Competitor Strategies in Health and Wellness

March 2025

Product sales with health & wellness claims have seen a slow down in sales after a surge over 2020-2022. Heightened demand for healthier choices has subsided, however, more stable growth is expected in the forecast period. While cost-of-living crisis has consumers rethinking their shopping habits and focusing only on essential, there is still demand for foods and drinks with health & wellness claims, especially those connected to restrictive diets, allergies, sensitivities, fitness or health.

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Key Findings

Stepping outside of single claim marketing

Brands that want to position themselves as a better choice for consumer’s health or diet often employ multiple claims. Combining claims attracts a wider range of consumers whether they have dietary restrictions or just want to adjust their intake of certain ingredients. It takes away the guessing game and eliminates the need to do not independent research.

Fitness goals create demand for nutrition

During the pandemic, many consumers revised their everyday habits and took on fitness challenges to improve their physical and mental health. Fitness has become an important habit for many and nutrition is an important part of daily routine. Better choice with lower sugar content, high protein and fortification with vitamins or minerals is notable throughout packaged food and beverage categories. Snacks, dairy and soft drinks have seen the biggest influx of products that have sports nutrition in mind.

Innovation driven by dietary restrictions

Claims relating to dietary restrictions have become prominent in packaged foods and drinks. Consumers are seeking products that fit their specific needs whether they are vegan, vegetarian, lactose free, gluten free or have other specific dietary requirements to maintain their health and optimal nutrition. It has become common that most popular product variants are then developed to fit specific needs. Dietary and free from claim group is expected to maintain the leading position within foods and drinks as innovations are welcomed by consumers.

Small companies  - big plans

Innovations involving health and wellness features often come from smaller companies that target a specific consumer need; however, their biggest hurdle is managing demand. Companies like Celsius signed contract with large regional distributors to ensure market expansion. Sometimes niche companies can only achieve growth by joining large corporations. Mergers and acquisitions can help start-up companies reach new markets with higher marketing budgets and established  supply chain networks.

Scope
Key findings (1)
Industry overview: Slower post pandemic growth but demand for better nutrition persists
Industry overview: Gluten free claim continues to grow it’s share in packaged food
Soft drinks companies contribute high value share in sales of products with health claims
Unique focus areas help Pepsico and Hershey's ensure strong standing in gluten free segment
In energy drinks, PepsiCo has more room for manoeuvre for evolving health claims
Snacks: Consumers seek out higher protein content outside of sports nutrition
Highlighting natural or added protein content help North America companies dominate
Soft drinks: Water and sports drink companies compete closely on functional hydration
Mineral-fortified drinks have ample room for growth in Latina America and Middle East
PepsiCo Inc: Introducing healthier choices with Quaker Oats grain-based products
PepsiCo Inc: Prospects of expansion in Australasia and Western Europe
Mondelez International Inc: Combining high fibre with multiple health claims
Mondelez International Inc: Claim communication vastly differs in North America and Europe
Celsius Holdings Inc: Proprietary formula and joint ventures boost brand reach
Celsius Holding Inc: Continued global expansion by forming partnerships
Groupe Danone: Digestive health at the forefront of fermented product range
Unilever Group: Vegan sales have room to grow both from line expansion and added claims
Perfetti Van Melle Group: Combining multiple claims to attract a wider range of consumers
Luigi Lavazza SpA : Sustainability and mindful consumption driving coffee sales
Key findings (2)
Recommendations

Health and Wellness

Health and Wellness encompasses a number of key claims made on a food or drink products that suggest a health and/or wellness positioning. It comprises positionings relating to better for you, dietary and free from, fortified/functional, health benefit, natural and organic. Please note that data is not available at this level or other aggregated claim levels.

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