Nutiani report reveals invigorated approach to nutrition despite inflation pressure
04 Apr 2024 --- Fonterra’s well-being nutrition brand Nutiani released its latest report, “Health, Nutrition and Rising Costs,” which found that more consumers take proactive steps to manage their health despite having tighter budgets. However, rising costs inform how these consumers adjust their approach to nutrition.
“Even with the tightening of purse strings, we continue to see bright spots in the well-being nutrition space as this will remain top of mind for consumers,” says Komal Mistry-Mehta, chief innovation and brand officer at Fonterra.
“For instance, 65% of consumers surveyed plan to make dietary changes to improve their health and well-being over the next year, which is a three percentage point increase over the last survey in 2021. There is a massive opportunity here for brands to tap on this demand by staying tuned to rapidly evolving consumer preferences in the current market.”
The report comprises a Consumer Health and Nutrition Index and surveyed 2,500 respondents from China, Japan, South Korea, the UK and the US.
Health and well-being budgets
According to the report, four in ten consumers worldwide find health and well-being nutrition products too expensive. One-third of these consumers claim rising costs have made it hard to continue purchasing nutrition products. Despite their pricing challenges, 67% of consumers consider health and well-being a “top priority.”
The report underscores that a product’s value is not solely equated in price but also the benefits it brings consumers at its price point. Consumers’ purchasing decisions are driven by quality over quantity, and they believe good nutrition improves their health.
Consumers are earnestly budgeting, but their sole focus is not on pricing. The Nutiani study found an emerging trend involving mindful consumers who prioritize essential nutritional products, effective and science-backed ingredients and the holistic value of these products.
Hank’s fortified Brain Boosting Peanut Butter Spread easily replaces a daily breakfast food.
“For brands to thrive in today’s dynamic market landscape, they must pivot toward inflation-resilient strategies and value-based innovation. This innovation must resonate deeply, creating a meaningful, positive impact on consumers. The future belongs to brands that understand this and adapt accordingly,” Mistry-Mehta states in the report.
Meanwhile, in the third volume of Nutiani’s Global State of Health and Well-being report series, Nutrition Insight explored how customers can tailor products to each group’s unique demands. The report surveyed 5,000 consumers and investigated their growing concerns around overall well-being and reaching their health objectives with good nutrition.
Demographic variables
The surveyed participants were between 18 and 80 years old, and the 500-person quota per region was set based on key demographic and geographic variables to ensure representability. The survey is the second in a series of ongoing research by Nutiani to build a thorough understanding of consumers and their health and well-being needs.
The report gives an overview of product attributes shaping consumer perceptions of value and willingness to pay a premium for nutrition solutions. Using an in-depth compilation of key consumer insights, industry case studies and expert opinions, the report analyzes four critical themes to guide brands’ future innovation — relevance, science, convenience and experience.
“The right inflation-resilient strategies and value-based innovation that resonate deeply are the keys to success in these challenging times. If brands can create a meaningful connection with consumers now, they will be able to stay ahead of the curve and retain engagement with their customers beyond this period,” Mistry-Mehta notes.
The “relevance” theme unpacks solutions that target consumers’ most important health concerns and will perform better. About 53% of consumers purchase only essentials and cut back on impulsive and indulgent purchases. The “science” concept taps into the understanding that a product’s health claims should be scientifically validated to ensure credibility and enhance consumer confidence. Scientifically proven ingredients and claims rank second and fourth as critical drivers of a product’s value for money.
Through the “convenience” theme, consumers find value in multifunctional solutions and one-stop resources that help streamline their health management routines. How brands engage consumers to tailor solutions is covered under the “experience” theme. Brands may also elevate the experience for their consumers through focus groups, which could include elements such as preferred tastes and formats.
By Inga de Jong
