Natural - 2021; Th e RISE - HEALTH PRODUCTS - Unique Health Products

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Natural - 2021; Th e RISE - HEALTH PRODUCTS - Unique Health Products
2021;
  The RISE
IN DEMAND
     FOR
Natural
HEALTH PRODUCTS
Natural - 2021; Th e RISE - HEALTH PRODUCTS - Unique Health Products
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
Natural - 2021; Th e RISE - HEALTH PRODUCTS - Unique Health Products
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
Natural - 2021; Th e RISE - HEALTH PRODUCTS - Unique Health Products
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
Natural - 2021; Th e RISE - HEALTH PRODUCTS - Unique Health Products
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