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Writer's pictureKli Capital

Gaining Personalized Protein Supplements Through Gainful

Driven by high cost of medical care and rising awareness of preventative health, more individuals are increasingly focused on taking individual ownership of self-health and wellness. Consumers are becoming more savvy about the benefits of exercising and maintaining a healthy diet. Increasingly busy lifestyles has led to the growth in consumption of packaged healthy nutritional foods such as protein bars or protein supplement drinks. Moreover, better technology and marketing will continue to fuel the demand for new and differentiated protein supplements. The U.S. protein supplements market is sized at $5.7 billion and is projected to expand at a CAGR of 6% over the next few years.


Rising concerns regarding chronic diseases such as cancer, heart diseases, and diabetes due to busier professional and personal lifestyles have compelled consumers to search for healthier diets that are rich in nutrients. For example, consumers are starting to tackle obesity through increased intake of protein-rich products to maintain a healthy diet. Growing numbers of members at fitness centers and gyms also demonstrate the increasing focus toward healthier lifestyle. While athletes and bodybuilders have been traditional consumers of protein supplements in the past, more and more recreationally active users have jumped into the market over time. Moreover, the growing geriatric population in the country is also projected to boost the demand for protein supplements further.


The protein supplement market is expected to continue seeing an influx of new products, such as proteins containing a wide range of amino acids that are designed to target specific functions such as weight loss or muscle repair. At the same time, rising cases of gluten allergies and lactose intolerance in the country are expected to drive demand for alternatives to whey and casein product forms. One such rising product category is plant-based nutritional supplements based on soy, pea, and other ingredients which are expected to be the fastest-growing raw material segment.


Protein supplements are mainly distributed through online stores due to the increasing number of internet users, ease of access, and wider range of options to choose from. Moreover, more active discussion boards and various promotional strategies such as discounts have fueled further adoption of the online market. The next largest distribution channel is the Direct-to-Customer (DTC) channel as many protein supplement players have been investing in DTC channels to expand their consumer base and extend reach to new regions. The DTC channel involves various direct marketing strategies aimed at consumers, whereby different players are focused on being as user-friendly or as specialized as possible to differentiate from the competition.


Kli Capital portfolio company, Gainful, is a new entrant in the protein supplement market that is focused on providing personalized protein powder to consumers. Perfectly aligned to the busy lifestyle of a millennial, Gainful aims to be as intuitive and seamless as possible. The first step in buying one of the company’s products is to take a short but detailed 5 minute quiz on their website. The company’s proprietary algorithm then leverages the data collected to recommend the ideal product for the consumer. The consumer can then also choose between a wide variety of flavors or to browse through other add-on products. The products will then be delivered to the buyer’s doorstep on a subscription basis. As part of their subscription, a consumer can also reach out to the company’s Registered Dietitian to receive guidance on their unique nutritional needs and fitness goals .


Gainful was founded in 2017 by Eric Wu and Jahaan Ansari. They successfully graduated from the Y-Combinator accelerator program and have since raised institutional capital. The company strives to differentiate itself from larger protein supplement providers such as GNC by minimizing the choices that the consumer has to make about which product to choose through their proprietary recommendation platform. The company also recently hired a new CEO who brings a wealth of experience as a serial entrepreneur and has held various leadership positions in the DTC segment at companies.


“We aim to streamline the protein supplement purchasing process radically while personalizing the product based on the individual needs of each of our consumers,” stated Eric Wu, “we are proud of the product that we have built and will continue to strive to make sure our consumers are receiving personalized attention and care.”


As the COVID-19 pandemic drove many people out of gyms and fitness classes, individuals started taking advantage of virtual fitness options. In order to maintain a healthy lifestyle as well as to alleviate stress associated with the volatility induced by the pandemic, many individuals continued to look for the ideal protein products to supplement their diets. Gainful has continued to see strong demand through this time as more consumers were looking to online DTC platforms to make purchases. The Kli Capital team believes that Gainful will continue to take market share away from large providers who are less catered to the individual needs of each consumer.

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