Now more than ever, the healthcare industry is under pressure and personalized nutrition might just be the key.
In its latest report, “Finding Business Success in Personalized Nutrition”, Lux Research looked into why so many high-profile companies have failed in personalized nutrition. Making their case: Habit, uBiome and Arivale. All three were backed by millions of dollars but still managed to go under.
Sara Olson, PhD, is one of the research directors at Lux Research. She joined the NutraCast to tell us more about the framework in this report that outlines how businesses can succeed.
“The four elements are product, price, people and partnerships and they’re all more less equally important. Our analysis showed that dropping the ball on even one of those four — it’s enough to derail what otherwise would be a successful case,” explained Olson.
The role of personalized nutrition in healthcare is evolving and the report suggests that in order to be successful, personalized nutrition companies will have to evolve.
“Anybody who is going to be successful is going to have to address all four of these P’s,” said Olson. “So on the product front, we really see the introduction and uptick of multi-faceted models like things that allow users to self-select to drive retention. On the price front, those have to come down. In terms of people, a lot of the folks who are going to be interested in personalized nutrition will be looking for a consumer health or a consumer wellness type of business, so you need to keep that in mind. And finally, partnerships are going to play a central role but a really different role. What we really expect to see is smaller scale pilots becoming the norm, rather than those high-profile and mega investments rounds.”
To hear more about what it takes to achieve success in personalized nutrition, listen to the NutraCast. You can also subscribe on iTunes here.
NutraCast is a podcast that focuses on insights from inside the nutrition industry. It is a production by NutraIngredients-USA. Music by Kevin Macleod.