The sexual wellness industry is experiencing unprecedented growth, with startups revolutionizing how society approaches intimate health and pleasure. The market, once relegated to adult stores and stigmatized purchases, is now projected to reach $81.4 billion globally by 2028, up from $51.9 billion in 2021¹. This dramatic expansion represents a fundamental shift in consumer attitudes and investor confidence in an industry that was largely taboo just a decade ago.
In the United States alone, the sexual wellness market is expected to grow from $13.22 billion in 2025 to $19.76 billion by 2032, representing a robust 7.5% compound annual growth rate². This growth is being driven by a new generation of entrepreneurs who are destigmatizing sexual wellness, securing major funding rounds, and establishing mainstream retail partnerships that would have been unthinkable just five years ago.
Major Funding Rounds Signal Investor Confidence
The sexual wellness sector has attracted significant venture capital attention in recent months, with several companies closing substantial funding rounds. Hello Cake, a Los Angeles-based sexual wellness brand, announced an $18 million Series B funding round in October 2024, bringing its total funding to over $36 million³. The round was led by Silas Capital and Strand Equity, demonstrating institutional investor confidence in the sector’s growth potential.
Simultaneously, Hello Cake announced the acquisition of Trigg Laboratories, owner of the well-known Wet brand, establishing the company as a vertically integrated sexual health company³. This move represents a broader trend of consolidation in the industry as startups seek to control their supply chains and expand their product portfolios.
Other notable funding successes include Arya, a couples wellness platform using AI technology, which secured an $8.5 million Series A funding round, bringing its total funding to $16 million in under two years⁴. The round was led by Ibex Investors, with participation from Play Ventures, Patron Fund, and BigBets.vc⁴.
Rosy Wellness, focusing specifically on women’s sexual health, raised $1.2 million in a bridge funding round, bringing its total funding to $4.2 million⁵. The company serves over 150,000 women and has more than 8% of OB-GYNs across the U.S. referring patients to its platform⁵.
Established Players Secure Major Investment
Beyond newer entrants, established sexual wellness brands continue to attract significant investment. Dame Products, founded in 2014 by sexologist Alexandra Fine and MIT-educated engineer Janet Lieberman-Lu, has raised over $6.6 million⁶. In 2023, Dame Products secured $5 million in funding to extend its product line, demonstrating continued investor confidence in the sector’s potential⁷.
Maude, founded by Eva Goicochea in 2018, raised an oversubscribed $5.8 million Series A funding led by True Beauty Ventures⁶. The company has raised more than $10 million total and reports current annual revenues in the mid-to-high seven figures with growth of over 200% year-over-year⁶.
Lora DiCarlo, the gender-inclusive company founded by Lora Haddock in 2017, secured $3.5 million in funding led by Republic Labs in 2021, bringing its total raised to $6.6 million⁶. The company gained significant attention when actress Cara Delevingne joined as co-owner and creative advisor⁸.
Mainstream Retail Adoption Drives Growth
One of the most significant developments in the sexual wellness industry has been the acceptance by mainstream retailers. Major chains including Target, CVS, Walmart, Sephora, Bloomingdale’s, and Nordstrom have begun carrying sexual wellness products⁹.
Hello Cake exemplifies this mainstream adoption. The company, which launched direct-to-consumer in 2020, generated over $1 million in revenue in less than a year¹⁰. By 2021, its products entered 4,000 Walmart doors, and the brand launched at Target and CVS in 2022, expanding to about 13,000 retail locations¹⁰. From 2023 to 2024, Hello Cake more than doubled its retail footprint and added Walgreens to its stockist list¹⁰.
Sephora made headlines in February 2022 when it added sex toys from Maude and Dame to its shelves⁹. This move by the beauty retail giant signaled a major shift in mainstream acceptance of sexual wellness products as part of overall health and wellness routines.
Technology and Innovation Drive Product Development
Sexual wellness startups are leveraging technology to create innovative products and services that address previously unmet needs. The integration of AI, telehealth, and advanced materials is creating new product categories and service models.
Arya’s AI-powered platform helps couples improve intimacy through personalized recommendations and guidance⁴. The company represents the growing trend of “sextech” that combines technology with sexual wellness to create more personalized experiences.
Hello Cake has expanded into telehealth with the introduction of prescription erectile dysfunction medication and custom-compounded treatments for Female Sexual Dysfunction¹¹. This medical approach to sexual wellness represents the industry’s evolution from purely pleasure-focused products to comprehensive sexual health solutions.
Lora DiCarlo has focused on engineering and robotics to create advanced pleasure products. The company’s flagship device, Osé, was developed in partnership with Oregon State University’s Robotics & Engineering Lab⁶. This scientific approach to product development reflects the industry’s increasing sophistication and investment in research and development.
Market Size and Growth Projections
The sexual wellness market’s growth trajectory varies by geographic region and market segment. In the United States, sex toys are expected to lead the market with a 76.8% share in 2025, while e-commerce distribution is projected to achieve a 62.4% market share¹².
Global projections show even more dramatic growth, with some analysts predicting the market could reach $336.92 billion by 2034 at an 8.71% CAGR¹³. The sex toys segment alone is projected to reach $20 billion by 2035¹³.
Consumer awareness has become a significant growth driver, with studies showing a 65% surge in awareness, while e-commerce contributes 50% to growth alongside a 40% rise in demand for gender-inclusive products¹⁴.
Challenges and Opportunities for Entrepreneurs
Despite the growth, sexual wellness startups face unique challenges that other consumer product companies don’t encounter. Advertising restrictions remain significant, with social media platforms often prohibiting or restricting ads for sexual wellness products¹⁵.
Payment processing presents another hurdle, as many financial services providers consider sexual wellness products “high-risk,” making it difficult to integrate payment gateways¹⁵. These challenges have forced entrepreneurs to be creative in their marketing and business development approaches.
However, these challenges are also creating opportunities. The tight-knit nature of the sexual wellness community makes networking easier than in other industries¹⁵. Entrepreneurs can easily connect with experienced founders, receive feedback, and find mentorship within the community.
Investor Perspectives and Market Dynamics
Venture capitalists are increasingly viewing sexual wellness as a healthcare investment rather than a taboo category. “My investment in sextech shouldn’t be viewed any differently than investments in other types of healthcare, like Headspace or Calm and that’s a huge, established market,” says angel investor Laura Behrens Wu¹⁵.
The creation of specialized funds focused on the sector demonstrates growing institutional support. Vice Ventures launched a $25 million fund in 2020 with a mission to invest in companies operating in stigmatized industries¹⁵. Intimate Capital, an Israel-based fund, plans to raise $20 million specifically for sextech solutions¹⁵.
Amboy Street Ventures, launched by UK-based Healthy Pleasure Group, represents the world’s first venture capital fund focused solely on sexual health and technology startups⁶. Their early investments in Dame Products and menopause telemedicine clinic Gennev signal the fund’s strategy of supporting both product and service innovations.
The Role of Female Founders
A significant characteristic of the sexual wellness startup ecosystem is the prevalence of female founders. Companies like Dame Products, Maude, Lora DiCarlo, and Rosy Wellness are all founded or co-founded by women who identified gaps in products and services designed for female pleasure and health.
This female leadership has been crucial in shifting the industry’s focus from male-centric products to more inclusive and scientifically-based approaches to sexual wellness. As Gerda Larsson, co-founder and managing director at The Case for Her, explains: “I started investing in sextech after identifying it as one of the solutions that could tackle the global taboo surrounding sex and female sexual pleasure”¹⁵.
Global Expansion and International Opportunities
While much of the current innovation and funding activity is concentrated in the United States, sexual wellness startups are expanding globally. Companies are recognizing that sexual health challenges exist worldwide and that different markets present unique opportunities.
International expansion is being facilitated by e-commerce platforms that allow companies to reach global customers without establishing local retail partnerships. However, regulatory differences between countries present challenges, particularly around product approvals and marketing restrictions.
Future Outlook and Industry Evolution
The sexual wellness industry is poised for continued growth and evolution. Industry experts predict several trends that will shape the sector’s future:
Integration with mainstream healthcare: Sexual wellness is increasingly being recognized as an essential component of overall health, leading to integration with traditional healthcare services and telehealth platforms.
Personalization through technology: AI and data analytics are enabling more personalized products and services tailored to individual needs and preferences.
Expansion beyond traditional products: Companies are expanding into adjacent categories including sexual education, relationship coaching, and sexual therapy services.
Corporate wellness programs: Some companies are beginning to include sexual wellness in employee wellness programs, recognizing its impact on overall health and relationships.
The normalization of sexual wellness as a health category rather than a taboo industry represents a fundamental shift that is opening new markets and opportunities. As Monica Cepak, chief marketing officer at sexual telehealth provider Wisp, notes: “There is an appetite from the investment community to support women founders and businesses that are innovating in this space because it’s only going to continue to grow in terms of demand”¹.
For entrepreneurs and investors: The sexual wellness industry presents significant opportunities for those willing to navigate the unique challenges of marketing and distributing products in a previously stigmatized category. Success requires understanding both the regulatory landscape and the evolving consumer attitudes toward sexual health and wellness.
References
- Healthcare Brew: “Sexual wellness industry to be worth more than $80b in 5 years” (February 23, 2023)
- Persistence Market Research: “U.S. Sexual Wellness Market Size, Trends & Revenue, 2032” (January 29, 2025)
- Femtech Insider: “Sexual Wellness Company Hello Cake Raises $18M in Series B Funding and Acquires Trigg Laboratories” (October 16, 2024)
- Femtech Insider: “Sexual Wellness” category page (2024)
- Femtech Insider: “Rosy Wellness Secures $1.2M to Further Democratize Women’s Sexual Health” (May 31, 2023)
- BeautyMatter: “Sexual Wellness Capitalizes on the Path from Niche to Mainstream” (April 25, 2022)
- Persistence Market Research: “U.S. Sexual Wellness Market Size, Trends & Revenue, 2032” (January 29, 2025)
- W Magazine: “Cara Delevingne Is Now Co-Owner of a Sex Technology Brand” (November 19, 2020)
- Grand View Research: “U.S. Sexual Wellness Market Size Worth $19.9 Billion By 2030”
- Beauty Independent: “Hello Cake Secures $18M In Series B Funding And Acquires Fellow Sexual Wellness Brand Wet’s Parent Company Trigg Laboratories” (October 15, 2024)
- Femtech Insider: “Sexual Wellness” category page (2024)
- Persistence Market Research: “U.S. Sexual Wellness Market Size, Trends & Revenue, 2032” (January 29, 2025)
- Market Research Future: “Sexual Wellness Market Size, Trends, Growth Outlook 2034”
- Global Growth Insights: “Sexual Wellness Market Size, Share, and Trends Analysis 2033”
- CX Dojo: “SexTech Startups: The Current State of The Sexual Wellness Market” (May 22, 2023)
