Despite representing nearly half of the world’s population, women’s health remains one of the most underfunded sectors in global finance. Currently, women’s health captures just 6% of private healthcare investment, says a report from World Economic Forum. While the fundamental needs are strong, the majority of this capital is narrowly confined to reproductive and maternal health, leaving a massive “white space” for innovation in other critical areas.
By shifting focus toward high-burden conditions that affect women uniquely or disproportionately, the healthcare industry could unlock a market opportunity exceeding $100 billion in the United States alone by 2030.
The Health-Wealth Paradox
A stark disparity exists in how women experience health throughout their lives. Furthermore, while women generally live longer than men, they spend 25% more of their lives in poor health or living with a disability. This imbalance not only erodes individual well-being but also significantly reduces global workforce participation.
The lack of investment in products and services tailored to women’s specific needs continues to exacerbate these disparities.
Where the Money Flows: Capital Concentration
According to the newly introduced Women’s Health Investment Index, current funding is heavily skewed toward a few traditional sectors.
Capital Concentration: Approximately 90% of all capital flows into just three areas: reproductive health, maternal care, and women’s cancers.
The Funding Gap: Companies focused exclusively on women’s health (outside of these three areas) capture less than 1% of total private healthcare capital.
Early-Stage Dominance: Half of the private investment in women’s health-specific companies is still in the earliest stages, compared to only 32% across the broader healthcare sector.
High-Potential Areas for Growth
The Boston Consulting Group (BCG) identifies four major therapeutic areas that have been historically overlooked but represent massive unmet needs and financial potential:
1. Cardiovascular Disease: Often presents differently in women and remains a leading cause of death.
2. Osteoporosis: Affects women disproportionately as they age.
3. Menopause: A universal transition with a significant lack of specialized products and services.
4. Alzheimer’s: Women are at a higher risk for this cognitive condition.
Consequently, effectively addressing these four areas could transform the sector from a niche market into a high-growth industry, similar to the trajectory of the in vitro fertilization (IVF) market.
A Roadmap for Change: Six Strategic Actions
To bridge the “valley of death” between scientific research and market-ready products, the report advocates for targeted action across six fronts:
Sex-Specific Research: Build a demand-driven evidence base with real-world outcomes to de-risk pipelines.
Blended Capital: Mobilize diverse funding sources to attract more private investment.
Regulatory Modernization: Update clinical end-points to accelerate the market entry of new treatments.
Expanded Reimbursement: Establish predictable revenue models to encourage innovation.
Incumbent Participation: Encourage major healthcare players to use their capabilities for women-specific needs.
Increased Transparency: Provide clear data on economic returns to help investors make informed decisions.
Q&A: Investing in Women’s Health
Q: Why is women’s health investment so low? A: Historically, funding has been narrowly focused on reproductive and maternal health, overlooking broader conditions like cardiovascular disease and Alzheimer’s that affect women differently.
Q: What is the “white space” in the market? A: The “white space” refers to the significant lack of investment and products for high-burden conditions such as menopause, osteoporosis, and women-specific diagnostics.
Q: Which regions currently dominate this sector? A: Deal activity is currently dominated by North America and Europe, while low- and middle-income countries (LMICs) remain significantly underrepresented despite having a high disease burden.
FAQ: Frequently Asked Questions
How much does women’s health currently receive in private investment? Women’s health receives only 6% of total private healthcare capital.
What is the projected market opportunity for women’s health in the US? Addressing key overlooked areas like menopause and cardiovascular disease could unlock over $100 billion by 2030.
What is the Women’s Health Investment Index? It is a tool introduced to quantify and track private investment flows in women’s healthcare over the past five years.
How does the IVF market serve as an example for the sector? The IVF market proves that when scientific reliability, policy, and reimbursement align, a niche area can become a multibillion-dollar, high-growth industry.