Dive Brief:
- Despite the increasing price of health and well-being products, consumers prioritize their wellness. Sixty-seven percent consider it a top priority, according to a recent report from Fonterra’s nutrition solutions brand Nutiani.
- The Health, Nutrition and Rising Costs report surveyed 2,500 respondents across China, Japan, South Korea, the U.K. and the U.S., providing food manufacturers with a “massive opportunity to tap onto this demand by staying tuned to rapidly evolving consumer preferences in the current market,” said Kormal Mistry-Mehta, chief innovation and brand officer at Fronterra in a statement.
- Almost 60% of consumers cited health and wellness-related issues as a top concern in 2023, the report said, which is an increase from 55% in 2021. And 62% of consumers said that their confidence in how “better-for-you” a food product is hinges on scientific evidence and the efficacy of the ingredients.
Dive Insight:
In recent years, better-for-you food and beverage options as well as cleaner-label ingredients have become less of a trend and more of a norm.
To honor their wellness wishes in an inflationary environment, consumers are adapting by budgeting more consciously and focusing on essential nutrition products, effective ingredients and holistic product value, the report said.
The report also emphasized the importance of brands implementing inflation-resilient strategies to meet consumer demands and maintain engagement with their products.
“These findings should help guide brands in overcoming the current hurdle of understanding current consumer sentiments and demands in an inflationary environment,” said Rebecca Cuthbertson, head of marketing advanced nutrition at Fonterra in an interview with Food Dive. “One of the most important findings is that consumers’ interest in health and well-being has not waned, despite the increase in cost-of-living.”
“We also understand that sleep, immunity, mobility are top concerns among the myriad of health concerns, so these are areas that consumers may be more actively seeking solutions for,” she said.
With cash strapped consumers being more careful with spending, the report revealed three barriers to managing health and well-being through diet, and ingredients being too expensive came in at the second biggest obstacle, with not as tasty options following behind.
A third of consumers also reported that rising costs make it harder for them to purchase health and nutritional products, the report said.
“Given consumers’ continued interest in nutritional products that support health management despite changes in their purchasing power, nutrition brands still have significant opportunities to forge meaningful connections with their target audiences by understanding consumers’ top concerns and priorities,” said Cuthbertson. “The journey to better health and nutrition is a lifelong process and extends beyond periods of disruption, such as these windows of inflationary pressures.”
