Healthy Eating Having Ignites Mergers and Acquisitions blurring Boundary between Food and Drugs
Published By : 21 Apr 2015 | Published By : QYRESEARCH
A soaring demand for nutraceuticals, which is the food and drinks with potential health advantages, is paving the way for the rush of the deals, as food and drug companies compete to lead the market expected to reach a value of US$280 billion in 2018.
Customers have been encouraged to consume smart diet by an obesity outbreak and a burst of technology that are fitness-focused such as app and gadgets to track the calorie intake and the exercise. At present, many companies the supply products such as pro-biotic yogurt, promoted as being better for the gut, and the omega-3 biscuits, thought to enhance the brain and the heart functions, have seen the rise in the demand sharply.
Bankers stated that moving into nutraceuticals was an understandable move for both food and pharma enterprises considering the blurring boundary between their industry.
Various food companies are expected to take the leading position, following healthy products in order to enhance their profiles while firms producing drug, loaded by patent expiries and the increase in biotech medicines, look to segregate units, predicts Bourne Partners, which anticipates the market to reach US$280 billion by 2018, which will be the double that of 2011.
Hitherto, M&A activity has been comparatively small, but the speed is picking up. Bourne counted around 185 mergers and acquisitions including public and private nutraceuticals firms in the year 2014, which were 95 in the year 2011.