The Three Major Trends Influencing The Global Food Market

With the Americas set to emerge as the largest market for health and wellness products over the next four years, looking towards the region can help predict the trends that are likely to have the greatest impact on the global food market.

Currently experiencing huge demand for health and wellness food products from various industries and under pressure to aid with the prevention and control of obesity and diabetes, the American food market is already responding, sparking the emergence of a number of key trends, says Vijay Sarathi, one of Technavio’s lead industry analysts.

According to Sarathi, “To attract consumers and increase their sales, vendors are constantly innovating with new product offerings. To this end, vendors are introducing packaging and formulations, and even inventing new ways of increasing consumption.”

But among the influx of innovative products and increased specialisation within the segment, which are the trends that really have the propensity to drive the industry?

Below are the three key trends market research company Technavio predicts will propel the growth of the global health and wellness food market over the next three years.

The emergence of performance nutrition

High demand for protein-based products is driving the performance nutrition category globally, with North America leading the market. As awareness surrounding the benefits of protein-based bars, supplements and powders continues to increase among consumers, many new entrants are expected to introduce novel products that leverage this opportunity.

In particular, products that aid in building muscle mass, muscle strength, conditioning and toning, endurance and muscle repair are expected to increase in appeal, boosting sales within the market.

It’s a trend which Charlie Turner, co-founder of British startup Neat Nutrition, says his company is already benefiting from.

Less than a year old, Neat Nutrition, which sells a range of high-end powders and supplements, has already experienced rapid growth, the brand’s website sales increasing month on month.

However, Turner says they still have a long way to go when it comes to increasing consumer education and awareness.

Confused by the amount of conflicting information surrounding the category, Turner argues that consumers need to be educated about the benefits of products in the performance nutrition category to really help boost the sale of products like theirs.

“We want to make our products more accessible by breaking down some of the barriers traditionally associated with sports nutrition, for example debunking the commonly held myth that protein is just for bodybuilders or will make you too muscular,” he told Welltodo.

Like Neat Nutrition, brands attempting to appeal to the mass market by highlighting the functional benefits provided by proteins in terms of nutritional value, weight management, and strengthening of the immune system, will have far greater potential to scale and capitalise on the future market.

The Three Major Trends Influencing The Global Food Market
Image: Neat Nutrititon

Glucose control goes mainstream

As glucose control takes center stage in the fight against rising obesity and its impacts, the amount of functional food products that are being approved for blood glucose control is increasing.

In Europe there have been 10 approved claims, while in Japan, more than 140 claims have been approved – an indication of the positive impact blood glucose control products can have over the market.

Responding to this new trend, manufacturers globally are coming up with new products that are aimed at addressing glucose imbalances. MINI Lifefood Chocolate Pink Salt Spirulina is completely free from dairy items, artificial sweeteners, hydrogenated fat, soy products, and gluten. Instead it is sweetened with natural raw agave nectar and is therefore considered diabetic-friendly.

Gemma shorter, nutritionist and brand manager at The Food Doctor, The UK’s leading nutrition consultancy, says that while controlling glucose is an issue that has been part of the brand’s guidelines since it launched in 1999, they have recently noticed a spike in competition. A trend she attributes to the increase in media coverage surrounding sugar consumption and its health implications.

“Over the past couple of years, the impact a high sugar diet is having on our health has been regularly making news headlines. As a result the public are becoming more aware and endeavour to improve their own health through their diet. Statistics on sugar related issues such as obesity, type 2 diabetes and heart disease as well as the cost to our NHS, is hopefully encouraging the public to make changes,” she explained.

Globally, 382 million people have diabetes, and WHO projects diabetes to emerge as the seventh leading cause of death by 2030, meaning the demand for glucose stabilising products is likely to increase exponentially.

The Three Major Trends Influencing The Global Food Market
Image: The Food Doctor

Retail outlets increase global health and wellness offerings

As major retailers, including Metro, Tesco, and Wal-Mart expand their presence in Africa and Asia to boost global market share, the number of retail outlets across the world is predicted to increase the demand for health and wellness food over the next three years.

Wal-Mart alone has announced plans to open 1,246 retail stores/outlets in Africa by 2016. Similarly, french retailer Carrefour has formed a joint venture with CFAO, a global leader in brand distribution, to expand its operations in eight countries, including Kenya, Nigeria, and Senegal in West and Central Africa.

“The middle class in Kenya is really growing. It’s more appealing, it’s more sophisticated and it’s ready for formal retail,” Mark Turner, marketing director at Massmart, the South African group in which Walmart bought a controlling stake in 2011, told the FT.

Many new and exciting markets hold opportunities for major retailers, and as they expand their reach, food products that were once unattainable outside of the leading markets will become globally accessible.