Defining the global trend
After 2020, consumer attitudes towards health have substantially changed. More than tackling a specific health issue, the new zeitgeist calls for a preventative approach, by enhancing individual defences against external threats or potential diseases. The approach is expanding beyond health issues to address everyday health-driven needs, from boosting to relaxing.
Daymon’s Peak Performance Innovation Pillar is aligned with this personal need for an optimal health balance state, by strengthening a wellness baseline and giving individuals a stronger competitive edge to better deal with the pressures of daily life. Edelman’s Trust Barometer from 2023, emphasized Food and Beverage companies and Retailers as the 2nd and 4th (respectively) most essential businesses to keep consumers healthy. Thus, this has been an important innovation driver for both players, fostering novelties on multiple fronts, including product formulation, claims and packaging.
Consequently, the reach of functional is now going beyond functional categories such as sports drinks, protein bars, or vitamins and supplements to enter core food and drink categories, including indulgence snacks, breakfast cereals, and cooking ingredients, among others. The reliance on superfoods emphasizes this move and the functional benefits ingredients can offer to consumers. Several ingredients and their benefits, like ginger or turmeric for antioxidant/anti-inflammatory properties, rooibos for heart health, or even the potential of fermentation to improve digestion, have pervaded the public space and become part of everyday conversations.
From a business point of view, Daymon’s Private Brand Intelligence Report from 2023 singled out High Protein as the most popular dietary approach to reach Peak Performance, especially among younger consumers. Other relevant need comes from Energy boosting products, designed to help consumers to cope with the frantic pace of modern life. On the opposite pole is the need for food/drinks that promote better sleep, with almost 60% of Polish consumers catering for such solutions, (Mintel, 2023). In MEA, the trend points also towards relaxation, as 82% of Saudi Arabian shoppers were actively seeking ways to reduce stress (Mintel, 2022), seeing dietary choices as a way to boost immunity (48%) and improve mood (41%).
If Peak Performance is a global trend, encompassing multiple regions, markets and consumer realities, there are some regional specificities that should be taken into consideration to adjust the formulation to local markets. In APAC, for instance, some new functional launches in India focus more on ayurvedic ingredients like millet or jaggery, in a market where almost half of the adults look for digestive support from food products (Mintel, 2024).
Private Brands have been investing to meet consumer demands by developing a wide range of solutions. For example, in the UK, Holland & Barrett launched gut-friendly chocolate confectionary snacks containing "friendly bacteria" at the end of 2023. At the same time, in Australia, Woolworths introduced Sourdough Bread Slices. Some retailers are taking a different approach to Private Brand product development by partnering with external brands to create more innovative solutions. Marks and Spencer collaborated with Zoe Nutrition to produce a Gut Shot bottle that contains over 5 billion live cultures and is free from sugar and emulsifiers. Similarly, in Spain, Mercadona expanded its Private Brand gum range by adding Chickles Deliplus Vitamin and Energy Gum enriched with natural stimulants like ginseng, caffeine, as well as vitamins B5 and B12. This range has been gradually introduced in Mercadona's stores during the first half of 2024
In addition to introducing a new product, it has become crucial for brands and retailers to implement a comprehensive consumer education strategy. In today's information-heavy environment, this is essential for highlighting the product's advantages and effectively capturing consumers' attention. Marks and Spencer, to promote their Gut Shot, developed a microsite explaining the product's origin, benefits, and the significance of their partnership with Zoe. The microsite also includes various videos and links to nearby stores. This approach allows M&S to establish a unique connection with consumers through a clear message that distinguishes their offering.
From a Regional standpoint, MEA has also been following the global trend towards a healthier lifestyle. Already in 2021, about 70% of Saudis attempted to eat healthily the majority of time, and, in 2024, over 80% of MEA consumers stated that, when making a purchase, both physical and mental health were key drivers, as highlighted by GlobalData’s Consumer Survey.
Over the past four years, there has been an increase in the number of products with functional benefits being introduced in the region, mostly by international brands. These products go beyond the traditional functional categories. Juice drinks have emerged as a major category for peak performance, both globally and regionally, as they offer functional benefits derived from fruits, such as aiding digestion or providing antioxidants.
Snacks is another category worth exploring. Adding functional benefits to snacks can be advantageous to consumers. High protein and energy boost claims are among the functional benefits that can be added to snacks. Some examples include Protein Peanut Butter Pralines from Polish brand Newtrition, Olive Protein Crackers from Modern Bakery, a Mango, Pineapple & Passion Fruit Sparkling Vitamin Water from Acti Vit UK or even a Midnight Cherry Superhuman Performance Energy Drink, from Nutrabolt.
Amidst this backdrop, brands and retailers should, more than ever, see food as medicine, developing new ranges based on local ingredients that could easily resonate with consumer preferences and use them as allies to achieve their own individual Peak Performance.
For that, 4 steps are key for retailers to address the need for Peak Performance with their Private Brand offering:
With 50 years of experience building successful private brand programs around the world, Daymon is the only solution provider that influences all aspects of private brand development, from strategy to execution to consumer engagement. Daymon’s unique approach helps retailers and brands set themselves apart through a full suite of best-in-class private brand development services, including: strategy, analytics and insights, product development, supplier development and management, account management, and design and packaging management. Daymon drives brand innovation, differentiation and results.
For more insights and recommendations for driving your brand, contact idc@daymon.com.
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