Test positive: Greater employment and drug use will drive demand for toxicology labs

The Toxicology Laboratories industry has experienced steady growth over the past five years as demand for employee drug testing, the industry's largest product segment, rose in line with increased employment during the economic recovery. Underpinning growth in employee toxicology testing is the trend of increasing illicit drug use in the United States, the economic costs of which have been substantial. To avoid productivity losses, most businesses have required drug tests of workers, at least upon initial employment, which has driven steady revenue growth for the industry. This growth is anticipated to continue over the next five years...purchase to read more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22

Industry Threats & Opportunities

  • Rising drug use has encouraged more companies to opt for employee drug testing by toxicology laboratories
  • The industry will benefit from increased investment in toxicology labs
  • The rate of illicit drug use is forecast to continue growing, supporting demand for toxicology labs
  • Industry Report - Industry Locations Chapter

    The location of establishments within the Toxicology Laboratories industry is largely influenced by the size of the American population and the age distribution of each region. Typically, industry operators locate near major markets, including hospitals and physicians. As a result, the industry follows the dispersion of healthcare providers. In general, industry activity is concentrated in the three most populous regions of the United States: the Southeast, accounting for an estimated 26.6% of employer establishments and an estimated 25.6% of the population; the West, accounting for 18.9% of establishments and 17.2% of the population; and the Mid-Atlantic, accounting for 15.7% of establishments and 15.3% of the population...purchase to read more.

    Additional Insights for the Toxicology Laboratories Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Toxicology Laboratories Industry are

  • Ensuring pricing policy is appropriate
  • Having a good reputation
  • Proximity to key markets
  • IBISWorld analysts also discuss how external factors such as Number of employees and Total health expenditure in the Toxicology Laboratories industry impact industry performance..

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    What's in this report

    What is the Toxicology Laboratories Industry?

    This industry receives and independently analyzes samples of biological material for various toxins, primarily drugs. Services include blood testing, saliva testing and urine testing. Employers, the medical community and law enforcement are major purchasers of this industry’s services.

    Industry Products
  • Urine testing
  • Hair testing
  • Saliva testing
  • Blood testing
  • Breath testing
  • Industry Activities
  • Blood testing
  • Urine testing
  • Oral fluid testing
  • Saliva testing
  • Hair testing
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Number of employees
  • Total health expenditure
  • Number of people with private health insurance
  • Incarceration rate

  • Current Performance
  • Drug use drives demand
  • Industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Illicit drug use
  • Regulatory hurdles
  • Industry landscape
  • Table: Toxicology Laboratories Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Toxicology Laboratories Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Agriculture, Forestry, Fishing and Hunting
  • Construction
  • Manufacturing
  • Retail Trade
  • Information
  • Professional, Scientific and Technical Services
  • Educational Services
  • Accommodation and Food Services
  • Public Administration

  • Key Selling Industries
  • Chemical Wholesaling
  • Medical Device Manufacturing
  • Medical Instrument & Supply Manufacturing
  • Medical Supplies Wholesaling

  • Products & Services
  • Urine testing
  • Breath testing
  • Hair testing
  • Blood testing
  • Saliva testing
  • Other
  • Chart: Toxicology Laboratories Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Other industries
  • Nonprofit organizations
  • Finance and professional service industries
  • Manufacturing industries
  • Healthcare and social assistance industries
  • Government agencies
  • Other
  • Chart: Major Market Segmentation for the Toxicology Laboratories Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Purchases
  • Depreciation and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Toxicology Laboratories

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Toxicology Laboratories Industry

  • Industry Globalization
    Alere Inc., Quest Diagnostics Inc.,
  • Table: Alere Inc. - financial performance
  • Table: Quest Diagnostics Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Toxicology Laboratories Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Toxicology Laboratories Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Number of employees in the US (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • Specific, direct metabolites of alcohol; EtG/EtS tests are conducted to detect the presence of alcohol in a person's system.
  • Reagent
  • A substance or compound added to a system to cause a chemical reaction.
  • Toxicology
  • A study of the adverse effects of drugs, alcohol or other toxins on living organisms.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Industry Market Report on Toxicology Laboratories is a comprehensive guide to market size and growth prospects. Ensure due diligence in your research with our strategic analysis of the factors influencing companies, including new product developments; economic, lifestyle and demographic influences; distribution and supply chain factors; and pricing issues.

    IBISWorld industry market research reports enable you to:
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    • Inform your decisions for marketing, strategy and planning
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    This report on Toxicology Laboratories:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Toxicology Laboratories market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Toxicology Laboratories, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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