Health: The New Currency for FMCG Brands

We are living in a world of Socially Conscious, Highly Informed and Ethical Consumers these days. These Consumers are willing to do the legwork to become aware of the products they Use and Consume. A big part of this New Cultural Shift of “Conscious Consumer Culture” is a Health Focused Lifestyle.

This Shift of Growing Consumer Awareness is Creating a new FMCG Environment, contributed by Readily Available Knowledge Resources, Health Influencers, Growing Fitness Industry and a more proactive Food Authority. The Focus of this Ecosystem is “Healthy.” Thus, it is the new currency on which every FMCG Brand must bank on to remain relevant.

A great example would be Saffola. Its Cooking Oil has claimed to be healthy highlighting Omega-3, Omega-6, and other health benefits in its products since a decade, growing smoothly into the new FMCG environment with the introduction of “Masala Oats.” These efforts reflect Saffola’s understanding of its Consumers making it a household name all across the country.

Proactive Consumers expect Health with Taste

Product Information is Important to Customers these days. They pay attention to Product Labels and Certifications. Their awareness sometimes even goes back to Manufacturing Processes, Packaging, Environmental Impact and total “Green-ness” of any Product. This trend is especially Prevalent in Urban India and is expected to gently seep into Tier-1 and Tier-2 cities.

Newest group of Consumers i.e. Gen-Z are Health Conscious, marked by a rise in their Consumption of Nutritional Supplements and Health Products, with searches for Vitamins, Multivitamins, and Wellness Solutions growing by 25-30% in recent years. (Approximate data from multiple sources).

According to a 2022 Nielsen survey, more than 70% of Indian consumers factor in health benefits when shopping for food and beverages. This trend has created immense potential for FMCG brands to capitalize on.

Consumers today often look for Products with Natural Ingredients, Low Sugar, Low Fat, and added Nutritional Value. This demand has led to the rise of Products like Multigrain Biscuits, Sugar-Free Snacks, and Protein-Packed Beverages. To stay relevant, FMCG brands must now compete on Health Benefits in addition to Price and Taste.

The Role of Food Authority Regulations

As demand for Healthy FMCG Products Grows, Food Authorities like the Food Safety and Standards Authority of India (FSSAI) have heightened their Scrutiny. This especially came to light after some Big Brands came under spotlight for containing harmful substances in their products.

A noteworthy case is of MDH, a leading Indian Spices and Masala Brand which faced scrutiny due to its product containing some harmful substances more than the permissible limit.

This was similar to Nestlé’s Maggie case of 2015 which led the Brand to pivot their product offerings to Healthier Ingredients and diversify their offerings into Healthier options like “Whole Wheat” and “Oats” Instant Noodles.

Such cases have increased Consumer Awareness and have put pressure on FMCG Brands and Regulatory bodies alike to ensure Healthy Products are sold and stringent guidelines are followed.

FMCG Brands Building on Health Focused Products

With the advent of Healthy FMCG Products, many startups have bloomed, building on this very demand. Some examples of these are iD Fresh Foods (Preservative Free Quick Fix Food Products), Yoga Bar (Higher Protein and Lower Sugar Bars), The Whole Truth (Snacks which claim maximum transparency and high quality in ingredients used) and BRB Chips (Air Popped Chips instead of fried).

Established Brands are building on this Health Focused Consumer Demands and coming up with relevant products. For instance, Amul’s Slim Milk with minimal Fat percentage, Epigamia’s Greek Yogurt and other plant-based products, ITC Ashirvaad’s Multigrain Atta Options, PepsiCo’s Quaker Oats etc.

Rise of Health Influencers

Trends often go hand in hand with Cultural Shift as well as rise of Celebrities/ Famous Names that are expert of that Trend. Similarly, the “Health Kick” we are in today have given rise to Numerous Influencers. Many of them contribute directly and significantly towards driving demand of Health Favoring Products.

These Influencers are often seen raising questions on the long-term health benefits of various FMCG products. They have built strong trust among their viewers often giving an inside look into their own life, and the products they consume.

The younger generation especially rely on these influencers for knowledge and information, especially regarding a particular product’s review. Naturally various FMCG Brands are now teaming up with these influencers to raise awareness of various Health Benefits of their offered products. It also helps them bridge the existing communication gap between established Brands and ever-changing trends among their younger consumers.

Health and Innovation: A must for Future Relevance

FMCG Brands must keep innovating, offering High Quality Healthy Products while keeping track of changing demands of Consumers. New Macro and Micro Health Trends must also be kept in mind while deciding Product Portfolios for any FMCG Brand (For instance, Shifting Focus on Plant-based Products and Rise in Demand of Protein Rich products). Transparency and Honest Trust Building will also be a key to success for any FMCG Brand.

Brands that strike the right balance between taste, price, and health benefits will thrive, building loyal customer bases. Health-conscious choices, amplified by influencer endorsements, are shaping the future of the FMCG industry, making health not just an option but a necessity for brand success.

How should you keep Growing?

At Stradonn, we specialize in helping new brands navigate the evolving market with smart, strategic insights. Whether you’re Startup or Established Brand, in FMCG or any other Industry, we are here to provide guidance on aligning with the latest consumer trends.

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