Consumers want to eat healthy but price remains a barrier, report says

Consumers want to eat healthy but price remains a barrier, report says

Table of Contents

Dive Quick:

  • Around half of U.S. customers feel that a healthier lifestyle has come to be far more crucial about the past 12 months, according to the 2021 AlixPartners Well being and Wellness Study. Inspite of this uptick, balanced meals and nonfoods are accounting for only 21% of consumers’ wallets in all products groups.

  • Cost was the top barrier to paying for much healthier meals and nonfoods, preferred by 40% of U.S. consumers. This was followed by lack of clarity relating to whether or not one thing is healthful, a absence of availability in merchants, and goods that do not fulfill consumers’ taste or overall performance expectations.

  • The pandemic gave many people extra self esteem about healthful feeding on. But food stuff and beverage CPGs want to move over and above messaging to help superior-for-you achieve its product sales potential.

Dive Insight:

When it arrives to which healthful foods are making the sale with U.S. individuals, breakfast cereals bread and baked goods dried fruit, nuts, and bars and fresh meat, meat choices and seafood led in share of wallet, in accordance to the AlixPartners survey. 

Plant-dependent protein observed a unique boost during the pandemic as shortages of regular meat led buyers to experiment with alternate options.

A couple of segments also clearly show guarantee. Chilled and frozen foodstuff are looking at some of the strongest need for far better-for-you choices. This is as demand from customers for frozen foods over-all has soared throughout the pandemic. Around 50 % of U.S. people (49%) experience there is a absence of healthful frozen “Tv set dinner” choices. Manufacturers which include Nestlé, B&G Foodstuff, Conagra and Common Mills have been updating packaging and introducing new frozen goods that incorporate a lot more top quality and plant-primarily based substances to focus on altering shopper preferences. 

Customers are also in look for of a lot more healthful selections in classic salty snacks (47%), bread and baked products (44%), confectionery (41%) and breakfast cereals (39%).

But consumers also identified suffering factors in shopping for more healthy options in some segments. For dairy and dairy-free merchandise and eggs, 45% of U.S. customers explained the products and solutions were being far too costly. For frozen and chilled completely ready foods and confectionary, much more than a 3rd cited unsatisfactory style and effectiveness as a key barrier to obtain. 

David Garfield, world wide leader of AlixPartners’ client goods observe, proposed that people nonetheless see healthier foodstuff as specialized niche. To get over this, brand names want to make health and wellness a central element of their worth proposition.

“Brands that prosper will be all those who devote major sources to making this shift, with a distinct concentrate on driving innovation and price, and with a clear and genuine approach to health and fitness and wellness issues. Individuals are ever more notify to ‘health washing’ and assume to be equipped to acquire items that have it all,” Garfield claimed in a statement.

With price currently being the top impediment for most shoppers when it will come to increasing nutritious having purchases, manufacturers are faced with both trimming their margins or forgoing much more industry share. This is at a time when inflationary pressures are triggering price will increase throughout the broader food items and beverage area.

Poor taste and functionality may possibly be an a lot easier prospect to seize client interest if foods brands can arrive up with healthy reformulations that are both of those gratifying and appetizing. 

Some categories may possibly always wrestle with the market mentality, however. Even though there was need for wholesome confectionery options amid 41% of U.S. buyers in AlixPartners’ survey, 39% observed no will need for them, associating the category with treats and pleasure.