(Infographic via Technavio.)
“Necessity is the mother of invention.”
A famous proverb that could not be truer when it comes to how deeply the health care industry has been affected by the COVID-19 coronavirus pandemic.
Earlier this week, Stockhouse Editorial gave a quick “check-up” on how this wide market is faring under the pressures of COVID. There is a lot more to say about health and the fields it covers; it is not just about medicine, there are tech advancements, but so much more.
One area seeing significant growth is the health and wellness sector, which analysts at research firm
Technavio predict will register a Compound Annual Growth Rate (CAGR) of around 6% from 2020 to 2024. An industry already worth more than $4.2 trillion just over a year ago, investors are already looking to take full advantage of this growing market, which encompasses the complete state of wellbeing throughout the body, spirit, and mind.
Elements that capitalize on this market include preventive / personalized medicine, nutrition, weight management, fitness, as well as personal care / beauty.
Just think about the last time you went into a store, a gym, any business for that matter. What is the first thing you are likely asked to do? Sanitize your hands. Multiple times a day we are compelled to apply sanitizer and much like
toilet paper manufacturers a few months ago were inadvertently cashing in on that bizarre craze, this one is far more applicable.
The analyst team at
UNIV Datos reported earlier this month that the global hand sanitizer market is projected to grow at a CAGR of 9% from 2021 to 2026. What this means is, that last year, this relatively niche product was valued at just over $2.6 million (USD), but is expected to reach $15.3 million by the end of this year.
A major player in this field is
3M (NYSE: MMM). A household name, this multinational conglomerate is well-known for its research and development laboratory and leverages its science and technology across multiple product categories, which includes hand sanitizer.
Other notable companies in this space:
Ecolab Inc. (NYSE: ECL) – This producer of sanitation products targets the health, hospitality, and industrial markets and also offers products and services that includes dish and laundry washing systems, pest control, and infection control products.
Henkel AG & Co. (ETR: HEN3) – The makers of Dial body products, this manufacturer of household and personal products also producers Persil and Purex laundry detergent, Schwarzkopf hair care, and Loctite adhesive.
ITC Ltd. (NYSE: ITC) – This one is a bit of a wide play, with a channel for personal care products, it also touches upon cigarettes and other consumer goods, paper, packaging, and agri-business.
Next time you reach for that clear liquid to cleanse the palm of your hands, just remember that the company behind it is reaping some sizable benefits right now. The share price for these four companies is quite high across the board, but for good reason. Safe bets are popular for that very reason but here’s one you might not have heard of …
EastWest Bioscience (TSX-V: EAST).
This health and wellness company operates within the hemp and CBD consumer health market and back in the spring had received
approval from Health Canada for its hand sanitizer liquid spray. Shares in this Penticton, BC-based operation are much more reasonable and provide a smaller barrier for entry. It's track record isn't as mighty as the major players, but it could do well by association on the success of personal hygine.
Do you consider intense market conditions, such as COVID, justification for spending a bit more on a company's share price when making an investment decision? Let us know in the comments below.
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