I recently came across a Inc.com article by Leonard Kim that peaked my interest. He stated that 2 business trends that will be on the rise in 2017 are more green products and how to obtain them, and better tools for tracking fitness.
Looking further into these 2 two trends as well as the increase in global awareness as to what we are putting into our bodies, there has never been a better opportunity for startups to make a dent in the health industry.
While some may think that the health related startup market is a stagnant market, I completely disagree. I’m calling it right now, in 2017 we will see the greatest number of startups tackling health problems than ever before.
Here are a few reasons why:
1. Using Natural Products Has Become Trendy
In places like San Francisco and Austin, there are huge communities of nature lovers building amazing businesses based off using natural ingredients. Everything from organic food delivery, to plant based groups are forming. In 2017, expect this to reach the entire United States and beyond.
As more and more people become health conscious, the idea that only “hippies” care about the quality and sustainability of their food sources is rubbish. Now, being conscious about the environment and the source of what we put into our bodies has become the “in” thing to support.
In addition to the popularity rising, we’ve learned to use natural products in ways we never thought possible. Eggs can be used to make your hair grow longer (remember when eggs were the bad guy?), coconut oil can be used for your skin, and the garra rufa fish can clean your feet (seriously, I couldn’t make this up).
My prediction is that more startups in 2017 will learn to make millions of dollars finding interesting ways to use natural products, and, again I say, the market has never been bigger for it.
2. More Affluent Consumers Looking To Get In Better Shape Is Increasing
Thanks to FitBit and the Apple Watch, tracking steps and calories has become common. Knowing your calories burned leads you to wonder how many calories you’re eating (hello Myfitnesspal), and that will lead you to finding out which workouts programs will burn the most calories.
The customers who live this lifestyle are a great market for fitness based startups looking for early adopters. When people start tracking their calories in and out, while also monitoring the intensity of their workouts, it’s fair to say they’re committed. Upselling these customers on new services is much easier, and many startups have already started to make millions by finding a touchpoint with these (already sold on the idea) fans.
A couple of examples we’ve seen this past year are organic food delivery companies like Sprig, as well as hardcore workout programs such as crossfit. These companies fill major voids in consumers who have disposable income but want to outsource some part of their health regimen.
This next year, expect to see a huge amount of companies looking to make getting a workout in and eating right much easier. Along with the companies I expect the consumer market for these services to sky rocket as well.
3. We Are Slowly Becoming More Informed
When you get a second, tune in to the documentary section of Netflix and look for a food related film. You will be astonished by how many pieces of work have been dedicated to uncovering the lies we’ve been told about food.
Over the years, society has come to question more and more whether the healthy labels on the food we buy is legitimate or influenced by money. With this skepticism has also come the increasing need for companies to become more transparent about the ingredients in their food and how the operations behind the company work.
In the next year, startups will look for innovative ways to give consumers the ability to peak behind the curtains for many of the foods they are consuming. Whether it is through analytics, increased health guidelines, or partnering with organic food suppliers, startups in the food space have a major advantage over the old industry leaders.
New food startups coming to market will need to concentrate on jumping on the trend of using local ingredients, sharing their preparation process, and moving to an openly sustainable food process.
As this trend becomes more well known, look for the number of companies taking advantage of this market trend to increase greatly.