Cost and taste are key factors

Cost, taste are the key factors for consumers to evaluate nutritional products

As consumers seek value for money, research conducted by Nutiani, Fonterra's health B2B brand, has highlighted the role of scientifically backed functional ingredients as a means of adding value to nutritional products.

According to Nutiani's third State of the World Health Report, cost remains a key consideration for consumers when evaluating nutritional products. The report is based on the results of the company's 2021 IPSOS Nutiani Consumer Health Study and Consumer Segmentation study involving 5,000 global consumers.

But cost remains a barrier for many - 38% of respondents said they were concerned about the affordability of nutritional products - so product formulations that offer multiple health benefits could be a winning formula for manufacturers.

This can be achieved by incorporating functional ingredients such as probiotics and phospholipids into solutions that address multiple health issues simultaneously.

According to Nutiani, selecting scientific ingredients that do not compromise flavor - which 14% of consumers identify as a barrier - and can be added to a variety of food applications is a way to unlock new categories of nutritional solutions.

Consumers of all ages can be drawn to these offerings - from busy 25-44 year old professionals looking for convenient holistic wellness solutions to 45-70 year old people actively seeking health management solutions. According to the report, U.S. consumers have a particularly well-rounded view of health, with nearly 90% placing cognitive and mental health as important as physical health.

At the same time, consumers in Japan and China are more likely to pay close attention to a product's ingredient list or whether it has a scientifically backed claim.

However, consumer education is needed to attract the younger consumer segment (16-24 years old), who tend to be less informed about the link between health and nutrition.

Charlotte Ortiz, Global Brand Marketing Manager at Nutiani, commented: "Our research supports what our clients and industry experts are saying. Consumers have an increasingly sophisticated understanding of how health issues are interconnected and how concerns about one area of physical, mental, or inner health can have a knock-on effect on their overall health. Backing up any health claims about multifunctional benefits with rigorous clinical evidence will also be critical to overcoming skepticism, building consumer confidence, and building credibility."

According to Insight Partners, the fortified dairy market is expected to grow from $115 billion in 2022 to $170 billion by 2028, at a compound annual growth rate (CAGR) of 6.5%. The demand for fortified dairy products is expected to increase due to the growing awareness about the health benefits of fortified dairy products and the growing focus on health and fitness.

The milk segment is projected to register the highest CAGR, with fortified milk and yogurt able to offer consumers a comprehensive choice to more conveniently meet the recommended daily intake targets for key vitamins and minerals.

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