The medical consumables and disposables market comprises businesses that develop, manufacture and distribute single-use medical products used for patient treatment or aid. We have segmented the European market based on products and business activities of players into: (i) generalist, (ii) drug delivery & minimal intervention, (iii) surgery, (iv) hygiene & wound care and (v) distribution.

The European medical consumables and disposables industry is characterised by a high degree of consolidation driven by regulatory barriers (limiting organic growth potential), production economies of scale and the (limited) reach of distribution networks. The incremental costs from the EU Medical Device Regulation and growing pressure on production efficiencies are expected to contribute to further market consolidation in the foreseeable future.

Sponsor-led interest has been significant, with ~50% of identified assets being backed by financial sponsors (February 2023). Investor interest is equally dispersed across identified segments, with anti-cyclical demand, long-term revenue visibility, moderate CAPEX needs and acquisitive growth opportunities being the key investment rationales.

Relevant ESG topics mainly revolve around environmental and governmental challenges. The disposable nature of products implies a heavy impact on the environment in the form of masses of accumulated waste. This is traded off against appropriate healthcare hygiene and safety standards, which is highly prioritised by all involved stakeholders in the value chain. From a governmental perspective, COVID-19 provided incentives for fraudulent and illegal activities between stakeholders to boost profitability margins and personal gains, evidenced by multiple cases in Germany and the Netherlands.