Wellness Isn’t Just About Fitness & Nutrition
Wellness is a modern word with ancient roots. As a modern concept, wellness gained popularity beginning in the 1950s, when subject matter experts largely shaped the way we conceptualize and talk about wellness today. During a “60 Minutes” segment in 1979, Dan Rather stated, “wellness, there’s a word you don’t hear everyday.” Fast-forward to 2010 and the New York Times stated “…more than three decades later, wellness is, in fact, a word that Americans might hear every day…”
Americans aren’t the only ones paying attention to wellness though, as the global wellness market is estimated to be worth approximately $1.5 trillion, with CAGR in the mid-to-high single-digits range. This rise in both wellness-focused consumer interest and purchasing activity presents tremendous opportunities for functional CPG brands. At the same time, the wellness market is getting increasingly competitive. That means that functional CPG brands must place a greater importance on strategically selecting where and how they should compete across the wellness dimensions.
Wellness Dimensions
How do you view wellness? Eating better? Working out more?
While fitness and nutrition are dimensions of wellness, don’t let your myopic view miss additional opportunities in the market. Today’s consumers tend to have a much broader and sophisticated lens that now encompasses six dimensions…
Better Health = Individuals historically viewing themselves as patients to now viewing themselves as consumers in the healthcare market has all kinds of ramifications.
Better Fitness = As many consumers struggled to maintain fitness routines and levels when gyms were closed throughout much of 2020, adaptations were made and fitness goals continue to persist.
Better Nutrition = Consumers want food/beverage that not only to tastes good but also can help them accomplish their wellness goals.
Better Appearance = “If you look good…you feel good…” is gaining strength.
Better Sleep = Consumers are learning how sleep affects health and productivity, thanks to increased attention given by scientific literature and mainstream news media.
Better Mindfulness = While it has ancient origins, it has only recently gained mainstream consumer acceptance.
Consumer Behaviors - Wellness
Functional CPG brands should also understand that wellness consumers tend to fall into distinct groups that behave very differently. That being said, all have some motivation that’s connected to price and lifestyle compatibility.
Wellness enthusiasts are high-income consumers who actively follow brands on social media, track new-product launches, and are excited about innovations.
Socially responsible prefer (and are willing to pay more for) brands that are environmentally sustainable and with clean/natural ingredients.
Price-conscious consumers believe wellness products are important but meticulously compare features and benefits before purchasing to get the best deal.
Loyalists prefer to stick with their current routines and the brands they know.
Passive participants are only marginally involved with the wellness category and don’t actively follow brands or new products.
Wellness Market Strategies
How can your functional CPG brand take advantage of the healthy and growing wellness market?
Look for “Scope M&A” Opportunities that can give you access to more wellness dimensions.
Utilize a “Portfolio Mentality” to develop additional brands that extend into wellness adjacencies.
Build in “Ecosystem” Components that help consumers experience the use of a product that is tailored to their specific needs and preferences. [Watch Here For More Information]
Look to “Clean Up” Your Products. A recent survey of global consumers asked, “if you had to choose between more natural functional CPG products or more effective ones, what would you choose?” and the majority choose the more natural route.
Final Thoughts
Wellness is here to stay, as consumers plan to increase their spending across products that improve their health, fitness, nutrition, appearance, sleep, and mindfulness. All companies should offer some degree of a wellness experience to maintain a competitive advantage.