Plant-Based Food Alternatives Among Leading Health and Wellness Food Industry Trends in 2023
The Global Health and Wellness Food market was estimated at $939.9 billion in 2022 and is projected to reach $1.4 trillion in 2027, at a CAGR of 8.5%.
In our recent Food & Beverage Insider: Health & Wellness, the Food & Beverage investment banking team at BGL takes a closer look at some of the health and wellness food industry trends driving this growth.
Plant-Based Food Alternatives Going Mainstream
Plant-based products are expected to continue to be on trend — not only for their known health benefits but also because they have become a popular means of sustainability and reducing environmental footprint. The plant-based packaged- food offerings have expanded exponentially in recent years, driven by an increasing vegan population worldwide. Per a report from the International Food Information Council, 65% of people have consumed products in 2021 that imitate the flavor and texture of animal protein but are plant-based.
Food Tech Revolution Driving Personalized / Precision Nutrition New technology, gut microbiome testing, and constant new food launches are bringing a tailored approach to food manufacturing. Blockchain producers are providing increased visibility throughout the supply chain to ensure food safety and traceability. Providing the opportunity for customization in food and beverage consumption presents a large opportunity for both start-ups and established players. For example, Cadbury utilizes Sugar Reduction Technology to render sugar crystals ‘hollow,’ leading to reduced sugar content in its chocolates, allowing consumers to enjoy a healthy alternative to traditional chocolate.
More Mindful and Balanced Eating
According to the global food and nutrition giant ADM, 66% of consumers globally are more concerned with immunity today than a few years ago. Increasing awareness regarding lifestyle ailments, immunity boosting, and body image concerns are driving the need for functional and naturally healthy ingredients. Traditional food and beverage companies have also been looking for strategic partnerships to strengthen their ingredient-focused product portfolio. Various seeded food products are one of the key health food trends in 2022, as they offer similar nutritional benefits to nuts which are a very common food allergen.
Multiple Variants for Food & Beverage
With increasing options / variants for F&B, many trends have risen for consumers to follow healthier and tastier food. For example, alcohol-free options, beverages with benefits, plant-based omega-3s, globally inspired foods, lower-sugar foods, non-dairy milk, and immunity-boosting foods continue to experience rapid growth as consumers pursue a healthier lifestyle. Additionally, many trends are encouraging a healthier environment, such as recycled ingredients that help reduce food waste. For example, 88 Acres Seed’Nola is an allergy-friendly granola that is made from leftover end pieces.
Looking for more insights on the health and wellness food industry trends driving the market in 2023? You can download our full 32-page Insider report here.
Led by Daniel J. Gomez, our global Food and Beverage investment banking team provides extensive sector-specific expertise and access to relationships with global buyers and sellers around the world. Please reach out via our contact form below to learn more.