Health & Wellness – January 2021

Nutritional Supplement Demand Rises Amid Pandemic

Capstone’s January 2021 Health & Wellness Update reports that the supplements industry has powered through COVID-19 by leveraging e-commerce capabilities, which has been reflected in premium valuations, fueling what could be a positive merger and acquisition trend for business owners.  While the pandemic has slowed personal consumption expenditures it has also fostered a heightened awareness for health-conscious products as consumers have increasingly sought to boost immunity and overall wellness.

Included in this report:

• Recovery of EBITDA multiples among top public companies as demand increased for health-conscious products amid the pandemic
• Industry participants with robust e-commerce capabilities and sound supplier networks have captured sustained customer retention and sales growth
• M&A activity has remained robust with 2020 transaction volume outperforming the previous year
• Vitamins, minerals, and supplements providers have attracted heightened buyer interest from strategic players and private equity firms