Drug Of Abuse Testing Services Market Size, Share & Trends Report

Drug Of Abuse Testing Services Market Size, Share & Trends Analysis Report By Drug Type (Cannabis/Marijuana, Opioids, Cocaine, Alcohol, LSD, Amphetamine & Methamphetamine), By Region, And Segment Forecasts, 2021 - 2028

  • Published Date: Feb, 2021
  • Base Year for Estimate: 2020
  • Report ID: GVR-2-68038-254-9
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2019
  • Number of Pages: 125

Report Overview

The global drug of abuse testing services market size was valued at USD 2.6 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 5.2% from 2021 to 2028. An increase in the consumption of alcohol and illicit drugs has led to the high growth of the market. The rise in government initiatives to monitor and combat substance abuse is also significantly driving the market. According to the United Nations Office on Drugs and Crime (UNODC) 2019 data, around 35 million people with substance use disorders were in need of treatment globally. Around 55% of the substance use disorders are associated with opioids and 25% with marijuana. In 2017, 188 million past-year cannabis users were estimated across the world, as per the UNODC data. On the basis of the National Center for Drug Abuse Statistics (NCDAS), around 1.5% to 5% of diseases are direct consequences of using illegal drugs or alcohol addiction.

U.S. drug of abuse testing services market size, by drug type, 2016 - 2028 (USD Million)

Access and availability of services are limited for people with substance use disorders globally, with only 1 in 7 cases being treated annually. However, in developed countries such as the U.S., a favorable reimbursement framework for treatment services has led to high demand for substance abuse treatments. With effect from January 1, 2020, the Centers for Medicare & Medicaid Services (CMS) expanded its Medicare coverage to incorporate Medication-assisted Treatment (MAT) in opioid treatment programs.

Various government initiatives to monitor and combat substance abuse are driving the market. The National Drug Control Budget requested USD 34.6 billion in FY 2020 across five drug control functional areas in the U.S.: prevention, operation, treatment, law enforcement, and interdiction. This includes funding of USD 1.9 billion for the Substance Abuse and Mental Health Services Administration (SAMHSA) for the Substance Abuse Prevention and Treatment Block Grant, to fund evidence-based prevention activities. The Department of Defense requested USD 1.2 billion for monitoring and supporting drug interdiction operations as well as other counterdrug operations in the country and other countries.

On the basis of the Federal Drug-free Workplace Program, by Executive Order 12564, a condition has been imposed on all Federal employees to avoid illicit substance use when on the job. This program also facilitates certification of agency drug-free workplace plans and identifies potential areas for initiating random toxicology testing. The SAMHSA Center for Substance Abuse Prevention also supervises HHS-certified laboratories that are working under the program’s mandatory guidelines. The adoption of such drug-testing programs has been mandated among employees working in certain sensitive positions, including public health and safety, law enforcement, and national security. All toxicology testing by public and private entities is conducted according to legal authority or law. Such legal authorities have the power to mandate toxicology testing as well as define conditions under which testing should be done. However, there are limitations that are decided through court cases.

Drug and alcohol abuse among employees is risky for every business. In order to eliminate such risks, employers conduct drug of abuse testing programs; however, this can be considered a violation of privacy rights. In many countries, drug testing is subject to privacy legislation. There are various criteria or standards, based on which such tests can be conducted, and violating them is considered a violation of an individual’s rights.

Drug Type Insights

The cannabis/marijuana segment dominated the overall market in 2020 with a share of 26.0%. This can be attributed to the fact that marijuana or cannabis is the most commonly used illicit drug in the world. According to the Substance Abuse and Mental Health Services Administration, in 2018, the most commonly used illicit drug in the U.S. was marijuana, which was used by about 43.5 million people. Based on drug type, the market is segmented into alcohol, cannabis/marijuana, cocaine, opioids, amphetamine and methamphetamine, LSD, and others.

The opioids segment accounted for the second-largest share in 2020. This can be attributed to the increasing opioid crisis in key regions, such as North America and Europe. As per data published by the National Center for Drug Abuse Statistics, in 2018, around 2 million people in the U.S. had opioid use disorder (including heroin abuse and prescription pain reliever). Furthermore, key players in the market are undertaking organic growth strategies to expand their opioids testing portfolio.

Regional Insights

In 2020, North America captured the largest share of 39.1%, primarily due to the presence of prominent players undertaking extensive expansion strategies. Its dominant share can also be attributed to the increasing prevalence of substance abuse in the region and government initiatives to control it. Furthermore, an increased rate of substance use disorder due to the COVID-19 pandemic is anticipated to boost the demand for the drug of abuse testing services in the region. However, nationwide lockdowns due to COVID-19 are anticipated to reduce the demand for workplace drug testing services, thus leading to sluggish market growth.

North America drug of abuse testing services market share, by country, 2020 (%)

Asia Pacific is anticipated to witness lucrative growth over the forecast period as a result of the growing demand for substance abuse testing services from emerging economies, such as China and India. The increasing prevalence of substance abuse disorders in key Asia Pacific countries and continuous initiatives undertaken by regulatory bodies to manage it are expected to drive the segment during the forecast period. However, the lack of clear regulations related to workplace drug testing, and nationwide lockdowns due to the COVID-19 pandemic are anticipated to be the major factors hampering the market growth.

Key Companies & Market Share Insights

The key players adopt different growth strategies, such as new product development, product differentiation strategies, and expansion of geographical reach, to capture significant shares in the market. For instance, in September 2019, Psychemedics Corporation entered into a new distribution agreement with Toxicologia Pardini Ltda. and Sansão Holding S.A. in Brazil. As per the new contract, Toxicologia Pardini and Sansão were designated as a distributor of Psychemedics’ hair drug testing services in Brazil. With this, the company expanded its presence in the Brazilian market. Some prominent players in the global drug of abuse testing services market include:

  • Quest Diagnostics

  • Abbott Laboratories

  • Clinical Reference Laboratory (CRL), Inc.

  •  Laboratory Corporation of America Holdings

  •  Cordant Health Solutions

  •  Legacy Medical Services

  •  DrugScan

  •  Omega Laboratories, Inc.

  •  Psychemedics Corporation

  •  Millennium Health

  •  Mayo Clinic Laboratories

  •  Precision Diagnostics

  • American Substance Abuse Professionals (ASAP), Inc.

  •  United States Drug Testing Laboratories (USDTL), Inc.

  •  LGC Group

Drug Of Abuse Testing Services Market Report Scope 

Report Attribute

Details

Market size value in 2021

USD 2.7 billion

Revenue forecast in 2028

USD 3.8 billion

Growth Rate

CAGR of 5.2% from 2021 to 2028

Base year for estimation

2020

Historical data

2016 - 2019

Forecast period

2021 - 2028

Quantitative units

Revenue in USD million/billion and CAGR from 2021 to 2028

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Drug type, region

Regional scope

North America; Europe; Asia Pacific; Latin America; MEA

Country scope

U.S.; Canada; U.K.; Germany; Spain; France; Italy; Japan; India; China; Brazil; Mexico; Chile; South Africa; Saudi Arabia; UAE

Key companies profiled

Quest Diagnostics; Abbott Laboratories; Clinical Reference Laboratory (CRL), Inc.; Laboratory Corporation of America Holdings; Cordant Health Solutions; Legacy Medical Services; DrugScan; Omega Laboratories, Inc.; Psychemedics Corporation; Millennium Health; Mayo Clinic Laboratories; Precision Diagnostics; American Substance Abuse Professionals, (ASAP) Inc.; United States Drug Testing Laboratories (USDTL), Inc.; LGC Group

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Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2028. For the purpose of this study, Grand View Research has segmented the global drug of abuse testing services market report on the basis of drug type and region:

  • Drug Type Outlook (Revenue, USD Million, 2016 - 2028)

    • Alcohol

    • Cannabis/Marijuana

    • Cocaine

    • Opioids

    • Amphetamine & Methamphetamine

    • LSD

    • Others

  • Regional Outlook (Revenue, USD Million, 2016 - 2028)

    • North America

      • U.S.

      • Canada

    • Europe

      • Germany

      • U.K.

      • Spain

      • France

      • Italy

    • Asia Pacific

      • Japan

      • China

      • India

    • Latin America

      • Brazil

      • Mexico

      • Chile

    • MEA

      • South Africa

      • Saudi Arabia

      • UAE

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