Consumers are taking a more holistic view of health and nutrition—a view that reflects a rising fear of chemicals and artificial ingredients, a belief that fresh whole foods offer greater nutritional value, and the realization that foods can help prevent or mitigate even serious health conditions.
Fifty-five percent of U.S. households have members who are watching their diet. Of these households, 66% are doing so for general health reasons; 55%, to lose weight; 40%, to limit fat, sugar, sodium, etc.; 38%, to prevent future medical issues; 37%, to maintain weight; 22%, to treat a current medical condition; and 10%, to control a real or perceived food allergy/intolerance (Packaged Facts 2015a).
Three-quarters of Millennials think their diets could be healthier; 64% of those aged 70-plus feel that way (FMI 2015a). Younger adults aged 18–34 are the most likely to use functional foods (MSI 2014a).
Functional food sales topped $55.1 billion in 2015, up 7.7%, and are projected to reach $63.3 billion by 2017. Functional beverage sales are projected to reach $41.4 billion in 2017, which is up from $35.6 billion in 2015 (NBJ 2016).
Products associated with general heart health, cholesterol, digestion, energy, bone health, immunity, weight, and blood pressure are among the most consumed functional foods (MSI 2014a).
Although the traditional drivers of food selection—taste, price, convenience, health, safety, social impact, and, for some, sustainability—remain important, 51% of consumers are relying more heavily on a new group of “evolving drivers” when making food purchase decisions; these purchase influencers tend to be focused on clean labels and nutrition (Deloitte 2015).
These progressive health shoppers can be broken out into three groups. Members of the first group are described as “balanced buyers;” they are interested in balanced nutrition, nutrient content claims, fewer ingredients, no preservatives or artificial ingredients, and limited or no processing. A second group includes those who seek foods that are free from harmful elements, and the third group comprises naturally oriented buyers who prefer foods that are organic, all-natural, antibiotic- and hormone-free, and not genetically modified (Deloitte 2015).
This powerful bloc of more naturally driven shoppers is less trusting of large, national food/beverage brands and instead favors niche brands from smaller companies. Most important, the way consumers respond to these new drivers is very similar across all geographic regions, age groups, and income levels (Deloitte 2015).
Chemicals were the top food safety consumer concern in 2015, with the number of those who listed chemicals as their top concern up 13% over 2014; foodborne illness was next on the list of consumer concerns. Only 11% of adults said they were very confident in the safety of the U.S. food supply (IFIC 2015). Nearly half of adults changed a food purchase due to recent negative information about food chemicals (FMI 2015a).
