Natural - 2021; Th e RISE - HEALTH PRODUCTS - Unique Health Products
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uhp.com.au 2021: THE RISE IN Discover five key aspects of the wellness space that DEMAND FOR NATURAL are driving natural health products sales in store: HEALTH PRODUCTS Plant-based Diets Australia is the world’s third fastest- growing, plant-based food market with We’ve never seen anything like 76% of grocery shoppers likely to buy the seismic shift towards total plant-based meat alternatives again. wellness, preventative health The annual Veganuary challenge and ethical consumerism that participation numbers have grown has taken place over the last by more than 500% since 2017. But it's 12 months. So much so that not only vegans interested in this space. the global wellness economy Consumers who are restricting certain is now worth AUD$6.2 trillion. animal-based products, but not following a strict vegan/vegetarian diet constitute One thing is for sure: The consumer a much bigger group, accounting for is truly now in control. 42% of consumers globally in 2020. Younger generations are increasingly Australian consumers are increasingly looking for food options that are healthier more focused on preventative health and more ethical and they associate practices, including food and diet, these features with plant-based options. exercise and wellbeing rituals. They’re demanding more from what • P lant-based positioned products they consume and are turning to food are growing 2x faster than their as medicine. mainstream counterparts. • 65% of consumers globally are According to research from the CSIRO, eating more plant-based food the health and wellness sector in and beverages. Australia, including functional foods, free-from products, and vitamins and • The plant-based trend is central supplements will grow at 3.6% p.a. to new claims related to mental to 2030 (compared with growth of health needs: 2.4% p.a. for the food and agribusiness • i.e. Ashwagandha for stress industry as a whole). recovery, maca and zinc for focus and immunity, lemon Health-focused options are no longer verbena to reduce irritability. ‘nice to have’. It’s now expected that grocery stores cater to this demand Convenience as savvy consumers look beyond their Consumers are striving to simplify their local health food store for options lives which can be seen through the to suit their needs. continuous growth of convenience products and services. 2021: The Rise in Demand for Natural Health Products | 2
uhp.com.au Time is a precious commodity and mainstream spotlight and consumer consumers are choosing products that demands have evolved, the level of allow them to spend more time on tasks innovation has hit new heights. or activities that they enjoy or deem Consumers are making day-to-day more valuable such as spending time changes to their diets and lifestyles with on themselves, spending time with long-term goals to keep physical and friends and family, participating in leisure cognitive health problems at bay. experiences and exercise. This is where functional foods come in. This has led to less focus on traditional Functional foods are foods that have meal times and an increase in snacking. added nutritional benefits beyond their Globally, 9 in 10 adults say they are usual nutritional properties. Snack bars, snacking more with consumers expecting beverages and grab n’ go meals are being their grab-and-go snacks to be more infused with adaptogenic and nootropic nutritious and provide satiety. ingredients, such as ashwagandha, reishi, According to Euromonitor, the global rhodiola and ginseng to offer an extra health and wellness snacks market is level of benefit to help consumers to forecast to reach AUD$134 billion by keep up with their busy lives and achieve 2025, growing at a Compound Annual their personal goals. Leading functional Growth Rate (CAGR)of 5.8% between snack trends include energy, focus and 2020 and 2025. calming/relaxation. • H ealthier snacks are top-of-mind • 3 8% of consumers are actively with consumers actively seeking seeking out food and drink snacks that are vitamin rich (46%), products with functional and support gut health (41%), and boost fortified ingredients. immunity (41%), with priority on • Globally, 61% of consumers are snack ingredients that are high in more conscious of the need to fibre (25%) while also being low in lead a healthy lifestyle. sugar, carbs and fat (25%). • 3/4 of global consumers say they • The popularity of high-protein will eat and drink more healthily snacks is a top trend, with 51% of global consumers stating they’ve Better-for-you switched from traditional snack Consumers are looking for better-for-you products like chocolate and products to combine taste and nutrition confections to high-protein/low- in a convenient and guilt-free manner. sugar alternatives. Roy Morgan research shows the ‘healthy • Clean labels, sustainability snack’ category saw the largest growth and functional ingredient claims of 3.2% across the last ten years, securing are driving snack food sales. its position as the second most popular snack category. Functional Foods This also extends to baking and indulgent The natural health industry is innovative treats. Consumers want to have their by its very nature. But as brands and cake and eat it too. Sugar remains the products have made the shift into the 2021: The Rise in Demand for Natural Health Products | 3
uhp.com.au most important nutritional component for the respondents were plastic waste, shoppers look at when purchasing toxic chemicals and our oceans with plastic products. Which coincides with the major waste a concern for 84% of consumers. growth of the global ‘low carb, high fat’ The same study also found that 56% keto market - predicted to be worth of people are actively searching for AUD $20.09 billion by 2027. sustainable brands and products that They want to know what they’re support causes or have environmentally- consuming with maximum transparency friendly attributes. of the ingredients found in the food • 7 4% of Australians say that and drink that they purchase. This is a company’s social and driving demand for simplified nutritional environmental efforts are at least information and innovative ways of moderately important in deciding communicating formulation information, what to purchase. as well as free-from claims and streamlined ingredient lists. • 48% of Australians believe buying sustainable products shows others Interestingly, plant-based products who they are and what they believe are perceived as healthier despite only in and the same percentage are 9% of plant-based products also using prepared to invest time and money the claim ‘all-natural’. to support companies who try • 4 4% of Australians are ‘concerned to do good. about their sugar intake’. • 2 in 5 consumers want brands • The grocery market has experienced to offer more sustainable options. a 17% growth of products with a less, Our business is to build your no, or reduced sugar descriptor. business. • 82% of consumers want to be able With over 25 years of industry to actually recognise the ingredients experience, relationships with major as foods they know and trust. Australian and international brands, and Sustainability a streamlined national logistics network, Unique Health Products can help you Regardless of generation or gender, excel in the natural health and wellness the environment matters to consumers. space, today and beyond. In one study of 2000 Australians, the researchers found that the top three Let us guide you to success overall social and economic concerns in this trillion-dollar industry. Sources: IRI Data, 2021; CSIRO, 2019; Bloomberg Intelligence, 2021; nutritionals, ‘Snacks - Trends for 2021 and Beyond’, 2021; Euromonitor Mondelez ‘State of Snacking Report’ 2020; Expo West, 2021; Focus Passport, Health & Wellness Savoury Snacks, Sweet Biscuits, Snack Insights 'The Grocery Shopper 2021' Report, 2021; Mintel ‘Global Food & Bars & Fruit Snacks, accessed March 2021, Roy Morgan, 2020, Drink Trends’ Report, 2021; FMCG Gurus, ‘How has COVID-19 changed Euromonitor ‘Health by Generation’ Understanding Healthy Lifestyles consumer behaviour’ Report, 2021; FMCG Gurus,’Top Trends for 2020’, and Behaviours, 2020, Euromonitor International Passport ‘Going Plant- 2020; IBM, 2020; Euromonitor, 2018; Davidson Branding, 2020; Kantar Based: The Rise of Vegan and Vegetarian Food’, 2020. ‘Sustainability: The Australian Story’ Report, 2021, Kantar, 2020; glanbia 2021: The Rise in Demand for Natural Health Products | 4
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