The term “FemTech,” first used by businesswoman Ida Tin in 2016, has gained popularity in the healthcare world. Women’s health, often thought of as a niche sector, now offers considerable financial potential for businesses, investors, and other stakeholders. About 80% of consumers who make purchases for their health and wellness are women.
What is FemTech?
FemTech refers to a broad range of technologically enhanced healthcare products and services created specifically with female consumers in mind. FemTech is a subset of healthcare technology and aims to provide the tools and solutions required to provide the level of care that 50% of the population is entitled to (but has been denied).
FemTech businesses concentrate on creating answers for a variety of issues, such as contraception, menopause, fertility, pelvic and sexual health, and maternity health. Some FemTech products also address issues such as osteoporosis and cardiovascular disease, which affect women differently or more than men.
The FemTech Revolution
The surge in FemTech’s popularity coincided with Covid-19. Patients and medical organisations themselves had to learn how to use digital technology at that time, even if they had previously relied solely on offline services.
According to McKinsey & Company research, factors such as public awareness, funding, and company development are boosting the FemTech sector and leading to an increase in healthcare solutions specifically made for women. More money, resources, and expertise are needed to maintain the momentum as more businesses work to identify and meet the unmet healthcare needs of women. FemTech’s present market size is estimated to be between $500 million and $1 billion, and forecasts indicate potential for double-digit revenue growth.
FemTech businesses currently receive 3% of total funding for digital health. While many of the FemTech start-ups are already filling in the gaps that the established biopharma and device industries have yet to address, this revolution is undoubtedly just getting started. The FemTech sector can improve outcomes for female patients and consumers while generating a sizable return on investment for stakeholders by developing individualised solutions. Additionally, we anticipate that opportunities will grow for academic researchers, medical professionals, and established pharmaceutical and medical device firms who decide to invest in this field.
How can FemTech businesses reshape the health industry?
Although the FemTech revolution is very new, there is a chance that businesses in this field will upend the healthcare sector by:
Direct-to-consumer access: Many FemTech businesses are utilising technology to make healthcare more accessible.
Breaking down barriers: Many of the successful FemTech businesses today don’t hesitate to talk about subjects that have previously been stigmatized. Successful businesses are leading open talks and marketing initiatives regarding pelvic health, menopause, and menstrual and sexual wellness.
Patient empowerment: FemTech solutions give patients the information and resources they need to make educated health decisions.
Providing more individualised care options: Several FemTech businesses are developing solutions catered to particular cultures and communities.
Who is driving the transformation in FemTech?
Not only is the healthcare sector being disrupted by the FemTech revolution. When compared to the 20% average for all new companies, research from McKinsey & Company reveals that more than 70% of FemTech companies are started by women. More career opportunities for female investors, founders, innovators, and doctors may arise from the development of a more diverse and gender-conscious healthcare system, which may further encourage the development of consumer-focused innovations that address the needs of a larger spectrum of individuals.
Women make the majority of the healthcare decisions for themselves and frequently for their families, according to McKinsey & Company. Giving women the chance to drive healthcare innovation could improve healthcare for both women and society as a whole.
Growing femitech companies
PitchBook reports that there are currently more than 821 businesses dominating the femitech market. According to PitchBook, as of January 14, 2022, these businesses had received $16.24 billion in funding from 2,819 investors, and that number is undoubtedly rising.
The emerging FemTech market in India
Being in its infancy, the sector in India has started by utilising cutting-edge products, including remedies for period pain, user-friendly period trackers, sustainable options like menstruation cups, and more. FemTech’s scope has the potential to transform how we think about menstruation, birth control, fertility, menopause, pelvic health, gynaecological health, and anything else that falls under this broad category.
The future of FemTech
According to PitchBook, just 4% of all healthcare research and development is exclusively focused on women’s health issues, despite the fact that women make up half of the world’s population and account for an estimated $500 billion in annual medical expenses.
Given how important women’s healthcare is becoming, this is a significant opportunity. FemTech is rising to the challenge as it links resources and expertise with unmet needs. FemTech has already shown outstanding early successes in a short amount of time. There may be an even bigger disturbance to come.
Views expressed above are the author’s own.
Views expressed above are the author’s own.