A great consumer health shift is upon us. But how can consumer products companies ensure their entire business delivers on the promise?

The consumer health industry is booming. Projections indicate the market will grow from $351.46 billion in 2023 to $713.92 by 2033, as shoppers increasingly seek out products and brands that will help them lead healthier, more active lives.

This explosive growth is driving many traditional consumer products companies to pivot towards health-focused offerings, having recognised personal wellbeing as a rising tide that must be swam with, not against. For example, Twining’s – a brand that’s brewed up over 100 years of experience in tea – made a conscious and successful transition into the consumer health space by introducing health teas and sparkling ready-to-drink teas. Smoothly aligning their products with the growing demand for wellness and personal well-being.

But brands looking to repeat this success by simply rushing out health-focused lines should think again.

Drawing on our deep consumer products industry expertise and exclusive insights from Capgemini Research Institute’s latest consumer trends report, we’ve identified fundamental trends to consider before pouncing on the pivot.

It’s also what’s on the outside that counts

Ultra-processed foods continue to cause challenges for brands as they climb higher up the health agenda. Two-thirds of consumers are willing to switch loyalty based on nutrition scores, according to our report, with food scores a key factor in brand choice for 76% of millennials, 71% of Gen Z, and 67% of consumers globally.

But they’re not the only concern. Though price is still important, according to our research, sustainability is a critical factor in purchasing decisions for 64% of consumers overall. In fact, the proportion of consumers who have paid a premium of 1-5% more for sustainable products shifted from 30% to 38% last year. And 67% of consumers cited failure to show sufficient concern for the environment – for example ultra-packaged goods – as a top reason for switching brands and retailers. A further 62% said they actively support brands that demonstrate transparent food waste reduction practices.

To meet these expectations (and, in some cases, regulatory requirements) an increasing number of companies are focusing on sustainable packaging solutions that go beyond single-use trays and recyclable boxes. For instance, Capgemini is working with a new packaging facility in Morocco to address the very latest client problems, such as fresh consumer concerns around the significant presence of plastic molecules in teabags.

By adopting sustainable practices – not just limited to packaging – we believe companies can enhance their brand value and appeal to environmentally conscious consumers. But they must be able to assure their customers that this philosophy runs deep.

Are you confident your business delivers beyond your products?

In the age of data deep-dives and social media sleuths, companies can’t hide or fudge their duplicities (or perceived duplicities) for long. You need quality assurance end-to-end, through marketing, research & development, finance, employee proposition etc. Everything should sit behind and be true to a strong corporate value because customers will be looking at it and they want the security of feeling that anything they pick up is genuinely good for them and the planet.

Part of this involves looking at your business models. Traditional business models, where sub-brands operate autonomously with separate factories, warehouses, and delivery systems, are becoming obsolete. Companies like Associated British Foods, which owns Twining’s and Jordans, are recognising the inefficiencies of such models. In the future, these inefficiencies will be unsustainable, and companies will need to streamline operations to remain competitive and attractive to sustainability-conscious consumers.

So, how do you go about it?

Armed with our deep industry expertise and market-leading capabilities in data & AI, Capgemini can take an end-to-end approach to transforming your entire business into a consumer health-focused organisation that’s attractive to conscious consumers.

For example, by running diagnostics to discover how true to your values are you as a consumer-health/nutrition company. By performing due-diligence to help fix your end-to-end supply chain – from research & development data science through to packaging, labelling, and vetting/re-vetted and sourcing suppliers. And, fundamentally, by crafting a solid data strategy that includes integrating data analytics into every aspect of the business to help you make informed decisions quickly.

This agility is crucial in a market where consumer preferences are constantly evolving, and health consciousness continues to drive their behaviours.

Get in touch to start tomorrow’s health transformation today.