New Delhi, 24th Feb 2020: Increasing demand for probiotic food and cosmetics is opening vistas for many young entrepreneurs in the growing startup ecosystem of India. Influenced by recent researches which claim that probiotic microorganisms are good for gut and skin, a large group of health freaks in urban areas are switching to probiotic food and cosmetic products and their growing demand is giving birth to some really innovative startups.
At 7.3 per cent CAGR, the global probiotics market is expected to reach USD 74.69 billion by 2025. And, being the 3rd largest market in the Asia-Pacific region, India is offering a promising future to startups trying their luck in this emerging segment. As it is the dream of Prime Minister Narendra Modi to project India as a Global Startup Hub, the Government is taking adequate steps to promote new ventures in probiotics. So far, 35 Bioincubators of world-class facilities have been set up in various parts of the country.
Although there are many foreign and domestic brands are already enjoying a trailblazing performance in the lucrative probiotic market of India, last year, 87 startups and entrepreneurs are supported by the Government. Earlier, the market has been divided into three major segments: Probiotic functional food and beverages; Probiotic drugs and dietary supplements; and Probiotic animal feed. Lately, beauty & cosmetics also becomes a prominent category in this realm.
According to Risers Accelerator — a conglomerate of 35 individuals based out of Delhi promoting start-ups with good business potential — the applications for investment in probiotic startups have grown manifold. Last year, 22 probiotic startups were enrolled at Risers Accelerator. Cosmeto Food Organic Pvt Ltd was amongst the probiotic startups that also raised funds. Looking at the scope and the way plan of Cosmeto, Risers Accelerator has funded Rs 4 crore for to this growing startup which provides taste-able and authentic Ayurvedic organic handmade skincare products.
Sharing his view on how potential is probiotic for startups, Mr. Rachit Chawla, Director, Finance and Technology, Risers Accelerator, said, “Creating market for products a company wants to launch is the toughest challenge for an entrepreneur, but if the market is full of untapped potential, it is easy to hit the jackpot. People are already aware of the benefits of probiotics; now, it is the turn of brands to improve their access and convert prospects into customers.”
“We are not restricting ourselves to any particular industry or sector, but we want to accelerate start-ups that have good business potential. The core philosophy is to give a helping hand to entrepreneurs who have bright ideas and vision to foresee present and future opportunities. If these start-ups are promoted, they will generate employment that will help the economy grow,” Chawla further added.
