Rising research and development activities in pharmaceutical, biotech, and academic sectors are fueling the growth of lab chemicals category

Lab Chemicals Category - Procurement Intelligence

The lab chemicals category is expected to grow at a CAGR of 4.3% from 2023 to 2030. The rising research of chemicals in pharmaceutical, healthcare, educational institutions, and research industries is driving the category’s growth. Laboratory compounds are essential in diverse scientific fields such as cytokine and chemokine testing, molecular biology, immunochemistry, carbohydrate analysis, cell/tissue culture, and biochemistry. The use of chemicals in carrying out research and development (R&D) activities in these fields is further aiding expansion.

Laboratory compounds, including bromination and cryogenic reactions, are crucial in numerous industrial processes. The demand for these chemicals is anticipated to rise significantly, driven by increased factory demand. These compounds find applications across various sectors, from national defense and healthcare to life sciences and environmental protection. The escalating use of chemical reagents in both commercial applications and research projects is poised to fuel substantial growth in the demand for lab chemicals.

The growing requirements from biotechnology sector may further contribute to this category’s growth, particularly in the DNA and protein sequencing reagents segment. However, the availability of cheaper laboratory chemicals may limit this expansion. The pharmaceutical industry's enhanced productivity, advancements in disease treatment technologies, and increased R&D investments for sustainable consumer goods are key factors fueling the growth of the laboratory chemicals category during the forecast period.

Demand for technologies such as data analytics, IoT, AI, and advanced manufacturing is driven by advancements in the chemical sector that prioritize digitalization, decarbonization, and automation. Innovations in chemical manufacturing include the usage of alternative energy resources, and additive technologies with extended reality supporting chemical engineers in overcoming workforce shortages and enhancing employee training. 3D printing is automating processes such as electrochemical device fabrication, digital synthesis, and the development of novel materials. Collaborative robots (cobots) assist technicians in hazardous laboratory settings, accelerating production rates. These advancements collectively drive new trends in chemical manufacturing, positioning them among the top industry trends.

Countries such as China, India, the U.S., and Germany are the major global chemical producers. These countries also continue to invest in R&D activities. For instance, in October 2023, the U.S. Department of Energy (DOE) announced a USD 40 million investment that will propel R&D and technological advancements and reduce energy and carbon footprint manufacturing in the process industries.

The major industry leaders continue making significant investments in research and development to diversify their product offerings. They engage in various strategic initiatives, such as introducing new products, forming partnerships/ collaborations, and pursuing mergers and acquisitions to enhance their industry presence. For instance, in September 2023, Avantor collaborated with Tobin Scientific to provide end-to-end services right from research lab relocation, and sample transportation, to storage services.

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Lab Chemicals Sourcing Intelligence Highlights

• Lab chemicals production often requires specific raw materials, which can vary as per vendor. As a result, suppliers can have moderate bargaining power. However, there are usually multiple suppliers for basic chemicals, which reduces the dependency on a single source. As a result, the bargaining power of these basic chemical suppliers is low due to presence of many players.

• The category is highly competitive, with many established players and constant research and development activities. Companies compete based on product quality, price, innovation, and customer service. Differentiated products and specialized chemicals can create brand loyalty, but overall, the competition is intense.

• Raw materials, staff salaries, laboratory supplies, equipment and tools, and energy costs are some of the cost components in the category. Other cost considerations include repairs and maintenance, legal costs, insurance, and packaging and transportation.

• To start a business in this category, a company needs to follow regulations specified by various governing bodies. For instance, according to Occupational Safety and Health Administration (OSHA) health standards 1910.1450(a)(2), is required that specifies the limit of employee exposure to hazardous chemicals.

Lab Chemicals Procurement Intelligence Report Coverage

Grand View Research will cover the following aspects in the report:

• Category intelligence along with emerging technology and regulatory landscape

• Market estimates and forecasts from 2022 to 2030

• Growth opportunities, trends, and driver analysis

• Supply chain analysis, supplier analysis with supplier ranking and positioning matrix, supplier’s recent developments

• Porter’s 5 forces

• Pricing and cost analysis, price trends, commodity price forecasting, cost structures, pricing model analysis, supply and demand analysis

• Engagement and operating models, KPI, and SLA elements

• LCC/BCC analysis and negotiation strategies

• Peer benchmarking and product analysis

• Market report in PDF, Excel, and PPT and online dashboard versions

Cost Intelligence Highlights

Grand View Research has identified the following key cost components for the lab chemicals category:

• Raw Materials

• Staff Salaries

• Laboratory Supplies

• Equipment and Tools

• Energy Costs

• Others

  • Repair and Maintenance

  • Legal Costs

  • Insurance

  • Packaging and Transportation

Raw materials, staff salaries, laboratory supplies, and equipment and toolsform the largest cost components of the lab chemicals category.

List of Key Suppliers in the Lab Chemicals Category

• Thermo Fisher Scientific

• Avantor

• Merck Group

• Thomas Scientific

• Agilent Technologies

• Perkin Elmer

• TCI America

• BD Biosciences

• AquaPhoenix Scientific

• GE Healthcare

• Bio-Rad Laboratories