Four factors to fuel decisions
1. Consumer comfort with at-home testing drives market growth
Nearly three-quarters (74%) of respondents are involved in the manufacturing, purchasing, sales, or distribution of at-home medical diagnostic tests. For this cohort, the top three factors impacting growth in at-home diagnostic testing are rise in awareness of early diagnosis, increase in routine diagnosis, and movement toward preventive care. We see this as confirmation that consumers are more open to its benefits.
While COVID-19 has contributed to ease of testing within the home, emerging diagnostic categories — and combination tests, which can diagnose for more than one thing such as COVID and the flu — show promise for growth this year.
Top five market opportunities for at-home testing in 2023
of respondents are at least fairly-confident about meeting the increased demand, but also recognize the importance of selecting the right partners/outsource to help meet that demand.
According to respondents with direct knowledge of diagnostic testing, the growth in demand for at-home testing is primarily driven by increased interest among health plans that wish to offer:
- An at-home testing option to members (25%)
- Consumer convenience (21%)
- Consumer privacy (20%)
2. Economic downturn offers opportunity to realign supply chains
Following two years of extreme supply chain volatility, less than half (42%) identified supply chain disruptions and transportation delays as current challenges. However, risk posed by inflation and economic downturn may emerge as key challenges supply chain leaders face this year.
In fact, when asked to rank the top potential impacts to their supply chain, 58% of respondents ranked inflation and cost control in the top three, while 48% ranked an economic recession.
Top three potential impacts to supply chains
Inflation and cost control
79% view a potential economic downturn as an opportunity to gain market share through the realignment of their supply chain activities.
Two-thirds are moving sourcing, manufacturing, and fulfillment physically closer to customers and end markets.
3. “Amazon Effect” influences supply chain decisions
While supply chain disruptions are easing, decision makers are still concerned about their ability to meet customer demands for delivery timelines.
Nearly all of our respondents identified on-time delivery as an important supply chain risk. And when it comes to consumer expectations, roughly a third of respondents agree that delivery timelines have the most impact on supply chain decisions.
The demand for faster delivery (aka the “Amazon Effect”) is part of a broader nearshoring (and reshoring) trend playing out across the supply chain space.
9/10 identified on-time delivery as an important supply chain risk.
2/3 are moving sourcing, manufacturing, and fulfillment physically closer to customers.
Roughly a third of respondents agree that delivery timelines have the most impact on supply chain decisions.
4. Outsourcing partners key to meeting customer expectations
Manufacturers view an economic recession or downturn as a strategic opportunity. More than three quarters aim to gain market share through competitive pricing and/or a realignment of their supply chain activities. This suggests that manufacturers are looking to claw back savings after more than two years of being pummeled by high shipping rates.
As adoption for at-home testing increases, nearly all of the relevant supply chain decision makers surveyed are looking for the right outsourcing partners to help them meet this demand. What’s driving these organizations to outsource? Reducing cost and increasing speed-to-market are two top pressures.
Top needs being outsourced:
92% of supply chain decision makers are looking for the right outsourcing partners to meet consumer demand for at-home tests.
79% of respondents currently outsource more than a quarter of their production processes, while nearly a third outsource more than half. Roughly the same amount (77%) plan to outsource more of their production this year.