Millennials Driving Growth and Transformation of the Health Food Market
Industry Sees Improving Prices, Expanding Product Lines
The global wellness economy was valued at $4.2 trillion in 2017, while the health food segment was valued at nearly $700 billion.
Major players in the market include Cargill, Nestlé, PepsiCo, Sanofi and Proctor & Gamble.
- Approximately one-third of millennials think choosing health foods is “very important”— and nearly the same number are willing to pay a premium for those healthy foods.
- The focus on health food comes as obesity rates in the U.S. are at an all-time high, with more than one-third of adults and nearly 20% of young people categorized as obese.
- Consumers in North America are seeking high-protein foods and those which feature whole grains, while in the Asia-Pacific region, buyers are looking for foods with sustainable ingredients and no caffeine.
“For years, consumers living on the U.S. coast have enjoyed access to healthy foods, easily stumbling upon kombucha or probiotic-filled chocolates in trendy, niche boutiques and health food stores,” notes report author Smruti Munshi. “In recent years, we’ve seen larger corporations embrace wellness, starting a strong ripple effect and bringing better food at better prices to grocery stores across the country. These moves indicate a strong interest among millennials, a demographic that with an estimated buying power of $1 trillion is more dedicated to eating well and supporting ethical, sustainable business practices with its dollars than any other generation.”
Indian Health-Food Market Expects High Growth Through 2020
The health food market in India was valued at only $1.5 million in 2016, but expects a compound annual growth rate of 25% through 2020. Growth comes thanks to the penetration of packaged foods and growing consumer preferences for healthy cookies, fortified whole wheat flour, healthy oils and sugar substitutes.
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Source: BCC Research