A recent Axial article examines how the development of health and wellness industry has translated into investments and M&A activity. The article features health and wellness data from SDR Ventures, including the fact that Natural & Organic Foods led the fourth quarter of 2016 in M&A deal volume, narrowly edging out Lifestyle Companies, Personal Care and VMS (Vitamins, Minerals & Supplements). Additionally, data from SDR Ventures shows that only 14% of Q4 health and wellness deals were completed by financial sponsors, while the remaining 86% were carried out by strategic companies.
The article also highlights key trends that are taking form:
- Health-focused restaurants are well-positioned for growth, but many of these emerging brands will face capital and other needs.
- In Latin America, new fitness companies are appearing and consolidation is underway. However, sponsor-backed companies are poised to win out due to the capital-intensive nature of these businesses.
- Emerging health and wellness sub-categories, such as natural/organic cosmetics, personalized nutrition, functional beverages, natural/organic supplements and both probiotics and prebiotics, are growing.
As consumer habits and needs continue to develop, this evolving industry will certainly be interesting to watch.