Market Trends of Efficacy Testing Industry
This section covers the major market trends shaping the Efficacy Testing Market according to our research experts:
Cosmetics and Personal Care Products Segment is Expected to Witness Significant Growth Over the Forecast Period
The cosmetics and personal care products by application segment is anticipated to witness significant growth over the forecast period. The clinical testing of cosmetic products not only verifies the performance and safety of the cosmetic items but also gives its packaging and marketing greater authority and credibility. Moreover, with the increasing usage of cosmetics and personal care products, the demand for the efficacy testing of these products is increasing and further driving the segment growth.
Consumers' buying behavior for cosmetics and personal care products increased significantly during the pandemic and is anticipated to persist over the forecast period. Therefore, several companies are focusing on the efficacy testing of cosmetic products. For instance, in February 2021, Codex Beauty launched a consumer-facing efficacy testing label to help consumers understand its testing process and product claims. Codex Beauty Labs will display an easy-to-read efficacy testing panel on the labels of future products to explain the quantitative data behind product testing.
Moreover, efficacy testing is a series of methods used in cosmetics product research and development and is carried out to verify the claims made on packaging or in marketing and to test the product's intended use. Additionally, to make sure that the cosmetic items are safe for consumers to use directly on their skin, preservative efficacy tests are also carried out on cosmetic products. Thus, the regulation of the tests is mandatory, and this is creating numerous opportunities for cosmetics product efficacy testing. For instance, in May 2021, China's Standards for Cosmetic Efficacy Claim Evaluation came into effect. According to it, cosmetic products with efficacy claims shall be supported by an efficacy evaluation. As per the standards, a summary of efficacy evaluation results will be made available to the public through an online platform specified by the National Medical Products Association (NMPA). The efficacy of products will be subject to the mandatory test standard in the safety and technical standards for cosmetics.
North America is Expected to Witness a Significant Growth Over the Forecast Period
North America is expected to dominate the overall efficacy testing market throughout the forecast period. Factors such as increasing R&D and adoption of the QbD approach among the market players in the region are predicted to drive market growth.
The pharmaceutical industry in North America is focusing more on outsourcing activities to CROs for drug development. In addition, governments across the region are also investing heavily in contract development and manufacturing organizations (CDMO), drug substance, and drug product manufacturing capacities. Recently HHS invested a hefty sum in Emergent BioSolutions to advance manufacturing capabilities and manufacturing capacity for a potential COVID-19 vaccine as well as therapeutics. In addition, Emergent BioSolutions signed an agreement with AstraZeneca to become the manufacturing partner for AstraZeneca's COVID-19 vaccine candidate. These CRO activities are anticipated to fuel market growth over the forecast period.
Furthermore, the presence of a well-established pharmaceutical industry in the region, the high R&D expenditure, the strong presence of major service providers, and the growing trend of outsourcing analytical testing by pharmaceutical and cosmetic companies in the region are several major factors that contribute to the overall market growth. For instance, according to the October 2022 update by OECD, pharmaceutical spending in the United States, Canada, and Mexico is 2.08, 1.72, and 1.34 (% of gross domestic product (GDP)), respectively. This shows the high involvement of major players, manufacturers, and government organizations in product development. This drives demand for efficacy testing services in countries across the region thereby driving the overall growth of the studied market.
Furthermore, according to the August 2021 update by FDA, access to the safest and cutting-edge pharmaceutical system benefits American consumers, thus pharmaceutical product development is increasing in the region. In addition, according to the source mentioned above, a drug must undergo testing before a pharmaceutical company may sell it in the United States. To demonstrate that the drug is safe and effective for its intended purpose, the manufacturer subsequently provides CDER with the results of these testing. Although CDER doesn't directly test pharmaceuticals, it undertakes some research on criteria for drug quality, safety, and effectiveness. The presence of such regulatory bodies to inspect pharmaceutical products is anticipated to fuel the studied market growth in the country.
