Investors Eye the Growing Women’s Health Market
January 29, 2019
Opportunities in the global women’s health market have been rising over the past few years thanks to several evolving trends within the demographic.
An aging population, an increase in spending power, and a growing focus on women’s health issues are attracting private equity, venture capital and innovative new business models. The result is a surge in new drugs, services and technologies aimed at addressing certain medical conditions* that occur predominantly in women throughout their lifecycle.
When defined broadly by these medical conditions, the market for women’s health was valued at US$29 billion in 2015 and is projected to continue upward at a 3.9 percent compound annual growth rate (CAGR) from 2015-2020.
A Growing Consumer Base
Women today make up 49.6 percent of the total worldwide population. While investment opportunities exist globally, the primary women’s health issues in Western economies are different than the rest of the world and offer a promising segment in the coming years.
Within the U.S., the fastest growing cohort of the female population is those aged 65 and over. By 2050, that group is expected to grow by 81 percent. With this, a rise in the prevalence of conditions associated with aging such as menopause and osteoporosis will occur.
The U.S. is also expected to see an approximate 4 percent increase in demand for services related to in-vitro fertilization over the next few years. One reason is the dramatic rise in the age of women giving birth for the first time, going from an average of 21 in 1972 to 26 in 2016.
Additionally, the entrance of more women into the labor force has led to more disposable income within the demographic. Combined with greater access to care and improved medical treatment options, women will likely spend more on their own health and their family’s health in the years to come.
The Moment is Now
Entrepreneurs are paying attention. They have seized the opportunity to better tailor treatments and healthcare centers to serve women, resulting in a flood of new startups born out of incubators and venture capital investment. The rise of the “Femtech” sector, marked by the development of new technologies such as mobile apps that track fertility and menstrual cycles, is also escalating. Concurrently, the ability to leverage big data is helping to provide insights into prevention and treatment for issues related to breast and pelvic health.
The overall healthcare market is experiencing rapid innovation and growth that crosses virtually all sectors. In the next decade, we can expect to see a flood of new devices, diagnostic tools and treatments that cater to all consumers. With the right advisory support, investors can seize this unique moment in the women’s health market now.
The infographic below provides a closer look at the five primary factors driving the women's market.
© Copyright 2019. The views expressed herein are those of the author and do not necessarily represent the views of FTI Consulting, Inc. or its other professionals.
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