Can vitamin subscriptions transform Asian healthcare?

We are in the middle of a personal health revolution globally, and Asia seems to be rapidly jumping on the bandwagon. Advertising billboards towering over cityscapes from Mumbai to Shanghai, and from Bangkok to Sydney, are hawking dietary supplements, which have, for a long time, been central to the pursuit of good health and preventive care.

This boom is driven predominantly by growing health awareness and increased access in terms of both affordability and availability. Between now and 2024, the industry is expected to expand at a compound annual growth rate of 8.4% to US$72.7 billion.

Photo credit: Anastasia Dulgier on Unsplash

As lifestyles have become more hectic, visits to the doctor and health centers are becoming more of a chore for many.

This creates a gap that many young, direct-to-consumer startups in Asia are looking to fill. Companies have popped up, offering subscription-based, personalized supplement delivery, which sees individuals receive their vitamins and supplements neatly packaged in daily sachets – straight at their doorsteps.

The trend may be relatively new in Asia, but some startups have pushed ahead in Western markets. Will Klippgen, managing partner of venture capital fund Cocoon Capital, says that subscription businesses that cater to ongoing needs, particularly related to health, have been successful in the more developed markets such as the US and Europe. New York-based vitamin subscription startup Care Of, for example, has raised more than US$42 million in funding since its launch in November 2016, and counts Goldman Sachs as one of its key investors.

“Personalization brings added stickiness, and as long as the products keep improving in terms of quality, price, and relevance, the customer lifetime value can be very high,” Klippgen tells Tech in Asia.

This is something that a few startups in the Asia Pacific are banking on.

One example is Australia’s Vitable. It delivers personalized vitamin and supplement packs monthly to customers after they fill up a short questionnaire on its website that takes into account health goals, lifestyle, and diet says the startup’s co-founder Ilyas Anane. The quiz results are analyzed using an algorithm that Vitable built with the help of health practitioners, nutritionists, and pharmacists.

Photo credit: Vitable

India-based Supp Nutrition works on a similar model. While it does not manufacture its own supplements like Vitable (it partners with manufacturers), it also asks customers to take a quiz on its website or directly select the supplements they want and provides them with tailored health kits.

Supp was created as a result of personal experience. “I used to have a severe backache, which I ignored for a long time until I finally went to our family doctor,” says Supp founder Sudhanshu Aggarwal. “The doctor immediately prescribed vitamin D without any test or examination.”

Aggarwal then got a blood test done and found that he, indeed, had vitamin D deficiency. And after taking the supplement for a couple of months, he could see an improvement in his backache.

Drivers of growth

Not all smooth sailing