A SupplyMarket Review of Lab Chemicals for the Pharmaceutical Industry

The market for high-purity chemical production, distribution, and sales for use in pharma is highly competitive. Most products are made to standard specifications and are either produced by or sourced from multiple sources, such as petrochemical companies, chemical manufacturing companies, and chemical distributors. This paper discusses the lab chemicals market and supply chain and key trends that impact pharmaceutical buyers.

Lab Chemicals Market Trends

The demand for lab chemicals has increased steadily, reaching an estimated $17 billion in 2019, with an expected CAGR of 3 to 5 percent by 2020. This surge in demand is due to their increased use by pharma and biotech buyers, at about38 percent of the market, followed by research institutions and CROs at 32 percent. The demand for lab consumables by the life sciences segment alone, including pharmaceutical, biotech, healthcare, and contract organizations, grew at an estimated 5 to 7 percent—a growth rate that is expected to continue.