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Diving overview:
- Despite Price increase for health and wellness products, consumers prioritize their health. A recent report from Fonterra's nutritional solutions brand Nutiani found that 67% consider it a top priority.
- The Health, Nutrition and Rising Costs report surveyed 2,500 respondents across China, Japan, Korea, the UK and the US and urged food manufacturers to “capitalize on this demand by staying tuned to the rapidly changing consumer preferences in today's marketplace.” “It presents a tremendous opportunity for us to do just that,” Kormal Mistry-Mehta, Fronterra’s chief innovation and brand officer, said in a statement.
- According to the report, nearly 60% of consumers say health and wellness-related issues are their top concern in 2023, up from 55% in 2021. “Food depends on scientific evidence and the efficacy of ingredients.
Dive Insights:
In recent years, better food and beverage options and clean label ingredients have become the norm rather than a trend.
To honor their wellness wishes in an inflationary environment, consumers are adapting by budgeting more consciously and focusing on essential nutritional products, active ingredients and overall product value, the report said.
The report also highlighted the importance of brands implementing inflation-resilient strategies to meet consumer demands and maintain engagement with their products.
“The findings will help brands overcome the hurdle of understanding current consumer sentiment and demand in an inflationary environment,” he said. In an interview with Food Dive, Rebecca Cuthbertson, head of premium nutrition marketing at Fonterra, said: ““One of the most important findings is that consumer interest in health and wellness has not waned despite the rising cost of living.”
“We also know that sleep, immunity and mobility are top concerns among many health issues, so these are areas where consumers can be more proactive in seeking solutions,” she said.
As cash-strapped consumers become more careful with their spending, the report found there are three barriers to managing health and wellbeing through diet, with ingredients that are too expensive being the second biggest obstacle, followed by tasty options. Didn't follow.
According to the report, one-third of consumers say rising costs are making it more difficult for them to purchase health and nutrition products.
“Given consumers’ continued interest in nutritional products that support their health despite changing purchasing power, nutrition brands can still build meaningful connections with their target audiences by understanding consumers’ top concerns and priorities,” Cuthbertson said. “We have a significant opportunity.” “The journey toward better health and nutrition is a lifelong process and extends beyond periods of disruption, such as windows of inflationary pressures.”
