1

Manufacturers and buyers across end markets are increasingly emphasizing personalization, comfort and performance in PPE. Exceptional products offer high quality and functionality, successfully combined with a sports-inspired and innovative design. Customized PPE enhances protection, utility, and employee satisfaction, translating into higher return on investment (ROI) for safety measures. For example, tighter-fitting respiratory protection or prescription safety glasses improve both comfort and compliance.

Beyond practical benefits, studies indicate that investments in occupational health and safety (OHS) yield positive financial returns and additional indirect benefits to employee retention and morale, as well as production quality and corporation reputation. Amid the ongoing “war for talent,” particularly in blue collar roles, premium PPE products have become a tangible demonstration of employees’ value.

2

Employers are increasingly integrating both fashion elements and branding elements into PPE, and industry reports indicate branded products help workers identify with their job and company. Esteemed and attractive products, especially those promoting a respected employer, are more likely to be worn by employees outside the workplace, enhancing brand awareness and employee identity.

A prime example of successful PPE branding is FIGS, a consumer brand specializing in scrubs for healthcare workers. The brand’s design and distribution has disrupted the healthcare PPE market, offering functional solutions coupled with a promise to help buyers “feel good, look good and perform at [their] best.”

3

In high-tech industries, increased automation and output growth is driving evolving safety requirements. PPE manufacturers are collaborating with customers to develop high-quality PPE, tailored to changing workplaces and regulations. Accelerated developments and advancements, both in high-tech industries and PPE manufacturing, are additionally improving the value add and value proposition of PPE.

One development revolutionizing the PPE sector is AI integration, which has transformed PPE from reactive protection to proactive incident prevention. Manufacturers are now tasked with developing software and hardware capabilities that enable Internet of Things (IoT) compatibility, allowing PPE to integrate seamlessly with customer systems.

Beyond technology integrations, advances in materials technology create additional value-add for buyers. Across various end markets, innovations in anti-cut, fire resistant and high-visibility fabrics have improved worker safety while increasing stickiness.

4

Safety standards and regulations have become increasingly stringent across regional markets, significantly impacting small and medium enterprises (SMEs) in developing nations. Global efforts to strengthen national OSH systems have resulted in widespread policy changes, driving increased worker safety and heightened global demand for PPE. In addition to a rise in initial purchases, changing worker trends toward more frequent PPE replacement also has led to increased repeatability of purchases.

Beyond increasing demand for PPE, global standards are continually being raised as innovations create new levels of safety offered by equipment (and new levels of danger presented in workplaces). The requirements to receive approval from regulatory bodies are strict, creating market barriers to entry and expanding both usage demands and performance requirements. Manufacturers and developers have a strong drive to continuously innovate to meet evolving regulatory and industry needs.

While performance and regulatory standards drive innovation trends, a growing emphasis on sustainability and environmental, social and governance (ESG) standards has shifted PPE manufacturer sourcing to eco-friendly products, sustainable packaging and certified manufacturers. A large push for renewable and recycled materials has driven both consumer interest and higher product prices.

Looking Ahead with Lincoln

In 2025, PPE manufacturers are projected to exhibit an average EBITDA margin of more than 15%. The average market transaction has recently traded at multiples higher than 10x, with Lincoln’s mandates achieving a significant premium compared to the average. Based on a database of 6,250+ quarterly valuations of private companies, Lincoln’s analysis of credit market cycles suggests that when valuation environments finish stabilizing, sector multiples are expected to remain steady near 10x. Players who effectively harness growth trends will benefit from rising demand and pricing, making them highly attractive to investors.

Lincoln International’s M&A team offers robust expertise in navigating this dynamic sector. Contact us to discuss how our valuation and advisory services can help your business capitalize on the growing opportunities in the PPE market.