Consumer Health & Wellness

April 17, 2025

INDUSTRY UPDATE | April 2025

The U.S. consumer health and wellness industry is valued at $568.4 billion in 2025 and is expected to grow to $1.1 trillion by 2034, with a CAGR of 7.1%. An unforeseen factor in these projections is the short-term effect that potential tariffs will have on the industry as companies and consumers alike grapple with the changes. While the underlying trends of personalized health, digital integration, and consumer empowerment remain strong, increased costs due to tariffs could dampen consumer spending, impact company profitability, and potentially influence investment and innovation strategies. Companies will need to adapt by carefully managing their supply chains, adjusting their pricing strategies, and potentially focusing on domestic sourcing to navigate the tariff landscape.

While the underlying drivers for M&A in the consumer health and wellness industry in 2025 remain strong, the introduction of tariffs will likely introduce caution and complexity into the deal-making process. It will necessitate more thorough due diligence, potentially lead to valuation adjustments and creative deal structuring, and could even influence the strategic direction of acquisitions as companies seek to mitigate tariff-related risks and ensure long-term profitability. The overall volume of M&A might still increase, but the nature and terms of deals could be significantly shaped by the evolving tariff landscape.

For more information, please reach out to project leads Kathleen Lauster, CFA, and Matthew Lapish, and Jeffrey Goodman.