April 20, 2024
Controlled Substance Market

The Growing Controlled Substance Market Growth Is Driven By The Increasing Regulations

The controlled substance market includes products such as preservatives, colors, flavors, and sweeteners that require careful handling and regulation. These additives are widely used across various industries like food and beverage, pharmaceuticals, and personal care products to enhance taste, odor, texture or looks of the products. Stringent safety guidelines are in place for production, distribution, and usage of these substances to prevent adulteration and illegal trade.

The global controlled substance market is estimated to be valued at US$ 37.33 Mn in 2024 and is expected to exhibit a CAGR of 6.6% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the key trends in the controlled substance market is the growing regulatory support in various countries. Governments across regions are implementing stringent regulations and guidelines to ensure safety in production, storage, distribution and sale of controlled substances. For example, laws like the Controlled Substances Act in the US and Medicines Act in the UK lay down procedures for obtaining license, maintaining records of manufacture and sales, labelling and packaging among others. Non-compliance can lead to heavy penalties. Such initiatives aim to tackle issues like substance abuse and diversion. Moreover, reforms in regulatory policies to legalise cannabis for medical use in several nations is creating new opportunities. Many countries are also supporting research on cannabis-derived pharmaceutical drugs. This is likely to drive regulated growth of the controlled substance market.

Porter’s Analysis

Threat of new entrants: The threat of new entrants is moderate as setting up a new business in this market requires significant capital investment for R&D, regulatory approval process and production facilities. However, with growing opportunities in this sector new players are expected to enter the market over the forecast period.

Bargaining power of buyers: The bargaining power of buyers is moderate to high as there are numerous players operating in this market providing a large number of alternatives to buyers. Buyers can negotiate on price and quality of products.

Bargaining power of suppliers: The bargaining power of suppliers is low to moderate due to availability of substitute raw materials and emphasis on backward integration by major players to control raw material supply.

Threat of new substitutes: Threat of substitutes is moderate as there are limited product innovation and new alternatives. However, with R&D focus on developing natural preservatives, the threat is expected to increase over the forecast period.

Competitive rivalry: The competitive rivalry in the market is high due to presence of numerous international and domestic players competing on pricing and quality. Players focus on new product launches and expansion to existing markets to gain market share.

Key Takeaways

The Global Controlled Substance Market Demand is expected to witness high growth at a CAGR of 6.6% during the forecast period of 2024-2031. The market was valued at US$ 37.33 Mn in 2024 and is projected to reach $61 Mn by 2031.

Regional analysis: North America dominated the controlled substance market in 2024 with a share of over 35% owing to stringent regulations regarding food safety in countries like the US and Canada. Asia Pacific is expected to be the fastest growing market during the forecast period supported by rising health consciousness and increasing disposable incomes in major countries like India and China.

Key players operating in the Controlled Substance Market are GNT International B.V., Roha Dyechem Pvt. Ltd., D.D. Williamson & Co., Inc., Kalsec Inc., Chr. Hansen A/S, Archer Daniels Midland Company, Adama Agricultural Solutions Ltd. (LycoRed), Naturex S.A., Sensient Technologies Corporation, and Symrise AG. These key players are focusing on new product launches, expansions and acquisitions to strengthen their market presence.

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