After what seemed like a constant trek upward, the demand for wellness products has run into the economic reality that many consumers no longer consider premium products worth the money. Evergi’s latest report on wellness shows that this market is shrinking as consumers tighten their belts. At the same time, there are opportunities for certain types of products that appeal to certain types of consumers.
Money continues to be the top stressor for consumers, and the percentage who say this is their top stressor continues to grow. In Q2, it was 37%, up from the previous high of 35% in Q1. As a result, people are shifting their spending.
Evergi has identified five personas of wellness product consumers, each with their own priorities and spending habits. Due to economic uncertainty, consumers are shifting from the trend-setting personas, who are willing to spend more and try new things, to more conservative personas, who are more income-conscious and likely to stick with what they know.
The data also show steep declines in the plant-based market, which Evergi attributes to three factors:
- The number of people who follow a strictly plant-based diet is decreasing.
- Consumers who eat both meat and plant-based alternatives are shifting toward eating more meat and less plant-based.
- Consumers are purchasing fewer high-priced products in general.
The report does identify some areas of opportunity for food brands that can meet consumers’ need for both wellness benefits and budget-friendliness. For example, people are consuming less alcohol, leading to opportunities in non-alcoholic beverage categories like electrolyte water and cold brew coffee. And interest in “tried and true” functional ingredients like Vitamin D and fish oil continues to grow.
For more details about the different consumer personas, their wellness needs, and opportunities in this market, download the full report.