June 13, 2024
Pharmaceutical Stability And Storage Services Market

Pharmaceutical Stability and Storage Services Market Set for Robust Expansion Through Increased Outsourcing

Pharmaceutical stability and storage services involve analytical testing, formulation development, method development and validation, stability testing as well as raw material and finished product warehousing under appropriate controlled conditions as per Good Storage and Distribution Practices. The services ensure safety, strength and purity of medicines over time according to specifications. Pharmaceutical stability and storage is crucial to extend the shelf life of drugs and biological products and guarantee their effectiveness at the time of patient use. Rising pharmaceutical R&D activities and increasing regulatory compliance have boosted demand for outsourcing these services to specialized contract service providers.

The global pharmaceutical stability and storage services market is estimated to be valued at US$ 3.18 Bn in 2024 and is expected to exhibit a CAGR of 5.8% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the Pharmaceutical Stability And Storage Services Market Demand are Intertek Group plc, Eurofins Scientific, SGS Société Générale de Surveillance SA., Q Laboratories, BioLife Solutions Inc. Key players are focusing on expanding their service portfolio and global footprint to capitalize on the growth opportunities.
The global demand for pharmaceutical stability and storage services is anticipated to increase significantly during the forecast period, driven by growing pharmaceutical production volumes.
In order to achieve economies of scale, pharmaceutical companies are increasingly outsourcing stability and storage services to specialized global contract service providers with geographically expanded facilities and expertise. This is expected to further stimulate market growth during the forecast period.

Market Key Trends

One of the key trends shaping the pharmaceutical stability and storage services market is increased outsourcing of these services by pharmaceutical manufacturers to pure play service providers. Drug makers are outsourcing non-core functions to streamline operations and focus on drug development. Specialized contract service providers offer advantages such as expertise, flexible scalable infrastructure and compliance with global standards which has led to increase in outsourcing of services to them. Their expanding global network of state-of-the-art facilities adhering to stringent quality standards is expected to drive higher outsourcing. Additionally, testing of new formulation concepts and scale-up for clinical studies is also being outsourced to contract service partners which is expected to significantly contribute to market revenues over the forecast period.

Porter’s Analysis

Threat of new entrants: Low capital requirements and established value chain partnerships pose low threat to new entrants in the pharmaceutical stability and storage services market.

Bargaining power of buyers: Pharmaceutical companies hold significant bargaining power as buyers due to pricing pressures and ability to take services in-house.

Bargaining power of suppliers: Suppliers of analytical testing equipment and temperature and humidity monitoring systems have moderate bargaining power due to differentiated offerings and technologies.

Threat of new substitutes: No significant threat of substitution exists currently given stability testing and drug storage are critical regulatory requirements.

Competitive rivalry: Intense competition exists among established global players and local providers trying to expand portfolios through acquisitions and partnerships.

Geographical Regions

North America accounts for the largest share of the pharmaceutical stability and storage services market currently due to presence of major pharmaceutical companies and stringent regulatory landscape in the region driving outsourcing of such services.

Asia Pacific region is poised to witness the fastest growth during the forecast period with increasing pharmaceutical manufacturing activities and growing awareness about maintaining drug stability throughout supply chain in countries like India, China and Japan.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it