The Blood Industry

Report Highlights

• The U.S. market for products used in the blood business are expected to exceed $6.1 billion in 2001.
• The market is projected to reach nearly $8.7 billion by 2006, growing at an average annual rate (AAGR) of 7.2%.
• The largest segment, blood components and plasma products, makes up over 80% of the market. Growing at an AAGR of 7.8% through 2005, these products will rise to command nearly 84% of the total market.
• Equipment, blood tests and additional consumables will grow at an AAGR of 4.3% from $1.2 billion in 2001 to over $1.4 billion in 2006.

INTRODUCTION

STUDY GOAL AND OBJECTIVES

The goal of this study, the fourth edition, of the BCC report on the blood industry, is to both analyze the current markets for blood products, blood tests and blood processing equipment, as well as present important new developments affecting every aspect of this industry.

The study covers the major aspects of blood and plasma collection/transfusion including autologous donations, apheresis, fractionation, bone marrow donations, cord blood donations, stem cell technology. The major plasma products such as coagulation factors, human serum albumin, and immunoglobulins are analyzed as well. The scope and character of the blood-testing segment has changed considerably as well. So, the impact of new products and technologies are analyzed. In addition, new developments for blood processing equipment promises to reinvigorate this market, so it is analyzed as well.

The study also covers new developments in federal regulation of the blood supply, changes in blood system management, scrutiny of underlying data claims for different markets, an analysis of the companies serving these markets, the international developments in blood banking and related areas, as well as additional research that will affect the future of the blood industry.

REASONS FOR DOING THE STUDY

The practice of modern medicine relies on the availability of a safe and adequate blood supply, and the U.S. is fortunate to have a blood industry that provides both. Efforts to improve the prospects for safety and availability have produced such an array of advances that a new study is needed to profile what promises to be a very different industry in the next five years.

At the same time, there are contradictory trends that need to be analyzed and resolved. On the one hand, the list of diseases that may be treated successfully and more effectively with blood products is growing significantly, if not dramatically. Therefore, the number and type of clinical trials using blood products is growing. On the other hand, there is growing evidence that some clinical populations are being more harmed than helped by some blood products. So, there is a renewed effort to scrutinize much more closely just what therapeutic benefits are being realized from various blood products, and where there are no benefits or possible harm.

In addition, an update is needed on the status of blood substitute research. There are a number of problems that have thrown this segment back on its heels. However, there are still some areas that may lead to new types of human blood substitutes.

When BCC last looked at this area, the 1993 U.S. market for blood product supplies was $2.2 billion growing 6.7% through the year 2000. Ironically, since then, while the prospects for renewed growth has improved even more in some sectors, the has moved to a new level of uncertainty concerning chronic shortages of immunoglobulins, human serum albumin and other plasma-derived products.

Blood safety is still a major issue, though for very different reasons since the last edition. So, the study analyzes how blood safety issues have changed in the last four years.

CONTRIBUTION OF THE STUDY AND FOR WHOM

This study will provide information on these areas:

• Structure and current market size of the blood industry with forecasts through 2002
• Blood usage patterns and trends
• Government and regulatory controls
• Impact of disease on the blood industry
• Major players and their relative market share and market potential
• Current product lines and examination of newly emerging products and technologies
• State of the international markets for various blood and blood-related products
• Opportunities for development and commercialization of new or alternative products and services

Since the study provides and technical information of a timely nature, it will prove valuable to a variety of readers, including industry executives, managers and planners, industry analysts, and investors.

SCOPE AND FORMAT

This study encompasses the wide range of products and services, which comprise the current U.S. blood industry marketplace, and discusses potential new market areas that are under development. The focus of the report is on blood collections and the products derived from them, as well as products used to support these activities. Excluded from consideration are blood tests for diseases and conditions not involved in managing blood and plasma products, as blood perfusion equipment used in surgery.

METHODOLOGY

The first step was to conduct a comprehensive literature and patent search. The literature included technical newsletters and journals, as well as many other sources described below. On-line databases and government sources were consulted as well.

The collected information was read, studied, analyzed and otherwise compared, where appropriate, for consistency and feasibility. A number of different models were constructed considering different assumptions about the likely developments that could occur in the market. The assumptions were based on the experience of the author, other analysts with extensive experience in related areas, along with market knowledge learned in interviews of managers in the supplier companies involved in these markets.

Projections were based on such estimates as the current number of end users, funding levels, potential end-users, likely unit prices and rates of consumption. Special cases were considered as well where competing technologies might be involved or where other end user preferences might become factors. Estimates were also based on such things as demographic factors and on unit consumption estimates for given types of applications or other appropriate measures.

It should be pointed out that while many factors were considered in constructing different models, the projections are ultimately speculative. As a composite of the opinions and assessments of interviewees, the author, other analysts, and secondary sources, these projections represent something of a consensus. However, all recognize that the relative importance of selected factors could change at any time with new technologies and new products, and thus change the direction of the market projections.

INFORMATION SOURCES

A broad range of information sources was consulted in preparing this study. The sources consulted included newsletters, company literature, product literature, a host of technical articles, journals, indexes, abstracts, as well as trade magazines, books, and reference guides. In addition, a number of different computer searches were carried out. Exhaustive investigations of databases by key terminology were done.