WOW Tech Group, the Berlin-based firm behind the We-Vibe sex toys, has merged with UK firm Lovehoney, to create what the newly-formed enterprise claims is the “world’s largest sexual wellness company”.
Capitalizing on the rising popularity of sextech products globally, the new company, Lovehoney Group, has valued itself at $1.2 billion. It says 2021 sales will surpass $400 million, making it the largest producer of sexual wellness products in the world, based on revenue.
That figure is more than double the combined 2020 revenue of the two companies that merged to create The Lovehoney Group, again highlighting the increasing economic clout of the sextech industry. News of the merger was revealed by the Wall Street Journal.
Lovehoney’s products include vibrators (plus cock rings and a $20 piece of ‘silky rope’) released in conjunction with the Fifty Shades of Grey book and film series. The company is also known for its Magic Wand vibrator and Desire: its range of luxury sex toys.
In April 2021, Lovehoney was given a Queen’s Award for Enterprise honour, which the British government claims is the country’s most prestigious business award.
According to Grandview Research, the value of the global sexual wellness industry rose from $9.1 billion to an expected $11.1 billion in 2020. Stephanie Keating, WOW Tech Group head of marketing for North America, told the Ottowa Business Journal that increased sex toy sales during pandemic lockdowns contributed to the merger pushing ahead.
“It’s about pleasure and fun and connecting with your partner,” she said. “I think that has really helped people get through a lot of difficult times.”
Celebrities such as Fifty Shades of Grey movie star Dakota Johnson, model Cara Delavigne plus singer and actor Lily Allen have spoken positively about sex toy recently, with Delevingne and Allen launching their own ranges. Endorsements such as these have helped sextech industry sales generally, as well as making open discussion of sex toys less controversial.