Buying for Health Benefits

For six in 10 food shoppers, a product’s health benefits have a significant influence on purchase decisions, according to data from FMI, The Food Industry Association. In fact, two-thirds of adults say they consume products that contain at least two functional ingredients each day, 35% consume from two to three such ingredients daily, and 31% consume four or more each day, per an analysis by flavor company T. Hasegawa.

One-third of consumers overall and four in 10 millennials say they are putting a lot of effort into choosing healthier foods, FMI reports. Euromonitor puts global sales of functional foods and drinks at $304.2 billion in 2022.

What Consumers Want

What benefits are consumers most interested in? Four in 10 use foods/beverages that claim to improve energy or heart health, and one-third seek products that aid digestion, boost immunity, act as an anti-inflammatory, or promote relaxation, per T. Hasegawa. For the year ended Jan. 3, 2023, unit sales of foods and drinks with immunity claims jumped by 61% and unit sales of products with energy claims were up by 11%, according to research firm Circana.

Half (51%) of adults want more foods and drinks that support mental and emotional health, up from 42% in 2021. One-fifth of consumers buy foods that claim to detoxify or improve mental focus; 15% buy food products to aid sleep, improve mood, offer anti-aging benefits, or to support healthy hair, skin, and nails.

Sales of foods and drinks formulated with nootropics, which are associated with cognitive benefits, grew by 26% for the year ended Feb. 26, 2023, per SPINS. Nootropic-infused Mindright Popped Chips contain L-theanine, ginseng, and lion’s mane mushrooms.

Multifunctional energy/sports beverages like SkinTē Peach Mango Sparkling Wellness Soda formulated with collagen peptides and vitamin C drove growth among small brands in 2022, per Circana. Electrolytes, apple cider vinegar, natural caffeine, antioxidants, botanicals, prebiotics, plant fiber, magnesium, and calcium were the most sought-after ingredients.

In the soda category, products that promote digestive health, performance, and cognition posted the largest dollar gains for the year ended Feb. 26, 2023, per SPINS. Buddha Brands introduced Thirsty Buddha Sodas with prebiotics, which the company says support a healthy gut. New Rowdy Mermaid Sparkling Tonics are formulated with botanical ingredients like ashwagandha.

Zurvita Zurge, which contains lion’s mane, is billed as a “brain supplement” coffee blend. New Control Sugar Delete Tea from AyurSome Foods was a 2023 Specialty Food Association award winner; it’s formulated with gymnema sylvestre and other Ayurvedic herbs said to help reduce sugar cravings and maintain blood sugar levels.

Snacks are another important functional product category; two-thirds of consumers seek more functional snacks, according to T. Hasegawa. Six in 10 consumers (61%) want snacks with vitamins/minerals, up 5% versus two years ago, Circana reports. Health claims beyond nutrition are important to 59%, up 4% from two years ago, per Circana. Other claims that resonate with snack purchasers include high protein, contains a serving of fruits or vegetables, and aids digestion, Circana says.

Nearly half of exercisers eat snacks, before, during, or after a workout, up 6% versus two years ago, according to Circana. One-third of those who follow an eating plan like paleo or keto buy snacks to support the diet.

Three-quarters of consumers want to see more naturally functional ingredients included in entrées and prepared meals, led by superfoods, protein, probiotics, and antioxidants, according to T. Hasegawa data. In addition, T. Hasegawa reports that half of adults would like more functional desserts. Protein, prebiotics/probiotics, antioxidants, botanicals, and energy ingredients are dessert functional ingredients of interest.

According to Mintel/Kantar Profiles data, cereal and baby formula were other functional food categories that performed strongly in 2022. GUUD Brain Fuel muesli cereal boasts 360 milligrams of brain-boosting omega-3 fatty acids. Happy Tot Super Morning breakfast blend purees in pouches contain omega-3s, fiber, and other healthful nutrients.

Given the high level of consumer interest in functional ingredients, touting the nutrient/functional ingredient content of naturally functional foods may be a major missed market opportunity.