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Holistic health trends shape Gen Z and Millennial preferences for functional products

Research from FMCG Gurus points to the fact that functional products are seen as a key step towards holistic regimens that focus on a healthier lifestyle where the aim is prevention rather than cure.

The market researcher recently published its Trend 8 - For Today, Better Tomorrow Global Report 2024, which points to greater interest in holistic health practices as the best way to achieve positive health outcomes. To this end, the research points to how consumers are prioritising their cognitive and emotional wellbeing, as well as putting increased importance on healthy ageing and physical health.

While emphasising that these holistic goals are underpinned by the realisation from consumers that good sleep and boosting the immune system are the key elements, the FMCG team also points to a shift in health objectives that are feeding demand for a wide range of functional products that go beyond improved nutrition.

Gen Z and Millennial consumers show most concern about health

In particular, there is a rising emphasis on the importance of energy as a reflection of healthier outcomes, with Generation Z and Millennials identified as the consumer groups that are least likely to be content about the state of their health.

“Generation Z and Millennials are key audiences for functional products for two reasons,” a spokesperson for FMCG Gurus said. “Firstly, they tend to feel less confident about their health, and secondly, they tend to be conscious that their diets and lifestyles increase the risk of long-term health issues.

“While these consumers do try and look for ways to maintain their health, factors such as busy lives and time scarcity mean they need help to monitor their micronutrient intake, adopt structured dietary plans, and get the right amount of rest and recuperation. As such, they are open to functional products that are positioned around higher dosages to provide a quick and easy health and nutrition boost.”

Impulse buying points to need for convenient formats

Tying in with the faster pace of life for Generation Z and Millennial consumers, the FMCG research also points to the fact that these consumers are likely to opt for easy-to-use formats capable of fitting in with a hectic daily schedule.

“Impulse formats are most likely to appeal to consumers both within the food and drink and supplement sectors —which in the latter, explains the growing popularity of gummies and jellies that blur the boundaries with confectionery,” said the FMCG Gurus spokesperson.

“These appeal because they are suitable for on-the-go and due to the informal nature of the consumption occasion, allows some trade-off between taste and nutrition that is important to highlight when seeking snack bars and beverages.”

Brands need to answer consumers' needs with expanded claims

Manufacturers are responding with increasingly varied claims, including an emphasis on cognitive and emotional wellness, while also meeting the demand for convenient formats, heightened efficacy, and value to engage the increased intentional spending on health and wellness.

The research also points to the fact that consumers are reevaluating their approach to energy and wellbeing. Instead of seeking quick-fix products that might, for example, give them an immediate boost if their energy is lagging, consumers are opting for more sophisticated functional products that can address the underlying problem and provide longer-term or more permanent solutions.

The key trend is to make healthy ageing appear aspirational,” the FMCG Gurus spokesperson said. “No consumer, irrespective of their age, wants to be made to feel old, and no one wants to associate ageing with negativity and vulnerability - which is why the phrase ‘anti-ageing’ is no longer really used. Energy and vibrancy are key to this and promoting the notion of staying healthier till later in life and breaking stereotypes associated with ageing. In addition, making energy-enhancing a key claim is crucial, especially as people are re-evaluating their attitudes to energy and making the link with reflections of wider health.”