“Shifting Consumer Preferences: The Rise of Healthy Foods in the U.S. Market Amidst Pandemic Trends”
According to an AlixPartners survey, when it comes to healthful foods that resonate with U.S. consumers, breakfast cereals, bread and baked goods, dried fruits, nuts, and bars, as well as fresh meats, meat alternatives, and seafood dominate the market share. During the pandemic, plant-based protein experienced a notable increase in popularity as shortages of traditional meat prompted consumers to explore alternatives. Certain segments show significant promise as well, particularly in the chilled and frozen foods category, which has seen robust demand for healthier options, coinciding with an overall rise in frozen food consumption during the pandemic. Approximately 49% of U.S. consumers believe there is a shortage of healthy frozen meal options.
Manufacturers like Nestlé, B&G Foods, Conagra, and General Mills have been revamping their packaging and launching new frozen products that feature premium and plant-based ingredients, catering to evolving consumer preferences. Shoppers are also on the lookout for healthier choices in traditional salty snacks (47%), bread and baked goods (44%), confectionery (41%), and breakfast cereals (39%). However, consumers have expressed challenges in purchasing healthier options across various categories. For dairy, dairy-free products, and eggs, 45% of U.S. shoppers reported that these products are too expensive. Furthermore, more than a third of consumers pointed to unsatisfactory taste and performance as key barriers for frozen and chilled ready meals and confectionery.
David Garfield, the global leader of AlixPartners’ consumer products practice, noted that consumers still perceive healthy foods as niche offerings. To address this perception, brands must prioritize health and wellness in their value propositions. “Brands that succeed will be those that invest significant resources into this shift, focusing on innovation and value while maintaining a transparent and authentic approach to health and wellness issues. Consumers are increasingly wary of ‘health washing’ and expect to find products that genuinely deliver,” Garfield stated.
With price being the primary obstacle for many consumers seeking to increase their healthy eating purchases, brands face a dilemma: either reduce their profit margins or sacrifice market share, all while inflationary pressures are driving up prices across the broader food and beverage industry. Addressing poor taste and performance may offer an opportunity for food manufacturers to capture consumer interest if they can develop healthy reformulations that are both satisfying and appetizing. Nevertheless, some categories may always grapple with a niche mentality. For instance, while 41% of U.S. consumers in the AlixPartners survey expressed interest in healthy confectionery options, 39% did not see the need for them, associating the category primarily with indulgence and pleasure.
In addition, as consumers become more health-conscious, they are increasingly looking for products that contribute to overall wellness, including those fortified with calcium citrate for bones. By incorporating such beneficial ingredients, brands can appeal to consumers’ desire for nutritious options, potentially paving the way for broader acceptance of healthier foods in the mainstream market.
