StartupTalky

Tag: 🔍Insights

  • Is the D2C Craze Getting Over

    A recent poll by MMA India and Publicis Commerce found that 63 percent of direct-to-consumer (D2C) enterprises are not profitable at all, and 80 percent have not yet achieved profitability. Twelve percent of Direct-to-Consumer businesses have declared profitability, according to the survey on March 6, 2024. Twenty-five percent of those same enterprises claimed they don’t track profits since they’re part of bigger ecosystems. Businesses and customers alike have taken notice of the Direct-to-Consumer (D2C) model in recent years due to the improved convenience and individualization it promises in online purchasing. As conventional retail outlets were forced to close or experience significant interruptions due to the COVID-19 pandemic, Direct-to-Consumer brands unexpectedly benefited. New data, however, cast doubt on the viability of the once-booming Direct-to-Consumer market.

    People began spending more time online to purchase and have their customized goods delivered to their doorstep after the COVID-19 pandemic hit. This marked the beginning of the rise of the D2C market. During that time, Direct-to-Consumer enterprises seemed to be having a blast. They provided user-friendly digital platforms and encouraged direct communication with customers. There was a spike in demand for D2C products as a result of consumers going online to fulfill all of their purchasing needs during the nationwide lockdown.

    In addition, Direct-to-Consumer businesses fostered client engagement and loyalty via individualized service, tailored products, and focused marketing. New evidence reveals that Direct-to-Consumer businesses may not have been as successful as expected, even though the pandemic presented a fantastic opportunity for them to solidify their position in the market.

    Greater Rivalry
    Cost Plays a Crucial Factor
    Minimal Means of Distribution
    The Way to Renovate and Recreate

    Greater Rivalry

    A growing number of D2C brands have emerged in the past few years. The result is a saturated market where new players are finding it tough to carve out a niche for themselves. The proliferation of products and services available to consumers has made it more challenging for upstart businesses to win their trust and business. A pricing war has ensued as a result, making it more difficult for upstart brands to compete with more established ones that can take advantage of economies of scale.

    Total Addressable Direct-To-Consumer (D2C) Market in India From 2015 to 2025
    Total Addressable Direct-To-Consumer (D2C) Market in India From 2015 to 2025

    Cost Plays a Crucial Factor

    The rising cost of acquiring new customers has made it more challenging for D2C firms to do so affordably in recent years. Brands have to spend more money on ads to stand out from the crowd when the competition heats up. This can be particularly challenging for up-and-coming firms without the resources to compete with more well-known names in the industry.

    Brands now pour a lot of money into marketing and advertising to attract new customers. Many Direct-to-Consumer firms are new and have little marketing budgets, so they have a hard time getting their names out there and reaching people through paid advertising. To combat the high cost of acquiring customers, Direct-to-Consumer firms should prioritize increasing brand recognition through organic marketing channels, influencer marketing, and content marketing. To reach their target market, brands need to establish a distinct visual identity, craft a compelling brand story, and use social media to communicate with consumers. A great way to increase exposure and fuel expansion is to cultivate a group of dedicated consumers who will go out of their way to promote your business.

    Due to their smaller product catalogs, Direct-to-Consumer firms can increase their exposure and attract more customers by teaming up with similar brands. To further broaden their consumer base, businesses can investigate other distribution methods like online marketplaces or pop-up stores. If they could be more adaptable, they could better respond to shifting market conditions and discover unanticipated opportunities for growth.

    Minimal Means of Distribution

    Brands that sell directly to consumers may have a smaller audience since they distribute their products through their channels. Many brands have a hard time growing their consumer base, in contrast to the few that have become industry leaders. Particularly for firms dependent on niche markets, which could be tough to expand into, this might be a significant obstacle.

    When it comes to general trade in India, distribution is not as straightforward as simply putting a product out there and hoping for the best. Many years have been spent by businesses on the development of their distribution systems, which have become sources of competitive advantage for the major players in the industry.

    The Way to Renovate and Recreate

    Despite the difficulties, the direct-to-consumer approach is not even close to being extinct. To overcome the challenges that direct-to-consumer firms are currently facing, they need to innovate and adapt. Putting money into a process that is completely seamless in functioning is one possible technique. There is a lack of clear strategies among brands, which may be the reason why they are unable to effectively control their costs at present.

    D2C brands ought to place more emphasis on product quality. It is also possible that a major cause of a brand’s collapse is the poor quality of the product, which does not meet the buyer’s expectations.

    Top 20 D2C Startups in India to watch out for in 2022
    D2C industry is one of the leading and successful industries in India. So, Here’s a list of some of the top d2c brands in India.
    StartupTalkyPratyusha Srivastava

  • Multivitamin Gummies Spreading Its Consumer Nexus in India

    The once-commonplace multivitamin pills and capsules have been mostly replaced as the preferred oral supplement by gummies. Sugar, maize starch, gelatin, and water are the usual ingredients in these sweets, which are available in a rainbow of flavors and shapes, not to mention attractive packaging decorated with artificial colors. Vitamin gummy sales in India reached INR 76.37 crores in 2023. The market is anticipated to reach a value of INR 867.72 crores by 2032, expanding at a CAGR of 31% from 2024 to 2032, propelled by the growing awareness of the significance of ingesting sufficient nutrition. Most individuals have heard great things about how helpful they are, even though not many specialists suggest them. Nutritionists advise accumulating long-term research data before commercializing these supplements for ingestion.
    Like other supplements, gummy vitamins can provide essential minerals. However, due to variables such as formulation, chemicals, and individual requirements, experts are skeptical of the effectiveness of gummy vitamins.

    Is It True That Vitamin Gummies Work?
    COVID-19 Opened the Gates of Market
    Way Forward

    Is It True That Vitamin Gummies Work?

    Gummy vitamins initially gained popularity among kids because of their delicious flavor, but today people of all ages love them. Can we state with confidence that they are effective and safe to use?

    When compared to more traditional supplement options, gummy vitamins provide numerous advantages, such as improved palatability and rapid absorption. Patients who dislike the texture, size, taste, or smell of their medications are less likely to take them as prescribed with their help. Pill weariness, which is prevalent among those who have difficulty taking other kinds of tablets, is another reason why people are turning to gummies. Gummies are convenient and adaptable since they can be eaten anytime and anywhere the user pleases. They offer a lighthearted way to combat health issues and can be adjusted to suit various age groups. Because they include a variety of minerals and vitamins, gummies are a fantastic method to avoid vitamin deficiencies and promote healthy physical functions. Still, read the ingredients and consult your physician before settling on a brand.

    As an example, “In India, sales of gummy vitamins have skyrocketed throughout the past two years,” said Jagadish Jain of Nutrazee in Hyderabad, expanding on that idea somewhat.

    Since there weren’t many options for gummy vitamins and most of them fell short of customers’ expectations, we decided to fill that need in 2018 by releasing Nutrazee Multivitamin Gummies. Several nutraceutical firms took note of our product after watching its success. Gummies seem to be a product line for almost every nutraceutical company these days.

    Our bodies require at least fifteen minerals and thirteen essential vitamins (including all B vitamins) to carry out a broad variety of functions, including development, growth, immunity, and reproduction. Our bodies depend on specific minerals and vitamins for healthy biological function. Healthy bones, teeth, eyes, immune systems, and muscles can be supported by a variety of nutrients, some of which can be supplied by gummy vitamins together with antioxidants and other health benefits. However, the quality of each product varies; so, it is essential to consult your physician and read product labels before settling on a solution.

    Total Dietary Supplements Market Size Worldwide from 2018 to 2028
    Total Dietary Supplements Market Size Worldwide from 2018 to 2028

    COVID-19 Opened the Gates of Market

    The global spread of the COVID-19 pandemic has prompted people to be more cautious and seek out healthier alternatives. Now that they have a better understanding of the need for a balanced diet and lifestyle, they are more health conscious. However, it’s possible that the food they eat won’t always provide them with all the vitamins they require. In this respect, supplements are helpful.

    Supplemental vitamins are necessary for adults since their diets lack certain nutrients. These include minerals, amino acids, vitamins, and plant extracts.

    Since the human body cannot store water-soluble vitamins, it is essential to regularly supplement with them to avoid deficiency. Fatigue, inability to sleep, thinning hair, and general lack of energy are all symptoms of a vitamin deficiency. For example, if you’re deficient in iron, vitamin D, or vitamin B12, you can experience weakness. On the other hand, if you’re lacking in vitamin B7, you might notice thinning or lost hair.
    Urban Indian women now have a 70% nutritional deficit rate. Traditional nutritional supplements have been on the market for a long time, but these consumers still haven’t jumped on the bandwagon.

    The COVID-19 pandemic has increased people’s concern for their health, according to Divij Bajaj, founder of Power Gummies in Delhi. Because of this, more people are aware of vitamin supplements, particularly ones that boost the immune system. This has led to an explosion in the market for dietary supplements, especially kid-friendly gummy vitamin items. This need has been the driving force behind our company’s meteoric rise.

    Way Forward

    A lot of progress has been made and will be made, in the field of gummy vitamins. Gummy brands that address consumers’ most important health and wellness needs with the most recent ingredients supported by science will have a better chance of succeeding in the market.

    Look for problem-solving multivitamins, ideally, those that scientifically blend modern Indian and Western nutrition practices, rather than gummy pills that simply list a bunch of vitamins. The availability of remedies backed by scientific evidence from trials conducted on actual products is a further perk. These chewable vitamins are a better option. Additionally, look for companies that use high-quality active ingredients (looking for patents and a high extract ratio), clean inactive ingredients (no added sugar, artificial sweeteners, or preservatives), and naturally occurring flavors.

    Because they are convenient, tasty, and entertaining, gummy vitamins are more likely to be taken consistently by customers. A single bite of these tasty and sugar-free candies packs a powerful nutritional punch. People of all ages and from all over the world are starting to buy into brands. The target demographic of a Mumbai-based gummy candy company consists of women aged 21 to 65, with more than 30% hailing from Tier 2 and Tier 3 cities.

    Uncovering Organic Components to Enhance the Nation’s Diet
    Elevate national nutrition with organic components! Explore insights for a healthier lifestyle and discover the key to improving the nation’s diet naturally.
    StartupTalkyNitin Konde

  • Indian Tourism Industry Setting a Benchmark With Its Multiple Growths

    The tourism business was one of the hardest damaged by the global spread of the COVID-19 pandemic. As governments tightened their grip and citizens stayed indoors, the tourism industry as a whole crashed. However, just as the old adage says, “There is always a bright light on the other side of the tunnel,” so too did the industry begin to rise again after enduring such adversity as the globe emerged from the pandemic in question. The lockdown was one circumstance that worked to benefit of the tourism industry. After nearly two years of captivity, the unexpected release encouraged people to dust off their backpacks and set out to see the globe once more. According to a report jointly released by Booking.com and McKinsey & Company, particularly in the post-pandemic age, the tourism industry in India is seeing phenomenal growth, thanks in large part to the extraordinary expenditure habits of Indian tourists. By 2030, Indian tourists are expected to have spent $410 billion, making their country the fourth biggest spender in the world. India was the world’s sixth-largest spender in 2019, with a total expenditure of $150 billion, a 173% rise over this year.

    According to the data published in the report, Indian tourists were a big reason why the tourism industry bounced back in 2022 when it reached 78% of 2019 levels compared to 52% for Asia. Another interesting fact is that Indian tourists are expected to increase their travel numbers from 2.3 billion in 2019 to a whopping 5 billion in 2030.

    The World Travel and Tourism Council ranks India at number ten out of 185 nations for the total contribution of travel and tourism to GDP in 2019. In 2022, the travel and tourism sector’s impact on India’s economy was valued at Rs. 15.9 trillion (US$ 191.25 billion), according to WTTC.

    The World Travel and Tourism Council predicts that India’s travel and tourism sector will contribute 7.8 percent to the country’s GDP in the coming decade. There were 39 million jobs in India’s tourist industry in 2020, or about 8% of the overall workforce.

    The travel and tourism industry is projected to increase its contribution to the GDP from $178 billion in 2021 to $521 billion in 2028. It will likely be responsible for almost 53 million jobs by the year 2029. From 2019 to 2030, the industry’s direct contribution to India’s GDP is projected to expand at a pace of 7–9% per annum.

    Going from an estimated $75 billion in FY20 to 125 billion by FY27, that’s the size of the Indian tourism market. Due to improvements in airport infrastructure and increasing access to passports, the Indian airline travel market, which was valued at approximately $20 billion in FY20, is expected to quadruple in size by FY27. The rising demand from travelers and the ongoing efforts of travel agencies are driving the Indian hotel market, which was valued at approximately US$ 32 billion in FY20 and is projected to reach over US$ 52 billion by FY27. This includes both domestic and international hotels.

    Total Contribution of Travel and Tourism to GDP at Real 2019 Prices
    Total Contribution of Travel and Tourism to GDP at Real 2019 Prices

    Investments and Developments
    Government Backing the Industry

    Investments and Developments

    A hotel in Bandra, Mumbai, was signed by IHCL in December 2023, expanding its footprint in Maharashtra. An IHCL-SeleQtions hotel will be the brand name given to the Brownfield project. German ‘101 Best Executive Summit’ honored TAJ as one of the “World’s finest luxury grand palaces” in December 2023. Indian Hotels Company (IHCL) declared Ginger Mumbai Airport open for business in November 2023. Situated close to the domestic airport, the 371 Keys flagship Ginger Hotel will expose visitors to the brand’s lean luxe design and service concept, which aims to provide a dynamic, modern, and hassle-free hospitality experience. In September 2023, Mahindra Holidays & Resorts (MHRIL) and the Government of Uttarakhand (UK) inked a memorandum of understanding (MOU) to construct four or five large-scale resorts in Uttarakhand with an investment of one thousand crores (US$120.16 million).

    The Ministry of Tourism has been granted an investment of 2,400 crore (US$ 289.89 million) since the tourism industry offers young people a lot of chances to start their businesses and find employment. For new hotels in India that are 2 stars or higher, there is an investment-linked deduction available under Section 35 AD of the Income Tax Act. This means that any capital expenditures, or the entire expenditure, can be fully deductible. To boost India’s attractiveness as a tourist destination, the government lowered the Goods and Services Tax (GST) on hotel rooms priced between Rs. 1,001 (US$14.32) and Rs. 7,500 (US$107.31) per night to 12% and on rooms priced over Rs. 7,501 (US$107.32) to 18% in 2019.

    Government Backing the Industry

    The tourism industry has always been a vital industry to the government of India. The government through its various schemes and policies has always supported this sector and always handheld as and when required. The Ministry of Tourism has been granted US$ 290.4 million in the Union Budget 2023-24. The Swadesh Darshan Scheme received US$ 170.85 million from the Union Budget 2023-24 to build 50 tourist spots that offer a holistic experience for visitors by ensuring physical, digital, and virtual connectivity, the availability of tour guides, and visitor security.

    The PRASHAD tourist circuit development project has received US$ 30.25 million from the government’s budget for 2023–24. A total of US$ 91.6 million has been disbursed for 37 projects throughout 24 states since the program’s inception in January 2015. These projects have an estimated budget of US$ 146.4 million. Recently, the government told Parliament that twenty-seven additional sites have been selected for development as part of the PRASHAD initiative, which is run by the Centre. In a written reply to a question in the Lok Sabha, Union Minister of Tourism G Kishan Reddy stated this. He also mentioned that 57 locations have been chosen for development as part of the Swadesh Darshan 2.0 program.

    Through an initiative called SAATHI (System for Assessment, Awareness, and Training for Hospitality Industry), the Ministry of Tourism and the Quality Council of India (QCI) are collaborating to help the hospitality industry be ready to continue operations safely and reduce risks caused by the COVID-19 pandemic. A hotel or other unit can get self-certification after going through the SAATHI framework and promising to adhere to all regulations in the letter. Guests of self-certified hotels and other lodging units can ask questions and get answers in live webinars. An assessment report outlining potential areas for improvement is shared with the assessed unit after a site evaluation based on the SAATHI framework is conducted by QCI-approved organizations if the hotel or unit so wants.

    Top Tour & Travel Startups in India | Tourism Startups
    Travel startups are serving customers very innovative services and memorable experiences. We’ve listed the top tour & travel startups in India.
    StartupTalkyAshwini

  • Rapidly Evolving Defense Startups Reshaping National Defense

    India hopes to enhance its defense exports and decrease its dependence on foreign suppliers by implementing Make In India. The global defense market is worth $2.1 trillion. In 2022, India spent around $76.6 billion, or 2.4% of its GDP, on its military, putting it third in the world behind China and the United States. This represents 3.7% of worldwide military spending. Startups in the Indian defense sector are anticipated to get increased funding and focus as the industry keeps expanding in the country.

    Being in the vanguard of technological innovation, the defense sector is always adapting to meet the problems of contemporary security and combat. Firms that are at the forefront of innovation and technological growth are crucial in propelling revolutionary changes. Examples of such pioneering firms are DRDO, Bharat Electronics Limited, and Tata Advanced Systems Limited (TASL), which is a division of Tata Group. These companies are changing the face of defense technology, from new airplanes to cutting-edge weaponry, thanks to their insatiable need for innovation.

    Consistent with this ever-changing environment, India is utilizing the Make in India drive to greatly improve its offensive and defensive capabilities. The main goal is to increase defense exports and decrease dependence on defense equipment and technology imports to gain a portion of the $2.1 trillion global defense industry. With the help of tax breaks and other government programs, the Make in India initiative encourages large corporations, new businesses, and small and medium-sized enterprises to manufacture defense equipment in India. These initiatives are complemented by the Indian government’s Innovation for Defense Excellence (IDEX) program, which was established to encourage innovation and provide assistance to startups operating within the defense industry.

    Startups: What Are the Possible Benefits?
    Make In India
    iDEX

    Startups: What Are the Possible Benefits?

    Big private enterprises in India are in the news all the time. Airbus Defense & Space (DS), a subsidiary of Airbus, and Tata Advanced Systems, a company that designs and produces aerospace, defense, and security goods, recently worked together to produce and build the C-295 medium-lift transport plane. The largest development since the private sector became involved in India’s defense industry is the deal for INR 21,935 Cr ($2.67 Bn) that involves the production of 40 fly-away C-295 aircraft and the provision of MRO (maintenance, repair, and operations) services for 56 aircraft.

    Guns and mounted vehicles make up the bulk of Bharat Forge’s order book, which surpasses INR 2,000 Cr ($240 Mn). Mahindra Defense Systems is presently fulfilling two orders from the Indian government: one for light combat vehicles valued at INR 1,056 Cr ($129 Mn) and another for an integrated anti-submarine warfare defense suite valued at INR 1,350 Cr ($165 Mn) from the navy.

    Size of the Military Aircraft and Aerospace Manufacturing Market Worldwide From 2018 to 2021
    Size of the Military Aircraft and Aerospace Manufacturing Market Worldwide From 2018 to 2021

    Make In India

    The government’s procurement process gives preference to indigenous products, and the Make in India initiative has established a hospitable environment for domestic manufacturers, opening up new markets for entrepreneurs and increasing domestic military production from 54% in 2019 to 75% by 2024. 

    From 2022 to 2030, the government will indigenise 411 weapons, platforms, and systems that were previously outlawed. Imports of some types of aircraft, including transport, basic trainer, and light combat planes, as well as certain missiles, destroyers, artillery cannons, and naval utility helicopters, are prohibited.

    The government has also made public three lists of 3,738 components that DPSUs import annually for a total of INR 39,000 Cr ($4.75 Bn). In the next years, these components will be indigenized to a large extent, with the private sector set to get 25%.

    iDEX

    The Indian government, cognizant of the limitations of conventional domestic defense contractors, launched a groundbreaking initiative in 2018 known as iDEX, or Innovations for Defense Excellence, as part of the Make in India project. Over the next five years (from 2021-22 to 2025-26) the plan would distribute funding to about 300 startups, micro, small, and medium enterprises (MSMEs), individual innovators, and 20 partner incubators, with a total of INR 500 Cr ($60 Mn) in the budget. To aid fledgling defense companies, the initiative has launched several projects and schemes, such as:

    The Defense Innovation Startup Challenge (DISC) is an initiative in India designed to find and back innovators and companies developing game-changing defense technology. The Defense Minister of India introduced the ninth iteration of the DISC initiative in February 2023. The program’s 28 problem statements center on cybersecurity. Notable Indian investors have pledged around INR 200 Cr to the iDEX Investor Hub, which he has also inaugurated.

    The funding and management of iDEX are overseen by a “Defense Innovation Organisation (DIO)” that was established as a “not-for-profit” business in compliance with Section 8 of the Companies Act 2013. Its original intent was to encourage creative problem-solving and technological advancement within the defense industry.

    Startups and inventors can get funding from the Technology Development Fund (TDF) to help them build defensive technologies. The Defense Minister gave the green light in June 2022 to increase the funding for each project under the MoD’s TDF plan from INR 10 Cr to INR 50 Cr.

    Going Forward

    By taking advantage of these programs, several Indian defense startups were able to rapidly expand their operations, improve their products and services, and secure contracts with the Indian military.

    In 2020, 44 out of 194 defense technology businesses in India that were part of the Startup India mission were active participants in the iDEX project, according to a research report published in the media. With the help of iDEX awards totaling over INR 200 Cr, the number of defense startups has increased to over 300.

    Defence Equipment Manufacturing Companies in India
    The defence manufacturing industry of India is highly growing. Know about top private manufacturing companies in India for defence products.
    StartupTalkyAniket Mandal

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  • Battery Reuse, Funding, and Skilling Among Areas That Could Steer India’s EV Growth

    After a trailblazing performance in 2023, India’s electric mobility is set to be the hero performer yet again in 2024, even amid global slowdown worries and job cuts. However, the rush for EV vehicles has thrown open a new set of challenges for the sector. EV companies, component manufacturers, and researchers that StartupTalky spoke with list out some of the roadblocks that lay ahead.

    Charging Infrastructure
    Sourcing and Recycling of EV Batteries
    Trucking Industry
    Funding
    Attracting a Talent Pool

    Charging Infrastructure

    While India’s EV makers have been experiencing roaring sales, the shortage of EV charging infrastructure is not only creating a gap for easier mobility but also stopping several potential EV owners. Be it non-functional charging stations or cars running out of charge and coming to a standstill, addressing EV charging issues has become detrimental to the further growth of the sector.

    “The Indian government’s ambitious plans, coupled with private sector participation, are accelerating the deployment of charging infrastructure, thereby addressing one of the key challenges in EV adoption,” said Rohan Shravan, founder and CEO of Tresa Motors.

    In July 2023, the Confederation of Indian Industries called for a dire need to increase the number of charging stations to meet the demand for transitioning to electrification of vehicles in the coming years. This would eventually lead to 1.32 million charging stations by 2030, the report said.

    “At present, about 40% of total installed capacity in India is renewable energy based. On the other hand, the grid infrastructure is aging, and the power demand from electric vehicles has already started straining the grid,” said Akanksha Goluchha, lead – clean energy and e-mobility at the National Resource Defense Council’s India branch.

    NRDC is a cohort of leading online activists, scientists, lawyers, and other environmental specialists to help the world confront the climate crisis.

    “Intelligent charging solutions that include smart grids, smart meters, smart charging systems, wireless sensors, etc. can help schedule EV charging based on periods of high renewable energy generation,” Goluchha added.

    The government-initiated National Highways for Electric Vehicles plans to electrify 5,500 kilometers of existing highways across 23 cities and 12 states.

    India Electric Vehicle Market Size, 2022 to 2032
    India Electric Vehicle Market Size, 2022 to 2032

    Sourcing and Recycling of EV Batteries

    EVs rely primarily on lithium-ion batteries, which contain specific metals and minerals. As of now, India sources most of the EV battery components from China, which in turn makes it costlier by the time the EV hits the showroom.

    To reduce India’s reliance on imports amid rising demand for EVs, Finance Minister Nirmala Seetharaman in her 2023–24 Union Budget exempted customs duty on capital goods and machinery needed to manufacture lithium-ion cells locally.

    “Indian-manufactured cells are expected to be launched in 2024, this development will help reduce the cost of batteries, creating opportunities for unit profitability and, subsequently, price reductions for consumers,” said Sumeru Shah, Business Head, EV Two-Wheeler at Ecofy.

    However, to make optimum use of the minerals stashed inside the batteries, India also needs better management of the retired battery cells.

    “How do you dispose of these batteries when they’re consumed in volumes like today? Today, we’ve got all these cars being crushed, and the metal from cars being reused. So there’s a lot of sustainability that happens today. But with electric vehicles, that’s still a challenge. How do you dispose of the batteries? The batteries that we use for our torches, our cell phones… how do we sort of dispose of them in a manner that it’s sustainable and doesn’t damage Mother Earth?,” said Anil Kempanna, Chief Executive Officer at Cientra, which offers solutions across semiconductors, embedded software, automotive, and telecom sectors. 

    Co-founder of electric bicycle company E Motorad, Sumedh Battewar, points to recycling batteries as an effective way to source battery components.

    “The key solution to this is recycling and reuse. Today, this chain is broken. Today, even if a cell is short, I have no use for it; I have to throw it out. I believe that, with time, an ecosystem will get built up. Because this (recycling of batteries) has a lot of value where a business can be built,” Battewar said.

    EV Investments Surge, But Hopes Pinned on Govt Policy Push
    As investments in electric vehicles soar, the future hinges on government policies. It, however, remains to be seen if India manages to hit a sweet spot in the EV sector.
    StartupTalkyPrithvi Durai

    Trucking Industry

    For India to successfully transition to clean mobility, trucks, and vehicles will play a key role in the transport electrification revolution.

    “Almost 90% of our emissions from the transport sector come from road transport. And if you zoom down to the road transport sector as well, almost 10–15% is coming from trucks. So trucks have a direct relationship, so we have to look into these kinds of aspects to assess how we are going to decarbonize the sector as a whole,” said Narayankumar Sreekumar, Associate Director at Shakti Sustainable Energy Foundation.

    In September 2022, India’s think tank, NITI Aayog, along with RMI, released a report – ‘Transforming Trucking in India’. The joint report pegged India’s trucks to more than quadruple, from 4 million in 2022 to roughly 17 million trucks by 2050.

    Among a host of measures suggested by the report, one of them involved moving towards zero-emission trucks.

    “Zero-emissions trucks (ZETs), including battery electric trucks (BETs) and fuel cell electric trucks (FCETs), offer a compelling alternative to the diesel trucks that dominate India’s road freight today. ZETs do not have tailpipe emissions and have lower operating costs, presenting an opportunity for India to showcase how the adoption of ZETs is economically efficient and better for air quality, public health, and the environment,” the report said.

    Funding

    Being a capital-intensive sector, any funds flowing into EV companies can come as a reprieve. 

    “In the coming year, 2024, we eagerly seek funding partners to propel our innovations to the next stage, marking another chapter in our journey towards revolutionary advancements,” said Bharath Anantha Srinivas, the CEO of Technovos Machinery Private Limited, a provider of sustainable commercial materials movement equipment.

    It’s no surprise, then, that EV sector investments are on the rise.

    Perpetuity Capital, a fintech company offering loans to EVs, and Mufin Green Finance plan to invest in 1,000 EV companies in India this financial year.

    According to media reports, EV funding in 2023 reached a record of $169.4 million, up 79% year over year. However, for a sector that is touted to grow at a rapid pace, funding requirements also need to be commensurate.

    “Going forward, India needs significant investor support to realize the $100+ billion EV opportunity. As the landscape evolves, investors need to evaluate potential assets based on five criteria: sustainable competitive advantage, GTM and distribution capabilities, customer feedback and brand perception, talent and culture, and manufacturing and supply chain strategy,” said a report by Bain & Company.

    Attracting a Talent Pool

    Skilling talent to meet the rising demand from the EV segment poses the next big challenge for the sector.

    Speaking at the EV Expo in December, Minister of Road Transport and Highways Nitin Gadkari said India is likely to see over five crore jobs in the EV sector by the end of this decade.

    A report by staffing and HR solutions company Adecco showed that, among other sectors, the EV segment has been hiring the fastest in the last five years.

    “Upskilling and reskilling will be crucial for the electric vehicle (EV) industry. Our initial efforts are primarily focused on upskilling rather than skilling new people, where we are interacting with numerous academic institutions, colleges, and polytechnics. They have requested our assistance in terms of helping them upgrade the curriculum and plug in the credentials and National Occupational Standards (NOS),” Arindam Lahiri, CEO of the Automotive Skills Development Council (ASDC), said in an interview with the National Skills Network.

    Conclusion 

    While the EV segment is all set to be the showstopper in this decade, easing some of the challenges, such as recycling batteries, smoothening infrastructure roadblocks, funding the sector, and upskilling talent, could ensure that India’s sustainable mobility sector turns into a force to reckon with.

    The Future of Electric Vehicles In India
    The electric vehicles market is seeing growth spurge in recent years. Find out what will the future of electric vehicles look like in India.
    StartupTalkyHimangi Khare

  • Google’s Third-Party Cookie Phaseout: Impact on Users & Ad Agencies

    In response to escalating concerns over online privacy, tech giant Google is re-evaluating its data collection practices. Google, a major player in the digital advertising realm, recently announced plans to bid farewell to third-party cookies in its Chrome browser by the end of 2024. 

    This important decision shows a big change towards protecting user privacy and is a major moment in how online advertising works.

    For years, cookies have served as the backbone of online advertising, enabling advertisers to follow users’ digital footprints and deliver targeted ads tailored to their interests and behaviors. 

    However, Google’s recent announcement heralds a new era—one characterized by heightened privacy concerns and a growing demand for transparency in online interactions.

    Google Chrome has already initiated testing by limiting third-party cookies for 1% of users since January 4th, 2024. Third-party cookies have already been disabled by default for all Firefox and Apple Safari users. 

    What are Cookies?
    What are Third-Party Cookies?
    What Is Google’s Announcement
    Implications for the Digital Advertising Industry
    Google’s Privacy Sandbox Initiative

    What are Cookies?

    Cookies, small data files, play a crucial role in enhancing user experience by storing preferences, login details, and other information during website visits.

    Cookies, once intended to improve the user experience on the internet, took on a negative connotation due to their association with intrusive tracking methods. 

    For close to ten years, reports have surfaced about tech firms and data brokers allegedly selling individuals’ data, including financial, medical, and location information, often gathered through third-party cookies, without explicit consent. 

    Google Begins to Block Cookies: What it Means for Consumers and Advertisers

    In response to these issues, the US, the European Union, and, more recently, India have enacted stringent data privacy regulations to address these practices.

    What are Third-Party Cookies?

    When you visit a website, you might see ads or buttons from other places. These use cookies to track you. Some cookies are fine, but others, called third-party cookies, can track you across sites. To protect privacy, browsers are phasing out these third-party cookies—a process called cookie deprecation. It’s like cleaning up the internet to make it more private and secure.

    Third-party cookies can track your online behavior across different websites, helping advertisers and marketers learn about your interests and show you targeted ads. However, some people are concerned about privacy because these cookies can gather a lot of information about an individual without explicit consent.

    What Is Google’s Announcement

    Google Chrome, a web browser utilized by 88% of internet users in India as of February 2024 and 64% worldwide, as of August 2023, has announced its gradual discontinuation of third-party cookies.

    Global Market Share Held by the Leading Web Browser Versions as of August 2023
    Global Market Share Held by the Leading Web Browser Versions as of August 2023

    By the end of the year, it aims to extend this block to all of its 3 billion-plus users, marking a significant shift in online tracking practices.

    Google Chrome’s measured rollout aims to address privacy concerns while providing advertisers and publishers with time to adapt their strategies.

    The company has been ‘under pressure’ from government authorities and actively exploring alternatives through its Privacy Sandbox initiative, which aims to develop privacy-preserving technologies for online advertising.

    While the move signifies a victory for user privacy advocates, it also presents challenges for advertisers and publishers who rely heavily on third-party cookies for targeted advertising and audience segmentation. 

    With the forthcoming demise of third-party cookies, advertisers will need to adapt new strategies and embrace alternative methods of reaching their target audiences.

    Implications for the Digital Advertising Industry

    Paradigm Shift in Advertising Practices

    The discontinuation of third-party cookies heralds a paradigm shift in the methods of user tracking and targeting. Advertisers and publishers must explore alternative strategies such as leveraging first-party data and contextual advertising to effectively reach their target audiences.

    “The future is about prioritizing trust while engaging with audiences. Consent-driven, first-party engagement with users is the way forward. Ultimately, embracing a trust-centric ecosystem will help brands integrate seamlessly into a cookie-less future, ensuring genuine connections and loyalty with their audience,” Rite KnowledgeLabs CEO and Co-Founder Zahara Kanchwalla told StartupTalky.

    Challenges for Advertisers and Publishers

    Entities reliant on third-party cookies for targeted advertising and audience segmentation may face hurdles in adapting to the new landscape. Exploring alternative strategies, including the utilization of first-party data and contextual advertising, becomes imperative to maintain effectiveness in reaching desired audiences.

    Opportunities for Innovation

    Google’s effort opens doors for new privacy-friendly advertising technologies. Advertisers and publishers can now explore better ways to reach people without invading their privacy. This means they can still make ads work well while keeping users’ information safe.

    Shift Towards First-Party Data

    With third-party cookies no longer available, advertisers will rely more on first-party data collected directly from their websites. This shift enables advertisers to build deeper, more meaningful relationships with their audiences by leveraging data they’ve gathered firsthand. 

    By focusing on their data, advertisers can gain a better understanding of their customers’ preferences, behaviors, and interests, leading to more personalized and targeted advertising campaigns.

    Emphasis on Contextual Targeting

    In the absence of third-party cookies, contextual targeting—delivering ads based on the content of the webpage rather than individual user data—becomes more important. 

    Advertisers can tailor their ads to align with the content’s context, ensuring relevance and increasing the likelihood of engagement. This approach not only respects user privacy but also allows advertisers to reach audiences in a more organic and non-intrusive manner.

    Innovative Solutions and Technologies

    The phasing out of third-party cookies spurs innovation in advertising technologies and solutions. Advertisers and ad tech companies are developing new tools and methodologies for audience targeting and measurement that prioritize user privacy while still delivering effective results. 

    This presents an opportunity for advertisers to explore and adopt cutting-edge technologies that enable more sophisticated and privacy-conscious advertising strategies.

    Building Trust and Loyalty

    By embracing privacy-conscious advertising practices, advertisers can build trust and loyalty with their audience. Demonstrating a commitment to protecting user privacy can differentiate advertisers from competitors and enhance brand reputation. 

    Consumers are increasingly concerned about privacy and data security, and advertisers that prioritize these values are likely to resonate more positively with their target audience.

    Diversification of Advertising Channels

    As advertisers adapt to the changes brought about by the phasing out of third-party cookies, they may explore alternative advertising channels beyond traditional digital display advertising. This could include investing in channels such as influencer marketing, sponsored content, or native advertising, which rely less on user tracking and more on engaging content and authentic connections with audiences.

    Google’s Privacy Sandbox Initiative

    As part of its proactive approach, Google has launched the Privacy Sandbox initiative, aimed at developing privacy-preserving technologies for online advertising. This initiative seeks to provide advertisers with effective targeting and measurement tools while upholding user privacy.

    Privacy Sandbox: Creating a more private internet

    Competitive Landscape

    Google’s decision resonates across the digital advertising industry, impacting competitors and shaping industry strategies. As a dominant player, Google’s actions set standards and drive innovation among advertising platforms and technology providers.

    Challenges to Be Faced by Google

    Monetization Challenges

    Google generates a significant portion of its revenue from advertising, and the phasing out of third-party cookies could impact its advertising business in the short term. 

    Advertising Revenue of Google from 2010 to 2023
    Advertising Revenue of Google from 2010 to 2023

    In 2023, Google generated a total revenue of USD 305.63 billion, with advertising contributing significantly to its earnings. The primary source of this advertising revenue for Google is search advertising.

    Conclusion

    Google’s move towards phasing out third-party cookies signifies a monumental step toward bolstering user privacy in online advertising. While posing challenges for advertisers and publishers, it also fosters opportunities for innovation and differentiation. By prioritizing user privacy and fostering a transparent digital ecosystem, Google sets a precedent for the future of online advertising.

    Key Takeaways 

    • Google’s initiative signals a shift towards privacy-centric advertising technologies.
    • Advertisers and publishers are encouraged to explore innovative methods for audience targeting and measurement.
    • These new approaches prioritize user privacy while maintaining advertising effectiveness.
    • The initiative aims to strike a balance between reaching audiences and safeguarding user data.
    • Overall, the focus is on advancing advertising practices in a way that respects user privacy.

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  • Beauty Tech Tools: Revolutionizing the Beauty Industry with AI and Cutting-Edge Technology

    The beauty industry has undergone a remarkable transformation with the integration of technology, giving rise to a new era of innovation and convenience. Beauty tech tools, including mobile applications and artificial intelligence (AI), have revolutionized how individuals approach skincare, makeup, and overall wellness.

    For example, according to CyberGhost’s study, the result of beauty tech impact on leading brands is a 200% increase in customer engagement from virtual try-on methods, 300% increase in average site sessions from a lip shade virtual try-on, and 300% increase in site traffic and 30% increase in sales from personalized AI skincare analysis. The article provides a comprehensive overview of the impact of beauty tech tools on the beauty industry. It discusses the various ways in which technology is being used to revolutionize skincare, makeup, and overall wellness. The article also highlights some of the leading beauty tech apps and the role of AI in personalizing beauty routines.

    Famous Beauty Tech Apps
    The Role of AI in Beauty Tech
    Technological Advancements
    Emerging Trends

    Famous Beauty Tech Apps

    YouCam Makeup

    • One of the pioneers in augmented reality (AR) beauty apps, YouCam Makeup allows users to virtually try on makeup products before making a purchase.
    • According to a report by Sensor Tower, YouCam Makeup reached over 500 million downloads globally by 2022, emphasizing the popularity and impact of beauty tech apps.

    Sephora Virtual Artist

    • Sephora’s Virtual Artist app employs AR to enable users to try on different makeup looks and experiment with products from the comfort of their homes.
    • Sephora reported a significant increase in customer engagement and satisfaction, attributing it to the Virtual Artist app, which contributed to a 27% rise in their online sales.

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    The Role of AI in Beauty Tech

    AI has played a pivotal role in personalizing beauty routines, offering tailored recommendations, and enhancing the overall customer experience.

    Customized Skincare

    • AI algorithms analyze skin types and concerns to provide personalized skincare routines. For instance, Neutrogena’s Skin360 app uses AI to evaluate the user’s skin condition and recommends suitable products for a personalized skincare regimen.

    Virtual Beauty Advisors

    • AI-powered virtual beauty advisors, like L’OrĂ©al’s ModiFace, offer real-time advice on makeup choices and skincare routines. These advisors leverage machine learning to understand user preferences and adapt recommendations over time.

    Technological Advancements

    Smart Mirrors

    • The integration of 3D printing technology has paved the way for personalized beauty products. Companies like Mink Beauty utilize 3D printing to create customizable makeup, allowing users to choose and print their preferred shades.

    3D Printing in Beauty

    • Smart mirrors equipped with AR technology have become a game-changer. HiMirror, for instance, analyzes the user’s skin condition and provides recommendations for skincare products. The mirror can track changes in skin over time, offering valuable insights into the effectiveness of the chosen products.

    Virtual Try-Ons for Hair Colors

    • The use of AI in physical stores is gaining momentum. Smart shelves with facial recognition technology can recommend products based on the customer’s age, gender, and skin type, creating a seamless and personalized shopping experience.

    AI-Powered Beauty Tech in Retail Stores

    • AI-driven virtual try-on experiences for hair colors are becoming popular. Users can visualize how different hair colors would look on them before committing to a change. This trend is expected to redefine the haircare industry, making it more interactive and user-friendly.

    The beauty industry’s integration with technology has ushered in a new era of innovation and accessibility. From AR-powered makeup try-ons to AI-driven personalized skincare routines, beauty tech tools have become indispensable for both consumers and brands. As technology continues to advance, the beauty industry will undoubtedly witness even more groundbreaking developments, providing individuals with novel ways to express themselves and enhance their self-care routines.

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  • Are AI and ML Potent Enough to Take Human Jobs?

    The question of whether AI and ML are powerful enough to displace humans from the workforce is hotly contested. Some in society worry that this shift will eventually put people out of work, while others see it as a way to help people out and make their careers better. One recent study that sheds insight on the possible effects of AI on the US employment market is “Generative AI and the Future of Work in America” done by McKinsey Global Institute. The research claims that people will have to seek out new career prospects across a variety of sectors as a consequence of artificial intelligence and shifting consumer behaviors. According to the research, artificial intelligence (AI) might account for 30 percent of US labor hours by 2030, significantly speeding up economic automation.

    To increase productivity, the paper claims that AI will eventually replace humans in all occupations that necessitate automation, including data collecting and repetitive operations. The office support, customer service, and food service industries stand to be the most affected by the AI transformation. By 2030, the research predicts that 12 million more people may need to change careers in the United States alone.

    In addition to a potential loss of 830,000 employment for retail salespeople, 710,000 for administrative assistants, and 630,000 for cashiers, the report predicts that demand for clerks might fall by 1.6 million jobs. Automated systems can efficiently handle the high share of repetitive tasks, data gathering, and rudimentary data processing that these positions involve, according to the paper.

    Altering the Character of Employment
    A World Driven by AI that Empowers All
    Upcoming Employment Opportunities Brought Forth by AI

    Altering the Character of Employment

    Contradicting the above information, the International Monetary Fund’s report states that a significant portion of the world’s workforce is involved with AI. While IT and automation have mostly affected low-skilled occupations in the past, AI stands out due to its capacity to affect high-skilled occupations as well. Therefore, compared to emerging markets and developing countries, advanced economies have more hazards from AI and more potential to gain from it.

    Artificial intelligence has the potential to affect 60% of jobs in developed economies. The potential for artificial intelligence to increase productivity in almost half of the exposed jobs is substantial. The other side of the coin is that AI apps might conduct crucial human-only jobs, which would diminish the demand for labor, which in turn could cause wages to fall and hiring to slow down. Some of these positions might go away entirely in the worst-case scenario.

    Nevertheless, many specialists believe that the recent surge in artificial intelligence occurred following the global pandemic. As a result of people realizing they could get their work done without physically visiting an office, the new work-from-home culture emerged and a plethora of advancements occurred in the artificial intelligence field.

    The Number of Jobs Created and Eliminated Due to Artificial Intelligence Worldwide in 2022
    The Number of Jobs Created and Eliminated Due to Artificial Intelligence Worldwide in 2022

    A World Driven by AI that Empowers All

    The urgency for lawmakers to take action is heightened by the rapid integration of AI into enterprises globally.

    Digital infrastructure, human capital and labor-market strategies, innovation and economic integration, regulation and ethics, and the AI Preparedness Index were developed by the International Monetary Fund to assist nations in formulating appropriate policies.

    For instance, factors like the percentage of the population covered by social safety nets, the number of years of schooling, and job-market mobility are assessed within the human capital and labor-market policy component. How well a country’s legal system accommodates digital business models and whether there is robust governance to ensure effective enforcement are evaluated in the regulation and ethics component.

    A total of 125 nations were evaluated by the International Monetary Fund personnel using the index. The results show that low-income countries are less prepared to adopt AI than wealthier economies, including advanced and even emerging market economies. However, there is a lot of variety across countries. Based on their exceptional performance in all measured categories, Singapore, the United States, and Denmark achieved the top ratings on the index.

    Upcoming Employment Opportunities Brought Forth by AI

    Artificial intelligence is not going to supplant humans in employment any time soon. Automating routine, predictable, and rule-based tasks is where AI shines. But jobs requiring imagination, compassion, and social skills are still better suited to people.

    However, artificial intelligence will most certainly change the way people work. Some occupations, including those in manufacturing and customer service, are already being supplanted by AI-driven automation. An increasing number of employment will probably be automated as AI technology advances.

    Unemployment rates could rise as a result, particularly for people lacking expertise in the fields where AI is most developed. Keep in mind, though, that AI also generates employment opportunities. Workers with expertise in artificial intelligence system development and maintenance, for instance, are in high demand.

    In general, AI is expected to have a mixed effect on the workforce. There will be some employment losses, but there will also be some job gains. To prepare employees for the AI-driven economy, it is critical to spend on their education and training. To thrive in the AI-driven economy, workers must have the necessary skills. Skills like creativity, problem-solving, and teamwork are part of this, as are STEM (science, technology, engineering, and math) subjects.

    To help those who lose their employment because of AI, governments should create new social safety nets. Assistance with finding work, retraining, and unemployment compensation are all examples of what may fall under this category.

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  • Cloud Kitchen Climbing the Expansion Ladder in India

    Multiple research firms have projected that by 2026, the cloud kitchen market in India will be worth $1.9 billion. Because the market recorded a business number of $800 million in 2022, this demonstrates that the market is surging. The consistent growth of online meal ordering is the reason for this increase. The concept of cloud kitchen is not new to the world, in the Western world, it was gaining a lot of traction but as soon as the pandemic struck, this concept received a massive push owing to lockdowns and every country’s government only allowing certain special services to be operated during that tenure.

    It is very interesting to note that there are various models of cloud kitchens operating in India. Majorly, four types of cloud kitchens are very popular in the country- Independent cloud kitchens, Multi-brand cloud kitchens, Hybrid cloud kitchen,s and Cloud kitchens owned by delivery apps. New business models in the cloud kitchen industry are emerging as a result of the market disruption caused by specialized service providers offering a range of infrastructure, support, and outsourcing services. The cloud kitchen sector is undergoing significant transformation due to several phenomena. The growing reliance on technology and automation to streamline culinary processes is one notable trend.

    According to various media reports, cloud kitchens are trying to get ahead of the competition by using AI and ML-led kitchen automation solutions to standardize food quality and taste while cutting down on kitchen labor.

    Advantages of Cloud Kitchens
    Utilization of Technological Resources
    The Future Ahead

    Advantages of Cloud Kitchens

    The traditional brick-and-mortar restaurant can be easily replaced by a virtual kitchen, also called a cloud kitchen or a ghost kitchen. The administrative complexity and logistical issues that often hinder the success of the food sector can be reduced with the help of ghost kitchens, allowing users to focus on food production and product promotion. Certain elements make cloud kitchens a profitable game for the restaurant sector.

    • A cloud kitchen can do away with a lot of the costs that come with running a regular restaurant. When compared to conventional brick-and-mortar eateries, cloud kitchens should be more cost-effective across the board (infrastructure, overhead, logistics, etc.).
    • Cloud kitchens are low-risk ventures since they require less labor and infrastructure to run. The initial investment for a cloud kitchen is far lower than that of a conventional brick-and-mortar eatery.
    • The time and resources needed to open a cloud kitchen are one-third of those of a conventional sit-down restaurant. This is because cloud kitchens do not require the hiring of wait staff or the leasing of a prime site.
    • One can start a cloud kitchen with almost minimal money outlay for personnel, basic culinary materials, furniture, or decor. The flexibility it gives restaurant owners to try new things, save expenses, and eventually break even is what makes it a successful venture.
    • Total Capex is far lower than a full-fledged restaurant because operations are limited to a kitchen. Cloud kitchens allow restaurants to test out new markets and gauge customer perception without investing in expensive equipment.
    Gross Merchandize Value of Cloud Kitchens in India in 2018 and 2019, With an Estimate for 2025
    Gross Merchandize Value of Cloud Kitchens in India in 2018 and 2019, With an Estimate for 2025

    Utilization of Technological Resources

    The cloud kitchen business has already benefited greatly from technological advancements, and this trend will likely continue. Some examples of this could include the integration of robotics and automation into culinary operations to make them run more smoothly, or the creation of more advanced delivery systems that optimise routes and timeframes using machine learning.

    Though not widely used as yet in India, robotics has the potential to become an integral part of cloud kitchen systems down the road. Nevertheless, this has cast a shadow over the human workforce, as its implementation would inevitably lead to its replacement. But there’s a silver lining: if this change materializes, people will be able to acquire new abilities to operate these robotic systems, making them more technically proficient overall.

    According to Adid Khan, Co-founder, RoboFood, “More personalisation choices from cloud kitchen operators are likely on the horizon as customer demands rise. The option to personalise meals, select precise delivery windows, and even specify ingredients and cooking techniques are all possibilities. We should see operators entering new markets and regions as the cloud kitchen business keeps growing. This may involve penetrating untapped markets, such as catering or corporate food service, or moving into adjacent areas.”

    The Future Ahead

    According to a report by IBEF, an arm of the Department of Commerce, Ministry of Commerce and Industry, Government of India, in India, the cloud kitchen industry is being propelled by factors such as the increasing demand for online food delivery services. Cloud kitchens are booming in India thanks to several factors, including increasing disposable incomes, extensive smartphone usage, simple internet connection, and shifting consumer preferences. More and more individuals are learning about the advantages of cloud kitchens over conventional kitchens, which include higher profit margins and the ability to run “ghost restaurants” from anywhere, which is driving industry growth. Market growth is also being driven by the widespread use of POS, KDS, and inventory management systems to streamline multiple kitchen processes, improve communication, and eliminate order-taking delays. The fast growth of cloud kitchens and the formation of strategic partnerships between major companies to enhance ghost kitchen services are two other factors that contribute to a positive market forecast.

    Forecasts indicate that the domestic cloud kitchens market will grow to $2 billion in the current year. The market is expected to expand as more and more people choose to have their food delivered online. Over the next five years, the Indian cloud kitchen industry is expected to experience expansion, driven by factors such as the increasing disposable income of the younger generation and their changing lifestyle choices. An increase in the demand for internet delivery services can be attributed, in part, to the growing popularity of fast food and snacking as alternatives to home-cooked meals. A lot of people are impacted by things like corporate culture, long hours, and not wanting to cook at home. The cloud kitchen sector in India is expected to grow in the next five years, thanks to the proliferation of more convenient payment methods, the rise of cloud payments, and the development of safe payment routes.

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  • Empowering Nutrition: Uncovering Organic Components to Enhance the Nation’s Diet

    Nutrition plays a pivotal role in carving a healthy human body. Over the years, the demand for nutritious food and drinks has shown positive growth across the world, especially in the sports nutrition sector. Athletes have become very cautious about their intake and this has led to a massive transformation of the sports nutrition sector. According to a research firm FMCG Gurus, consumers are taking a more proactive, holistic, and long-term approach to health. Sports nutrition products are more popular than ever before. People are looking to improve their overall health and are actively looking for “better for me” products. High protein and low sugar alternatives to traditional snacking products are becoming a big opportunity for many brands and manufacturers. This means that there is a significant opportunity for brands of nutritious, better-for-you products to target these consumers. However, consumers and athletes have gone one step ahead and now they are looking for products that have more natural ingredients than artificial elements. Keeping this demand in mind, many companies have up with innovative products that are aligned with the current requirements. Plant-based supplements, organic drinks, nutribar, etc. are some of the products that have now become a hot-selling cake.

    According to the report by Research and Markets, a research firm headquartered in Dublin Ireland, global energy drink sales reached US $57.4 billion in 2020. The industry is expected to grow by a compound annual growth rate (CAGR) of 7% between 2020 and 2025. This growth is attributed to rising incomes an increase in sports activities and urbanization. A greater network of channels through which these drinks are sold, including supermarkets, convenience stores, and eCommerce sites, is expected to help fuel sales growth in this industry. Similar trends could be witnessed in the Indian market as well with this sector showing positive growth at a CAGR of 25-30%.

    On similar grounds, the demand for nutritional supplements with organic elements has increased among athletes and youngsters. Sports personalities such as Virat Kohli, the Williams sisters, and Lewis Hamilton have revolutionalized their respective domains and showed to the world how omitting meat products from platter can enhance an individual’s performance.

    Commenting on the same, Vaibhav Garg, Founder, of Purecise said, “Plant-based food act as a catalyst for human body, especially in case of athletes. It provides the perfect fuel for the human body and enhances its performance to great extent. The reality remains that we are herbivores and our body’s physiology functions at its optimum best when we consume plant-based fof ods.”

    Energy Drinks Taking an Organic Turn
    Mixing Protein With Natural Ingredients

    Energy Drinks Taking an Organic Turn

    The energy drink market is relatively new to India as well as to the world. Energy drinks are a type of drink containing stimulant compounds, usually caffeine, which is marketed as providing mental and physical stimulation. While these drinks are gaining popularity among consumers there is also a strong warning from health practitioners about the harmful effects of excessive caffeine intake which could lead to death. The holistic health and wellness movement has led to a shift in the category forcing consumers to opt for some organic solvents that can supplement energy drinks.

    However, now many producers of such drinks are away from traditional sugar-fuelled and caffeine-charged formulations. They are now focusing on adding more natural substances that allure more consumers and increase their global footprints. The energy drinks in the Indian market are composed of five different ingredients which include vitamins, sugar, caffeine, Taurine, and Guarana. The other ingredients present in energy drinks are ginseng, yerba mate, water, green tea extracts, ginkgo biloba, green coffee extract, carnitine, sodium, potassium, magnesium, inositol, flavors, and benzoic acid. The energy drinks are available in three different product types which include Drinks, Shots, and Mixers.

    Catching the idea of adding organic elements into energy drinks, Sipwise Beverages was established in 2015, and currently, the company is offering three brands What!f, a cold beverage; and an herbal range of coolers beside another brand, 1947 an energy drink made from natural caffeine extracted from tea with a proprietary fiber called inulin.

    Volume of Energy & Sports Drinks Worldwide 2015-2027
    Volume of Energy & Sports Drinks Worldwide 2015-2027

    Harish Mohan, Founder, of Sipwise Beverages stated, “Naturally extracted elements enhance the power of any energy drink and that becomes the USP of it. Currently, this sector is very niche and has not been explored to its full strength so companies that move in first will certainly going to have an upper hand.”

    Presently, the Indian energy drink market is dominated by Red Bull which is an Australian brand but some other producers are catching up especially, the Indian startup sector which is currently on the spree of exploring this domain.

    Another energy drink startup called Fyre is also focusing on providing consumers with an energy drink that is filled with organic substances. Unlike sports or party hard energy drinks, FYRE is a ‘one-shot’ energy drink for the ‘work-hard’ category that is being sold at an 80% lower price point compared to leading energy drink brands.

    Elaborating further, Rahul Manek, Founder, Fyre said,  “Energy drinks have already written many success stories in countries such as USA, Japan and Canada and it is exploring the Indian market. Addressing people’s concern over the elements used in these drinks, we are providing them an Ayurvedic energy drink which will satisfy all their needs.”

    Mixing Protein With Natural Ingredients

    Protein shakes and mixers are very popular among the young generation, athletes, and sports people. It is considered that adding protein powder to a glass of milk or a smoothie is a simple way to boost one’s health. Though mostly these powders are made by extracting protein from plants (soybeans, peas, rice, potatoes, or hemp), eggs, or milk (casein or whey protein), these substances are also mixed with sugars, artificial flavoring, thickeners etc. that can have an adverse effect on the human body. Apart from that, excessive amounts of these supplements can hamper the functioning of the liver and kidney and can also lead to organ failure. Many health experts suggest that nutrients should be consumed in a natural form rather than through pills or concentrated supplements.

    However, now many companies have eliminated these artificial substances from their produce, replacing them with organic elements. DREXSPORT is one of the companies that is constantly working on providing organic supplements to its customers. DREXSPORT’s Wild Whey and Wild Muscle are the cornerstones of DREXSPORT’s success.

    In order to address customers’ concerns of health-related issues associated with dietary supplements and protein powders, DREXSPORT has come up with a 100% natural and clinically tested Organic Protein Powder that shall not only ensure boosted performance and fitness but comes with other differentiated attractions like cost-effectiveness, delicious taste, and premium quality. These organic compositions produced by the company have zero side effects and provide similar results as their counterparts.

    Another Mumbai-based company called Olena was created to promote plant-based nutrition across the country. The company’s wide range of supplement products includes multivitamins, plant proteins, super greens, vitamins, and antioxidants. Olena is an FSSAI-certified firm and it sources its raw materials from countries such as France, the USA, and many more. With a long list of 20,000 customers, the firm is planning to spread its wings deeper into the nation. As per the company, plant-based nutrition is an emerging market in India and Olena competes with notable players such as ï»żOzivaï»ż and Big Muscle.

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