If you’ve noticed more people tracking their sleep on smartwatches or seeking out wellness apps, you’re not alone. The consumer health market is thriving and it’s not just a passing trend - it’s a shift in how we think about health, wellness and investment.
According to a Boston Consulting Group (BCG) report, consumer health is entering a new era of strategic significance. Demographic shifts are expanding the over-50 population globally, and consumers of all ages are becoming more proactive, seeking accessible, self-directed care from consumer health companies. It says this segment offers “stable demand, attractive margins, and long-term upside at a time when growth is increasingly scarce” across the wider consumer products industry. BCG note this segment of the market is fragmented on a global scale. And it is precisely this fragmentation that has driven a surge in M&A activity, with both deal volumes and values rising since 2018.
However, BCG explain that unlocking value creation in consumer health M&A requires a specialist approach. M&A activity is a common route into this market, allowing businesses to achieve scale more quickly given regulatory requirements and lengthy development cycles.
For investors and businesses looking at investing or M&A opportunities or launching a new wellness product, success will depend on understanding this segment of the health market and tailoring business strategies accordingly.
To find out more, you can read my article on Investing opportunities in health and wellness here and the Bosting Consulting Group’s report here.
If you’d like to discuss your investment strategies, please contact Natalie Wade.
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