More clients will invest in assisted reproductive technologies, spurring demand
Los Angeles, CA (PRWEB) April 11, 2012
The Sperm Banks industry has expanded during the past five years. Industry revenue is expected to grow at an average annual rate of 2.4% to $320.9 million in the five years to 2012. Increased interest in assisted reproductive technology (ART) has driven revenue higher as more people have sought alternative ways to have children. However, the recession did result in fewer clients, as consumers pulled back on their spending and avoided large expenses like having children. According to industry analyst Justin Molavi, “many larger operators took advantage of the dip in demand by buying smaller firms to grow revenue.” In turn, the number of industry firms is expected to fall at an annualized rate of 6.2% to 72 in the five years to 2012. The economic recovery reversed the decline in demand, though, as disposable income rose and consumer sentiment grew.
Growing interest in the ability to choose the genetic traits of a potential child has also bolstered the industry. Potential clients are increasingly interested in having children that have specific traits or attributes. While the concept remains controversial, more parents are using this method to produce children that fit their specific needs. Molavi says, “this trend, coupled with economic growth, is expected to result in revenue growth during 2012.” Industry revenue is expected to increase 7.1% during the year, as more potential clients find specific matches and are more comfortable having children amid brightening economic conditions. Generally, sperm banks serve potential patients that are in or around the city or region that they are located. Nevertheless a few larger firms, such as California Cryobank and Fairfax Cryobank, have emerged as key players.
The next five years are set to be better for the Sperm Banks industry. Sperm banks will continue to benefit from the growing acceptance of ART and more potential parents will seek out industry services to find genetic traits that they are seeking. Economic growth will also bolster the industry, as more potential parents will have the financial resources to pay for a child. Firms will continue consolidating, as larger entities seek to benefit from increasing economies of scale. Because of these trends, industry revenue is expected to expand during the five years to 2017.
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This industry includes facilities that collect and store sperm, primarily from sperm donors. Fertility clinics mainly use sperm banks for artificial insemination purposes.
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