Growing research and social media influence spark the rise of gut health startups in India.

Probiotic supplements have been around for decades. Now, Indian startups want to make gut-focused products mainstream on the back of emerging scientific data and the power of social media influence. 

If you’re craving ice cream, or perhaps something salty like wafer chips, or maybe imli toffees for a tangy kick, is it really you desiring these foods or your gut telling you what to eat? This postulation has plagued both biologists and philosophers alike. 

In essence, the gut is a being of its own. It is home to more bacteria than there are cells in the human body, and other than commanding metabolic functions, it also influences brain chemistry.

Over the last two years, a host of gut health-focused startups have emerged in India, propelled by active discussions on social media and a rising interest in the microbiome—a community of microorganisms in the gut that play a crucial role in promoting digestion, boosting immunity, and improving metabolism.

Platforms such as The Good Bug, Cosmix Wellness, and Veera Health offer products that balance the microbiome to target concerns like weight management, bloating and gas, diabetes management, and Polycystic Ovarian Syndrome (PCOS).

Investors, too, are looking at the space closely. According to data sourced by PrivateCircle, a private market intelligence platform, the top ten firms in the space—including The Good Bug, Lifechart, Leucine Rich Bio, and Peping, among others—raised upwards of Rs 43 crore in FY24 alone.

A venture capital investor, who did not want to be named, touted gut health startups as the “next big bet” for healthcare investments. “So many of them (startups) have come up in the last few years. With India’s healthtech scene presenting no significant opportunity lately, microbiome startups offer a refreshing take in a field dominated by large pharma and FMCG (fast-moving consumer goods) players,” this person said.

The Boom

Pharmaceutical companies like Sanofi, Dr Reddy’s, and NexGen have been selling prebiotic and probiotic pills and powders for more than three decades. FMCG brands such as Hindustan Unilever Limited also moved quickly to make their mark in the emerging industry by investing in Wellbeing Nutrition and Oziva last year.

“The category used to be largely prescription-driven. On the consumer front, Yakult made waves but was focused on overall well-being and contains a lot of sugar,” says Keshav Biyani, Co-founder of The Good Bug.

The pandemic played a massive role in drawing attention to preventive healthcare, with consumers eager to try options that are easily available, affordable, and showed some signs of efficacy. Several startups sprung up in its aftermath, including The Good Bug, Cosmix Wellness, Peping, and Veera Health, among others, to capitalise on the opportunity.

It also marked a pivotal shift in the sales of nutraceuticals—from being prescription-led to selling over-the-counter. Now, many startups have turned to the direct-to-consumer (D2C) route through websites and marketplaces like Amazon and Flipkart as an easier way to tap into the market. 

Instead of attempting to solve blanket issues, these startups address specific problem areas. For instance, The Good Bug’s sleep support supplement contains the Lactobacillus reuteri probiotic which assists in alleviating stress and promoting sound sleep. Meanwhile, Veera Health’s gut refresh pill contains a mix of probiotics like bifidobacterium and prebiotics like fructose-oligosaccharides aimed at replenishing good gut bacteria.

“Every body function is interdependent. We grow up treating our body as isolated parts without realising that the gut is a dealbreaker,” Vibha Harish, Founder of Bengaluru-based Cosmix Wellness, tells YourStory. 

An engineer by qualification, Harish completed multiple certifications as a herbalist before building Cosmix Wellness. The startup was featured on Shark Tank India in February and bagged a Rs 1 crore investment from Namita Thapar, CEO of multinational pharmaceutical company Emcure.

According to a survey by German plant-based functional ingredients maker Beneo in 2020, the Indian market provides a lucrative opportunity with 53% of respondents stating they faced digestive problems. India’s nutraceuticals market is expected to grow to approximately $18 billion by 2025, as per data shared by the Ministry of Food Processing Industries. 

Sourced from Yourstory