Horizontal Opportunities for Analytical Standards Market

Subject matter experts of the analytical standards market at Transparency Market Research (TMR) recalibrated the dynamics of varying impacts, and found that, food safety turning into a global concern will chart the future growth course of the landscape. The influence of profound trends in the food and beverage industry, which include increasing consumer inclination toward packaged goods, underpinned by the 'grab ‘n go' culture, has put pressure on food producers to bring in innovation onto the table. However, compromised food quality, on account of the reckless use of chemicals as flavor enhancers, is the gap that has been serving as an entrance for manufacturers in the analytical standards market.

Opportunities also await in the environmental sector. Rapid rise in industrialization, coupled with financial support extended by central agencies for pollution prevention and control, has been increasing environmental consciousness among industrialists. Although the relevance of success factors is promising enough with billion-dollar horizontal markets, complementing the growth of the analytical standards market, the report also identifies a few inhibitors, which could slow down market movement.

analytical standards market infographic

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Chromatography Vs. Spectroscopy - Which is the Gold-standard Technique?

The TMR study finds that, the adoption of the chromatography technique is projected to remain high as compared to spectroscopy, both, in terms of value and growth rate. Primarily, pharmaceutical and life sciences, food and beverages, and environmental applications account for the wide scope of application of this technique.

In the environmental sector, identifying the presence of harmful components in solid waste, flame retardants, and pesticides, are the weighted applications relying on chromatography techniques to be considered as environmentally-benign products. While the purview of this technique also holds prominence in analyzing flavors and fragrances, GMO, Mycotoxins, and food additives, to ensure food safety. In the pharmaceutical industry, this technique is used to meet ideal drug and cosmetic standards.

Spectroscopy is a technique that is used for the identification of the nature of a compound. However, electronic circuit designs of spectrometers often affect the amount of noise, which, in turn, takes a toll on their accuracy.

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How Players are Securing their Market Position to Grow Vertically

The analytical standards market is fragmented in nature, with numerous players operating at global, regional, and domestic levels. The high investment capabilities of global players set them apart in the space, with customization being their key feature. A leading player, Merck KGaA, illustrates this strategy. This market player boasts of its competency in the customization of chemicals for organic synthesis. However, the pricing strategy incorporated by regional and local players challenges the penetration of global players in local regions.

Strategies devised by regional players are intended toward establishing a strong market presence by upgrading the required competency through reciprocal advantages. It is, therefore, observed that, acquisitions, partnerships, and collaborations remain the standard strategies for this batch of players. For instance, in 2019, LGC announced the acquisition of Toronto Research Chemicals, a key manufacturer of synthetic organic bio-chemicals. This acquisition is intended at creating operational and commercial opportunities by introducing advanced products and services, in order to cater to the right mass.

Given the intensely-competitive space that the analytical standards market is, dedicated efforts made toward offering accuracy can help gain a distinguished position in the landscape.

Customization Strategy - Not Every Market Player’s Cup of Tea

Being a horizontal landscape, the analytical standards market operates at the intersection of numerous applications, from veterinary, forensic, petrochemistry, pharmaceuticals and life sciences, food and beverages, and environment. To cut through this thick space to establish a brand image, manufacturers of analytical standards are found catering to the customized requests from their clientele, which, in turn, puts pressure on their counterparts to adapt to new manufacturing trends.

It is also worth noting that, the cost of custom synthesis services varies on a project-to-project basis, which also increases the purview of work, given the additional research, documentation, testing, and development associated with customization. This is engendering the volatility in product offerings, which only financially-sound market players can afford to bear.

As a response to this approach, regional and local players squeeze their profit margins and sell products at relatively lower prices than the average selling price, which further intensifies the competition level.

analytical standards market segmentation

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Analysts’ Take on Analytical Standards Market Growth

Weighing the relevance and impact of influential dynamics, authors of the report opine that, the analytical standards market will advance steadily at a CAGR of ~6% during the forecast period of 2019-2027. According to the analysis, North America will be on the vanguard, with high government funding in the environmental and pharmaceutical sectors serving as a base for research & development activities in the analytical standards market.

Based on types of analytical standards, organic standards are projected to witness significantly higher demand as compared to the inorganic ones, since the former holds high prominence in the laboratory tests of fertilizers and harmful chemicals. Since government initiatives are instigating environmentalists to conduct laboratory tests, market players can increase investments toward the development of qualitative analytical standards to improve the outcomes of these tests.

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  • According to Transparency Market Research’s latest market report on the global analytical standards market for the historical period of 2017 - 2018 and forecast period of 2019 - 2027, rise in the number of researches in the life science industry and increase in regulations regarding pharmaceutical and biotechnology manufacturing are anticipated to drive the global analytical standards market over the period of forecast.
  • According to the report, the global analytical standards market was valued at ~US$ 1.2 Bn in 2018, and is projected to expand at a CAGR of ~6% from 2019 to 2027.

Rapid Expansion of Life Sciences Industry to Propel Market: A Key Driver

  • Analytical testing plays a major role in understanding the physical and chemical stability of drug molecules, impact on selection and design of dosage form, and assessing the stability of drug molecules. Hence, the demand for analytical standards is largely dependent on the expansion of the life science and healthcare industries. The life science industry is expanding at a rapid pace in developing markets. This is projected to boost the analytical standards market during the forecast period.
  • According to the World Industry Outlook, the global pharmaceutical market is projected to reach US$ 1.2 Trn by 2020, expanding at a CAGR of 4.4% from 2016 to 2020. Latin America’s pharmaceutical spending is anticipated to increase at a CAGR of 6.6% between 2016 and 2020.
  • Biopharmaceutical is one of the fastest-growing segments of the pharmaceutical industry, expanding at nearly double the rate of the pharmaceutical industry. Wide applications of life science reagents and analytical standards in the biopharmaceutical industry for the development of various biomarkers, production of biologic drugs, drug discovery, and therapeutic drug monitoring are likely to increase the demand for analytical standards during the forecast period.
  • Besides, stringent regulations regarding life science research, and process validation and standardization, drive the demand in the global analytical standards market. 

Focus on Customized Standards

  • Companies are gaining expertise in custom synthesis by designing different methods for the synthesis of reagents. Custom synthesis products are backed by analytical data to suit the needs of customers. Moreover, companies keep stock of custom synthesized products for quick reorder availability.
  • Various analytical reagent manufacturers are taking efforts to ensure the availability of a range of seamless scale-up options. These companies are also focusing on transferring custom synthesized materials to large-scale manufacturing facilities and GMP facilities.
  • For instance, AccuStandard is one of the players engaged in the specialized synthesis of high purity chemicals used as reference standards. The capabilities of custom synthesis range from milligrams to kilograms. The synthesis of numerous organic pollutants and their metabolites is an integral part of the efforts of companies to provide the community with previously unavailable standards. This is especially true for the rise in the demand for reference standards for explosives and pesticides.

High Cost of Custom Analytical Standards to Hamper Analytical Standards Market

  • The costs for custom synthesis services differ substantially from project to project, which reflects not only in the prices of starting materials or number of synthesis steps, but also in risk profiles; R&D intensities; and requirements regarding purity, safety, documentation, and analytical specification.
  • Well-documented synthesis of standard chemicals is much cheaper than first-time, multi-step syntheses of novel compounds.
  • This imposes a pricing pressure on major manufacturers, thereby intensifying competition. The dominance of local players offering a wide range of analytical standards at lower rates affects the geographic expansion of major players in a particular region, which is subsequently hampering the growth of the analytical standards market.

Global Analytical Standards Market: Competition Landscape

  • This report profiles major players in the global analytical standards market based on various attributes such as company overview, financial overview, product portfolio, business strategies, and recent developments.
  • The analytical standards market is highly fragmented, with the presence of a large number of international as well as regional players in the market.
  • Prominent players operating in the global analytical standards market include -
    • AccuStandard, Inc.
    • Agilent Technologies, Inc.
    • Inorganic Ventures
    • Cayman Chemical
    • Merck KGaA
    • Mallinckrodt Pharmaceuticals
    • Chiron AS
    • GFS Chemicals
    • LGC Standards
    • GE Healthcare

Global Analytical Standards Market: Key Developments

Key players in the global analytical standards market are engaged in the development of new products and approvals, key mergers & acquisitions, and collaborations. Major developments by key players are likely to fuel the expansion of the global analytical standards market. Some of the growth strategies adopted by players in the analytical standards market are as follows: 

  • In August 2019, LGC acquired Toronto Research Chemicals (“TRC”), a manufacturer and supplier of synthetic organic bio-chemicals that are used as reference standards and research tools in the pharmaceutical, applied, and research sectors. The acquisition of TRC has strengthened the product portfolio of LGC’s existing reference standards business.
  • In February 2018, Merck KGaA announced plans to expand its manufacturing capacity and distribution centers in India. The company invested around US$ 19.21 Mn in a new manufacturing and distribution center for its life science business.
  • In October 2017, Merck KGaA established a new life science center in Massachusetts, for scientific collaboration.

The report on the global analytical standards market discussed individual strategies, followed by the company profiles of manufacturers of analytical standard products. The ‘Competition Landscape’ section has been included in the analytical standards market report to provide readers with a dashboard view and a company market share analysis of key players operating in the global analytical standards market.

Analytical Standards Market - Scope of the Report

TMR’s report on the global analytical standards market studies the past as well as current growth trends and opportunities to gain valuable insights of the same indicators for the said market for the forecast period of 2019 to 2027. The report provides overall market revenue of the global analytical standards market for the period of 2017 - 2027, with 2018 as the base year and 2027 as the forecast year. The report also provides the compound annual growth rate (CAGR) for the global analytical standards market for the forecast period.

The report has been prepared after an extensive primary and secondary research. Primary research involves bulk of the research efforts, wherein, analysts carry out interviews with industry leaders and opinion makers. Extensive secondary research involves referring to key players’ product literature, annual reports, press releases, and relevant documents to understand the global analytical standards market.

Secondary research also includes Internet sources, statistical data from government agencies, websites, and trade associations. Analysts have employed a combination of the top-down and bottom-up approaches to study various phenomena in the global analytical standards market.

The report includes an elaborate executive summary, along with a snapshot of the growth behavior of various segments included in the scope of the study. Furthermore, the report sheds light on the changing competitive dynamics in the global analytical standards market. These indices serve as valuable tools for existing market players as well as for entities interested in entering the global analytical standards market.

The report delves into the competition landscape of the global analytical standards market. Key players operating in the global analytical standards market have been identified, and each one of them has been profiled for their distinguishing business attributes. Company overview, financial standings, recent developments, and SWOTs are some of the attributes of players in the global analytical standards market that have been profiled in this report.

Key Questions Answered in Analytical Standards Market Report

  • What is the scope of growth of product companies in the analytical standards market?
  • What will be the Y-o-Y growth of the analytical standards market from 2019 and 2027?
  • What is the influence of the changing trends in technologies on the global analytical standards market?
  • Will North America continue to remain the most profitable regional market for analytical standards providers?
  • Which factors are anticipated to impede the growth of the global analytical standards market during the forecast period?
  • Which are the leading companies in the global analytical standards market?

Research Methodology

A unique research methodology has been utilized by TMR to conduct comprehensive research on the growth of the global analytical standards market, and arrive at conclusions on the future growth prospects of the market. This research methodology is a combination of primary and secondary research, which helps analysts warrant the accuracy and reliability of the drawn conclusions.

Secondary sources referred to by analysts during the production of the global analytical standards market report include statistics from company annual reports, SEC filings, company websites, World Bank database, investor presentations, regulatory databases, government publications, and industry white papers. Analysts have also interviewed senior managers, product portfolio managers, CEOs, VPs, and market intelligence managers, who contributed to the production of TMR’s study on the analytical standards market as primary sources.

These primary and secondary sources have provided exclusive information during interviews, which serves as a validation from analytical standards market leaders. Access to an extensive internal repository and external proprietary databases allows this report to address specific details and questions about the global analytical standards market with accuracy. The study also uses the top-down approach to assess the numbers for each segment, and the bottom-up approach to counter-validate them. This has helped in reaching TMR’s estimates on the future prospects of the global analytical standards market more reliably and accurately.

Global Analytical Standards Market – Segmentation

Application

Environmental

Food & Beverages

Pharmaceuticals & Life Sciences

Petrochemistry

Forensics

Veterinary

Environmental

Technique

Chromatography

Spectroscopy

Titrimetry

Physical Properties Testing

Chromatography

Spectroscopy

Type

Organic

Inorganic

Region

North America

Europe

Asia Pacific

Latin America

Middle East & Africa