“Galeotto” was Covid. Lockdowns have in many cases rekindled the passion for sex, causing a boom in demand for sex toys (vibrators, sexual extensions, leather models, underwear, porn movies, etc.). A race in the sector that prompted the merger between the German Wow Tech, leader in the design of this kind of articles, and the British Lovehoney, online retailer: from the merger a giant of the sex industry will be born.
According to the Wall Street Journal, this is a $ 1.2 billion deal (this is the estimated value of the two companies combined) that for what will become the largest “sexual wellness” company in the world, capable of generating revenue of $ 400 million a year and a list of at least 50 different types of vibrators & the like. Revenues of 400 million are an estimate of the two companies, which is double the combined turnover of the two firms in 2020.
The two groups are betting on the growth of the sector which, according to them, will continue thanks to the launch of vaccines, which will allow people to leave their homes and socialize in groups. Lovehoney Group will operate in North America, Europe and Asia, offering brands such as We-Vibe, Womanizer and Arcwave. Additionally, the two companies are aiming for an additional scale that will allow them to make larger acquisitions.
“Sexual wellness products have gained a dominant position in the current market,” says Johannes Plettenberg, CEO of Wow Tech, who will also become Lovehoney’s company head.
Global sex toy sales grew 26% to $ 33.6 billion in 2020, according to a report by Grand View Research, a California-based market research firm. Total sales are projected to decline by nearly 9% this year, but growth will resume in mid-2022 and increase by 8% annually through 2028, the report predicts. The reason? First of all, some regulatory changes in Asian countries that will make this type of products more widely exportable and available. In addition, a marketing consideration: an increasing acceptance, also thanks to Covid, by both sexes of the use of “sex toys”.