Personalized health surging driving factors

Personalized healthService mode has been on the rise, the model is based on scientific data, to comply with the individual health needs solutions to replace the current "one size fits all" mode.Thanks to recent advances in technology and research breakthroughs, consumers face more tailored health service selection, to cultivate a healthier lifestyle.As the innovative health solutions, a growing number of consumers and investors also begin to pay close attention to this field.

This heralds a personalized health field in the future there is still considerable room for growth.Perspective of the current leader, L.E.K. solution for personalized health market pattern are analyzed, and the key factor of affecting market prospects were studied.

Ecological industry is widening

Nutrition, health and weight management, and personal care and other fields have different degree of personalized health solutions (figure 1).

Here are some details of the brand.

NoomFounded in 2008) is a subscription-based service behavior of health management application, to help consumers lose weight, improve sleep and relieve stress.The application can provide consumers with targeted health advice, and help them to record the progress of personal health goals.

Care/of(founded in 2016) is a subscription-based service application, acquired in 2020 by bayer, the application is designed to according to consumer's health goal and way of life for its tailored nutritional supplements.Consumers can also get personalized guidance by application and record their own schedule.

ZOE(founded in 2019) is committed to personalized nutrition solutions for consumers.ZOE能够为消费者提供个性化的健康洞察报告，即根据用户的生理特征量身定制每周的营养计划。该应用程序可提供订阅服务，为用户提供餐食反馈和营养指导。

Olay and Pantene Boosters(launched in 2022) is produced by procter & gamble and wal-martA series of personal care brand enhancer, the strengthening agent formula is for different hair and skin problems and demand preference design.

LemonBox(founded in 2017) is an algorithm of data driven customization vitamin brand, through the establishment of large nutrition knowledge map, and then based on the questionnaire information, AI algorithms to match users recommend individualized nutritional supplements.

In addition to providing personalized consulting, brand is in the field of health through a variety of methods to collect necessary data, to develop the personalized health solutions (figure 2).Care/of, for example, an online questionnaire survey to collect consumer data;ZOE通过收集消费者的居家生物标志物测试结果获取数据；数字健康公司Levels通过消费者佩戴的传感器设备收集数据；补充剂生产商Rootine则通过消费者提交的生物样本的DNA测试收集数据。

Changes in consumer awareness

Before 2020, the consumer perception of personalized health solutions is relatively low.But as the new epidemic outbreaks, people are paying more attention to self care, consumers personalized health consciousness and interest more and more high.

Personalized nutrition program, for example, received a good promotion.According to theA survey of 2021 L.E.K., before the outbreak, only 39% of U.S. consumers know personalized nutrition services, and the service not to rise to 53% after the outbreak, this is a big improvement, and there is still room to improve future (figure 3).This trend is especially significant in China.

The study also found that 40% of consumers, including 55% of 25 to 44, consumers, based on the technology of personalized interested in nutrient solution.

Investment and merger and acquisition activity reflects consumer demand for personalized health for a long time

Investors are trying to seize tuyere and personalized health industry.Recently, a lot of leading consumer goods companies have invested personalized health brand, this shows that the large consumer brand groups interested in entering this market, but also showed the expansion of the market potential (figure 4).However, personalized investment is not the only active in the field of nutrition, the Function of Beauty, a custom shampoo and conditioner manufacturers, from New York in 2021 Atolla, since then started to enter the personalized skin care market, Atolla can according to the type of skin test results by the consumers at home for their customized product formula.

Increase in the market for personalized health spending

Who want to grasp the market opportunity, personalized health companies, the industry dynamics are to contain the development opportunity.However, enterprise decision-makers should from which aspects?

Understand the data:When evaluating potential investment or acquisition targets, to understand how a company to get the data, the cost of extracting the data and the use of artificial intelligence (AI) for data analysis ability is very important.Companies need sufficient data to make artificial intelligence produce meaningful insight into the results.Method to get the data, however, is different, the cost and the accuracy of the data obtained will also vary, this may affect the profitability of the brand.

The deepening niche:Targeted personalized health solutions may has higher consumer participation (brain health and women's health, for example), the consumer more participation means that the customer stickiness and lifetime value higher, pushing to make a profit.

Improving effectiveness:Establish healthy mechanism of feedback loops (for example, blood reiteration, records and assessment of health), to help consumers to form a long-term behavior change, improving customer retention rates and overall profitability.

Many evidence that Chinese consumers to an increasing interest in personal health, which laid the groundwork for market growth.Investors need to be a critical first step is to look for potential targets, and use the internal and external resources for the key areas (for example, data strategy, target consumers and profitability) due diligence.

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