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Should brands make healthy products more affordable?

Do health and wellness products need to be affordable or are consumers willing to pay a premium for a health benefit despite the cost-of-living crisis? We asked two leading market experts – and received different answers.

Whether its yoghurt with added protein for energy, high-fibre bread with inulin fibre for digestive health, or even vitamin C gummies for immunity, supermarket shelves today are filled with products that promise to improve shoppers’ health.

However, the inclusion of active health ingredients often means that these functional food and drink products have a premium price tag.

Many consumers have traditionally been willing to pay this premium. However, with inflation rates on the rise and global consumers battling a cost-of-living crisis, can these premium products continue to hold appeal – or should manufacturers absorb costs to make their products more affordable?

Innova Market Insights: Health is top of the agenda

Innova Market Insights recently conducted a survey on the impact of the current cost-of-living crisis on consumer purchasing habits, and Nicole Jansen, manager for insights and innovation at the market research company, said she was “surprised” by the results.

"What we could see was that, even for people who have a lower income, as well as medium-income, [...] health was still more important to them than affordability. I think this is such a great insight because it really shows [...] how important health is for the consumer,” Jensen told this publication at Vitafoods Europe, held last week in Geneva.

“Health is on top of the agenda and they really want to invest in making sure they have functional food products that can give them the nutrients they are looking for. So yes, they are really willing to pay the extra for those products.”

FMCG Gurus: Consumers will place greater emphasis on value

However, Mike Hughes, head of research and insights at market research firm FMCG Gurus, was less confident.

He said the cost-of-living crisis was a macrotrend that would continue to impact the nutraceutical industry in the coming years as global consumers look to make savings.

"Unfortunately, I don't think [this is] going to be a short-term thing but something that heralds higher prices in the health and wellness market due to factors such as rising crude oil prices, disrupted supply chains, supply and demand etc.

“That era of consumers placing health at all costs, which we saw during the pandemic, won't be a thing anymore and what we'll see is that consumers being more considered and questioning value more when buying wellness products.”

Hughes added: "That doesn't necessarily mean they won't purchase these products, and it doesn't mean they will neglect their health, but it does mean consumers will place greater emphasis on value and scrutinise the efficacy of products because purchasing will be more considered. That will be really important."