The nutritional food industry is a rapidly growing sector, and new product innovations play a critical role in its success. Consumers are increasingly health-conscious, and the demand for healthier food options is on the rise. This shift in consumer preferences has led to an explosion of new product innovations in the nutritional food industry, and these innovations are critical to the industry’s continued growth and success.
Convenience as a Market Driver
As global consumer demand in the Health & Wellness sector increases, companies are exploring product innovation with the goal of claiming additional market share. We have seen innovation in the form of existing, already successful products repackaged into more convenient form factors, such as protein- or energy-rich snacks like trail mix morphed into “grabbable” snack bars, or a handful of supplement pills and capsules reimagined into liquid shots or chewable gummies that don’t necessitate the use of additional fluids to swallow them. Considering consumer interest in protein bars alone – US$4.5 billion in 2021, with a forecasted CAGR of 6.15% going forward, according to Polaris Research – it’s no wonder companies large and small are pursuing product innovation as a potentially profitable endeavor.
Alternative Product Sources Becoming Big Business
Other companies are pushing the envelope by creating and promoting alternative choices for everyday consumable products with the goal of augmenting or replacing standard commodities. Dairy alternatives have risen from obscure, niche health foods store products into big business as national brands like Starbucks have embraced almond, hemp, rice, and soy milk alternatives in order to cater to diet and health conscious customers. Grand View Research reports the 2022 global market for milk alternatives is valued at over US$26 billion and is expected to expand at a 12.6% CAGR from 2023 to 2030.
Notable Nutraceutical Market Activity
We at NutraceuticalInsights.com expect these trends to continue, as evidenced by some of the latest news from established and upcoming players in the Health & Wellness sectors.
Smart for Life (Nasdaq: SMFL) recently announced both a new functional foods product category (protein and fiber fortified frozen desserts) and a new line of products, Smart for Life High Protein Ice Cream Bars™, which combines the fiber, protein, and other benefits of its protein bars with a unique ice cream formula. Smart for Life is going a step further and reimagining its distribution strategy by making the frozen bars almost instantly available to customers in (initially) select markets. According to the company, the bars were in development for years and offer a range of functional benefits including sustained energy, muscle recovery, and support for regulating blood sugar levels. More information about the protein ice cream products can be found at www.icecreamprotein.com.
Herbalife (NYSE: HLF) announced the Q1-2023 launch of 106 new product SKUs in its 95 global markets. Highlights include new flavor revisions of existing products including its High Protein Iced Coffee in Caramel Macchiato flavor. It is low fat and contains up to 2 grams of sugar. The 100-calorie drink mix has no artificial flavors or added colors and provides 15 grams of protein and 80 mg of caffeine per serving, offering a nutritious alternative to other sugary coffee beverages. Available in the U.S., Puerto Rico, and Canada. The company launched its Active Mind Complex containing a proprietary spearmint extract that is scientifically proven to promote cognitive and psychological function as well as a Chinese market protein shake designed for children. Learn more about Herbalife at https://www.herbalife.com/.
Nestlé S.A. (OTCMKTS: NSRGY), through its Nuun brand, is making the case that its new mix-in powder sport hydration product should be considered a daily necessity like food rather than a supplement. “By classifying it as a food, we can make more compliant claims around it being a drink mix—that it’s for hydration, that it’s for water,” said Vishal Patel, Nuun’s director of product development. To learn more about Nuun, visit https://nuunlife.com/.
Weight Watchers (Nasdaq: WW) recently acquired Sequence, a company dedicated to helping its patients/clients get access to Ozempic and other weight loss drugs, potentially signaling a shift in the company’s business strategy, or perhaps using the weight loss drugs as a path to delivering more subscribers to its existing behavioral modification-based subscription product platform. Learn more about Weight Watchers at https://www.weightwatchers.com/us/.