Member Article

New Ceuta Group report praises "pandemic proof" health sector as top investment opportunity of 2020

Covid-19 has made investment prospects bleak in many sectors, but a new report by Ceuta Group reveals confidence in consumer health, wellness and personal care remains high despite economic turmoil.

Ceuta Group’s report ‘The Enduring Appeal Of Investment In Healthcare & Wellness Consumer Brands’ argues that health and personal care is one of the few industries that is “pandemic proof”.

Investment across all UK industries may have fallen, it suggests, but the average deal size for healthcare companies increased last year by roughly 25%, according to Bain & Company’s Global Healthcare Private Equity and Corporate M&A Report.

The total disclosed deal value reached $78.9 billion in 2019 – the highest on record – and the deal count was 313. Just under ten percent of these deals were for over $1 billion.

Edwin Bessant, CEO of Ceuta Group, said: “Consumer health, wellness and personal care are highly sustainable, recession proof and pandemic proof. The sector boasts a consumer base with increasing health literacy and a growing understanding of the importance of ‘wellbeing’.”

“In turn, this has led to a sector with high margins and strong growth characteristics. Investors with the resources, infrastructure, industry knowledge and connections can make significant returns on investment, expanding brands through innovation and game-changing business models.”

Ceuta Group’s report discusses how the Covid-19 pandemic is causing a slump in Unilever’s sales of deodorant and shampoo, but its CEO reports they are answering the higher demand elsewhere for personal hygiene, cleaning and disinfecting products. It also explores how millennials and Generation Z have enabled a boom in the healthcare market.

Edwin Bessant continued: “In a time of geopolitical uncertainty and a worldwide pandemic, health, wellness and personal care is one of the few industries with proven sustainability and in fact, it has shown growth. Despite the volatile global economy, brands in this sector have attracted record levels of investment.”

“Acquisitive companies or private equity houses who have acquired an exciting brand need a clear market entry execution plan, along with an effective management team to deliver a healthy ROI. This is just as true whether it’s a start-up, household name, heritage brand, or brand with global potential.”

He concluded: “The brand fostering model offered by Ceuta Group allows their clients to acquire brands and enter markets that they may not have considered as they did not have the solution of infrastructure provision, market reach or local market IP.”

This was posted in Bdaily's Members' News section by Simon James .