For decades, venture capital chased the next tech innovation or disruptive platform. Today, a new wellness sector is garnering attention: the intersection of food and medicine. This “food-as-medicine” movement is reimagining what it means to be “healthy,” and venture investors’ palates are lathering at the prospect of savory returns. However, deploying venture capital to drive investor prosperity isn’t enough. We must take the opportunity to truly drive social impact by making nurturing meals the expectation, not the exception.
The global food-as-medicine market is projected to reach a staggering $35.26 billion by 2030 according to Prophecy Market Insights. This surge is mainly driven by the obesity epidemic; rising healthcare costs; increased awareness of the gut-brain connection; and a growing demand for personalized, preventive healthcare solutions. As the market for healthcare and wellness has grown, investors are pouring millions into startups developing innovative food-based solutions for chronic diseases, weight management, mental health and overall wellness.
Food-as-medicine startups are not just selling healthy snacks. They are employing advanced science and technology to create personalized dietary programs, functional foods and targeted nutrition interventions that address specific health concerns. Some examples are:
- Season Health: Offers medically tailored meal plans and coaching for individuals with chronic conditions like diabetes and heart disease.
- Faeth Therapeutics: Develops clinically validated, food-based interventions designed to improve patient outcomes in areas like oncology and autoimmune diseases.
- Project Well: Delivers personalized meal kits to individuals with dietary restrictions and chronic diseases, ensuring access to nutritious and delicious food.
- Sunbasket: A healthy meal delivery service offering fresh, seasonal ingredients and easy recipes delivered weekly.
Startups in the nutritional food space are gaining increased traction as the market grows around 10% year over year. “Food as medicine” has seen development in proven efficacy, cost-effectiveness and scalability. The saying, “You cannot outrun an unhealthy diet,” holds true with the increasing clinical evidence demonstrating that food choices can prevent, manage and even reverse chronic disease.
For many, however, healthy food remains unaffordable. The food-as-medicine movement is grounded in the fact that proper food and nutrition is a form of prevention. A study published in the American Journal of Preventive Medicine estimated that increased consumption of fruits and vegetables could save the U.S. healthcare system billions of dollars annually by preventing chronic diseases. Additionally, healthy food’s potential to prevent or manage chronic conditions, improve mental well-being, and offer cost savings is undeniable. Thankfully, the implementation of technology has broadened the scope and allowed a larger population to be reached.
Looking ahead, the food-as-medicine landscape is expected to see significant growth in the following areas:
- Precision nutrition: Tailoring dietary interventions to individual genetic profiles and gut microbiomes.
- AI-powered recommendations: Utilizing artificial intelligence to create personalized meal plans and predict health outcomes.
- Food delivery and subscription services: Expanding access to convenient and affordable food-as-medicine options.
Some investors are now betting big on food-as-medicine because they believe it has the potential to revolutionize healthcare and create a healthier, more sustainable future. This trend represents a shift from treating sickness to preventing it, and it’s a shift that could have profound implications for individuals, healthcare systems and the entire food industry.
While the food-as-medicine movement holds immense promise for improving individual health and reducing healthcare costs, it’s crucial to address the issue of food insecurity that continues to plague millions. Access to nutritious food should not be a privilege reserved for a select few. VCs, food-as-medicine startups, insurance companies and policy makers have the opportunity to play a critical role in tackling food insecurity by:
- Investing in initiatives that address food deserts and increase access to healthy food options in underserved communities.
- Developing affordable, nutritious food products that are accessible to all socioeconomic backgrounds.
- Modifying tax-exempt and tax-subsidized funding models to permit and even incentivize healthy food and nutritional selections.
- Partnering with community organizations, leaders from underprivileged groups and other ecosystem participants to build a more equitable and sustainable food system.
By working together to enable affordable access to the nourishing food for everyone, we can build a future where healthy food for all isn’t medicine, it’s the status quo. Many venture investors have leapt onto the “impact” bandwagon while doing little to drive social change. The food-as-medicine movement is an area where positive social impact, investors’ returns and sound public policy can all align. It’s not just a promising investment opportunity, it’s a chance to participate in a paradigm shift that promises to redefine our approach to health and well-being for generations to come.
Dean Newton is chairman of Relevance Ventures, based in Nashville, Tennessee. The first Native-owned independent venture capital firm in the United States, the firm focuses on the Health & Wellness sector. Newton is a graduate of Harvard University (B.A. and J.D. degrees), a member of the Patawomeck Tribe, chairman of the Native American Capital and Investment Alliance, and an avid dog lover.
Did You Know: Food deserts can make it difficult for residents to find fresh fruits, vegetables and other healthy staples. According to a 2019 simulation study of Medicare and Medicaid recipients, providing just a 30% subsidy on fruits and vegetables could prevent nearly 2 million cardiovascular events and save almost $40 million in annual healthcare costs.
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