The medical fluid bags industry, a niche vertical within the healthcare and medical devices domain, is set to experience a change of dynamics in the next few years. Demand for medical products continues to rise not just due to COVID-19, but also because of a long list of other health problems.
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Lifestyle-associated chronic ailments such as cardiovascular diseases, gastrointestinal problems, and musculoskeletal disorders have been on the rise worldwide. Patients suffering from diabetes, heart problems, kidney diseases, liver disorders, and cancer can often require long-term hospitalisation, which accelerates intravenous therapy and administration of drugs and medicine.
Global Market Insights, predicts the global medical fluid bags market size could hit $4.4 billion by 2024. Baxter, B. Braun, Pall Corporation, Thermo Fisher, Eagle, Fresenius, Coloplast, Smiths Medical, Westfield Medical, and Terumo are some of the prominent names in the industry. So what are the key factors driving the demand for medical fluid bag products worldwide?
Shortage of intravenous (IV) bags
During the last few years, numerous countries have witnessed IV fluid and IV bag shortages, forcing healthcare facilities and providers to delay patient treatment or adopt other alternatives, resulting in a decline in patient care. Public health agencies such as the FDA routinely ask manufacturers to assess their ability to ramp up production capacity to address these shortages.
Key producers have expanded their production capacity in recent years to accelerate the production of IV fluid bags. In May 2019, for example, medical devices giant B. Braun invested close to $1 billion into new and existing IV fluid production units to help overcome the IV solution shortage in the US. The company announced plans to set up a new manufacturing facility in Florida, revamping an existing plant in California, and boost production at its factory in Pennsylvania.
Although countries were already facing shortages, the COVID-19 pandemic has created an even bigger demand–supply gap. Manufacturers globally could be struggling to regain their market share due to disruptions amid the pandemic and are likely to accelerate production in the coming years.
With an ageing population, the demand for IV fluids for dehydration, drug administration, and blood transfusions will only increase. These trends show that the IV bags segment could capture a substantial share of the medical fluid bags industry during the next few years.
Consumption of dialysis bags amid COVID-19
Some COVID-19 patients develop acute kidney injury in addition to respiratory distress, requiring timely dialysis to clear out impurities from their blood. Resultantly, demand for kidney dialysis equipment has surged in many hospitals, leading to shortages. It might also have been the case where many healthcare providers did not foresee higher dialysis demand, since it was a common understanding that the novel coronavirus only leads to a respiratory disorder.
In response, medtech companies have begun responding to these shortages by accelerating the production of dialysis equipment.
In April 2020, Baxter and Fresenius had announced that they will deliver extra kidney dialysis equipment and other supplies to hospitals that require them for treating COVID-19 patients. This included a 75% increase in the production of premixed dialysate fluids with bagged lactate dialysate solution. Baxter also affirmed that it has increased the production of many other supplies, such as the Mini-Bag Plus drug delivery system.
Even after COVID-19, kidney failure will remain a major concern among people of all age groups. The National Kidney Foundation expects the total number of kidney failure patients in the US to exceed 1 million by 2030, if proper investments are not directed towards prevention. Considering these factors, it is estimated that the market for dialysis bags could experience commendable growth across the region.
Demand for blood bags in North America
Since June last year, the US witnessed in excess of a two-fold increase in the demand for convalescent plasma as COVID-19 cases surged in numerous states. According to public health organisations, it is critical that COVID-19 survivors donate their antibody-rich plasma to ensure faster recovery for other patients.
In July, the American Red Cross announced that it is facing an emergency shortage of convalescent plasma. Subsequently, the organisation has been urging all recovered COVID-19 patients to help other people still actively fighting the coronavirus. As more recovered patients come forward to donate their plasma to help address the nationwide shortage, the demand for blood bags, which are used to store blood and blood components, could increase considerably.
Meanwhile in Canada, the Canadian Blood Services announced in June that the resumption of elective surgeries following months of lockdown restrictions had put a considerable strain on the national blood supply. With restrictions being lifted, the Canadian Blood Service noted that hospital demand throughout the country had started to return to pre-COVID levels, creating a backlog of elective surgeries which may require blood and blood products. Across the country, nearly 400,000 citizens donate blood on a regular basis. As people become more aware and the number of blood donors rises, the regional blood bag demand may rise as well.
The future of medical fluid bags industry looks promising, as the burden of various chronic diseases increases with an ageing population, and the need for improved patient care rises. Both developed and developing countries are witnessing growth in the number of healthcare institutions including hospitals, ambulatory surgical centers, clinics, and blood banks. The availability of favorable insurance and reimbursement policies and better awareness among consumers will undoubtedly strengthen the production of critical medical supplies.