Pleasure products manufacturer and distributor Lovehoney is merging with premium sexual wellness products provider WOW Tech Group in a $1.2 billion merger. The union results in the birth of The Lovehoney Group, expected to be the world’s largest sexual well-being company.
Aside from the Germany-based company and the UK-based firm, the new merger group will also include Amorana. Lovehoney bought the Swiss sexual wellness retailer in September 2020, just over a year before the merger.
The merger offers promising business results. The two brands, after all, display processes not only in B2C marketing but also in sales. Add that to their multi-channel distribution network and active research and development efforts. That said, the merger will bring together the most popular brands within its category, including Fifty Shades of Grey, Womanizer, Happy Rabbit, We-Vibe, and Arcwave.
Aside from its having well-known brands, the group is also reaching a wide client base all over the world. In fact, the firm will operate across North America, Europe, the Middle East and Africa (EMEA), and Asia-Pacific (APAC).
But will such a wide geographical market be too hot to handle? Not if you have more than 730 employees who have diverse strengths, ranging from design, marketing, engineering, and sales.
Also, the firm will be led by Johannes Plettenberg, WOW Tech founder and CEO. Plettenberg, after all, knows the industry quite well. He and partner investors acquired Womanizer in 2017 before merging it with We-Vibe in 2018. Not long later, CDH Investments became a majority stake-holder, a move that aimed to innovate products and expand in the global market.
The sexual wellness market on the rise
Given the current projection, it seems that The Lovehoney Group is on its way to tapping a vast market. The Insight Partners says the sexual wellness market size can reach $81,394.49 million by 2028. This is a huge leap from $51,924.43 million in 2021.
The data includes pharma products such as capsules, tablets, oral liquids, and sprays. It also includes non-pharma products like sex toys, condoms, and others. That said, sexual wellness covers a wide spectrum – from gyne health to sexual pleasure.
So, how can a formerly stigmatized industry grow fast over the next few years?
A Forbes article suggests a heightened interest in sex throughout the coronavirus disease pandemic. For instance, many married couples had no choice but to stay at home during lockdowns. On the other hand, singles couldn’t go out because of quarantine, which posed another market opportunity.
The past few years have also emphasized sexual pleasure and health, particularly for women. For example, brands like OSUGA advances sexual wellness designed by females for females and encourage its market to “explore the pleasure of self-love.” The brand also offers candy-hued vibrators to its female client base.
Striking while the iron is hot
Given the market growth brought by a more open-minded view of pleasure, The Lovehoney Group is looking at a bright future.
In fact, they expect their profit to reach over $400 million by the end of 2021. That means they’re looking at two times their combined 2020 volume. And, as a result, they’re on their way to becoming the world’s biggest sexual wellness company by income.
Studies say the industry’s promise still relies on many factors, such as mutual respect and openness despite the growing market. In addition, growing concerns about personal hygiene due to sexually transmitted diseases can also boost the sexual wellness market and, in turn, the new merger of WOW Tech and Lovehoney.
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