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Contact: John LaRosa
Marketdata Enterprises, Inc. Marketdata Enterprises, Inc.
Marketdata Enterprises
The Information Specialists
Phone 813-907-9090 8903 Regents Park Drive
Fax 813-907-3606 Suite 120
e-mail marketdataent@yahoo.com Tampa FL 33647
PressRelease
$3.7 Billion “Baby Business” to Grow 11.5%
Per Year, As International Adoptions Soar.
Tampa FL, October 13, 2000: Marketdata Enterprises, Inc., a market research publisher of service industry
studies since 1979, released a new, first-ever 147-page analysis entitled: U.S. Fertility Clinics & Adoption Services.
This is the ONLY business analysis ever performed of this service industry. It contains the latest CDC survey data
and a custom survey by Marketdata. The study examines why demand is booming for adopted infants and for
infertility treatment services, by millions of infertile couples and aging baby boomers that have delayed childbearing
due to their careers. The study analyzes the business aspects of running an adoption agency or fertility clinic—how
much revenues they gross, their profitability, expenses, treatment methods, emerging trends, regulatory
environment, surrogate parenting, success rates of fertility treatments, and estimated dollar values of the various
market segments.
According to Research Director, John LaRosa: “There were 138,000 US adoptions in 1999. A typical adoption
costs $15-30,000, is complex, emotional, and the field is loosely regulated, making abuses, bribes and hidden fees
common, especially when adopting foreign children. Less restrictions in Russia and China are fueling demand by
U.S. couples for Caucasian infants, which are in short supply in America. In addition, rising infertility rates and
delayed childbearing, combined with new technologies, add up to strong demand for the nation’s 400 fertility clinics
and 1,500 OB/Gyn specialists. There were only 187 clinics operating in 1990. ”
Major Findings:
Marketdata estimates the combined “industry” of adoption services and fertility treatment to be worth $3.7
billion, growing 11.5% annually to 2004. Adoption services is a $1.4 billion business, fertility treatment: $2.25
billion.
There are 4,500 adoption “providers” in the US (2,000 private agencies, 500 adoption attorneys, 2,000 public
agencies). Private agencies are growing rapidly with increased international adoptions, and the number of
attorneys involved doubled in the past 10 years.
For Release October 13, 2000
more
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A small adoption agency may gross $400,000/year, large ones $10+ million, and for-profit ones have 12-14%
pre-tax profits. Fees to adopt range from $13-20,000 and have been stable for years.
Adoption fees have been stable for years, ranging from $13,000 to $20,000. Only 20 or so agencies have
revenues of $20 million or more.
Fertility Clinics… An estimated 5-8 million US couples are infertile, but only 1.4 million seek treatment, due to
high cost and other factors. There are 400 clinics across the US providing assisted reproductive technology
treatment (cost:$10,000-40,000), and insurance coverage is scarce. The value of fertility drugs, diagnostic
procedures, tubal surgeries, genetic testing, MD consultations, and inseminations is estimated at $2.2 billion,
growing 9% annually to 2004.
Below is a summary of the two segments of the industry at a glance:
($ millions) Adoption Fertility Combined Total
Services Treatment
1982 $619 NA NA
1986 825 NA NA
1988 NA $979 $1,847
1992 955 NA NA
1995 NA 1,573 2,562
1996 1,001 NA NA
2000 1,448 2,256 3,704
2004 F 2,340 3,070 5,410
No. of potential customers 1,000,000 6,100,000
No. of adoptions/ART 138,000 61,000
procedures
No. of agencies/ART clinics 4,500 400
Avg. revenues $321,777 $1,300,000
Avg. cost per adoption/treatment $13-20,000 $10-40,000
NA – data not available this year. Source: Marketdata Enterprises, Inc.
Editor’s Note:
John LaRosa available for interview, 813-907-9090. Fertility Clinics & Adoption Services is a 147 page
market study that costs $1,495. A 21 pp. Overview is sold to the general public for $59. Table of
contents available--Contact: Marketdata Enterprises, Tampa, FL (FAX: 813-907-3606), Email:
marketdataent@yahoo.com, Web site: www.marketdataenterprises.com.) Study also sold via 5
commercial online databases: Dialog, Investext, Marketresearch.com, Mindbranch.com., Multex.
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Released: Oct. 13, 2000
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