Nutrition Capital Network: Financings, M&A activity down in health and wellness industry

The number of financings — or minority investments — in the health and nutrition industry is down through the first half of the year, as are the number of completed mergers and acquisitions, according to a mid-year report published by Nutrition Capital Network (NCN).

The number of financings (336) fell 13% in the first six months of 2024 and is on pace for 672 transactions for the entire year, NCN reported, far short of an all-time high of 1,020 in 2022 and down about 6% from 2023 (718).

Meanwhile, in the M&A space, there were 86 transactions in the first half of 2024, and if the number of deals completed keeps up at that same pace in the second half of the year, total volume (172 transactions) would be down 20% from 2023 (215), NCN shared.

Nutrition Capital Network, which is owned by Informa and part of New Hope Network, brings together investors with health, wellness and ingredient companies that are looking for acquisitions, capital or partnerships. Its investment trends report tracks transactions in the health and nutrition space, which includes, among other categories, supplements and branded food and beverage.

“Investors remain focused on their current portfolios. We hear from our network that inflation is still top of mind,” NCN Executive Director Michael Dovbish said in the report. “The industry is still caught in a downcycle, but some big deals came through this year and that’s always a good sign for the road ahead.”

Among the highlights in NCN’s mid-year report: 10 transactions that caught its attention in 2024, including $25 million in financing to support Fay, which connects people with registered dietician nutritionists who offer personalized nutrition counseling. In addition, NCN reviewed five top themes for the year, including a so-called gamechanger.

“Major players like Nestlé are repositioning entire brands and product lines to address the GLP-1 and Ozempic crazes. This is much bigger than weight loss, and investors are primed,” NCN proclaimed.

To download the full NCN report, go here.