New York, NY – Today, consumers are empowered to consider all of the information and varieties surrounding brands and their products. At times, there is so much information in flux, like articles about fads, diets, etc., that is has become hard for consumers to know how to filter through it. And in an era where brands are continually trying to influence people, build loyalty and differentiate themselves, there’s an opportunity that has yet to be maximized: Health and wellness empowerment for consumer-packaged goods.
There are several reasons why this is an untapped opportunity:
- Many consumers have become more selective with regards to the perception of high quality, premium-price products
- Smaller brands (< $1 billion in annual sales) are outperforming competition including the larger, more consolidated brands because of authenticity, the promise of healthy ingredients, and a connection to local ingredients
- In most regions, consumers are becoming more vocal about health-related topics which in turn is causing governments to create stricter regulations and brands to create new formulas that have less sugar
- Consumer focus on health has blurred the line on health initiatives between pharmaceutical organizations and consumer goods.
Moving forward there will be an even greater case for health and wellness marketing to overlap within the CPG segment. We will see ways to apply innovation to CPG products by looking at specific health facts and information specific to things like socioeconomics, race, location, and other such data points. By doing this, brands will be able to enhance the perception of their products within specific health groups.
For instance, let’s take a brand that the perception of having high sugar content. Using health data and information as a marketing initiative, a brand may be able to dispel myths for the African American population, a group disproportionately affected by diabetes, and make them reconsider the product. By having scientifically backed data and stats from verified source (doctors, medical editors, etc.) that consumers can believe in, a brand may be able to build up business growth in the segment areas that they care about.
Why This Matters –
Many top trends today are focused around the varying needs of different consumer demographics. We are seeing that product categories from mattresses to superfoods are leveraging health data to make a case for their products in a new way.
Some examples we can reference in this space are:
Sleep Hygiene
Research has proven that sleep is an important factor: Things like weight gain, anxiety, hormonal imbalances, productivity and more, are drastically affected by lack of sleep. The concept of sleep hygiene has caused consumers to engage with brands that they never would have before, just to make sure that they can make the best of their time awake. Brands like Casper, only 3 years old, have grown their business significantly with online revenue reaching $200 million and currently being valued at $750 million. Additionally, we’re seeing an increase in sleep tracking apps, personalized sleep technology and AI activations.
Healthy Fat Diets
Doctors have researched that maximizing mitochondrial output, which powers biochemical reactions in your cells, can be enhanced by healthy fats. These healthy fats are said to help people optimize their bodily functions and “hack” the aging process. Now large brands are looking at high healthy fat, or ketogenic products to help build upon the pro-fat movement. And for those of us who want to keep it simple, brands that promote foods or products with ingredients like coconut oil and avocado have even more prospects.
Beauty Brands
With the environment in flux, complicated skincare formulas, and melanoma being one of the most common cancers in young adults, beauty and skin care brands are actively engaging in a health-based dialogue. More than ever, brands and consumers are having conversations about things like fueling optimal skin function, barrier function, microbiomes, and sun protection to help protect their largest organ. And due to this, smaller brands are getting a space to play in by featuring natural and edible ingredients, fragrance-free products, added sun protection, and special serums, catering to the people personally, by advocating for different product regimens and combinations to maximize the health science for you.
Companies such as Coca Cola and Mondelez have tapped agencies like Allidura Consumer (part of the Syneos Health Communications Network) to promote the real science of their products, helping to dispel myths and share information from their network of physicians, medical editors, nutritionists, and many other health influencers. They use their deep understanding of health-minded consumers and their social expertise to “tailor approaches to help health-driven and health-challenged brands develop powerful advocate relationships.”
In today’s society, people are actively considering all of the facts and information before choosing what to purchase. Branding has a big part to play, but in many ways, companies that ethically leverage facts relating to the health science of their product will build loyalty, word of mouth, increase confidence and activate untapped market segments.
References:
https://www.strategyand.pwc.com/trend/2017-Consumer-Packaged-Goods-Trends
https://www.wellandgood.com/fitness-wellness-trends/
http://www.nielsen.com/us/en/insights/reports/2017/capitalizing-on-health-and-wellness-trends.html
https://www.atkearney.com/consumer-goods/article?/a/mobilizing-for-action-in-consumer-healthcare
https://www.cancer.org/cancer/melanoma-skin-cancer/about/key-statistics.html
