The femtech industry in Israel was estimated to be US$ 2.75 billion in 2021 and is expected grow at a CAGR of 15.2% between 2023 and 2032.
Femtech refers to the use of technology for addressing women’s health and wellbeing. Simply explained, femtech makes possible the integration of technology across products, services, medical devices, wearable devices, platforms, software, mobile applications, supplements and therapeutic drugs that are focused towards women consumers. Femtech industry is helping in elevating the overall experience of health and wellness products among women. The applications do not limit to the physical health but also include mental health.
Femtech industry has laid its foundation in the recent past. Proliferation of digital health solutions in Israel supports the penetration of femtech products. Israel has 50.2% female population. The country has a generous internet penetration and it stood at 90% at the beginning of 2022. This fact makes the access to femtech solutions easy.
Market Dynamics
Spreading awareness among women consumers
Women are more aware and conscious about their health than ever before. Despite the cultural influence among the population, women are actively participating in experiencing innovative femtech solutions. Off late there has been normalizing the discussion about taboo subjects specific to women’s health. Also, kids per mother ratio in Israel is relatively high than similar other nations. Hence, there is more demand for femtech solutions from Israeli women.
Focus on Reproductive Health
Reproductive health has been gaining additional attention during recent times. Women are open to make use of technology driven products/services for better results and experience. Rising demand for IVF treatment adds to the revenue of femtech industry in Israel. There are multiple companies developing solutions for women consumers and the medical professionals, specific to fertility treatment. Support for free IVF cycles from Israeli government encourages the market players to develop inclusive solutions for higher success rates.
Market Challenges
Israel stands third globally in terms of number of companies actively operating in femtech space. However, winning funding is a challenge for majority of the companies. The country is leading in terms of cyber security solutions, and it has been practically feasible to prove the success to VCs. When it comes to new industry such as femtech, VCs are sceptical about commercial success and scalability of the solutions. Also, the products need to go through long clinical trials and approvals before they are sold to the consumers. This discourages the VCs from investing in the industry.
A common trend observed among the start-ups across Israel is that, almost every company target consumers in European countries and the United States. This is majorly because of two reasons. Firstly, the population of Israel is limited whereas the number of companies providing femtech solutions is pretty high. Thus, it is necessary for the companies to tap bigger audiences for stable financial gains. Secondly, the profit margins earned in the United States and European countries is significantly higher than those earned from Israel consumers.
Market Consolidation is the Future
It’s a fact that there are variety of applications available for femtech market participants. Every young start-up is trying to differentiate themselves through product innovation. A large pool of start-ups is competing heavily to win funding. Larger established market players have started supporting the young start-ups through mentoring and financial aid. Interesting feedback from the medical fraternity is that they would be happy to implement integrated femtech solutions. This is paving the way for market consolidation. Future of femtech industry will witness strategic collaborations in terms of mergers, acquisitions and joint ventures.
The major players covered in the Israel femtech market report are Pulsenmore Ltd, OCON Healthcare, HeraMED Ltd, PregnanTech, AiVF, Fertigo Medical Ltd, MobileODT, Gals Bio Ltd, DiagnoseStick LTD, Hervana-Bio LTD, NUVO Inc, Carmel Diagnostics Ltd and others.
Market Segmentation as below:
By Type
- Consumer products
- Wearable devices
- Medical devices (Diagnostics and Hardware)
- Digital Platform
- Mobile Apps
- Services
- Others
By Application
- Pregnancy & Nursing
- Reproductive health
- Pelvic & Uterine health
- Menstrual health
- General healthcare
- Sexual health
- Women's Wellness
- Others
By Distribution Channel
- Business to Business (B2B)
- Hospitals
- Fertility Clinics
- Surgical Centers
- Diagnostic Centers
- Business to Consumer (B2C)
- Pharmacies
- Direct to Consumers (D2C)
- Others
