Is the Bioprocess Supply Market Becoming an Oligopoly?
Believe it or not, your company inspired me to launch my own business. Before I share my story, though, let’s look at some data.
A recent market research article estimated the bioprocess technology supply market to achieve $44 billion in 2017 sales and reach $70 billion by 2021. With such robust growth ahead, it seems a good time for you to be in the market as a supplier.
$44 billion in bioprocess technology sales
Dig a little deeper, though, and you will see that the top 10 bioprocess suppliers were reported to score aggregate sales of almost $33 billion in 2017 – a staggering 75% of all bioprocess supplier sales! In other words, only 25% of the sales volume is left to the 99+% of other suppliers in the market (yes, there are thousands of suppliers like you out there). The curve above depicts the 2017 annual revenues of the top 500 bioprocess suppliers in billions of dollars. It shows that the bioprocess supply market is at risk of becoming an oligopolistic one. Sales volume is highly concentrated within a handful of top “mega-suppliers.” Continued mergers and acquisitions coupled with the unusually high barrier to entry in this market exacerbate the situation by increasing the rate of supplier concentration.
This trend may be good for the shareholders of the mega-suppliers, but the stark imbalance is the antithesis of the thriving environment that our healthcare system needs to advance modern medicine manufacturing.
Our healthcare system needs a thriving environment to advance modern medicine manufacturing
This is why Hapatune was founded – to support the hundreds of suppliers, service providers and business units like you that offer wonderful technologies and world-class services while living on the flat line of that curve. Our fundamental mission at Hapatune is to help your business flourish against the market challenges of an emerging oligopoly by cost-effectively marketing your products and services in a culturally conscious manner.
The world needs your science; we help bring it to them.
If you would like to learn more about how Hapatune can help you compete digitally against the bioprocess supplier oligopoly, please fill out the form below and we’ll be in touch very soon.
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