Fetal Bovine Serum Market

Market Overview

The fetal bovine serum (FBS) market size was valued at USD 879.9 million in 2021 and is expected to generate USD 1,401.23 million by 2030. The market is projected to grow at a  CAGR of 5.69%  during the forecast period (2021–2030).

Fetal Bovine Serum (FBS) is a complex mixture of biomolecules with high and low molecular weight exhibiting balanced growth-promoting and growth-inhibiting functions. It contains proteins, growth factors, hormones, vitamins, etc. These molecules play a vital role in the maintenance and growth of cells and are thus used as a supplement for culture media. Furthermore, the fetal bovine serum market growth is undergoing a considerable transition, owing to a significant increase in fetal bovine serum costs in recent years, which also acts as a restraint.

Market Dynamics

Global Market Drivers

Rising Stem Cell Applications

A stem cell has widescale usages in research and biopharmaceutical business. Therefore, its market value is the largest compared to others. Its popularity stems from the effectiveness of cellular reprogramming for induced pluripotent stem cells. Further, it has varied tissue sources available, making it advantageous over others. Its myriad applications stimulate the expansion of the fetal bovine serum market, as tissue development mandates fetal bovine serum. Additionally, the fetal bovine serum has advantages in serum cell culture, such as the ability to differentiate stem cells, morphology, cell proliferation and expansion, and clonal efficiency. These factors are driving the adoption of fetal bovine serum. 

Soaring Research and Development Activities

There has been a significant increase in the number of pharmaceutical and biotechnological industries over the last few years. The increasing prevalence of chronic diseases has elevated the demand for new and better drugs. According to the International Federation of Pharmaceutical Manufacturers and Associations, 401 drugs for Diabetes and 208 drugs for HIV/AIDS were in development in 2017. Further, in the same year, 1919, 1308, 1261, and 563 drugs for Cancer, Neurology, Infectious, and Cardiovascular, respectively, were in development. Given its cost-effectiveness, the fetal bovine serum is used widely in research and development. Many research experiments have been performed to clone animal tissues in recent years. 

Global Market Restraints

Volatility in the Prices of Fetal Bovine Serum

The price of fetal bovine serum is highly volatile, and during the last couple of years, there has been a drastic change in the trading policies of many countries, which has increased the cost of fetal bovine serum. Volatility in fetal bovine serum pricing causes widespread frustration and makes budget forecasting difficult. The primary factor for volatility in the pricing is the changes in the beef processing industry, as the fetal bovine serum is produced as a by-product of this industry. Animals are not raised and prepared solely for the harvest of fetal blood; thus, the meat supply and demand changes may change the cost of the fetal bovine serum. Additionally, the changing import-export policies in the US, the UK, and other countries also affect the price of fetal bovine serum.

Global Market Opportunities

Demand and Supply Gap Creates New Opportunities

Fetal bovine serum is widely used in research and development activities. Its supply is directly linked to the beef processing industry and the demand for meat. Therefore, the supply of fetal bovine serum changes as per the demand. Further, environmental factors such as drought, governmental farm policies, feed costs, beef and dairy prices, and the outbreak of diseases contribute to fluctuations in the fetal bovine serum supply. 

During the last few years, the demand for fetal bovine serum in India, South Korea, China, and the Middle Eastern countries has increased significantly. Due to increased demand and limited availability, the price of fetal bovine serum has risen by over 300% in the past few years. Again, limited supply and massive demand for fetal bovine serum create a lucrative opportunity for the development of the market.

Regional Analysis

The global fetal bovine serum market share is segmented into four regions: North America, Europe, Asia-Pacific, and LAMEA. 

Significant Growth in North America

In 2019, North America accounted for the largest share of the fetal bovine serum market. The North American fetal bovine serum market growth is expected to generate a value of USD 622.54 million by 2030, with a CAGR of 4.78%. North America dominated the fetal bovine serum market in 2019, accounting for 43.58% of total revenue. Due to the sheer existence of prominent market players, North America is the dominant area. The regional market was fueled by rising government financing, apparent clinical diagnostics businesses, and the increased focus on developing biopharmaceuticals in North America.

The United States is likely to be the region's largest market. According to a report published by the Congressional Research Service (2020), the US government has spent more than USD 134.1 billion on research and development (R&D). The United States federal government is a major supporter of research and development, which has resulted in scientific advances and new technology. The biopharmaceutical business in the country is rapidly expanding. As a result, the number of research projects is increasing, swelling the need for fetal bovine serum as it is used to develop and produce cell lines.

There has been a significant increase in fetal bovine serum demand in Europe during the last few years due to increased research and development activities. The fetal bovine serum has found its application commercially and academically. Improving government support for research and development, availability of funds, well-developed healthcare infrastructure, and rising demand for better alternatives drive the growth of the Europe fetal bovine serum market. Germany dominates the Europe fetal bovine serum market. However, during the last few years, changing political policies and increasing production costs have slowed down market growth. 

The Asia-Pacific fetal bovine serum market is expecting lucrative growth in the coming future. Asia-Pacific fetal bovine serum market growth is expected to generate a value of USD 314.24 million, by 2030 with the highest CAGR of 4.84% during the forecast period. The major driving factor for the market is increasing numbers of pharmaceutical industries, increasing government support, and increasing demand for better drugs. In Australia and New Zealand, the need for fetal bovine serum has increased, creating an imbalance between demand and supply. India and China's fetal bovine serum market have a huge opportunity for market development.

LAMEA constitutes Brazil, South Africa, Saudi Arabia, and the Rest of LAMEA. This region holds the most negligible share in the market owing to limited development in the manufacturing sector of the majority of the regions.

Segmental Analysis

The global fetal bovine serum market share is classified into type, applications, and end-users.

Based on type, the fetal bovine serum market is segmented into charcoal-stripped, stem cells, dialyzed, inactivated, and others. The stem cells segment is dominant over other types of fetal bovine serum and is expected to generate USD 265.1 million by 2030 It is expected to grow at a CAGR of 4.32% during the forecast period. These are used in gene expression, assays, and cell culture.

Charcoal stripped fetal bovine serum is primarily used in applications that require low levels of hormones or steroids such as cortisol, progesterone, testosterone, corticosterone, triiodothyronine (T3), thyroxine (T4), insulin, and estradiol, reducing the possibility of interference within applicable research. Dialyzed fetal bovine serum is majorly used in studies where the average concentrations of small molecules may be of concern. The primary application of inactivated fetal bovine serum is in immunoassay and some enzyme tests. It is also used as an additive and stabilizer in culture medium. The other fetal bovine serum includes Gamma Irradiated FBS, Tetracycline Negative FBS, and IgG Stripped FBS.

The fetal bovine serum has been used for various applications, namely drug discovery, cell culture, immunoassay, and other diagnostics and testing. The cell culture segment is expected to generate a value of USD 346.4 million by 2030 at a CAGR of 4.58%. Fetal bovine serum is a universal growth supplement of tissue and cell culture media. It is a natural cocktail of most of the factors required for cell growth, attachment, and proliferation, adequate for most animal and human cells. Benefits, such as high protein, make it suitable for cell culture and drug production. 

Fetal bovine serum, majorly due to its advantages such as enhanced growth properties, continued high quality, and low endotoxin level, is used by the companies for drug production and new drug development to enhance cell growth and reduce contamination.

Various disadvantages and changing trends towards using serum, such as animal protection arguments against the harvest and collection of fetal bovine serum and concerns about the global supply versus demand, have led to the development of alternative strategies to reduce or replace fetal bovine serum in cell culture media. 

The fetal bovine serum products are used in various processes and immunology tests. A low level of anti-biotics supports cell growth and does not hinder the result, hence giving more precise conditions and immune responses. The serum has been used for other applications, such as in-vitro fertilization.

Based on end-user, the fetal bovine serum market is segmented into four categories: research and academic institutions, diagnostics labs, pharmaceuticals, and other industries. The pharmaceutical companies segment is anticipated to generate USD 335.4 million by 2030 with a CAGR of 4.80%. High quality and pure form of fetal bovine serum is generally used for biopharmaceutical production as the highest standard of product quality is required. 

Many companies, such as RMBIO, provide various supplements or fetal bovine serum products, specifically for the pharmaceutical industry, which help reduce the overall cost. Due to the increasing need for new products or vaccine developments, companies such as Serox provide pharmaceutical-grade fetal bovine serum for vaccine manufacturing or drug discovery. 

Research and academic institutions use the serum for various purposes, including studies or cell culture to produce vaccines and analysis from plant or animal tissues and cells. Additionally, companies such as RMBIO make diagnostic-grade fetal bovine serum products for diagnostic laboratories. These products promote steady and healthy cell growth in the media for proper diagnosis. Fetal bovine serum is mainly utilized in the biotechnology industry as the serum supplement for in vitro cell culture (animal and tissue) because it has a low level of antibodies and more growth factors. 

Impact of covid-19

The global fetal bovine serum market growth is projected to benefit from the COVID-19 pandemic. Fetal bovine serum is broadly applied in the production of in vitro cell cultures and vaccines. It is added to vaccine growing media as a supplement. Many nations are suffering the consequences of the pandemic, facing massive costs to their economy and healthcare systems due to the high transmission rate and lack of treatment. Many countries are still under siege. They halted trade with other countries and imposed travel restrictions, causing big corporations' market capitalizations to plummet worldwide. However, the situation is steadily improving.

Even though biopharmaceutical innovators are at the forefront of in vitro research and development in the quest for vaccines and antivirals, the present COVID-19 outbreak has a beneficial impact on market growth. In vitro vaccine and antiviral testing typically entails the use of a culture media in which the targeted virus or bacteria is cultured, and the response is monitored. The pharmaceutical industry's increased focus on research and development is driving up demand for culture media, which in turn, is driving up demand for fetal bovine serum.

Recent Developments

• April 2021 - Thermo Fisher Scientific Inc. and PPD Inc. entered into a definitive agreement, wherein Thermo Fisher acquired PPD for a whopping amount of USD 17.4 billion. 
• March 2021 - Merck KgAA announced a EUR 28 million (equivalent to USD 26.8 million) investment to expand a single-use assembly production line at its Life Science Center in Molsheim, France.
• June 2017 - Nucleus Biologics, a leading provider of cell culture products to the biotech and pharmaceutical industries, has relocated to a new 10,511 square foot office facility at 10929 Technology Place in San Diego. To accommodate its expansion over the next several years, the company is combining various facilities and lab space into a single structure.