Efficacy Testing Market by Service Type (Antimicrobial/Preservative Efficacy Testing, Disinfectant Efficacy Testing (Surface, Suspension)), Application (Pharmaceutical Manufacturing, Cosmetic & Personal Care Products, Consumer) - Global Forecast to 2025
[142 Pages Report] The global efficacy testing market is projected to reach USD 333 million by 2025 from USD 261 million in 2020, at a CAGR of 5.0% during the forecast period. The growth of this market is mainly driven by the increasing use of surface disinfectants and preservatives in pharma, biopharma, and cosmetics industries for contamination control and product stability; growing preference for outsourcing efficacy testing; and the rising adoption of the QbD approach.
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COVID-19 Impact On The Global Efficacy Testing Market
COVID-19 is an infectious disease caused by the most recently discovered novel coronavirus. Largely unknown before the outbreak began in Wuhan (China) in December 2019, COVID-19 has moved from a regional crisis to a global pandemic in just a matter of a few weeks. The World Health Organization (WHO) declared COVID-19 as a pandemic on March 11, 2020.
The COVID-19 outbreak has made institutional and household disinfection increasingly important to prevent the spread of the disease. Many consumers have responded by panic-buying disinfecting products to ensure that they can keep their homes virus-free. As a result, synthetic disinfectants are running out of stock at retail stores. In response, retailers are dealing with the spike in demand by restocking their shelves with green disinfectants. The EPA is also adding many natural disinfectants to its "approved" list for fighting COVID-19.
Post COVID-19, the demand for surface disinfectants is expected to scale up due to the threat of the reemergence of the virus. Considering these factors, the COVID-19 pandemic is expected to result in the emergence of new domestic players in the surface disinfectants market, which in turn, will boost the demand for disinfectant efficacy testing.
The COVID-19 pandemic has had a major impact on China, the US, and European countries. As these countries are the major producers of drugs, medical devices, and cosmetics products, the pandemic has caused a slowdown in manufacturing and product development processes. This has negatively affected the preservative efficacy testing market. However, the market is expected to recover in the next 1 to 2 years
Efficacy Testing Market Dynamics
Driver: Growing preference for outsourcing efficacy testing
Pharmaceutical, cosmetic, and medical device companies opt to outsource numerous core functions like manufacturing, clinical trial management, and portions of drug discovery to CROs, as the emergence of new technologies has made it unfeasible for companies to undertake all testing functions in-house. In the pharmaceutical industry, analytical and testing services were the most-outsourced services, followed by clinical trials, formulation development, solid-dosage form manufacturing, injectable manufacturing, and R&D. This trend is supported by an increase in the numbers, capabilities, and sizes of CROs and the preference for specific providers over the long-term as opposed to short-term contractsthe preferred vendor concept. In the coming years, outsourcing as a strategy is expected to gain greater prominence. The expected rise in pharmaceutical drugs and cosmetics production will bring with it a growing demand for the associated analytical testing servicescompatibility studies for biosimilars, stability testing, and product release testing (including antimicrobial effectiveness testing and disinfectant efficacy testing) to reduce the risks associated with product development.
The outsourcing of efficacy testing services helps pharmaceutical companies mitigate risks by avoiding large investments in purchasing analytical equipment and maintaining manpower, especially when development efforts are in the early stages. The availability of specialized efficacy testing service providers with key capabilities to provide optimum results rapidly has led to increasing consideration among pharmaceutical companies to outsource testing services to third-party service providers
Opportunity: Emerging countriesinthe Asia Pacific Region
Emerging markets present significant growth opportunities for providers of healthcare analytical testing servicesparticularly India and China. Governments in both countries are emphasizing the development of life science infrastructure by undertaking several projects and initiatives to encourage pharmaceutical and biopharmaceutical companies to develop and manufacture drugs for various infectious and chronic diseases.
According to a report from the India Brand Equity Foundation (IBEF), Indias domestic pharmaceutical industry was growing at a rate of 910% to reach USD 20.03 billion in 2019 from USD 18.12 billion in 2018. However, with the support of the government and regulatory bodies, the industry can grow at a pace of 1112%. Government support in the form of regulatory interventions and investments is an integral steptoward the initiation of innovation-led industry growth. Moreover, the favorable government scenario has encouraged start-ups by providing them soft loans for pharma industrial R&D projects and a grant-in-aid for clinical trials for developing drugs for neglected diseases. The government is also providing non-fiscal benefits, such as assistance in research in all systems of medicines (including setting up facilities and joint research projects for industries and institutions).
According to J.P. Morgan estimates, China is a dominant market for skincare products. It accounted for a share of 14% of the global market in 2018, up from 12% in 2013. In 2018, beauty sales in China grew by 12.9%; this figure was 4.6% in the US. The country has quickly gained on the US in beauty sales and is set to overtake it by 2023, even if growth slows down.
The growth in the pharmaceutical and cosmetics industries in these countries is expected to drive the demand for efficacy testing services in the coming years.
Challenges: Time-consuming process
Preservative and disinfectant efficacy testing is a set of procedures involving considerable cost, time, and scientific expertise in order to ensure the quality, efficacy, and safety of a drug formulation. Conventional preservative efficacy tests or preservative challenge test methods generally require microbial assays at multiple test points over extended periods. The duration of the tests typically ranges from a minimum of 28 days to 12 or more weeks. This process is also labor-intensive and requires extensive hands-on testing with no potential for automation.
Preservative efficacy testing involves well-established protocols as set out in the British, US, Japan, and European Pharmacopeias. However, microbiologists face several challenges while optimizing assays, which can result in increased timelines and budgets (ending in results that do not satisfy requirements). In recent years, rapid tests, which use biosensor systems, have been developed. These tests provide results in lesser time as compared to conventional PET tests. However, it is becoming a challenge for service providers to constantly seek newer, more sensitive and less time-consuming assays to cater to the changing demands of end users.
By service type, the disinfectant efficacy testing segment accounted for the largest share of the efficacy testing market in 2019.
Based on the product, the efficacy testing market is segmented into antimicrobial/preservative efficacy testing (AET/PET) and disinfectant efficacy testing. The disinfectant efficacy testing segment dominated this market in 2019. Growing awareness of environmental & personal hygiene has resulted in the increasing production and use of surface disinfectants. This, in turn, is driving the demand for disinfectant efficacy testing.
By application, the pharmaceutical manufacturing applications segment accounted for the largest share of the efficacy testing market in 2019.
Based on application, the efficacy testing market is segmented into pharmaceutical manufacturing applications, cosmetics and personal care product applications, consumer product applications, and medical device applications. The pharmaceutical manufacturing applications segment dominated this market in 2019 and is estimated to grow at the highest CAGR during the forecast period. The growth of this segment is majorly attributed to factors such as the stringent regulations for the microbial testing of pharma drugs for regulatory approval and the growing focus on patient safety.
North America accounted for the largest share of the efficacy testing market in 2019.
In 2019, North America accounted for the largest share of the efficacy testing market. The major factors driving the growth of the North American efficacy testing services market include the presence of a wellestablished pharmaceutical industry in the region, the high R&D expenditure, a strong presence of major service providers, and rising outsourcing of analytical testing (including efficacy testing) by pharmaceutical and cosmetic companies in the region.
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Key Market Players
The global efficacy testing market is dominated by a few globally established players such as Eurofins Scientific (Luxembourg), Charles River Laboratories (US), WuXi AppTech (China), and SGS (Switzerland).
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Report Metric |
Details |
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Market Size Available for Years |
20182025 |
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Base Year Considered |
2019 |
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Forecast Period |
20202025 |
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Forecast Units |
Value (USD Million) |
|
Segments Covered |
Product, Application, and Region |
|
Geographies Covered |
North America, Europe, APAC and the RoW |
|
Companies Covered |
The major market players include as Eurofins Scientific (Luxembourg), Charles River Laboratories (US), WuXi AppTech (China), SGS (Switzerland), Intertek Group (UK), Almac Group (UK), and Pacific Biolabs (US). |
The study categorizes the efficacy testing market into the following segments and subsegments:
By Service Type
- Antimicrobial/Preservative Efficacy Testing
- Traditional Test Method
- Rapid Test Method
- Disinfectant Efficacy Testing
- Surface Test Method
- Suspension Test Method
By Application
- Pharmaceutical Manufacturing Applications
- Cosmetics and Personal Care Product Applications
- Consumer Product Applications
- Medical Device Applications
By Region
- North America
- US
- Canada
- Europe
- Germany
- UK
- France
- Italy
- Spain
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- Rest of Asia Pacific
- Rest of the World
- Latin America
- The Middle East and Africa
Recent Developments
- In 2018, Eurofins Scientific acquired PHAST, which helped complement Eurofins BioPharma
- Product Testing portfolio and expanded its geographical footprint.
- In 2018, WuXi AppTec opened a new medical device testing center in Suzhou, China. The
- new center will include services such as biomaterials analysis, toxicology, biocompatibility, risk assessment, aseptic product design, microbiology, physical testing of packaging and shelf life, and product batch-release testing.
Frequently Asked Questions (FAQ):
What is the current size of the global efficacy testing market?
The global efficacy testing market size is estimated to be USD 261 million in 2020 and projected to reach USD 333 million by 2025, at a CAGR of 5.0%.
Who are the leading players in the efficacy testing market?
Some of the leading players in the efficacy testing market include as Eurofins Scientific (Luxembourg), Charles River Laboratories (US), WuXi AppTech (China), and SGS (Switzerland).
Who are the major applications of the efficacy testing market?
The applicationthe efficacy testing market is segmented into pharmaceutical manufacturing applications, cosmetics and personal care product applications, consumer product applications, and medical device applications.
What are the major drivers of the efficacy testing market?
Some of the major drivers of the efficacy testing market increasing use of surface disinfectants and preservatives in pharma, biopharma, and cosmetics industries for contamination control and product stability; growing preference for outsourcing efficacy testing; and the rising adoption of the QbD approach. .
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This market research study involved the extensive use of secondary sources, directories, and databases to identify and collect information useful for this technical, market-oriented, and financial study of the global efficacy testing market. In-depth interviews were conducted with various primary respondents, including key industry participants, subject-matter experts (SMEs), C-level executives of key market players, and industry consultants, to obtain and verify critical qualitative and quantitative information and to assess market prospects. The size of the efficacy testing market was estimated through various secondary research approaches and triangulated with inputs from primary research to arrive at the final market size.
Secondary Data
This research study involves the widespread use of secondary sources, directories, databases (such as Bloomberg Businessweek, Factiva, and D&B Hoovers), white papers, annual reports, companies house documents, investor presentations, and SEC filings of companies. The secondary sources referred to for this research study include publications from government sources, such as the European Federation of Pharmaceutical Industries and Association, European Trade Association, Environmental Protection Agency, International Journal of Environmental Research and Public Health, Pharmaceutical Research and Manufacturers of America, United States Pharmacopeia, European Pharmacopoeia, World Health Organization, and US Food and Drug Administration. Secondary research was used to identify and collect information useful for the extensive, technical, market-oriented, and commercial study of the efficacy testing market. It was also used to obtain important information about the key players and market classification, segmentation according to industry trends to the bottom-most level, and key developments related to market and technology perspectives. A database of the key industry leaders was also prepared using secondary research.
Primary Data
In the primary research process, various sources from both the supply and demand sides were interviewed to obtain qualitative and quantitative information for this report.
Primary sources from the supply side include CEOs, vice presidents, marketing and sales directors, business development managers, technology and innovation directors of companies providing efficacy testing services, key opinion leaders, and suppliers. Primary sources from the demand side include scientists, researchers, microbiologists, and other related key executives from pharmaceutical and biotechnology companies.
Primary research was used in this report to:
- Validate the market segmentation defined through service portfolio assessment of leading players in the efficacy testing market
- Understand key industry trends and issues defining the strategic growth objectives of market players
- Gather both demand- and supply-side validation of key factors affecting the market growth (such as market drivers, challenges, and opportunities)
- Validate assumptions for the market sizing and forecasting model used for this study
- Understand the market position of leading players in the efficacy testing market and their market share/ranking
To know about the assumptions considered for the study, download the pdf brochure
Data Triangulation
After arriving at the overall market size, from the market size estimation process explained above, the efficacy testing market was split into segments and subsegments. To complete the overall market engineering process and to arrive at the exact statistics for all segments and subsegments, the data triangulation and market breakdown procedures were employed, wherever applicable. The data was triangulated by studying various factors and trends from both the demand and supply sides in the efficacy testing market
Report Objectives
- To define, describe, and forecast the efficacy testing market by service type, application, and region
- To provide detailed information regarding the major factors influencing the growth of the market (drivers, opportunities, and industry-specific challenges)
- To strategically analyze the micromarkets1 with respect to individual growth trends, prospects, and contributions to the overall market
- To analyze opportunities in the market for stakeholders and provide details of the competitive landscape for market leaders
- To forecast the size of the market segments with respect to four main regions, namely, North America, Europe, the Asia Pacific (APAC), and the Rest of the World (RoW) 2
- To profile the key players and comprehensively analyze their service portfolios, market positions, and core competencies3
- To track and analyze competitive developments such as acquisitions and expansions in the efficacy testing market
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Geographical Analysis
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Company Information
Detailed analysis and profiling of additional market players (up to 3) inclusive of:
- Business Overview
- Financial Information
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- Developments (Last three years)
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Growth opportunities and latent adjacency in Efficacy Testing Market