Competitor Strategies in Health and Wellness Packaged Food

Key findings

Food companies are pursuing sustainable development

The future commitments of the food industry continue to be focused on solutions to today's biggest health and wellness challenges. Populations are ageing, obesity is one of the most serious public health challenges, and the prevalence of allergies is rising. Pledges have been made by big food companies to deliver new nutritious products that address daily needs and gaps among children, the elderly and other vulnerable individuals. In this context, corporate health and wellness commitments are increasingly in line with the United Nations’ 2030 Sustainable Development Goals.

Big HW food players threatened by small, nimble brands

Competition in the health and wellness is intensifying, as small, agile producers with local brand power are gaining ground, in line with consumer demand for “authentic” and minimally processed products. This has put pressure on big food manufacturers, which are often associated with unhealthy and heavily processed foods. However, although top food companies are losing ground, they are still big enough to maintain their leadership.

Reformulation needed in the “war on sugar”

In recent years, sugar has been in the spotlight, as attempts are made to fight obesity. Public health initiatives, with sugar at the top of the agenda, are coming into force, and key food players are jumping on the bandwagon of sugar reformulation. Danone, for instance, has set comprehensive Nutritional Targets for 2020, including for sugar; Nestlé launched its “Healthier Kids” initiative in 2018, with sugar at the forefront; and Mondelez is looking to align with the WHO advice to limit added sugar to no more than 10% of daily calories.

Free from and organic are bright stars in health and wellness

The fastest growing categories, such as free from and organic, are also at the heart of the innovation for key players, as consumers continue to choose such products for health reasons. Investments include Nestlé´s relaunch of its Garden Gourmet range of plant-based meal options, Danone’s new dairy-free yoghurt and General Mills' organic range in line with its “responsible living” vision.