Davos report flags privacy risks of precision technology as personalized nutrition grows

24 Jan 2020 --- Precision technologies – a combination of personal data, artificial intelligence (AI) and Internet of Things (IoT) – will be key to unlocking long-term health and well-being. This is according to the Precision Consumer 2030 report, produced by the World Economic Forum (WEF)’s Future of Consumption Platform in collaboration with Sparks & Honey, a technology-led cultural consultancy. Highlighted during WEF’s 50th annual meeting in Davos, Switzerland, the report comes as investment bank UBS flags personalized nutrition as having potential for being the “next big disruptor.” However, the protection of consumer rights and regulation of data have been flagged as a major risk that will need to be mitigated.

“Having access to personal genomic data or real-time information on our nutritional intake – such as measuring glucose, salt or alcohol after a meal – is opening up a completely new way of thinking about the effects of nutrition on our holistic being. Food isn’t just something you eat, but a powerful means to elevate your mood, balance the needs of your body and choose foods that will ultimately help you live longer,” Anna Sofia Martin, report author and Sparks & Honey Editorial Director, tells NutritionInsight.

She continues that the key goal of precision nutrition is elevating everyday habits, such as choosing the “right” foods for your specific biology. This is in combination with longer-term goals of leading healthier lives, as well as living longer. “One of the experts we interviewed, Victor Penev of EDAMAM, says people will live to be 120 without ever getting sick – if they just eat the right way.”

“A guaranteed right”
The report details that the total venture capital funding for precision technologies over the last three years was US$1.1 trillion. Additionally, people are willing to pay up to a 20 percent premium on certain DNA-based products and services, presenting a lucrative market for personalized products and services. 

Fully functioning personalized nutrition solutions need wearable technology linked with a mobile application.However, much of the focus of this cutting-edge technology is on embellishing the already-comfortable lives of consumers in developed countries, rather than aiding people in regions that desperately need help. “Today, the benefits of precision data do lean a bit toward those with more means, but our analysis leads us to the conclusion that access to precision data and technologies is a right that everyone should be guaranteed to,” says Robb Henzi, VP of Strategy at Sparks & Honey and who led the research and cultural intelligence captured in the report.  

“Our assessment of emerging innovation and market forces point to a trend of increasing access, which has already begun. It is fueled by dramatically decreasing costs related to precision technologies – from home DNA kits to rapidly mainstreaming precision wellness offerings to devices that track an individual’s digital biological data. As a result, organizations and policy stakeholders will need to prepare for diversity in precision data and providing access to the benefits for all,” he adds. 

The next big disruptor?
UBS has also put the spotlight on personalization, with its own report highlighting that personalized nutrition could be a solution to people suffering from ailments that are – at least in part – attributable to poor nutrition. UBS Evidence Lab data also suggests that corporate interest in the space is increasing, with the number of patents related to personalized nutrition continuing to grow. The bank estimates that personalized nutrition will generate annual revenues of US$1.3 billion by 2025, rising in an upside case to as high as US$64 billion by 2040.

In addition to rising corporate interests, the report notes that consumer demand is being propelled by medical conditions, the desire for physical or mental performance improvement, desiring an exclusive and customized experience, or simply the desire for a healthier diet. 

However, UBS notes that a major barrier remains in the form of a complicated value-chain required to deliver a fully functioning, DNA-to-table, personalized nutrition solution. This would require the combination of:

• A science-based genetic extraction and processing system. 
• A comprehensive nutritional database to provide appropriate food product suggestions.
• Wearable technology intertwined with a mobile application to monitor user activity (levels of exercise), which can alter nutritional needs.
• A food-delivery partner to meet consumer demand for convenience, whereby products are delivered to their door.

UBS says that no existing solution can claim to meet all these requirements already, highlighting the opportunity over the medium- and long-term. This could lead not only to financial gains, but also to broader social benefits through the potential reduction in diet-related, as well as a positive environmental impact.

Protecting consumer privacyOver 60 percent of consumers are willing to share data to advance scientific research.
Another important consideration is safeguarding consumer privacy. According to the Precision Consumer 2030 report, over 60 percent of consumers are willing to share data to advance scientific research. This includes their medical data; lifestyle, behavioral and family history data; and genetic info and wearable data. However, 36 percent of people were not willing to share their data with a private company, if asked. The need for consumer protections is set to escalate in order to bring precision consumption to the mainstream.

Henzi notes that the protection of consumer rights and regulation of precision data is likely the biggest risk associated with precision data. “Large tech players face scrutiny by regulators and consumers alike and certain governments show their already-blurry lines in terms of precision data privacy. Governmental bodies all over the world are faced with the challenge of creating the rules, regulations and laws around concepts that many of them do not yet fully understand.” 

He postulates that a “Biodata Bill of Rights” would help guarantee privacy for all. Indeed, the report outlines seven rights, which include ensuring consumer data ownership, guaranteeing anonymity and promising consumer consent for any use of their precision data. 

The Future of Consumption Platform is also building the “Precision Data Collaborative,” a system to ensure the privacy and transparency needs of consumers are being met while enabling data-driven knowledge and innovation to thrive. The collaborative aims to onboard over 1 million consumers over the next three years to create the most trusted and integrated wellness data set featuring biological, physiological, and behavioral data. As a pilot, this public-private ecosystem will include businesses, members of academia, civil society and government. 

The annual meeting at Davos has also seen over 20 global public and private organizations – including Royal DSM, Bayer and Food and Agriculture Organization of the UN (FAO) – coming together to form the Food Action Alliance (FAA). It aims to address the significant hurdles in the transformation of food systems toward feeding a ballooning population sustainably.

By Katherine Durrell

To contact our editorial team please email us at editorial@cnsmedia.com