Women’s health and hormonal health driving interest and growth in vitamins, minerals and supplements sector - new report
NYC-based VC firm XRC Ventures deep dives into the $60billion vitamins, minerals and supplements market
Interest and awareness in women’s health and hormonal health is driving a growth in the vitamins, minerals and supplements sector, according to a new report from NYC-based VC firm XRC Ventures.
The Consumer VC Benchmark report on the Health & Wellness industry is a deep dive into key investment themes and growth opportunities in the estimated $60billion vitamins, minerals and supplements market.
It identifies a growing number of startups emerging in the women’s health, hormonal health and wellness space - addressing continued consumer demand for relief from period pain, alternatives to birth control, support for fertility or products to help with menopause.
Bonafide (acquired by Pharmavite for $425m in 2023), Perelel, Resist and Sabi are all identified in the report as part of this movement.
XRC Ventures General Partner Diana Melencio explains that several factors are driving this growth:
General interest in health and well-being, accelerated by COVID
Women wanting to be more informed, and lowering stigma around discussing hormonal health: menopause, perimenopause, PCOS and others.
Growing awareness of hormonal health and impact on appearance - estrogen levels, for example have a direct link to skin health, skin dryness, and elasticity.
Diana is also bullish on further growth in the sector. She said:
“Investors have been talking about menopause for some time and have made investments in this category, but it is still a space ripe for opportunity, given no brand has really broken through and become synonymous with symptoms women treat: incontinence is still associated with Depend® US, and there are a myriad of solutions for side effects such as hot flashes, vaginal dryness, hair loss, etc.
“PCOS is another area to watch, and we're tracking some early-stage brands in this area.”
Health and wellness are the new wealth
The growth in hormonal health and women’s health is bolstered by an overall health and wellness trend too.
The report highlights that health and wellness is now seen as ‘the new wealth’, with ‘wellbeing’ as the number one indicator for Americans of what it means to be wealthy, with 82% of US consumers considering wellness a top priority.
While VMS sales boomed during the pandemic as consumers invested in health there was a hard landing 2022 and then sales normalised in 2023. Growth is expected to continue in 2024 driven by both dollars and units.
Because VMS is a crowded space, differentiation is key in order to maximise opportunity. Nevertheless, XRC data estimates that c.80% of investors plan to invest the same or more in 2024 relative to 2023. The most important attributes they will look for is clinical studies and strength of brand.
2024 trends in VMS and the role of the female consumer
The report highlights 8 key trends in VMS for 2024:
Ozempic and weight loss
Nootropics, adaptopgens and mushrooms
Women’s health and hormonal health
Longevity: increasing your healthspan to live better, longer
New non-pill form factors (i.e gummies, mints, patches)
Mood VMS and mental health
Performance nutrition and hydration
Ingestibles: beauty from the inside-out
Given women drive over 70-80% of all purchase decisions in the home, the female consumer is likely to drive growth in all of the above trends too.
In particular, XRC sees continued interest from women in weight loss and inside-out beauty:
“We believe GLP-1 and Ozempic-like supplements, as well as supplements to address the side effects of these weight loss drugs, will continue to be of interest and only grow as insurance starts to provide coverage and more people have access to this drug.
“In a poll from the nonpartisan health policy research group KFF, 51% of women said they were very or somewhat interested in taking these drugs, compared with 38% of men. That poll was taken last year, and the interest and google searches on GLP-1s and the like have only increased - as will the brands seeking to provide natural non-Rx alternatives and those treating the side effects, such as nutrient deficiencies from lower intake of food.
“Similarly, we see some uptick in inside-out beauty, for example supplements that claim to grow hair (Nutrafol), reduce fine lines through collagen growth (Vital Proteins), and Prebiotics and Postbiotics that claim to improve skin (Seed, Hum). The former two brands have been snapped up by the big two acquirers in the VMS category, Unilever and Nestle, respectively.
“That said, the brand-space is crowded and highly competitive. We are monitoring if there are additional early-stage opportunities to invest.