Efficacy Testing Market To Generate Revenue worth $507 Million by 2030

The global efficacy testing market will reach USD 507 million revenue by 2030, witnessing a CAGR of 6.10% during 2022–2030. The key drivers for this growth are an increase in the consumer health concerns, rapid growth in the usage of cosmetic products by the young population, and surge in the consumer awareness of the advantages and necessity of products that have undergone efficacy investigations.

Moreover, the pharmaceutical and biotechnological industries are growing with the rising prevalence of chronic and infectious diseases and the increasing investments by the key players in new drug manufacturing facilities. Governments are also supporting the setup of such factories to boost the healthcare infrastructure and, ultimately, drive economic progress. The incidence of chronic diseases, such as cancer and CVDs, is increasing globally, thereby propelling the demand for therapeutics with their efficacy demonstration and certified.

Moreover, concerns about the stability, safety, strength, and quality of a range of consumer- and medical-grade products are growing among the population. After some time, drugs can lose their color as a lack of efficacy testing before and during manufacturing stages, such as picking and capping. This drives the focus on the constant testing of the laboratory and factory environment during the entire process of drug R&D and commercial production.

Biopharmaceutical Category Leads Market

Based on application, the biopharmaceutical category accounted for the largest share, of around 32%, in the market in 2022, and it is further expected to maintain its dominance in the future. This is owing to the growth of the biotechnological and pharmaceutical industries globally due to the rising prevalence of infectious, chronic, and genetic diseases, which is increasing the demand for therapeutics. An incredible amount of analytical testing is essential to support a product from discovery and development to clinical trials, through to manufacturing and marketing. Additionally, the strong competition in the pharmaceutical and biotechnological industries compels these companies to continuously conduct testing themselves or outsource it through all the development phases, to surge the quality and efficacy of the products.

Further, the demand for vaccines is rising due to the growing prevalence of new diseases, such as COVID-19, Zika, Ebola, and other easily transmissible infections. Additionally, companies are expanding their operations in different regions to fulfill the demand for therapeutics, also taking strategic initiatives to launch new drugs on the market. Companies are also shifting toward outsourcing efficacy testing due to the added expenses and the time required for this procedure, which places a heavy burden on corporations.

Moreover, the cosmetic and personal care products category will exhibit a CAGR of 6.3% during the forecast period. This is owing to the rise in the awareness of the efficacy of beauty products and the environment they are manufactured in among the younger generation, which continues to augment its usage of these products. Hence, checking the efficacy of these products has become one of the most-important aspects for manufacturers.

The market is expected to witness the highest CAGR in the APAC region over the forecast period. This is credited to the increasing investment by local and overseas pharmaceutical, biopharmaceutical, cosmetics, and medical device businesses in the region, high prevalence of chronic and infectious diseases, growing geriatric population, surging government focus on advancing their healthcare infrastructure, and rising preference for outsourcing.

• China has a significant share in the APAC region. The main factors behind the market growth in the People’s Republic are the rise in the sales of pharmaceuticals, shift toward the outsourcing of R&D procedures, and strict regulatory policies for the approval of healthcare-related products.
• India will also witness a significant growth rate as the government continues to invest in advancing the healthcare infrastructure, the incidence of all kinds of diseases is growing, and the key pharma and medical device companies are strengthening their R&D and manufacturing presence in the country.

Some of the major players in the efficacy testing market are Charles River Laboratories, WuXi AppTec, Accugen Laboratories Inc., Consumer Product Testing Company Inc., SGS Société Générale de Surveillance SA, Pacific BioLabs, Eurofins Scientific, Lucideon Limited, Almac Group, and Microbac Laboratories Inc.