Since the dawn of time, most people have wanted to live, look, feel and achieve our best for as long as possible. But in a classic ‘please sir can I have some more’ moment, many also want the abovementioned deliverables to be much more than that possible from doing the basics right, namely eating and drinking well and not burning the candle at both ends.
In a concerted effort to up this ‘live, look, feel and achieve’ quotient, an ever-increasing number of persons have upped their conspicuous consumption on product and service offerings created by a huge global health and wellness industry that traverses the physical and metaphysical and has significant depth and breath. It includes Beauty and Personal Care Products, Health and Wellness Food, Wellness Tourism, and Fitness Equipment – and this list is by no means exhaustive.
The addressable market for these products and services is already massive, and set to grow from here. According to Precedence Research, the global health and wellness market was valued at USD $4,436.1 billion in 2020, and is expected grow at a compound annual rate of 5.5% through to 2030 on increased consumer expenditure on a wide variety of health and wellness products and services across the globe.
Zeroing in on the Australian market, we have a select number of companies leveraging off the continued growth in the health and wellness market segment.
One of these is nutraceuticals, supplements, and skincare products company Live Verdure Limited (ASX:LV1), which is definitely not your run-of-the-mill health and wellness business. Its unique brands target consumers looking for sustainably manufactured products containing uncommon or underutilised ultra-effective natural ingredients from local suppliers that are of the highest quality. These products are sold through a direct-to-consumer business model, meaning Live Verdure has close contact with the end-user. The company’s range of plant-based products, which are focussed on young families and millennial consumers, are now targeting growth into key international markets across Asia, the US and UK.
Live Verdure currently has three brands:
- Edible Beauty: A naturopathically formulated range of Australian-made pure, active, and sustainable skincare and wellness products (both topical skincare and ingestible wellness products).
- 8 Seeds: Skincare products that are composed of Hemp Seed Oil and other powerful ingredients that together soothe, plump, and revitalise the skin.
- 13 Seeds: A wide variety of hemp-based health food, nutraceuticals, and supplements.
Live Verdure’s recent ultra-strong sales and orders metrics indicate that the Company’s products are gaining traction in their addressable markets. Unaudited sales of almost $0.6m were reported over November 2022, a record monthly total more than double the combined sales figures for the previous three months. New orders across the Company’s brands climbed to 5,144 in November 2022, another record monthly total. Group return on ad spend metrics were also much improved in November,
And looking ahead, the Company’s future growth prospects are also bright. It is now implementing a well-considered growth strategy centred around product innovation that builds a robust, high-value pipeline of new SKUs, and acquiring premium brands that offer global appeal.
But having the right product is only part of the story. Live Verdure continues to expand its direct-to-consumer delivery channels, but at the same time is also targeting local ranging into local retail stores and pharmacies. The Company is cognisant of the fact that brands need both new and returning customers to achieve long-term growth. Higher customer repeat rates open the way for higher average order value than first-time customers, as returning clients better understand the product offering.
Importantly, Live Verdure is not just about simply growing top-line sales. It is intent on maintaining product margin via growing online sales, unique new product ranges and value-enhancing acquisitions. The Company is also successfully improving from an operational perspective, with a focus on procurement and back-office efficiencies.
Tony Farnham is a financial markets veteran and Analyst/Financial Writer at The Capital Network.
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