Thinking of Buying a Natural Therapies Business in Australia? Here Are 3 Vital Questions to Ask

The Australian alternative health therapy industry, which includes natural therapies, generated $4.0 billion in revenue in 2024, with profit margins averaging 6.6%. More than 20,700 enterprises operate nationwide, employing nearly 39,000 people across 25,500 establishments.

Revenue is forecast to grow at 2.9% annually through 2029–30, reaching $4.9 billion. Growth will be supported by ageing demographics, chronic illness management, and consumer demand for preventative healthcare. However, clinical efficacy concerns, regulatory changes, and cost-of-living pressures continue to weigh on the sector.

1. Is the Business Financially Resilient in a Fragmented Market?

Why It Matters

Natural therapies businesses operate in a highly fragmented industry dominated by sole practitioners. With low capital requirements and low barriers to entry, competition is intense, and margins are modest. Success depends on differentiation through service quality, niche expertise, and strong client loyalty.

What to Check

• Profitability – Benchmark against the industry average of 6.6%.
  
  

• Revenue mix – Assess reliance on single therapies versus offering a broader suite of natural health services.
  
  

• Wage and cost pressures – Review labour costs, as wages remain the largest expense for practitioners.
  
  

• Cash flow resilience – Consider the impact of discretionary household spending fluctuations on revenue.
  
  

2. Does the Business Have a Competitive Market Position?

Why It Matters

Demand for natural therapies is driven by health-conscious consumers, ageing populations, and multicultural influences. However, businesses must compete not only with each other but also with conventional healthcare services. Reputation, location, and insurance coverage all play a role in client acquisition.

What to Check

• Client base – Determine whether the business serves older Australians (24.2% of demand) or younger health-conscious consumers.
  
  

• Location strength – Assess whether the business operates in metropolitan areas like Sydney and Melbourne, which have high concentrations of practitioners.
  
  

• Brand reputation – Review online reviews, professional accreditations, and referral networks.
  
  

• Insurance coverage – Confirm whether services are included in private health extras, which drive accessibility and affordability.
  
  

3. Is the Business Aligned with Industry Trends and Regulation?

Why It Matters

Natural therapies face regulatory scrutiny. Since 2019, 16 therapies were excluded from private health insurance rebates due to lack of clinical evidence. However, demand has remained strong, with 7.2 million natural therapy services provided under private insurance in 2023–24. Businesses aligned with preventative health, sustainability, and digital tools will be best positioned.

What to Check

• Regulatory compliance – Ensure adherence to Therapeutic Goods Administration (TGA) and AHPRA requirements.
  
  

• Technology adoption – Assess digital readiness for online booking, telehealth, and patient engagement.
  
  

• Sustainability practices – Review alignment with eco-conscious consumer trends.
  
  

• Future growth – Consider integration of therapies with mainstream healthcare and preventative medicine.
  
  

Ready to Invest in a Thriving Natural Therapies Business?

With demand supported by an ageing population, preventative health trends, and consumer preference for holistic care, natural therapies businesses remain a growing niche in Australia’s health sector.

Success will depend on financial resilience, strong market positioning, and alignment with regulatory and consumer trends.

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