P.E.S.T. Analysis of the Health Market

Dylan Finn
Sep 2, 2018 · 3 min read

The health market, both physical and mental, is on the up and up due to a plethora of factors across the Political, Economical, Sociological, and Technological (P.E.S.T.) spectrum. The purpose of this analysis is to identify problems within the multifaceted domain, as well as to ascertain an objective sense of the current market state. Those inferences then allow us to supply consumers with products and features that fix relevant problems and fill holes in the market with high with demand.

The politics of the health market have went through possibly the biggest changes that it’s experienced in decades, catalyzed by the precedent of Cannabis legalization set by some U.S. states. This has had major positive impacts on mental and physical health as more people are able to benefit from it safely and legally. By the sheer popularity, Cannabis is probably the right place to innovate.

The health industry is booming economically. According to bloomberg.com, health sector stocks are generally very high (as of the time this was published). The legalization of medical Cannabis in select states certainly lends to this, as the rise was predicted with the taxation of Cannabis products and legalized products being sold by small-business dispensaries and lounges. The current highest sector subgroups in terms of market rise are in health care equipment and services, followed by pharmaceuticals, biotechnology, and life sciences, all of which involve Cannabis and it’s cultivation. Obviously the rise is not solely due to Cannabis and correlation is not necessarily causation, but in this case the answer is pretty clear cut.

Two days after this section was written, the market is still in the same trend


This sector is not significantly influenced by sociological influences due to it not being a social topic. People do form communities dedicated to health and health initiatives, but are not so popular as to sway the market in general. However, there are relevant sociological queues when observing the state of Cannabis in society. People are becoming more accepting of it and the majority of Americans are already in favor of legalization, which makes it one the most significant emerging markets currently and why it’s so prevalent in my analysis of the health sector in general.

Given that we are in a technological golden age, its not surprise that the health domain is benefitting largely from it. As mentioned in the economical analysis, the single highest rise in a health stock subgroup is for health care equipment and services. Although we could go deeper into the reasons, this gives us all we need to know about the market state.

This analysis indicates that right now is an optimal time to develop in the Cannabis field, where the political, economical, and technological factors point to the potential of the market. Consumerism and interest in the field is peaked, with obvious room for improvement in the way of software and quality of life.

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