As vaccines were administered and everyone hoped that life had begun its return to relative normalcy, SDR observed a couple of trends that help us gain further insight into M&A trends across the sector – one backward-looking, and one forward-looking. The two-year-old COVID pandemic has certainly focused consumer attention on overall individual wellness, spurring an interest in active living, mental health, and additive nutrition. At the same time, as employees continue to return to the workplace, go back to beauty salons and spas, and put away their sweatpants, SDR anticipates a resurgence in demand for cosmetic, hair care, and other beauty products. Overall, 2H21 leaves us optimistic for the health & wellness industry as we saw a substantial uptick in sector-wide transaction activity: 53% above the same period one year prior. Acquisitions were up in activewear, natural and organic foods, and supplements with big spikes in personal care and outdoor products, up 63% and 125% respectively. The personal care and cosmetics market alone is expected to reach $149 billion by 2025, growing at a compound annual growth rate (CAGR) of nearly 6% and driven largely by demand for “clean beauty” products rich in natural, healthy ingredients. Additionally, the pandemic-spurred gravitation towards the convenience of direct-to-consumer marketing and e-commerce retail shows no signs of fading. Old habits may be hard to break, but when it comes to consumers, new habits may also prove hard to break…