In the last two years Comorbidities, immune boosters, When supplement It is a family term. The COVID-19 pandemic has changed lives in many ways, and our focus on health is one of them.
Startup spaces are focused on change, and D2C (direct-to-consumer) nutrition startups that cater to the needs of both children and adults are in the spotlight.
“Today’s nutrition is understood differently than it was yesterday. We are a country that has generally believed in natural nutrition and supplementation is not so well recognized. For example, the United States is very supplementary. Corresponding market. When nutrition comes in today’s form, people are ready because we are talking Natural nutrition coming out of our diet.. As a result, the market is showing signs of boom, “says Harish Bijoor, Brand Strategy Specialist at Harish Bijoor Consultants. Your story..
Changes were seen in the dietary supplement space Consumer behavior and demographics..
“”Formerly a fitness enthusiast market, it is now an active health-conscious market... More consumers are taking care of their bodies and are actively increasing their consumption in this category, “explains Stellaris partner Rahul Chowdhri.
India’s dietary supplement market is expected to grow from estimates $ 4 billion to $ 18 billion by the end of 2025.. The dietary supplement segment accounts for more than 65% of the dietary supplement market and is growing at a rate of 17%, at 22% per year, especially if the current pandemic and preventive health are the focus of all. 2020 states that it is likely to grow.Report by Bureau of Foreign Trade..
India’s dietary supplement industry is expected to account for at least 3.5% of the global market share by 2023.
New brands and markets
Another important reason for Rise of dietary supplement start-ups in IndiaRahul is the emergence of online brands in new categories and formats.
Existing brands did not have the following formats Powders, liquids, tablets, gummies, melt strips, And so on. Similarly, to meet the demand for such products, there is the emergence of brands with natural, Ayurvedic, and plant-based product lines.
But this is not a new concept. Brands like the Himalayas that are also involved in this area have been around for quite some time. However, nutrition and dietary supplement start-ups received a great deal of investor attention in 2020 and 2021. Many of these companies were founded in 2015 and 2016, but many have secured funding only recently.
According to the data by Of the top 50 startups in the segment 20 was funded in 2020 and 2021..
“What I found really interesting in this market is that India’s protein deficiency is incredibly high, huge and widespread. Something like that. 70% of urban population, adults and children are deficient in protein And this type of protein deficiency has a significant impact on subsequent physical and even mental growth, especially in the development of children, “said Kathy Guo, manager of Antler’s investment and portfolio. increase.
“This kind of common protein Lack of diet in India offers great opportunities“Kathy adds.
Space is also booming Increasing penetration of modern retail formats Includes hypermarkets and supermarkets, D2C and e-commerce channels. The number of non-food retailers, such as drug stores, mass retailers, and retail chains, is also increasing.
Supplement category.
Diversification
The D2C nutrition market, which includes products that are essential supplements for human nutrition, is also driving the growth of two adjacent markets. Health food market and beauty products segment..
The health food market has the following brands: Mumbai base Jaipur base Mumbai-based The Green Snack Co, Delhi-based Lucknow base And Neuda Base Above all.
“The offer here is to introduce you to existing products. Mainstream diet (breakfast-lunch-light meal-dinner cycle).. It’s a much bigger market, but it’s more crowded, “says Stellaris Raffle.
Similarly, D2C nutrient startups When We are diversifying to provide beauty products. The beauty products industry has already seen trends in conscious purchases, vegan beauty and sustainability.
“Both good looks and food are very important needs, and brands want to diversify the issues they address,” says Kathy.
“This is also High revenue per userBecause in the D2C space, if you can get one user digitally and sell your product under the same brand, or even a brand strategy home, that clearly means an increase in economics. “
Legacy brand
The dietary supplement market is also seeing participation from legacy FMCG companies — Unilever, Dabur, Nestle – Launched a range of foods and beverages that are healthy alternatives to existing products.
But Cathy says legacy companies are still lagging behind. The pace of innovation is different.
She says, “They are very offline. They suddenly don’t have the DNA or understanding that works like the D2C brand. We are riding the digital transformation of society and this consumer is on YouTube, Instagram, Meta (formerly). Facebook), Tik-Tok. “
The problem of large FMCG companies is also a long-term process that must be followed in order to address the problem for innovation.
Ankit Chona, co-founder and MD Explains that the strength of startups is that they can revise their products frequently and quickly. This is its core product. However, if you are a legacy company, you may be just one of many in the catalog.
Future outlook
“The problem of the universe is Lack of product differentiationThese are products, not brands. Early adopters of the D2C format will work very well and will work very well in the early days, but once these dietary supplements become known, the market will return to ideal competition. ” Harish says.
“So the need for that moment is differentiation. The entire process of branding and ensuring brand visibility.. “
When you enter the post-pandemic world, Crowded D2C nutrition startup space.. However, entrepreneurs and investors in this area agree that the demand for dietary supplements and healthy foods and beverages will continue.
“Consumers knock out brands that remain nearby Preservatives, trans fats, or excessive levels of processed sugars.. At the same time, as adults switch to a cleaner lifestyle, the choice of healthier and child-friendly snacks is expected to skyrocket, ”says Phab’s Ankit.
..
