Thinking of Buying an Alternative Health Business in Australia? Here Are 3 Vital Questions to Ask

The Australian alternative health therapies industry generated $3.99 billion in revenue in 2024, employing nearly 38,800 people across more than 20,700 enterprises.

Profit margins average 6.6%, with revenue projected to grow at 3.3% annually through 2031, supported by rising health consciousness, an ageing population, and increasing demand for preventative and holistic healthcare.

However, regulatory scrutiny, questions about clinical efficacy, and heavy reliance on discretionary household spending remain critical challenges for operators.

1. Is the Business Financially Sustainable and Resilient?

Why It Matters:

Alternative health services such as naturopathy, acupuncture, chiropractic, and herbal medicine are often discretionary purchases.

Businesses with recurring client bases and diverse revenue streams are better equipped to handle economic downturns and regulatory changes.

What to Check:

• Revenue trends & profitability – Review three to five years of financial statements for stability.

• Service mix – Determine reliance on high-demand segments such as chiropractic (39.8% of industry revenue) and osteopathy (11.7%).

• Cost structure – Labour accounts for a large share of expenses, as service quality is skill-dependent.

• Private health insurance reliance – Changes to rebate policies, such as the 2019 removal of subsidies for 16 natural therapies, can significantly impact demand.

2. Does the Business Have Strong Market Position and Reputation?

Why It Matters:

The industry is highly fragmented, with no operator holding more than 1% market share.

Reputation, practitioner qualifications, and location drive client retention more than price competition.

What to Check:

• Accreditation & compliance – Confirm practitioners are registered with AHPRA or relevant associations.

• Customer loyalty – Assess repeat bookings, referrals, and online reputation.

• Location advantage – Businesses in metropolitan areas like Sydney and Melbourne benefit from higher demand and multicultural populations that embrace traditional therapies.

• Range of services – Clinics offering multiple therapies under one roof (e.g., naturopathy, acupuncture, massage) enjoy economies of scope and broader appeal.

3. Is the Business Aligned with Industry Trends and Future Growth?

Why It Matters:

The sector is shifting toward integrative health, online consultations, and evidence-based complementary medicine.

Businesses that align with sustainability, technology, and preventative healthcare will remain competitive.

What to Check:

• Demographic alignment – Older Australians (65+) represent 24.2% of industry revenue, reflecting high chronic illness rates.

• Technology adoption – Virtual consultations and online booking platforms are expanding access.

• Regulatory compliance – Monitor Therapeutic Goods Administration (TGA) requirements for herbal and complementary medicines.

• Growth opportunities – Expansion into corporate wellness, palliative care, or chronic disease management could provide long-term resilience.

Ready to Invest in a Thriving Alternative Health Business?

With increasing demand for holistic healthcare, preventative therapies, and integrative approaches, alternative health businesses are well-placed for steady growth.

Success depends on building a loyal client base, ensuring compliance and practitioner quality, and staying aligned with shifting regulatory and consumer trends.

For Buyers:
Create an account to set up alerts here.

For Sellers:
Sell Your Business here.