Lab consumables’ growth puts small-cap stock on watchlist

The Indian laboratory consumable industry supplies essential products to pharmaceutical companies, diagnostic laboratories, biotechnology businesses, universities, contract research organisations and hospitals. Many of the products are recurring use consumables, creating repeat demand as laboratories expand their testing and research activity. The Key growth drivers of the industry are research and development of Pharmaceutical companies for more drug development, clinical research and quality control testing creating demand for laboratory products. The biotechnology and biosimilar companies use these specialised consumables for cell culture, molecular biology and bioprocessing.

On the other hand, Diagnostic companies use these for sample handling products but the strongest growth opportunity may be seen in specialised, higher value products rather than only standard tubes, pipette tips and Petri dishes. The industry projects the Indian laboratory consumables market to grow to US$1.25 billion by 2030, equivalent to a projected compound annual growth rate of 12.3%.

For Indian manufacturers, the opportunity is not simply to replace imports with locally manufactured standard products but it is also to develop reliable, high quality products that meet the stringent requirements of global pharmaceutical and biotechnology customers.

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