Back to basics

Health and wellness have been major themes within food retailing for quite a few years now. That said, the total growth of health- and wellness-related sales in the United States slowed in 2015, states London-based Euromonitor International in its April “Health and Wellness in the US” report. Americans, it seems, are reshaping their definition of what constitutes a healthful diet.

“As consumers increasingly eschew the concept of ‘dieting’ in favor of eating more unprocessed foods, growth by better-for-you and fortified/functional packaged food and beverages is weak,” Euromonitor says. “This weakness is being offset to some extent, however, by the continuing strong performance from organic and food intolerance, which consumers increasingly view as symbols of a product being ‘natural’ and ‘healthful.’”

Think clean label, ‘close to nature’

Although traditional artificial sweetener-containing “diet” products and highly processed “health-oriented” brands might be out of favor with consumers, retailers still will find ample opportunity to develop health- and wellness-oriented food and beverages that do resonate with their shopper base.

Increasingly important to today’s consumers, for example, are products that boast relatively short ingredient lists with recognizable and pronounceable ingredients, as well as “natural” products, Euromonitor states.

“In response to consumer demand for less-processed food, most major food manufacturers in the U.S. made major ‘clean label’ commitments in 2015,” the market research firm adds. “These companies pledged to remove all artificial ingredients from their products by a certain deadline.”

Steve French, managing partner with Harleysville, Pa.-based Natural Marketing Institute, agrees that the macro health and wellness concerns in America today all center on clean label. But the term encompasses many dimensions and definitions, he maintains, that vary according to the individual consumer.

Meanwhile, the 13 percent of adult households that make up the more active “core” health and wellness consumers take the definition of clean label to a new level. They want food and beverages they perceive to be “as close to nature as possible,” says Melissa Abbott, vice president of Hartman Retainer Services, a customized subscription service that provides access to the non-proprietary reports, publications and more from the Hartman Group, Bellevue, Wash. They associate such products as having a better nutritional content — and also want products that are responsibly sourced and produced.

The right ingredients

And the absence of undesirable ingredients or inclusion of specific health-promoting ingredients continues to be a strong influencer for food purchases. French refers to the “big eight” in terms of ingredients many consumers are either avoiding or seeking out — sodium, gluten, fiber, sweeteners, GMOs, protein, carbohydrates and fat.

In addition, in an April publication titled “Healthy Happy Home,” Isabel Morales, executive analyst, consumer insights for New York-based Nielsen, notes that 62 percent of U.S. consumers rank “made from vegetables/fruits” as an important purchase influence. Rounding out the top five are high in protein (61 percent), high in fiber (57 percent), portion control (57 percent) and whole grain (57 percent).

But retailers also need to consider generational needs — the ingredients and attributes avoided or sought after differ according to generation.

Sodium [avoidance] is more relevant to a boomer than it is to a millennial,” French says. “However, gluten-free is the opposite.… Fiber is a ubiquitous need; it’s not just for boomers and seniors who may end up with digestive issues. Millennials are looking at gut health in general as a key to wellness.”

And generational needs also should come into play in product positioning that goes beyond the absence or addition of certain ingredients and attributes.

“From an age cohort perspective, combatting stress [and] anxiety and finding the energy to sustain themselves through their busy lives remain key struggles for many consumers,” Abbott says. “Yet managing anxiety, stress and depression are important concerns for millennials and Gen X.”

She adds that baby boomers are the most likely of the generations to place an emphasis on energy, but all consumers are cognizant of and concerned about the effects of aging. Boomers, however, are now “actively confronting age-related health issues,” and many of those issues are hereditary.

Find the white space

In addition to noting the trends toward clean label and “good” and “bad” ingredients/attributes, retailers would be wise to focus product development in specific areas that represent prime opportunities. Abbott suggests homing in on high-protein products and other products that are nutrient-dense, products such as yogurt that promote digestion and products that are organic, biodynamic or have other attributes associated with sustainable production.

“Products with these attributes are on track with trends in healthy snacking, dietary habits and nutritional goals,” she explains.

And retailers should also look to products that are consumed on a frequent basis when adding to their health- and wellness-related food and beverage portfolio, French suggests. These products can be positioned as “everyday solutions” — part of consumers’ lifestyles.

But retailers also need to understand that a health claim or an attribute claim might not be enough to sway consumers toward a store brand.

“Consumers respond better to a genuine effort from companies who are constantly trying to improve themselves and take the time to build a name they can trust,” Morales notes.

Convince them to buy

A little packaging, marketing and merchandising magic also can help sway consumers to try own-brand health-and wellness-oriented food and beverages. Packaging that encourages interactivity and boasts a sense of personalization is one idea, Abbott notes. She also suggests that retailers rethink package sizes and consider adding meal components in, for example, ready-to-go hot and refrigerated stations.

“Trader Joe’s is often praised by consumers for its two-person meal solutions,” she says. “Consumers are increasingly cooking for themselves — alone — or for a small household. This is an opportunity for food retailers to provide the meal components they need to enjoy the occasion.” Marketing, too, should include the growing demographic of small households.

“Culture is redefining what alone eating, snacking and cooking for small households have to be,” Abbott says. “Rather than marketing to family occasions and iconic meals of the past, new opportunity spaces exist to market to the vast number of adults who are increasingly eating alone [or] snacking or shopping for much smaller households.”

French points to opportunities in front-of-pack callouts for sugar, calories, sodium and fat content, as well as shelf tags that communicate a product’s health and wellness attributes. But he believes retailers also could use innovation as a prime marketing tool because the big national brand companies are lacking in innovation within this space.

“Retailers are more in the driver’s seat to get at that level of innovation in doing some new things rather than just following what the national brands are doing,” he says.

Finally, retailers will want get social when it comes to singing the praises of their health- and wellness-positioned store brand food and beverages. As Morales notes, 74 percent of consumers share health and wellness information and tips on Facebook, while 32 percent and 31 percent, respectively, take to Instagram and Twitter.

“Websites and social media will drive trial from your consumer,” she says, “as they will head straight to the appropriate aisle when in the store with very little browsing.”