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.
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.
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.
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.
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.
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
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 |
Customization scope |
Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope. |
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
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
b. The global drug of abuse testing services market size was estimated at USD 2.6 billion in 2020 and is expected to reach USD 2.7 billion in 2021.
b. The global drug of abuse testing services market is expected to grow at a compound annual growth rate of 5.2% from 2021 to 2028 to reach USD 3.8 billion by 2028.
b. The cannabis segment dominated the drug of abuse testing services market with a share of 38.4% in 2019. This is attributable to the increased cannabis abuse in key regions such as North America and Europe.
b. Some key players operating in the drug of abuse testing services market include Laboratory Corporation of America Holdings (LabCorp); Alere Inc.; United States Drug Testing Laboratories, Inc. (USDTL); and Quest Diagnostics, Inc.
b. Key factors that are driving the drug of abuse testing services market growth include the rising prevalence of drug abuse, the introduction of advanced drug testing solutions, and increasing government initiatives.
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The most common concern for the governments of all Covid-19 hit nations is the excruciating need to screen for and test large numbers of patients for possible Sars-Cov-2 infection. As a result, most of them are facing major shortages in the supply for diagnostic kits to test for the virus. Diagnostics virology entities are under immense pressure to provide reliable testing kits, and there is a surge in demand for in-vitro or point-of-care testing capacities by labs across a large number of countries. The report will account for Covid19 as a key market contributor.
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