Targeted Health and Wellness Foods and Beverages: The U.S. Market and Global Trends

The market for targeted health and wellness foods and beverages is a dynamic and promising one, driven largely by the growing recognition—among scientists, government, practitioners, and consumers alike—of the instrumental role diet plays in a wide range of health conditions. In fact, diseases that are linked to eating habits, including heart disease, high blood pressure, stroke, some types of cancer, and diabetes, are among the leading causes of death in the United States.

The risk of developing diet-related chronic diseases increases with age, so the graying of the population is a key factor in this market. Escalating healthcare costs that prompt consumers to seek alternative ways of managing their health also serve to draw attention to these products.

Packaged Facts defines targeted health and wellness (THW) products as retail packaged foods and beverages that are specially formulated and distinctively marketed as addressing a specific health concern or disease. This category is distinct from, but related to, a number of other product categories, including functional foods, nutraceuticals, and condition-specific nutritional supplements, as well as the FDA-defined categories of foods for special dietary use and medical foods.

The most compelling insights in Targeted Health and Wellness Foods and Beverages are derived from a series of proprietary Packaged Facts online consumer surveys. More than 40 tables, charts, and graphs illustrating the results of these surveys are featured in the report. Among the key findings:

• Nearly two-thirds of U.S. grocery shoppers have purchased a food or beverage in the past year for the purpose of addressing one or more of the 20-plus health and wellness concerns examined by Packaged Facts. Cholesterol management and digestive health of particular concern.

• In many categories, THW shoppers are exceptionally willing to pay more for “better-for-you” grocery products. They also express an above-average willingness to pay more for higher-quality grocery products.

• The health benefit reputation of a food, beverage, or ingredient is the most significant factor when shoppers are making a purchase decision based on a specific personal or household health concern. This underscores the importance of conveying health benefits credibly, clearly, consistently, and frequently.

• Nearly half of shoppers in Packaged Facts’ survey say doctors are one of their key sources of information about nutrients in food, and about one-quarter cite other medical professionals. Furthermore, one-quarter of shoppers say a recommendation by a health professional is an important factor when buying grocery products targeting a specific health concern. Therefore, marketing to healthcare practitioners can be a rewarding strategy, despite challenges.

• Shoppers are proactive about conducting research to educate themselves about diet, as just over half of Packaged Facts respondents consider health, nutrition, and wellness websites to be among the most valuable sources of information about nutrients in food.

• In general, shoppers who purchase THW products tend to visit a broader range of grocery outlets than does the population overall.

Targeted Health and Wellness Foods and Beverages also analyzes the growing role of clinical evidence in marketing health-promoting properties of THW foods and beverages; the regulatory structures governing health claims in key countries; the increasing complexity of the international THW industry structure; and product and ingredient trends in the U.S. and globally.

This report focuses on products sold in stores, rather than specialty distribution products or foodservice offerings. Because this study focuses on food and beverages products formulated and marketed to address a specific health concern, whole foods (including produce) fall outside the market scope. Dietary supplements, energy drinks, sports/fitness performance products, and weight loss/maintenance products are also excluded from Packaged Facts’ definition of targeted health and wellness (THW) foods and beverages.

Packaged Facts’ proprietary online surveys provide the basis for much of the analysis of the THW market. These surveys had a sample of 2,000 U.S. respondents age 18 or over who in aggregate are Census representative on the primary demographic measures of gender, age bracket, race/ethnicity, geographic region, household income bracket, and presence of children in the household. Respondents were asked about their consumption of foods and beverages for specific health concerns as well as a variety of “quality of life” purposes — boosting energy, for instance, or enhancing appearance. While these findings are discussed throughout this report, Packaged Facts’ analysis emphasizes the following specific health concerns:

• Blood Pressure

• Cancer

• Cholesterol

• Diabetes

• Digestive Health

• Eye/Vision Health

• Female Health

• Heart/Circulatory Health

• Joint/Bone Health

• Male Health

• Mental clarity/cognition/memory

• Prostate Health

• Urinary Tract Health