Drug Testing Market

Market Overview

The global drug testing market size was valued at USD 8.90 billion in 2022. It is estimated to reach USD 13.22 billion by 2031, growing at a CAGR of 4.5% during the forecast period (2023–2031). The high prevalence of substance abuse and the increase in government initiatives to monitor substance abuse are driving market growth.

Drug testing is crucial in various domains to ensure safety, maintain compliance, and promote a drug-free environment. One of the most common drug testing methods is urine drug testing, where a urine sample is examined to detect the presence of drugs or their metabolites. This method is widely employed in workplaces, sports organizations, and rehabilitation centers. It is non-invasive, cost-effective, and can provide a detection window of a few days to several weeks, depending on the drug. Blood drug testing is another method for specific situations requiring immediate and accurate results. It involves the analysis of a blood sample and is commonly used in emergency medical settings or post-accident investigations. Blood testing can detect recent drug use but has a shorter observation window than urine testing.

Hair drug testing offers a longer detection window and provides a historical record of drug use. A small sample of hair is analyzed to detect drug metabolites, offering insights into drug use patterns over a longer period, typically up to 90 days. Hair testing is often used in forensic investigations or cases requiring a comprehensive drug-use history. The main motive of drug testing is to deter drug use, ensure the safety and well-being of individuals, and maintain compliance with regulations and policies. It helps identify individuals using illicit substances or misusing prescription medications, enabling intervention, treatment, and support when necessary. Drug testing programs are particularly prevalent in transportation, healthcare, and sports industries, where impairment or drug use can have severe consequences.

Market Dynamics

Global Market Drivers

High Prevalence of Substance Abuse

The growing prevalence of substance abuse across the globe has significantly increased the demand for drug testing solutions. According to the United Nations Office on Drugs and Crim 2019 data, around 35 million people with drug use disorders need treatment globally. Around 55% of drug use disorders are associated with opioids and 25% with marijuana. In 2017, there were 188 million past-year cannabis users worldwide, as per UNODC data.

According to the National Center for Drug Abuse Statistics, around 1.5% to 5% of diseases directly result from illegal drugs or alcohol addiction. The same source also estimates that more than 750,000 deaths occur globally each year due to the use of illegal drugs. In addition, every year, more than 170,000 deaths occur due to drug overdose worldwide. In the U.S., accidental drug overdose became the prime cause of death in 2018 for people below 45.

Increase in Government Initiatives to Monitor Substance Abuse

Various government initiatives to monitor and combat substance abuse are driving the market. For instance, Health Canada's Substance Use and Addictions Program (SUAP) offers funding and contributions for projects that address drug and substance use problems in Canada. This initiative supports substance use prevention, harm reduction, and treatment initiatives across Canada.

Moreover, in April 2016, the New York City government launched a series of initiatives to train doctors and counselors treating substance abuse and increase testing for synthetic opioids. The National Drug Control Budget requested USD 34.6 billion in FY 2020 across five drug control functional areas in the U.S.: Prevention, operation, treatment, law enforcement, and interdiction. This includes funding USD 1.9 billion for Substance Abuse Prevention and Treatment Block Grant pay for prevention efforts backed up by proof. The Department of Defense requested USD 1.2 billion for monitoring and supporting drug interdiction operations and other counterdrug operations in the U.S. and other countries.

Global Market Restraints

Drug Testing is Considered a Violation of Privacy Rights in Some Countries

The right to privacy and the prohibition of drug and alcohol testing in several countries are expected to be major factors hampering the growth of the drug testing market. In many countries, drug testing is subject to privacy legislation. There are various criteria or standards based on which drug testing can be conducted, and violating them is considered a violation of an individual’s rights. For instance, the U.S. Supreme Court may not use a positive test case as a subsequent criminal case for tests conducted without employee consent. In many European countries, such as Finland and Belgium, unlike the U.S., there are stringent privacy rights that cannot be ignored while testing for drug abuse.

Global Market Opportunities

Focus on the Development of Innovative Testing Solutions

Drug abuse and addiction is a worldwide problem, affecting millions of people. According to the World Drug Report published by UNODC 2019, around 35 million people globally suffer from drug use disorders. Such a high drug abuse and substance use disorder rate has created a major demand for innovative testing solutions to help prevent, treat, and manage such cases. Several key players operating in drug abuse testing are introducing innovative and efficient testing products to meet this growing demand. For example, in June 2019, Quidel Corporation received the U.S. FDA’s 510(k) authorization to market its fluorescence immunoassay—Quidel Triage TOX Drug Screen, 94600. This is intended to locate the presence of metabolites or drugs in urine.

Regional Analysis

North America Dominates the Global Market

Based on region, the global drug testing market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

North America is the most significant global drug testing market shareholder and is estimated to grow at a CAGR of 4.2% over the forecast period. In 2020, North America held a substantial share of the market, primarily due to the presence of prominent players implementing extensive expansion strategies. Its dominant share can also be attributed to the increasing prevalence of drug abuse in the region and government initiatives to control it. Furthermore, the increased rate of substance use disorder due to rising unemployment and the economic crisis due to the COVID-19 pandemic is leading to high demand for drug testing solutions. However, nationwide lockdown due to COVID-19 is anticipated to reduce the demand for roadside and workplace drug testing products, thus hampering the market growth.

Europe is anticipated to exhibit a CAGR of 4.5% over the forecast period. Europe held the second-largest share of the drug testing market in 2020. This can be attributed to the increasing prevalence of drug abuse and substance use disorder in countries such as Germany, the UK, France, Italy, and Spain. In addition, several regulatory bodies are undertaking a growing number of initiatives to increase drug abuse testing, which is anticipated to create high demand for drug testing. However, many European countries have forbidden drug testing or random screening, while others allow it in safety-critical industries such as energy, transport, and construction. Thus, such unclear regulations related to workplace drug testing in some countries may limit the demand for drug abuse testing products and hinder market growth.

Asia-Pacific is anticipated to exhibit a lucrative CAGR during the forecast period, which can be attributed to the high prevalence of drug abuse in countries such as India and China. Furthermore, an increase in drug-related crimes and fatal road accidents is anticipated to boost the demand for drug testing. However, the lack of clear regulations related to workplace drug testing and nationwide lockdowns due to the COVID-19 pandemic are anticipated to be major factors hampering the market growth.

The growth of the Latin American drug testing market can be attributed to the increasing penetration of key regional players. Several key players have established their testing laboratories in countries such as Brazil and Mexico to gain a competitive edge. High drug consumption in several Latin American countries and increased prevalence of substance use disorder in the region are anticipated to create lucrative opportunities in the market. However, an uncertain regulatory scenario related to workplace drug testing in some Latin American countries is anticipated to be a major factor limiting market demand.

The Middle East and Africa market is anticipated to exhibit lucrative growth during the period, owing to the increasing frequency of substance use disorders. Favorable regulations for conducting workplace testing in key countries are further expected to support market growth. However, low access to innovative testing solutions in countries such as South Africa is anticipated to be a major factor hindering market growth.

Segmental Analysis

The global drug testing market is bifurcated into product type, sample type, drug type, and end-use.

The global drug testing market is bifurcated based on product type into consumables, instruments, rapid testing devices, and services.

The consumables segment dominates the global market and is projected to exhibit a CAGR of 5.3% over the forecast period. Consumables in drug testing include various kits, reagents, columns, calibrators, and controls. Consumables are widely used for improving confirmation testing. Various kits consist of calibration verification tools for reagents and instruments and offer help when troubleshooting reagents, instrument systems, and calibration issues. Moreover, the rise in point-of-care testing has increased the usage of instant test kits, fueling drug testing market growth. In addition, increasing the launch of new consumables that provide better solutions to make drug testing easy, accurate, and fast is expected to accelerate the market growth.

The global market is bifurcated based on sample type into urine samples, oral fluid samples, hair samples, and others.

The urine samples segment dominates the global market and is projected to exhibit a CAGR of 5.1% over the forecast period. Urine samples are the most common method of sample collection. Urine samples are used to diagnose solutes, cells, particulate matter, or organisms medically. They work by detecting the presence of illicit metabolites and substances in the body fluid. When these drugs enter the body, the body breaks them down, leading to drug metabolites forming. The incidence of metabolite indicates the presence of parent drug molecules in the body. Urine sample testing is one of the only methods approved for drug testing by the Department of Health and Department of Transportation.

Based on drug type, the global market is bifurcated into alcohol, cannabis/marijuana, cocaine, opioids, amphetamine and methamphetamine, LSD, and others.

The alcohol segment dominates the global market and is projected to exhibit a CAGR of 3.2% over the forecast period. Alcohol abuse remains a serious problem in workplaces. Alcohol abuse lowers productivity and risk of accidents, raises insurance costs, and reduces profits. Thus, the high prevalence of alcohol abuse in key markets is anticipated to boost the demand for its testing solutions during the forecast period. Furthermore, alcohol abuse in the workplace is a great financial burden for employers. According to the data published by AlcoholRehabGuide, companies across the U.S. spend between USD 33 billion and USD 68 billion annually due to employee alcohol abuse.

Based on end use, the global market is bifurcated into drug testing laboratories, workplaces, hospitals, and others.

The drug testing laboratories segment dominates the global market and is projected to exhibit a CAGR of 4.8% over the forecast period. Drug testing laboratories conduct drug tests and are certified by the health department. These laboratories also conduct tests for validating the samples to ensure that samples are not contaminated. In countries like the U.S., only HHS-certified laboratories can participate in drug testing. Drug testing laboratories perform rigorous testing of samples, and it takes longer to process results when compared to point-of-care tests. Moreover, laboratories can test for any drug's presence, which is impossible with rapid tests. Strict certification processes also make results from laboratories more accurate.

Recent Developments

• January 2023- Roche Diagnostics announced the launch of its new Immunoassay Analyzer, a rapid drug testing device that can detect multiple drugs in a single sample.
• February 2023- Abbott Laboratories announced the acquisition of Alere Toxicology, a provider of drug testing services.