While the concept of wellness has been around for ages, it was not until Covid when consumers really started to take health and personal well-being seriously.
The global pandemic has completely reshaped how we perceive “wellness” and recalibrated our daily routines to fit personal needs.
Lockdowns and social restrictions have broadened our definition of this term, encompassing not just fitness and nutrition but also overall physical and mental health.
Wellness Market Boom
No longer placed on the ‘luxury’ side of the consumption scale, wellness has gradually moved towards the ‘necessity’ domain, as people continue to live under a cloud of economic uncertainty and health threats.
In a survey conducted by McKinsey & Company earlier this year, 79% of the approximate 7,500 consumers surveyed in six countries said they believe wellness is important, with nearly half of the respondents considering it to be a top priority.
McKinsey’s biggest finding, though, was that consumers in every market surveyed reported a substantial increase in the prioritization of wellness over the past two to three years, implying a Covid-induced acceleration of the global wellness market.
Overall, the firm estimates that the global wellness market currently stands at more than $1.5 trillion, with annual growth of 5-10%.
The same survey also found that compared to fitness or nutrition, better health appears to be the most important wellness dimension to consumers across every market. In fact, consumers are expected to spend more on health products than they do on any other wellness category (see below).
Looking ahead, a major part of consumers’ spending focus will be on products that have physiological benefits encompassing multiple wellness categories.
Due to various socio-economic factors that led to changes in consumer lifestyle, one market sector that has garnered increased attention over the years is nutraceuticals.
Nutraceuticals are defined as food products that impact positively on an individual’s health, physical performance or state of mind, in addition to their nutrition content. To the modern consumer, they are considered to be a vital link between health and food.
A study by KPMG once predicted that nutraceuticals will play a central role in preventative healthcare, calling these products the “future of intelligent food.”
Over the years, self-care trends across the world have driven up demand for nutraceuticals including superfoods, food and dietary supplements, sports nutrition, and functional foods and beverages. Now with the Covid crisis, the industry is about to blossom.
What was estimated to be a $278.8 billion market globally in 2020 is set to grow to $441.7 billion by 2026, according to data compiled by ReportLinker. The functional foods segment alone is projected to grow at a 7.8% CAGR to reach $217.2 billion by the end of the analysis period. Functional foods are those considered to be whole, fortified or enriched.
The market is also experiencing strong demand for personalized approaches to wellness such as dietary supplements. This market segment is forecast to reach $74.8 billion by 2026, the report showed.
A separate report by consulting firm Grand View Research gave similar estimates for the global nutraceuticals market, including a projected compound annual growth rate (CAGR) of 8.9% from 2020 to 2028.
There’s also psychedelics, which emerged in some corners of the health sector as a potential treatment method for various mental health illnesses and disorders.
Psychedelics are defined as a class of psychoactive substances that produce changes in perception, mood and cognitive processes. There are many different kinds of psychedelics; some occur naturally (in trees, vines, seeds, fungi and leaves), while others are made in laboratories.
In recent years, the psychedelic wellness industry has received a much-welcomed boost as behavioral health clinicians and patients are becoming more willing to try alternative treatments, including psychedelic drugs such as ketamine, LSD and MDMA.
As such, the global psychedelic drug market is expected to grow rapidly, rising to $69 billion by 2026, according to new financial data from Research and Markets. This figure is also much higher compared with its previous estimate of $10.75 billion.
Data Bridge Market Research analyses that the market is growing at a CAGR of 13.3% from 2021 to 2028 during its early stages.
These forecast figures for various market sectors bring to light just how big the wellness industry is about to get in the coming years, especially with global health concerns continuing to invade our daily lives.
This presents tremendous opportunities for future-looking companies that are developing health products which can perfectly align with consumers’ psychological and physical needs in an ever-changing industry.
Love Pharma Inc.
One such company that we are keeping an eye on is Love Pharma Inc. (CSE: LUV) (FSE: G1Q0), whose mission is to bring to market innovative products that target mental and sexual health while improving quality of everyday life.
In particular, Love Pharma considers itself to be a “new age pharma” company; that is, a company committed to offering a fresh and trustworthy perspective to the world of pharmaceuticals. Its goal is to enhance both sides of the wellness coin by offering naturally occurring therapeutics backed by scientific research.
Since its founding in 2020, the company has been on a rapid growth trajectory, having acquired as many as six licenses to produce, market, package, sell and distribute its patent-protected therapeutic and pharmaceutical products throughout Europe and North America.
In February of that year, Love Pharma successfully closed an initial funding of $2.6 million after signing initial licensing agreements for novel products.
Two products, both scientifically proven and made with psychedelics and nutraceuticals to aid in mental and sexual health, have been launched since and are available for purchase in the US:
A third product about to launch soon is a muco-adhesive sublingual strip, for use as a psilocybin delivery system, that Love Pharma is developing with its US pharmaceutical company partner.
Having gained increased legitimacy in the field of mental health care following the FDA’s 2018 “breakthrough” designation allowing the fast-tracking of drug trials, companies like Love Pharma are developing new products that deliver accurate doses of psilocybin to the recipient.
Prominent research facilities in the US and the UK have been studying the efficacy of psilocybin in treating a number of debilitating conditions. They include a recent study at Imperial College London which found that psilocybin performed as well as Lexapro, a widely used antidepressant; and a 2020 clinical trial at Johns Hopkins University’s Center for Psychedelic & Consciousness Research that suggested psilocybin with therapy is effective in treating Major Depressive Disorder (MDD).
At Johns Hopkins, research has already demonstrated the therapeutic effects of psilocybin in people dealing with addictions, stress caused by life-threatening diseases, and treatment-resistant depression.
Johns Hopkins is currently studying the effectiveness of psilocybin as a therapy for opioid addiction, Alzheimer’s disease, post-traumatic stress disorder (PTSD), post-treatment Lyme disease syndrome, anorexia nervosa and alcohol use in people with major depression.
“Considering the incredible advancement of psychedelics (most notably, psilocybin) in the health and wellness market, LOVE Pharma’s excitement about partnering with a US-based pharmaceutical company —developing the technology behind this muco-adhesive strip as a delivery system for psilocybin — is palpable. We recognize the need for discreet, consumer-friendly applications, and with its delivery of consistent dosing, this sublingual strip hits all the marks,” said LOVE Pharma COO Joshua Maurice in the Oct. 20 news release.
To provide the best quality on the market, Love Pharma has integrated as much clinical data and research as possible into its product development.
Auralief is supported by a recent human trial that demonstrated a greater than 30% increase in efficacy and speed to performance of THC and CBD.
BLOOM is also clinically proven to increase the number, intensity, and speed to orgasm for women. 98% of women reported an overall improvement in sexual experience.
Another product currently under development is the FSD supplement, which is backed by a clinical trial demonstrating an overall reported increase in desire, satisfaction and orgasm within women and is clinically proven to increase sexual satisfaction by 25%.
FSD, along with other products such as the psilocybin-infused oral strip, are expected to hit the markets very soon, further bolstering the Love Pharma product line.
Due to growing market demand, the company is forecasting a “healthy” revenue boost from its existing and future products.
The CBD mucoadhesive strip product itself is expected to reach upwards of $30 million in sales over the next three years, and the imminent launch of the psychedelic psilocybin strip would add another $20 million over that period.
Other “coming soon” products like the male enhancement gel and the ToConcieve gel have sales projections of $50 million and $7.5 million, respectively. Overall, Love Pharma’s arousal gel patented technology is estimated at a value of $150 million.
For Love Pharma, the ultimate goal is to establish itself among the top companies in the global health and wellness market. Comparables include:
Given its strong lineup of proven products, technologies and established sales performance, combined with significant near and medium-term growth catalysts (i.e. 7.2% CAGR in nutraceuticals over the next 10 years), Love Pharma could be well on its way towards market leader status.
The company is led by an experienced and specialized team with backgrounds in pharmaceuticals, nutraceuticals, capital markets and global distribution:
Love Pharma’s growth outlook is particularly bright considering CEO Stadnyk’s track record in funding public companies with a similar business model in the past. Past success stories are detailed below:
Seeing the successful growth of these companies, Love Pharma’s current share price of $0.06 (market cap of $18.9 million) represents a low-risk, high-reward entry point for investors that are bullish on this market space.
Soon after its initial listing on the Canadian Securities Exchange in September, the company was quickly able to secure its second listing on the Frankfurt Stock Exchange, greatly expanding its market reach.
“Becoming listed on the Frankfurt Stock Exchange is an important milestone for the company and one we have been focused on achieving; this will provide investors with immediate access to trading in the company’s common shares,” CEO and director Zachary Stadnyk commented in the October 12 news release.
As quoted in the McKinsey report, there is “a rise in both consumer interest and purchasing power presents tremendous opportunities for companies, particularly as spending on personal wellness rebounds after stagnating or even declining during the Covid-19 crisis.”
For a future-looking company offering innovative products through disruptive technologies, Love Pharma is on the verge of seeing its revenues explode as it continues to stay one step ahead of the biggest consumer trends.
Furthermore, the global market for its products is still considered to be in the early stages, with the psychedelic drug industry alone set to double from a $3.8 billion value last year to $7.58 billion by 2026.
At AOTH, we are very intrigued by Love Pharma and what it has in store in the future. The company is continuously growing its portfolio, with more product launches to be announced soon. It is also seeking mergers and acquisitions to expand further.
Love Pharma Inc.
CSE: LUV; FSE: G1Q0
Shares Outstanding 312.17m
Market cap Cdn$18.9m
Richard (Rick) Mills
subscribe to my free newsletter
Legal Notice / Disclaimer
Ahead of the Herd newsletter, aheadoftheherd.com, hereafter known as AOTH.
Please read the entire Disclaimer carefully before you use this website or read the newsletter. If you do not agree to all the AOTH/Richard Mills Disclaimer, do not access/read this website/newsletter/article, or any of its pages. By reading/using this AOTH/Richard Mills website/newsletter/article, and whether you actually read this Disclaimer, you are deemed to have accepted it.
Any AOTH/Richard Mills document is not, and should not be, construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment.
AOTH/Richard Mills has based this document on information obtained from sources he believes to be reliable, but which has not been independently verified.
AOTH/Richard Mills makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness.
Expressions of opinion are those of AOTH/Richard Mills only and are subject to change without notice.
AOTH/Richard Mills assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this Report and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission.
Furthermore, AOTH/Richard Mills assumes no liability for any direct or indirect loss or damage for lost profit, which you may incur as a result of the use and existence of the information provided within this AOTH/Richard Mills Report.
You agree that by reading AOTH/Richard Mills articles, you are acting at your OWN RISK. In no event should AOTH/Richard Mills liable for any direct or indirect trading losses caused by any information contained in AOTH/Richard Mills articles. Information in AOTH/Richard Mills articles is not an offer to sell or a solicitation of an offer to buy any security. AOTH/Richard Mills is not suggesting the transacting of any financial instruments.
Our publications are not a recommendation to buy or sell a security – no information posted on this site is to be considered investment advice or a recommendation to do anything involving finance or money aside from performing your own due diligence and consulting with your personal registered broker/financial advisor.
AOTH/Richard Mills recommends that before investing in any securities, you consult with a professional financial planner or advisor, and that you should conduct a complete and independent investigation before investing in any security after prudent consideration of all pertinent risks. Ahead of the Herd is not a registered broker, dealer, analyst, or advisor. We hold no investment licenses and may not sell, offer to sell, or offer to buy any security.
Richard owns shares of Love Pharma Inc. (CSE: LUV). LUV is a paid advertiser on his site aheadoftheherd.com.