In this Consumer M&A Industry Update, we explore the M&A activity and projections for the Health & Wellness Area of Expertise within the M&D industry. Our Consumer Practice experts share their insights on the current state of the Health & Wellness M&A market and look at the factors influencing the broader Consumer industry.
Top 5 Takeaways from Q4 2024 Health & Wellness Industry Update:
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- Consumer Spending Resilient but Facing Moderation: While rising disposable income and wage growth outpacing inflation have sustained consumer spending, a slowing growth rate suggests potential headwinds for discretionary sectors and broader market sentiment.
- Steady Deals, Strategic Gains in Q4 2024: M&A activity in health and wellness stayed steady in Q4 2024, led by CPG, Personal Care, and Supplements. Strategic buyers drove deals, seeking growth and market expansion, while financial buyers remained cautious due to high capital costs and economic uncertainty.
- Organic Foods Lead the Pack in Valuation: The Organic Food sector saw strong growth, fueled by rising consumer demand for health-conscious products, while Personal Care and CPG lagged due to weaker discretionary spending.
- Impact of Weight Loss Drugs on Fitness Industry: The popularity of GLP-1 weight loss drugs like Ozempic led to shifts in gym activities, with a move from cardio exercises to strength training to address muscle loss. Gyms responded by reallocating spaces to accommodate more strength training equipment and activities.
- Surge of High-Performance Skincare & Anti-Aging Innovations: Skincare is evolving with powerful ingredients like retinoids, vitamin C, and peptides, delivering long-term benefits. Cosmeceuticals blend cosmetics with pharmaceuticals for enhanced skin health. Anti-aging tools like LED therapy and microcurrent devices boost collagen and skin renewal, making advanced skincare more accessible than ever.
To read the full Health & Wellness Industry Update, download below
If you are interested in discussing any of the analysis from this report, or if you would like to discuss your own transaction goals contact either Jack Freeman, Vice President focusing on Health & Wellness or Carl Miller, Managing Director of Consumer Practice.
Disclosure
This news release is for informational purposes only and does not constitute an offer, invitation or recommendation to buy, sell, subscribe for or issue any securities. While the information provided herein is believed to be accurate and reliable, Objective Capital Partners and BA Securities, LLC make no representations or warranties, expressed or implied, as to the accuracy or completeness of such information. All information contained herein is preliminary, limited and subject to completion, correction or amendment. It should not be construed as investment, legal, or tax advice and may not be reproduced or distributed to any person. Securities and investment banking services are offered through BA Securities, LLC Member FINRA, SIPC. Principals of Objective Capital are Registered Representatives of BA Securities. Objective Capital Partners and BA Securities are separate and unaffiliated entities.
