Nearly a third of Indian consumers seek healthy ingredients in foods, beverages: Euromonitor report

NEW DELHI: The pandemic has accelerated consumer shift to healthy foods and beverages, with more consumers now seeking healthy ingredients in food and beverages, a report by researcher Euromonitor has found.

Euromonitor’s Top Trends Influencing India’s FMCG Industries in 2021 report reveals that 69% of India’s population look for healthy ingredients in food and beverages, a 5% increase from 2019.

This shift in consumer priorities ties down to health implications that covid-19 has had.

As a result, more consumers are taking a holistic approach, with improved lifestyles and preventative healthcare measures. The popularity of traditional medicine and herbal formulations have grown too, Euromonitor analysts said.

Fear of bad health combined with increased unemployment are two key areas that businesses will need to consider when building future models, it said.

Euromonitor pointed out that despite mobility normalising, the surge in demand for immunity boosting supplements in India will remain strong in case new covid-19 variants develop.

Several companies are now using the health and immunity plank to launch more products in the market. The launches cut across packaged foods, staples, and beverages.

Personal care brands, on the other hand, are riding on the natural or organic wave to draw in new consumers.

The shift towards healthier eating has also prompted packaged food companies to launch more functional food products with immunity claims and incorporate healthier ingredients into existing products.

Companies could expand their product portfolios to address growing concerns around problems like inadequate sleep, stress and anxiety will be key in the coming years, it said.

Companies such as ITC, Marico and Dabur are working towards such launches.

The heightened interest in immunity-boosting products along with consumers exploring more Ayurvedic formulations are strong drivers for new market entries.

Analysts at Euromonitor also flagged uncertain economy, high unemployment rates and key themes of affordability to remain relevant.