GLOBAL CONSUMER HEALTH M&A MARKET
The Consumer Health market, currently valued at over $357 billion globally, is projected to almost double by 2034 [1].
Through 2025 and onwards, the Consumer Health market is poised for steady growth. The currently fragmented sector offers potential for roll-up opportunities, driven by widespread demand for an integrated offering. Investors continue to focus on businesses with a specialised niche and strong growth potential, with the ability to generate repeat customer spend.
Key market themes and growth factors for the global Consumer Health market:
- Carve outs and spin-offs: Large pharmaceutical companies are strategically carving out their consumer health divisions, allowing these spin-offs to operate with lesser regulatory burden, greater agility, and enable a stronger focus on brand development.
- Changing Consumer preferences: Individuals are proactively seeking products and services that help them maintain and improve their health, as opposed to symptom based approaches focusing on treating ill-health.
- Switch of Rx to OTC: This shift gives consumers easier access to medications, promoting independent health management and convenience. It also increases market competition, which drives innovation and can lower costs for consumers.
- Continued growth in e-commerce: Individuals are increasingly turning to digital platforms for their health needs, benefiting from the wide product selection, competitive pricing, and the ability to make purchases from the comfort of their homes.
- Omni-channel experiences: Individuals seek experiences which bring the best of both online and offline touchpoints. For example, digital platforms enable consumers to speak with dermatologists, who recommend personalised skincare products, which are then home delivered.
- Vertical integration: Companies aim to capture more of the value chain, enhancing efficiency and profitability, by expanding product portfolios, geographical reach, and technological capabilities. For example, a contract manufacture of nutritional products, selling to a pharmaceutical and food supplement group.
- Data analytics and AI integration with Digital Health platforms: Wearables provide real-time data for AI to analyse, offering personalised recommendations, predicting health issues, and enabling earlier interventions, to improve health outcomes.
To learn more about the key M&A trends taking shape this year in the Consumer Health space, read our latest paper.
If you would like to know more about the Consumer Health M&A landscape after reading this paper, or have any other questions on the wider healthcare space, please do get in touch with Al-Munther Sultan. We would be delighted to discuss this report with you, including any implications these current and longer-term market themes may have on your business and overall shareholder objectives.
Source:
[1] Precedence Research
