Posted: 16 / 03 / 2022

Article by Hannah Anderton, Corporate Finance Associate at Sedulo


M&A activity in the nutrition and dietary supplements markets is healthy, and consumer behaviours are driving innovation in the industry. For many people, the Covid-19 pandemic was the first time they had visited a supermarket to be greeted with empty shelves lacking high nutritional value groceries. 

In addition to this, around the world, we watched otherwise generally healthy people fall desperately ill with a virus, which re-awakened consumer awareness of the immune system and wider health and well-being.

Evolving attitudes in the western world have engendered new buying behaviours. Consumer intent to ensure our bodies have the proteins, vitamins, and minerals they need has intensified, and our attention to the wider implications of fat content and muscle strength has increased. Nutraceutical companies, that bridge the gap between nutrition and pharmacology and Nutra-cosmetical brands entwining beauty with health have experienced growth owing to these behavioural shifts, which are driving vitamin and supplement consumption. 

 

 

Following advising on the sale of a majority stake of vitamin and haircare brand Hairburst to international retailer JD Sports, and Sedulo’s investment in supplement business HMN24, we continue our interest and research in the market.

Sports nutrition and supplements are among the fastest-growing categories in health and wellness, with a reported CAGR of over 30% for the growing sports nutrition market over the past 4 years. Specifically, the pre-workout supplements market is increasing year-on-year internationally, with the North America region leading the way in new brand launches.

The vitamin supplements space, particularly within the EU region, is expected to grow at a CAGR of 7% over the next 5 years, and innovative administration methods such as personalised gummies and high absorption liquids are disrupting the space that tablets and capsules have dominated to date.

Supplement brands have experienced high EBITDA multiple valuations, as highlighted below, with the average public company multiple rising from 6X to over 11X.

Strategic buyers have led transactions in the space recently, with many international companies deploying inorganic growth strategies to diversify their offerings and increase consumer engagement.


What can we help you with?

Our network in nutrition, health and beauty is ever-increasing. 

· We offer strategic advice to growing businesses who utilise our services across a full suite of financial and management guidance. 

· Our Be the Standard leadership programme comprises of prominent figures from sporting world. 

· We source manage research and development tax relief claims for innovative market disrupters. 

· In the M&A Advisory team, we continue to connect exciting parties in this space with potential buyers and investors. 

Get in touch and connect with me for more information.

LinkedIn – Hannah Anderton 

Email – [email protected]