Over the past few years, consumers have become increasingly concerned about their “health and well-being”. In particular, new consumer groups with obvious health concepts have begun to pay attention to product formulations, ingredients, labels, appeals, and environmental sustainability. These inherent consumer demands are driving the entire nutraceutical industry to upgrade and innovate. The new generation of consumers is more educated, more adventurous, and more willing to try different products and services.
A clear shift in consumer demand is that consumers are seeking food and beverages that enhance the body and mind, choosing natural products and nutritional supplements to provide overall nutrition, and hope to have a positive impact on the community and the environment as a whole. The following are five business trends in the global nutrition and health industry in 2022, which can be used to better understand the health perception and product demand of this generation of consumers.
1 Popularity of stress relief and sleep products
There is a mutual influence between stress and sleep, and stress is even more obvious in the current fast-paced era. The outbreak of the epidemic has “intensified” the normalization of the epidemic, and more consumers have begun to pay attention to the three subdivisions of emotional health, sleep management, and stress relief. According to a survey conducted by Harris Poll in the United States in 2021, two-thirds of the reasons for increasing the use of nutritional supplements by American consumers include improving sleep and improving mental health, accounting for 41% and 34%, respectively.
Consumer demand for mood and stress relief has driven the rapid development of vitamins and nutritional supplements. Data released by SPINS shows that vitamins and nutritional supplements are growing at a 43% annual rate on Amazon. Although there are many growth drivers for this market, stress and sleep support have increased significantly. Additionally, younger generations are more likely to seek out stress-relieving vitamins and nutritional supplements than older generations. 30% of Gen Z and Millennials will take it, compared to just 20% of Gen X.
In this field, beverages have become one of the directions of new product development. For example, PepsiCo will launch Soulboost, a sparkling water drink in 2021. The main appeals are energy boosting and stress relief and relaxation. That same year, Daydream Drinks launched a soda with cannabis and adaptogens. In terms of specific raw material development, magnesium, MCT, ashwagandha, mushrooms, melatonin, and other ingredients have grown significantly in the market.
Among them, magnesium and ashwagandha are the ingredients that resonate with consumers. On the one hand, most people don’t get enough magnesium, and more and more studies have found that magnesium is associated with sleep and the gut. As a representative of adaptogens, Ashwagandha has performed well in the market in the past two years and will have greater development potential in the future.
2 Carbonated beverages become a new outlet for gut health
The probiotics market will continue to grow as consumers become more aware of the fundamental role of gut health. The global probiotics market was estimated at USD 54.77 billion in 2020. It will continue to grow at a CAGR of 7.2% between 2021 and 2028. At present, the main category of probiotics is still nutritional supplements, and the plant-based field is a relatively new and growing field. Expect to see a lot of probiotic solutions in the future.
Probiotics are commonly found in various types of fermented foods, such as yogurt, kombucha, pickles, and sauerkraut. Currently, one of the main contributors to the growth of the probiotic product trend is “functional carbonated beverages”. It contains prebiotics, probiotics, or postbiotics, and the main application direction is immunity and the intestinal tract. The more popular probiotic beverages are shelf-stable functional carbonated beverages in the energy and performance category.
Functional beverages emerged as the next direction for probiotic growth, with shelf-stable energy drinks and other beverages containing probiotics being the main driver of sales growth, up 4,357.4%. For beverages containing prebiotics, shelf-stable sodas and carbonated beverages rose 12.8%.
3 The rise of regenerative agriculture
Health-conscious consumers pay a premium for products that ensure their own health and support social responsibility and sustainability. Many people have become interested in sustainable environmental health and support these “products of the future” through their purchases. Additionally, consumers will continue to seek cleaner ingredient labels.
Commercial interest in regenerative agriculture has surged 138% since 2019. Regenerative agriculture is a global movement that promotes biodiversity, carbon sequestration, and the harmonious functioning of living systems. The concept draws on the tradition of working with natural rhythms. The continuing epidemic of epidemic has once again brought it into the eyes of consumers.
Regenerative agriculture has been booming and plays a key role in shaping the future of agriculture. Strategies that prioritize soil health, no-till farming, cover crops on farmland, and traditional livestock farming are expected to help increase the accountability of the food and agriculture sector while appealing to conscious consumers. In the future, the words “renewable agriculture” will appear on product packaging labels.
For the industry, regenerative agriculture is critical for major food brands to achieve their net-zero plans and meet consumer demand for sustainable products. In addition, Unilever announced five regenerative agriculture principles in 2021 to achieve its goal of net-zero emissions by 2039.
4 More Sustainable Packaging Options
Consumers are paying close attention to the environmental impact of the goods they buy. While many manufacturers have turned to eco-friendly, upcycled packaging options, the environmental waste remains a concern for conscious consumers. Manufacturers, retailers, and other brands are rethinking how to offer more sustainable materials when packaging products. Minimize the use of plastic and single-use packaging materials by choosing recycled materials that help reduce waste and carbon footprint.
For example, the British company Gousto Recipe Box has cooperated with Xampla to produce edible packaging materials derived from pea protein. Evoware Indonesia has launched a range of edible packaging derived from seaweed. Across the packaging supply chain, returnable container/cup systems increased by 23%, aseptic cartons increased by 9%, and glass usage increased by 2%, according to SPINS data. We will also see innovation around zero-waste packaging as packaging continues to influence purchasing decisions.
5 Everything is a “mushroom”
As a rookie in the market, mushrooms have been very popular in the past two years. From culinary to functional nutrition, consumers are showing a clear interest in mushroom-based products. To cater to emerging consumer trends, brands are developing new forms of mushroom products, including seasoning mixes, ready-to-drink beverages, snacks, and coffee. In addition, mushroom raw materials in the form of capsules, powders, tinctures, or teas are also gaining popularity in nutritional supplements. According to market data released by SPINS, mushroom sales in the U.S. natural retail channel will increase by 16.1% in 2021.
Different types of mushrooms have different active ingredients and application directions. Chaga, Cordyceps Sinensis, Ganoderma lucidum, Hericium Erinaceus, and Yunzhi are relatively common ingredients in product formulations, and the main application directions focus on the immune system, blood pressure management, antioxidants, and overall health. In addition, areas such as cognitive health, cardiovascular, and skin health are also worth exploring. Demand for functional mushrooms and nutritional supplements will continue to grow as consumers seek food and beverage innovations that promote benefits beyond basic nutrition.
According to market data released by Allied Market Research, the global functional mushroom market will reach US$7.98 billion in 2020, and is expected to reach US$19.33 billion in 2030, with a compound annual growth rate of 9.3% from 2021 to 2030.
