The health and wellness market has seen tremendous growth over the last decade. But, is this a trend we can expect to continue and are there issues to be overcome?
Whether you already have a successful business or you’re just starting out, you need to keep an eye on changing trends and understand the modern wellness consumer if you’re going to succeed. This also means understanding what may limit your growth and finding ways to adapt.
Keep reading to learn more about the state of health and wellness in 2022 and the things you need to keep in mind when growing your business.
Forces disrupting the global health & wellness landscape
2021 saw a number of shifts in the health and wellness market that can both hinder and help your brand grow. These are a few of the forces that have had a major impact on the business landscape for 2022.
Health care costs: spending on health (as % of GDP) has hovered around 8.8% for last 10 years but jumped up to 9.9% in 2020.
COVID-19 Deaths: ~790K COVID-19 deaths in the US (as of Dec 2021).
Obesity: 39% of the global population is overweight. 2.8 million die each year as a result of being overweight.
Sugar regulations: 50 countries and jurisdictions have implemented sugar taxes.
Mental health: 1 in 10 of the world population live with a mental health disorder.
Label legislation: Only 4 OECD countries mandate front of pack nutritional labelling. This is part of a larger clean label trend that you should also keep an eye on.
Aging population: By 2050, the number of adults 65+ globally will double.
Health technology: Global Spending on Wearable Devices to Total $81.5B in 2021.
Pollution: 24% of all estimated global deaths are linked to the environment. Air pollution kills 4.2 million people every year.
Cannabis: Estimated size of global cannabis market is $31b in 2021 (+41% over 2020 sales), and forecasted to grow to $62.1b (+15% CAGR to 2026).
Changes will shape and guide consumer choice
With all these shifts in the market, this means that consumers are modifying their behaviors. We’ve already seen that consumers are shifting to a more sustainable and humane way of living. But, did you know that more consumers than ever are concerned about their health and the impact their behaviors have on the environment?
Here are some statistics on consumer behavior:
- 51% say that access to public or universal healthcare has become more important to them in the past 2 years.
- 61% agree environmental issues are having an adverse impact on their current and future health.
- 66% find it easier to be healthy when they and their family are spending more time at home.
- There was 50% growth in health & wellness products purchased on subscription.
- There was 31% growth in total CPG products purchased on subscription.
Consumers expect businesses to play wellness role
Proactivity is key for wellness brands in 2022. Your company needs to adjust to shifting consumer trends and meet their needs or be left behind. In fact, one thing that most consumers agree on is the need for businesses to work hard to provide healthy and sustainable options.
US consumers also agree on the following:
- 69% want retail regulation for fresh, healthy food availability & affordability for all citizens in all locations.
- 67% believe companies have an obligation to ensure health products are less expensive than processed/unhealthy ones.
- 59% feel that companies should be taxed heavily if they continue to produce or promote unhealthy choices.
- 59% think governments should more closely regulate businesses to help consumers make better health choices.
- 83% of consumers 44 and younger said that they would spend more money on sustainable packaging.
However, it’s still important to remember that not all consumers act in the same way. Less than half of consumers are active advocates for their own health. Many still need to be convinced, so your brand needs to be good at conveying value to the consumer’s daily life.
Use the Total Wellness Solution
No matter what you do as a brand or retailer, consumers purchase based on specific health and wellness needs. Brands must assess themselves through the lens of how consumers shop today to drive growth.
With the additions to Total Wellness, you can get the business-ready insights to inform your marketing, product innovation, and growth strategies by understanding your marketplace in a way that consumers shop. The insights are delivered as reports, ready to be used by all of your stakeholders for immediate decision-making. You’ll be able to measure sales and growth by product attribute, optimize your assortment to meet preferences, capitalize on new opportunities, provide the best packaging details, make the correct attribute claims, and excel as a CPG brand as wellness becomes mainstream.
Learn more about Total Wellness here.