In 2021, mergers and acquisitions in consumer health roared back, as economies opened up and consumer sentiment rode high from widespread vaccine access and unprecedented fiscal stimulus, to see its highest gains in years. However, the boom in M&A in 2021 had already dried up in the first half of 2022, under the weight of inflationary pressures and supply chain bottlenecks. This softening is expected to continue at least until the end of 2022, and might constrain transactions in the forecast per
This report comes in PPT.
After a year of considerably diminished interest in mergers and acquisitions (M&A) in 2020, due to the uncertainty and worry concerning COVID-19, M&A jumped back considerably in 2021, reflecting an improved sense of confidence in the trajectory of the pandemic.
Nestlé’s purchase of Nature’s Bounty in April 2021 was the largest transaction during the year, and was the crowning point of a years-long process to redefine the company around nutrition and supplementation. Nestlé’s purchase of Orgain in February 2022 indicates that it intends to continue to be active in this area.
The largest transaction in 2022 is expected to be the split of GlaxoSmithKline’s consumer healthcare division from the company’s larger pharmaceutical operations, planned for July 2022. Other OTC companies, from Johnson & Johnson to Sanofi, are considering similar moves after 2022.
The gains in M&A made in 2021 are unlikely to continue in 2022, with the first half of the year seeing a pace of transactions reminiscent of the weak year of 2020. Companies’ statements that they will proceed conservatively the rest of the year suggests that 2022 could be among the weakest years in M&A terms for some time.
Despite the gloomy near-term outlook, innovative companies in vitamins and dietary supplements and sports nutrition will continue to prove attractive, reflecting the underlying growth potential of these categories and continuing interest among global consumers coming out of the pandemic.
It is the aggregation of OTC, Vitamins and Dietary Supplements (VDS), Sports Nutrition, and Weight Management and WellbeingSee All of Our Definitions
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