What Does the Way forward for the Meals-As-Medication Market Look Like?

Greater than 44 million people battle meals insecurity within the U.S. As well as, about half of American adults have a preventable continual illness, and lots of are associated to poor high quality consuming patterns. Attributable to these challenges, the food-as-medicine motion has been choosing up steam, with a number of startups rising within the area and gaining funding. Between 2023 and the primary quarter of 2024, $373 million has been invested in 22 digital Health startups centered on meals as medication options, in accordance with Rock Health.

So what does the long run maintain for the food-as-medicine market? This was a subject of dialogue throughout a PitchBook webinar moderated final week by Aaron DeGagne, senior analyst of healthcare at PitchBook. DeGagne was joined by Eric Dobosh, principal of Route 66 Ventures; Josh Hix, co-founder and CEO of Season Health; and Lauren Driscoll, founder and CEO of NourishedRx.

Based on Dobosh, there’ll doubtless be some consolidation amongst food-as-medicine corporations sooner or later.

“I feel there’s going to be doubtlessly some [mergers and acquisitions] and I can see that occuring over the subsequent few years,” he mentioned. “There are bigger corporations that basically care concerning the area and wish to make investments. Particularly on this harder macro atmosphere, they’re going to spend extra time fascinated with their principal revenue heart. … I feel there might be some actually thrilling alternatives for M&A. After all, IT’s early and the markets are evolving. The general public market is chilly proper now. Hopefully that adjustments within the subsequent couple of quarters. Might we see some direct listings and IPOs within the subsequent couple of years? For certain.”

Driscoll of NourishedRx mentioned she hopes to see nearly all of payers “leaning in” to the food-as-medicine area within the subsequent 5 years, although she desires reimbursement to develop into extra simple. NourishedRx serves payers and suppliers and presents personalised meals options, comparable to grocery assist, ready meals and meal kits. IT additionally gives vitamin training and wraparound assist like serving to sufferers join the Supplemental Diet Help Program.

“As we speak, meals as medication is primarily centered — at the least when you might have payers paying you for IT — on these circumstances for which you’ll hopefully drive a return fairly rapidly, like perhaps even throughout the Health plan contract 12 months,” Driscoll said. “And so subsequently, we’re specializing in uncontrolled diabetes, coronary heart failure, kidney illness and high-risk being pregnant. IT’ll be good to see the aperture open in order that we go from uncontrolled diabetes to diabetes to pre-diabetes and throughout all of these circumstances.”

Hix of Season Health mentioned he believes Technology will doubtless enormously enhance the continual illness burden within the U.S. over the subsequent a number of years. Season Health is a digital Health firm that gives personalised meals recipes, pre-made meals, grocery assist, vitamin training and entry to dietitians. 

Nevertheless, he famous that Technology can also be the “supply of the issue” for the reason that U.S. has a a lot bigger continual illness burden at this time than IT did 100 years in the past. 

“In some ways, we’ve got performed this to ourselves,” he mentioned. “The excellent news is that we are able to undo IT. We are able to resolve IT and a part of that’s serving to to arm individuals with higher instruments. I take into consideration the trackers of the world. They could solely be in a sure section at this time, however you’re seeing the costs get decrease and the adoption get broader. … And I feel that there’s a parallel there for meals. Serving to to construct instruments or in our case constructing instruments that assist individuals navigate these environments higher has received to be an enormous a part of the reply.”

Photograph: vgajic, Getty Photos