North America Toxicology Laboratories MarketSize and Trends

North America toxicology laboratories market is estimated to be valued at US$ 271.0 Million in 2023, exhibiting a CAGR of 4.1% during the forecast period (2023-2030).

Factors affecting market growth includes presence of a well-established pharmaceutical industry in the area, high R&D spending, the dominance of major service providers, and growing trend of pharmaceutical and biopharmaceutical companies outsourcing analytical testing. For instance, according to the Organization for Economic Co-operation and Development (OECD's) in October 2022, gross domestic product (GDP) for pharmaceutical spending in the U.S., Canada, and Mexico, in 2020 were 2.08%, 1.72%, and 1.34%, respectively. This demonstrates the substantial participation of big businesses, manufacturers, and governmental bodies in production of product . The major causes of this increase in expenditure are the emphasis on obtaining an edge over competitors and the substantial returns achieved on newly manufactured goods.

Figure 1. North America Toxicology Laboratories Market Share (%), By Drug Class, 2023

North America Toxicology Laboratories Market – Driver

Increasing Awareness about Conventional Toxicology Testing Devices

Increasing awareness about conventional toxicology testing devices is expected to drive the North America toxicology laboratories market growth over the forecast period. There is increase in demand for conventional toxicology testing devices in the U.S. and Canada, owing to large consumption of controlled substances such as opioids, depressants, etc. in these countries. Most of the publically funded toxicology laboratories (forensic laboratories) are dependent on conventional testing equipment, due to the high performance offered by these devices at a minimal cost. Toxicology laboratories in hospitals and diagnostic testing centres rely on conventional technologies, due to the cost benefits.

Figure 2. North America Toxicology Laboratories Market Value (US$ Million), By Country, 2023

North America Toxicology Laboratories Market- Country Analysis

Among country, the U.S. is estimated to hold a dominant position in the North America toxicology laboratories market over the forecast period due to the presence of established market players and the market players are focusing on research and development of new drugs, and increasing clinical trials in the U.S In January 2022, according to Regulatory Affairs Professionals Society (RAPS), 50 novel drugs were approved by Center for Drug Evaluation and Research (CDER) in 2021, among which 38 drugs were approved in the U.S.

North America Toxicology Laboratories Market– Impact of Coronavirus (COVID-19) Pandemic

Since the COVID-19 virus outbreak in December 2019, the disease has spread to over 100 countries across the globe, and the World Health Organization declared it a public health emergency on January 30, 2020.

COVID-19 affected the economy in three main ways: by directly affecting the production and demand of drugs, by creating disruptions in distribution channels, and through its financial impact on firms and financial markets. Due to nationwide lockdowns, several countries such as China, India, Saudi Arabia, the U.A.E., Egypt, and others faced problems regarding transportation of drugs from one place to another.

However, the COVID-19 pandemic had a positive impact on the North America toxicology laboratories market. For instance, according to an article published in the PMC Journal, in July 2022, various government authorities recommended nonclinical safety studies such as efficacy, biodistribution, and toxicology studies prior to initation of First-in-human (FIH) clinical trials for COVID-19 vaccine candidate consisting of a novel product type for which no prior nonclinical and clinical data were available. Thus, demand for toxicology testing increased during the pandemic, and boosted the market growth.

This demonstrates the substantial participation of big businesses, manufacturers, and governmental bodies in production of product . The major causes of this increase in expenditure are the emphasis on obtaining an edge over competitors and the substantial returns achieved on newly manufactured goods.