Health ingredients report 2021

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Opportunities and hurdles for health ingredients Taking care of health has long been a priority for most individuals and a balanced diet is seen as a cornerstone of general health. The COVID-19 pandemic has accelerated many trends that were already shaping the food and drink industry; that diet-related diseases such as obesity and type 2 diabetes are established co-morbidities for COVID-19 has brought the link between food and health into sharp focus.1 Demand for healthy foods, functional ingredients and supplements has risen as a result.2 With second and third waves leading to further national lockdowns and vaccines initially being offered only to the most vulnerable population segments, brands can be confident that consumers will continue to place an emphasis on health and nutrition support going forward. Manufacturers wishing to incorporate functional health ingredients to their product portfolios must nevertheless be mindful of the current economic downturn. While premiumisation has been a driving force in the functional food category in recent years3, many consumers are feeling the brunt of a global recession and are adapting their purchasing habits as a result, switching to private label and seeking out bargains. Brands must therefore ‘prove their value’. Even so, consumers may be unwilling to switch certain products, such as infant formula or specialised nutrition products, and manufacturers operating within these categories can expect to maintain sales.4 These brands should highlight the added value benefits of their products, such as nutrient density, organic sourcing, or natural ingredients.

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