https://www.beroeinc.com/.